Anthony Sykes & Company

     Soon information related to Paycheck Protection Program ( PPP ) loans will be made public. Specifically, the names of businesses that received over $150,000. It will also include business names, types, and addresses. This list may not be very long since the majority of loan borrowers were under $150,000. However, 75% of the $500 billion in loans went to businesses that were approved for more than $150,000.      In the beginning, no information was going to be released. When the first round of loans ran out in record time, many insisted on disclosure of who was receiving the funds. This was not expected, and the results of knowing these details is going to make some uncomfortable. There will now be a very public scrutiny for some.

     Some Federal tax refunds will be paid with interest this year. Does that sound strange? While most of this year has been strange, but there is a reason for this announcement from the Internal Revenue Service ( IRS ). For those who filed their Tax Return before the July 15 deadline and received a Tax Refund after April 15, the IRS will be giving interest on the refund amount. Why?      This normally only happens if it takes over 45 days to release a refund after the Tax Return has been filed. In this case, the IRS is honoring the original April 15 tax deadline. Every day from April 15 to the day your tax refund is sent interest will be applied to that amount. That could be anywhere from 3%-5%. That interest may be sent separately and it is taxable income. This should be an encouragement to file on time and consult your Qualified Tax Professional to make sure you don’t miss the July 15 deadline.

     As the tax filing deadline draws closer, many Taxpayers begin to think about their expected Tax Refunds. The Internal Revenue Service ( IRS ) gets a few common myths every year regarding Tax Refunds.     If I get a refund, then I don’t need to adjust my Withholding this year. A Taxpayer should always be prepared to change their Withholding. This is especially true if their Tax Refund was an unexpected amount. This could be because of the employer withholding too much or too little in 2019. Making a change now will improve the situation when filing next year. Talk to your Qualified Tax Professional to find out how.     There is a secret to finding out my Tax Refund deposit date. No, there is not. Calling the IRS or your Tax Professional will not speed the process. The funds are usually sent after 21 days, but each situation is different. The IRS made a mistake on my Tax Refund. That might be the case, but there are other reasons why your T...

     As so many thoughts and concerns dominate our hearts and minds, let’s not forget that Tax Returns for the year 2019 must be filed in less than a month. There are many credits that can be claimed, which may provide some financial relief this year. For example, the Child and Dependent Care Tax Credit can help to offset major expenses.      According to the Internal Revenue Service ( IRS ), Taxpayers can claim a credit of up to 35% of their costs. To qualify, this care must have been provided for someone who is under the age of 13. If they are over 13 , this person must be a dependent who lived with the Taxpayer for over half of the year. To find out more details about this credit to see if you qualify, talk to your Qualified Tax Professional . The time to prepare to file your Tax Return is now. The deadline is fast approaching and it’s best to find out what credits you qualify for as soon as possible.

     This is a time of great instability. Many businesses are still closed, people are waiting for Economic Impact Payment ( EIP ) checks (or debit cards ), and are still concerned about their health and safety. If someone approaches them with information to help during a time of need, they want to believe them. That is what criminals are counting on. The Internal Revenue Service ( IRS ) is warning all to be on the watch for an increase of COVID-19 related scams.      The Criminal Investigation Division ( IRS-CI ) is aware of schemes regarding EIP and Taxpayers looking to receive faster payment. There is no “processing fee” that will allow anyone speed up their payment. The IRS will never reach out to you by means of text, Social Media, or email. There have been reports of letters coming through the mail using terms like “Stimulus” and “Corona Virus”. Some are being told they need to apply for a second impact payment. The goal of these interactions is...

     With all of the problems that the newly created Paycheck Protection Program ( PPP ) has faced, you can add large amounts of fraud to the list. After the first round of payments, the Department of Justice began to investigate and prosecute fraudulent claims regarding businesses that did not exist, or fictional employees.       In these cases, individuals were able to create documentation that allowed them to receive loans. However, state agencies told investigators about the lack of actual Payroll records to prove that these businesses were active. These criminals are quickly being caught and charged with counts of Bank Fraud among other counts. While it may be tempting, in the end it never pays to cheat and steal. You always end up paying back a lot more.

     Many companies are concerned about their employees stranded or sheltered in places they do not normally work. By working in states or countries where the company does not already do business, there could be unexpected tax bills in the near future. The Internal Revenue Service ( IRS ) has already extended some tax relief for foreign travelers stranded in the US. However, this is limited and there is a similar concern for domestic businesses as well.      Very few states have volunteered how they will view remote workers stranded and forced to work in different areas. Some countries are creating tax treaties to help off-set the liabilities that may be created by COVID-19 related travel restrictions. There is nothing like that being discussed at the Federal level. While many are concerned, it is not considered a priority yet. Mostly because the time requirements have not been met for triggering a tax liability. In many cases that would be 180 days ...

     For those looking for help with COVID-19 relief, it looks like more help is on the way. Last week the Paycheck Protection Program ( PPP ) Flexibility Act of 2020 was passed in Congress. This will improve the PPP experience by making rules for getting loan forgiveness a little easier.      One major change is the amount of time given to businesses to use the proper loan amount. Originally, business owners had 8 weeks from the time the loan was given to spend 75% of it on Payroll costs. If this obligation was met, it could qualify for complete loan forgiveness. Many felt this was unrealistic considering the need to pay rent and utilities. With the PPP Flexibility Act, borrowers can take up to 24 weeks to spend 60% on Payroll costs and potentially reach the same outcome.      This new Flexibility Act changes many aspects of how PPP is calculated. It now becomes a more attractive option for COVID-19 relief as it was intended, i...

         When the Internal Revenue Service ( IRS ) changed the due date for filing Tax Returns to July 15. This also applied to making tax payments for those who will owe. This was clearly understood by Taxpayers and had been called for by many. What may not have been understood, were the other extensions that came along with this date change.           At first it was thought that the July 15 change only applied to Tax Returns for individuals. It has now been made clear that a Corporation with a quarterly tax payment due before July 15, can wait until July 15 to pay with no penalty or interest. This change also extended the window for those looking to claim a Tax refund from the 2016 Tax Year. A refund must be claimed within 3 years, and now there is an extra 90 days for a Taxpayer to file for that opportunity. Taxpayers should not forget that you have the option to still file for an extension if necessary....