SBA PPP Forgiveness Application & Charity Fraud Alert

Greetings to all as we approach the 2020 Memorial Day weekend! First and foremost, we would like to extend our gratitude to those who have lost their lives serving our country.

We are going to keep things brief this week as we covered a substantial amount of material on our interim messaging regarding FAQ #46, which was recently issued by the Small Business Administration (SBA).

This week we will cover the new PPP loan forgiveness application that has been issued by the SBA, fraudulent charity requests, and some other significant updates and reminders.

PPP Loan Forgiveness Application

The SBA recently released the PPP Loan Forgiveness Application. The application is eleven pages long and includes line-by-line instructions, as well as a schedule of documents that each borrower must submit with the application.

The instructions add some clarity to several key issues as follows:

  • Quantifying your Full Time Employee Equivalents (FTEs)

  • Period for restoring your Full Time Workforce

  • Compensation limits for both owners and FTEs

  • Alternative methods for determining your eight-week period

  • Defining “incurred” versus “paid” payroll costs

  • Guidance on “paid dates” for costs other than payroll

  • Simplified 75/25 cost computation

Click here for the full text of the PPP forgiveness application.

Fraudulent Charity Requests

Unfortunately, during these trying times, it is very common for scammers to try and take advantage of good-natured businesses and individuals. As you can imagine, there have been several reports of people posing as representatives of the Red Cross and other charitable organizations. Below are some things to consider before making any donation.

  • Do some research on-line: Websites like GuideStar and the Better Business Bureau are excellent resources.

  • Be skeptical of high-pressure solicitors: Legitimate organizations do not use these tactics

  • Confirm e-mail addresses: Simply hovering over them may reveal it is not authentic

  • Avoid GoFundMe: This platform offers no verification of what the people are representing

  • Finally, never give credit card, banking or personal information over the phone!

While we do not want to discourage people from being charitable, we do want you to be vigilant and ensure your money is going where you intend it to go! If you want to read more about this, you can enjoy the following Journal of Accountancy article here.

Updates and Reminders

July 15th deadline – The July 15th deadline is sneaking up on us. For many taxpayers that means as many as three different payments could be due (any amount due with the 2019 tax return, and first and second quarter estimated payments for 2020). If you include state and local estimates, it may be as many as nine different payments due on July 15th. These payments could have a significant impact on cash flow, and many times estimated payments are calculated based on prior year income. Given the impact of COVID-19 on many small businesses, take some time and consult with your tax advisor on what makes sense for your 2020 estimated payments.

Economic Impact Payments – There have been mixed reviews on the ability of the IRS to provide information on the status of taxpayers’ Economic Impact Payments. In response to these requests, the IRS has added 3,500 phone operators to handle questions and complaints. Additionally, the Get-My-Payment site is constantly being updated with more and more accurate information.

If you should have any questions, please reach out to your Bertz, Hess & Co. business advisor and we will be happy to help.

Thank you and enjoy this Memorial Day Weekend!
The Professional Service Team at Bertz, Hess & Co., LLP

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