Good news--many of the businesses that we assisted with loan applications for the Paycheck Protection Program have now received their money. One question many business owners have asked is if they need to put that money in a separate account from their regular business checking account.
The answer is no; however it is very critical that if businesses want to be eligible for PPP loan forgiveness, they will need to maintain very accurate accounting records, especially when it comes to their payroll. While it is not yet clear exactly what information banks and the government will require businesses to provide when asking for loan forgiveness, it will no doubt include some kind of proof that money provided through the loan was used to pay employees. If you need assistance setting up a more accurate bookkeeping system, contact our office.
More economic relief info
to visit the SBA COVID-19 relief website and
to visit the American Society of CPAs pandemic relief information page.
Economic Relief Payments to Deceased Persons
As the IRS economic relief checks and direct deposits make their way to people's bank accounts, one issues has come up--some payments have inadvertently been sent to deceased persons. The IRS has realized their mistake and will eventually want this money back, so if you have received a payment intended for a deceased person, don't spend it.
New Filing Deadlines
The federal deadline for filing tax returns and paying income taxes has been moved back to July 15th. The deadline in Virginia has been moved back to June 1st for state returns.
In addition, Q1 and Q2 estimated tax payments are now both due on July 15th for those who make estimated payments throughout the year. If you are a business owner who uses our firm for accounting services and would like a revised number to use for estimated tax payments due to lower-than-expected income, contact our office.