Form 990 Filing Extension for NFPs

Not-For-Profit Form 990 Filing Extended to July 15

 

Not-for-Profits normally must file Form 990 on or before May 15; however the filing extensions granted to individuals and taxpayers were also granted to NFPs when the IRS issued Notice 2020-23. Form 990 now has an extended filing deadline of July 15, 2020. 

 

The following returns that qualify under this extension include:

  • Form 990, Return of Organization Exempt From Income Tax
  • Form 990-T, Exempt Organization Business Income Tax Return
  • Form 990-PF, Return of Private Foundation
  • Form 4720, Return of Certain Excise Taxes under Chapters 41 and 42 of the Internal Revenue Code

 

For more information about filing six-month filing extensions for Form 990 and related questions, please contact our CPAs. 

 

As always, the IRS keeps information updated frequently on their site. Visit the IRS’s Filing and Payment Deadline Questions and Answers for updated information. 

 

The AICPA also keeps on top of general education and updates concerning the new tax changes. 

 

For an overview of the disaster relief options available to you at this time, read through our FAQs About COVID-19 SBA Disaster Loans.

Frequently Asked Questions about COVID-19 SBA Disaster Loans

What You Need to Know about Disaster Relief for Covid-19

 

On April 1, Perry & Associates reported that the president officially signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law. We responded quickly and created a special COVID response group. Our expert accountants are ready to answer your accounting questions regarding the financial relief package.

 

Since creating the COVID response group, we have received hundreds of questions about the CARES Act. We are working around the clock to provide accurate and thorough answers.

However, we understand many of you need to access funds quickly. That’s why we’ve curated six, frequently asked SBA Disaster Loan questions so that you can make the right choices for your business as soon as possible.

 

SBA Disaster Loans – FAQs

 

Am I eligible for a coronavirus SBA disaster loan?

You may apply for CARES Act funds if your business has fewer than 500 workers. This includes corporations, non-profits, sole proprietorships, contractors, and freelancers. There is assistance for larger businesses, but those programs fall outside the scope of this article.

 

Are all SBA disaster loans the same?

No. There are a few distinct programs to the CARES Act. The two most popular programs are the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL).

 

  • The EIDL. These loans are made directly through the SBA, not local banks. After applying online, you may receive up to a $10,000 advance that will not have to be repaid whether or not you qualify for an additional loan. Additional loans can be maxed at $2 million and loans up to $200,000 don’t require personal collateral. Finally, an EIDL loan can’t go toward other loans or debt obligations. Apply here.

 

  • The PPP. These are 100% federally backed loans used to cover payroll-related expenses through June 30th. These loans will be forgiven if businesses retain employees at compensation levels similar to pre-crisis levels. Loans are made through banks and third-party lenders. For more information, see our PPP section below.

 

When will I receive my relief funds?

For EIDL advances up to $10,000, you could see that deposit within three days of your application. For loans beyond the initial $10,000, most sites claim turnaround time is 2-3 weeks. However, many businesses have seen delays longer than that. Expect to wait a week or two longer than promised before funds are approved and delivered. This applies to PPP loans, too. This situation is ongoing and may resolve at any time.

 

Paycheck Protection Program Questions

 

What information do I need to apply for a PPP loan?

These SBA disaster loans are provided through local lenders and backed by the federal government. Contact your bank or SBA representative to submit an application. You will need to include documentation stating the total number of employees on payroll along with their 2019 salaries and compensation levels. Also, submit verification for mortgages and utility payments.

 

Once I receive my PPP SBA disaster loan, are there restrictions on how I use it?

Yes. As you might expect, the PPP requires borrowers to use funds toward payroll-related costs. Eligible costs include: 

  • Payroll administrative fees 
  • Health-care benefits
  • Employee salaries, commissions, or similar compensation
  • Rent and/or mortgage payments
  • Utilities
  • Interest on debts taken on before the crisis

There are also salary eligibility restrictions. For example, loans will not be forgiven if they go toward any compensation over $100,000 per employee or compensated employees live outside the USA.

 

What happens if my loans aren’t forgiven?

If PPP funds don’t meet eligibility requirements, they might not be forgiven. Loans can only be forgiven if they are used to cover payroll expenses within the eight-week disaster window following the start of the loan. Businesses must also retain employees at salary levels comparable to compensation before the crisis.

If your business does not meet forgiveness criteria, then the funds will remain a traditional loan with a maximum interest rate of 4% and a 10-year repayment window. Loan fees or prepayment penalties will not be applied.

Thank you for reading through our SBA disaster loan FAQ. We hope you’re able to access the funds your business needs.

However, being approved for an SBA disaster loan is just the first step. You will need to track your expenses so that you can prove loan forgiveness eligibility. Together, we will make it through this unprecedented crisis.

 

Talk to one of our accounting experts, and let us set you up for success.

Call us at (740) 373-0056 or contact us online.

CARES Act and Paycheck Protection Program

The CARES Act with Paycheck Protection Program

The Relief Package Was Approved

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed by President Trump on Friday, March 27, 2020. There are multiple components to the relief funds that may benefit your business. A core element is the Paycheck Protection Program. In short, these are SBA loans that may be forgivable to eligible businesses and 501(C)(3) organizations that use the loans for the program’s specific guidelines. For guidance on any COVID benefit programs, please call us.

Our COVID Response Group

If you need our help, please call. We want to make sure you are maximizing all benefits, making the right choices and accounting for any funds or benefits you receive. Our group can help you with:

  • SBA Loan Application Processing
  • Comprehensive Tax Relief Evaluation Covering All Components of the CARES Act
  • Cash Flow Projections and Tracking

A Few Items to Share

  • There are multiple programs. If you select one, you may not be eligible for another.
  • The Paycheck loans will need to be processed through your financial institution. As of today, most financial institutions are working as fast as they can to get set-up to process loan requests.
  • The loan can pay for up to 8 weeks of qualified payroll. For more information on the exceptions involved, contact Perry & Associates.
  • The loan can also be used for utilities, mortgage interest, rent payments, healthcare benefits, interest on existing debt.

Let Us Help

Please contact us with questions or to discuss your specific situation. We will help you through these difficult financial decisions.

(740) 373-0056

young woman meeting with accountant looking over papers for tax preparation services

Things You Might Forget For Tax Preparation Services in Cambridge, OH | Perry & Associates

young woman meeting with accountant looking over papers for tax preparation services

5 Essential Things for Tax Preparation Services in Cambridge, OH

 

One of the challenges of tax preparation each year is remembering to bring the necessary documents that will allow your tax preparer to properly file your federal and state taxes. Inevitably, progress will pause when some important document is missing that you must hunt down. This year, come prepared with everything your tax preparation services in Cambridge, OH may need. 

 

We’ve provided a list of 5 items to make sure you have at your initial tax consultation. These may seem simple, but you’d be surprised how many times some of these are forgotten.

 

Headed in for Cambridge Tax Preparation Services? Don’t Forget These 5 Things

  • Personal Identification Information

 

This may seem like a given, but proof of identification can easily slip your mind when your focus is consumed with all of your tax papers! You will need Social Security Numbers for yourself, your spouse (if married), and anyone else you are claiming as a dependent on your taxes. You will also need all of their dates of birth, street addresses, and your driver’s license(s). 

  • All Income Statements

 

These are the most important documents to bring to any meeting with a local tax preparation service. While everyone remembers the W-2s, there are many other sources of income that may need to be reported.

  • W-2s from all employers that you, and your spouse, worked for during the past tax year
  • 1099-MISC forms if you or your spouse conducted contract work earning more than $600 in the past tax year
  • Interest income, dividend income, any income from selling stocks or bonds, and any foreign investment income for the past tax year
  • Rental property income for the past tax year
  • Any other miscellaneous income from prizes, gambling, jury duty, medical savings accounts etc.

 

  • Listing and Documentation of Expenses

 

You certainly will not want to forget the evidence of any of these! Also known as “itemized deductions”, these can significantly reduce your tax responsibility. 

  • Charitable Donations
  • Education Expenses
  • Property Tax
  • Real Estate Tax and Mortgage Interest
  • Medical Expenses
  • Unreimbursed job-related expenses
  • Job search or moving expenses
  • IRA Contributions
  • Childcare Costs

 

  • Previous Returns

 

Bringing returns from previous years can help your tax preparer in Cambridge, OH get your taxes done smoothly and as quickly as possible.This will help your accountant access information that they need in order to make certain calculations without the need to call you multiple times. 

 

  • Bank Account Information

 

Finally, if you want your refund to be directly deposited to your bank account, you will need your account number and routing number to give to your accountant.

 

Tax Preparation Services in Cambridge, OH

 

Nervous that you are still forgetting something? We can help you walk through the entire process. For trustworthy tax preparation services in Cambridge, OH, contact Perry and Associates at one of our five different locations. We strive to become partners in our clients’ financial lives. For both present needs and future goals, we are here for you!

 

313 Second St.

Marietta, OH 45750

Office: (740) 373-0056

 

1907 Grand Central Avenue

Vienna, WV  26105

Office: (304) 422-2203

 

150 West Main Street, Suite A

St. Clairsville, OH 43950

Office: (740) 695-1569

 

1310 Market St. Suite 300

Wheeling, WV 26003

Office: (304) 232-1358

 

749 Wheeling Ave, Suite 300

Cambridge, OH 43725

Office: (740) 435-3417