Wassman CPA Services LLC

We are wrapping up another tax season with tax day on July 15. We are also still working with our business clients; many of whom have had to close or partially close due to COVID. The state of Missouri recognized that the closures have brought about a hardship for businesses. The Department of Economic Development has introduced the Small Business Grant Program. This program has factored in $30 million for small business and $7.5 million for family owned farms. Grants are ini...tially limited to $50,000. Application for the grant were being accepted as of July 15, 2020. To qualify for this program you must be a small business or a family owned farm. Additional requirements include: - Business must have incurred costs due to COVID between March 1, 2020 and November 15, 2020. - Employs 50 or fewer employees including owners - Incorporated in Missouri (exception for family farms) - Registered to do business in Missouri and be in good standing with the Secretary of State (exception of an unincorporated family farm) - Complete and submit Form 943 to obtain a tax clearance certificate from Missouri Department of Revenue for each owner and the business. - Must not employ illegal workers and must provide proof of enrollment in E-Verify - Register as a vendor with the State of Missouri through the MissouriBUYS web portal. For more information and to get an application please visit https://ded.mo.gov/content/small-business-grant-program.

IRS Extending More Deadlines Helps Nonprofits Many accountants have been waiting for this announcement. The IRS has issued an extension of time for file form 990-series. Typically for a calendar year nonprofit the tax return is due May 15 following the end of the year. This year due to the relief for COVID-19, the IRS has announced that deadline will be moved to July 15. If the nonprofit is unable to file at that time an extension will need to be filed.... The release says the extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. This includes individuals, trusts, estates, corporations, nonprofits, and other non-cooperate tax filers. This grants returns with an original due date or extended due date that falls in this time frame to file on July 15, 2020 without penalty.

CARES Act Changes Net Operating Loss Rules We are still learning about the CARES Act that was signed into law in March. With the act being so inclusive there are many tax changes for both business and individual. We have written about several and here is yet another change. The Tax Cut and Jobs Act (TCJA) that was enacted at the end of 2017 eliminated the option to carry back net operating losses. This meant many businesses or individuals lost out on getting refunds from prio...r years. The CARES Act has changed that to be more inline with tax law in place prior to TCJA. Now a net operating loss created after December 31, 2017 and before January 1, 2021 must be carried back five years. Any remaining loss would be carried forward to be used on future returns. However, the taxpayer can elect to only carry losses forward. This will allow some business and individuals with 2019 losses to get extra funds during this pandemic. For some it will be immediate help if they already had losses in prior years. Unfortunately for many businesses the losses may be being generated now. For those it will be delayed help as they can use this years loss to get refunds from prior year returns.

Normally we get a note or something to let us know who sends us gifts but today we received warm cookies and don't know who to thank so I'm posting our thanks here. THANK YOU for thinking of us and sending us some great cookies!

CREDIT FOR SICK AND FAMILY LEAVE FOR BUSINESSES We wrote about the Employee Retention Credit https://wassmancpaservices.com/employee-retention-credit/. Now there is another credit to help employers, pay employees. This credit is available for business with employees and for self-employed individuals. Employers are getting help to pay employees who have to miss work. It is allowed for employees who are unable to work including telework. The reasons for not being able to work i...nclude: Required quarantine, self quarantine, or coronavirus symptoms and seeking medical diagnosis Needing to care for somebody with the virus Needing to care for a child because school or daycare is closed due to virus The reason for being unable to work should be documented by the employer. More documentation is required for self-employed individuals. This documentation should include the reason for not being able to work and any emails, doctors notes, or news articles to support that reason. Also the dates you were unable to work from and to should be documented. The reason for the pay will determine the amount of pay per day. It also determines the maximum amount of pay that is allowed for the credit. The credit can be claimed on the 941 for businesses with employees. For self employed individuals you should reduce your estimated tax payments. The credit will actually be calculated on the tax return for self employed individuals. If you think your business would qualify I recommend talking to your payroll provider. For self-employed individuals I recommend talking to your accountant about how to change your estimated tax payments.

FILERS: GET YOUR ECONOMIC IMPACT PAYMENT The IRS has created an online resource for individuals who have filed tax returns to determine when and how payments will be received. Some of the functionalities of the tool are still in process, but it is a good resource. Please visit the website to: Check your payment status... Confirm your payment type: direct deposit or check Enter your bank account information for direct deposit, if the IRS doesn’t have that information and hasn’t sent the payment Update your mailing address if you have moved since you filed your last return. You will need to provide your social security number, date of birth and address and then you will be given information about the payment schedule or you will be presented with additional options. To access Economic Payment Info, visit: https://www.irs.gov/coronavirus/get-my-payment