COVID 33 (BUT WHO IS COUNTING!)

No New Tax Legislation Yet!

However...

PPP FORGIVENESS UPDATE:

We have learned today that some banks have started accepting the PPP Loan Forgiveness applications. You will receive notification directly from your bank. If you have not received this yet, don’t panic, only a few banks are ready at this time.

Before you take any action, we’d like to remind you of the following:

New legislation may simplify your application process: We want your experience with the forgiveness process to be as easy as possible. There is still the potential for new legislation that will simplify and streamline the forgiveness process for some borrowers, primarily those with loans of $150,000 or less. You may want to consider delaying the submission of your forgiveness application until we know one way or other.

There’s no rush to apply for forgiveness: Given the extension of the payment deferral period under the Paycheck Protection Program Flexibility Act of 2020, you have 10 months from the last day of your covered period to apply for forgiveness.

CARES ACT PROVIDER RELIEF FUND (PRF):

Terms have improved and the deadline has extended (again) to September 13, 2020.

A few overall points as a reminder:

The money received is taxable income. The ADA is lobbying for this to be non-taxable but we recommend you assume it will be taxable and you will receive a 1099.

This is not a loan. You do not pay this money back to the government.

The amount of money you receive is 2% of Gross Revenue on the most recently filed tax return. (2018 or 2019)

The funds you receive will be made public so if privacy is a concern to you then you may not want to apply for the Relief Funds. Anyone reading the list will be able to estimate your annual Collections. For example, if you Gross $1 million you are eligible for $20,000.

If you already received Relief Funds from HHS, you are not eligible for another round of Relief Funds.

It appears you will be required to attest to the fact that you have treated patients who either likely had Covid or you know had Covid at time of visit. We have addressed this attest statement in previous eblasts. Some believe that any patient you see could likely have Covid and this does not have to be a confirmed case.

There are details in the terms regarding billing patients, please make sure you read this section carefully to understand the requirements. The ADA has responded to questions on this topic, see our previous Eblast listed on our website.

You have 90 days from the date you receive the funds to agree to the terms. If you do not respond, they assume you have agreed.

Currently the conditions of receipt of the funds state that you cannot use the money for the same expenses you used the EIDL and PPP money on and you cannot use it to pay yourself.

We would recommend using it for dental supplies, as this should be an easy invoice for you to keep track of for reporting purposes.

For more information, please visit our website for past Eblasts on HHS relief funds.

BUDGET WORKSHEET

Dave shared this with our Spectrum clients and we liked it so much, we wanted to make sure all of you have access to it. Please share with your staff too. Budgets are a great way to set your goals and stay on track. We hope you find it as useful as we do.

Budget Worksheet

WILLS NEED TO BE UPDATED

With all the uncertainty in the world (sorry, but it's true!), we recommend you revisit your wills and your estate planning. We all hate to do it but it is so important! Please set up an appointment to visit with your estate attorney (and no, we don't get a referral fee!) if you haven't seen them in the last several years.

NOTICE 1444 - STIMULUS CHECKS:

Anyone who has received a stimulus check this year will receive a Notice 1444 from the government (IRS). We will need this form when you send your tax return information for 2020 as it is considered taxable (surprise!). In addition, if you were not eligible based on 2019, you might be eligible for a stimulus check based on your 2020 returns. This is another Stay Tuned!

IRS pays interest to Taxpayers:

This week the Treasury Department and the Internal Revenue Service will send interest payments to about 13.9 million individual taxpayers who timely filed their 2019 federal income tax returns and are receiving refunds.

OUTSOURCING SERVICES - ROSEN SUMMIT DENTAL ADVISORS:

Our colleagues representing the Boston area of the ADCPA are now providing outsourcing services if you are interested. This includes:

Patient Accounts Receivable and Outstanding Insurance Research
Outstanding Claims Research
Oversight Analysis
Auditing Patient and Account Balances
Management Oversight
Management Coaching
Consulting Services

If you would like more information about them or their contact information, click the link below. We will be happy to introduce you to them as well.

Click Here

We will need to be vigilant in the next few weeks for new tax laws, clarifications to Executive Orders and the ever-changing updates to past legislation. Please continue to read our eblasts as we keep on rowing down the murky stream of US tax law.

Please be sure to visit our Website for past eblasts, Webinars & Podcasts:

cu-cpa.com

As always, we are here for you. Please stay safe, sane and healthy.