Davis Associates CPAs

If you received the first round of PPP, you still might be eligible to apply again ("Second Draw" PPP). Your business is eligible for this second draw if you: 1) Previously received a First Draw PPP Loan and will or have used the full amount only for authorized uses; 2) Have no more than 300 employees; and 3) You can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020... That final provision is a nice one because it means that we can take a look at a variety of circumstances that might make you eligible. Let us know if you need help.

There is a special window for smaller and minority-owned businesses to apply for new PPP funds before big firms -- a window that ends Tuesday, March 9th. This is important because in 2020 (and especially in the first round of funding) many businesses missed out on receiving these loans because the program funds were depleted quickly. That was less of an issue in the second round of funding, but who knows what will happen with this "Second Draw". Contact your bank or lender to apply ASAP if you qualify.

There's a tax deadline for businesses coming sooner than the April 15th deadline for individuals. S-corps and Partnerships need to file by March 15th. If you haven't yet started or made an appointment with us, an extension may be in order, but we can help with that too. Let us know.

45 days until your 2020 taxes are due. If you haven't yet made your appointment to get help preparing your return for this unprecedented tax year, now is the time. Give us a call.

The IRS can only levy or seize your property when it results in financial recovery. This is known as the "no equity rule". In other words, the IRS can only seize your property if it results in payment to them. For example, if you have a Camaro that is worth $10,000 and has a $10,000 loan on it, an IRS seizure will only get your bank paid on the loan. There will be nothing left for the IRS as there is no equity in it for them. Because of that, they legally cannot seize it. Same is true for your house. The no equity law eliminates the vast majority of IRS seizures.

We know the tax world can be downright confusing, so today we're opening up the floor for Q&A: what questions can we answer, to help clarify the mystery world of paying Uncle Sam his dues?