At Shilts CPA, every day we solve challenges for our clients whether they are forensic and valuation or tax and accounting related.
Recently we have a new challenge.
As Coronavirus (COVID-19) has grown to a pandemic level, it has impacted our daily lives at work and home. We want you to know that we are doing everything we can to support the safety, well-being, and financial health of the clients and communities in which we live, work, and serve.
At the onset of this disaster we prioritized our outreach, organized our team, and raised issues and ideas in order to best serve our clients. Even working remotely, the Shilts CPA Team started to and will continue assisting its clients with the financial details and stresses associated with outbreak.
From helping businesses and self-employed individuals with the Payroll Protection Loan Application (“PPP”) and other disaster loan application processes, to participating in and hosting webinars to educate taxpayers and businesses on recent developments, we are here to support you.
If you need any assistance, please don’t hesitate to contact us by clicking here or by telephone at (844) 850-6166.
Josh Shilts, CPA/ABV/CFF/CGMA, CFE
Some of the articles and content we want to make you aware of are
- Attorney at Law Magazine – Congratulations to the entire Shilts CPA Team on their recent appearance in Attorney at Law Magazine! Attorney at Law Magazine is a national online publication about and for the private practice lawyer and the legal community. The magazine focuses on the industry, its events, trends and the people who drive its success. We are proud of our professionals and of the skills and expertise they bring to our Firm. We would like to encourage you to learn more about us by downloading the article here or reading it online here.
- QuickRead Nomination – Josh Shilts – Congratulations to our very own Josh Shilts for being nominated to the QuickReads Editorial Board! Since its inception, NACVA’s weekly online QuickRead newsletter has provided weekly news covering timely and relevant content in the areas the Association supports and the areas that matter to today’s CPAs and financial service professionals. Their editorial board is comprised of individuals of the highest caliber and character that represent the industry’s top and emerging leaders who generously share their knowledge, passion, and enthusiasm and we are truly proud of his appointment!
- Strafford | Continuing Legal Education – Half Off Faculty Offer – We are pleased to announce that our very own Josh Shilts will be speaking in an upcoming Strafford live webinar, “Divorce Cases: Uncovering Critical Information in Tax Returns and Financial Statements” scheduled for Thursday, April 30, 1:00pm-2:30pm EDT. Because of your affiliation with our Firm, you are eligible to attend this program at half off. Please use the links in this email in order to have the offer reflected automatically in your cart. Our panel will provide family law counsel with strategies to utilize tax returns and financial statements during divorce cases. The panel will focus on appropriate discovery methods to obtain information, explain how to get the most out your analysis of tax returns and financial documents, and outline the best approaches for using financial experts. After our presentations, we will engage in a live question and answer session with participants so we can answer your questions about these important issues directly. I hope you’ll join us. For more information or to register click here or call 1 (800) 926-7926. Ask for Divorce Cases: Tax Returns and Financial Statements on 4/30/2020 and mention code ZDFCA.
- Coronavirus (COVID-19) Update – Payroll Protection Program – If you are a Partnership or Self-Employee Individual looking to apply for the Payroll Protection Program (“PPP”), the Small Business Administration recently announced the following updates:
Partnership Specific Rule – If you are a partner in a partnership, you may not submit a separate PPP loan application for yourself as a self-employed individual. Instead, the self-employment income of general active partners may be reported as a payroll cost, up to $100,000 annualized, on a PPP loan application filed by or on behalf of the partnership.
Self-Employed Individuals Specific Rules – For self-employed individuals with no employees, you must use a 2019 Form 1040 Schedule C line 31 net profit as the “annual payroll amount”, not to exceed $100,000, for purposes of the maximum loan amount calculation.
For self-employed individuals with employees, you must add the 2019 Form 1040 Schedule C line 31 net profit as the “annual payroll amount” for the officer and add box 5 wages (gross taxable wages) and employee, not owner, benefit expenses still subject to the annual $100,000 cap per employee, for purposes of the maximum loan amount calculation. You must provide federal and state payroll tax filings to support this information.
Even if you haven’t filed your 2019 Form 1040, you MUST provide a 2019 Form 1040 Schedule C AND 1099 forms to apply for the PPP initially and the same will be used to calculate loan forgiveness.
Specifically, loan forgiveness will be calculated as 8/52 of Schedule C line 31 income.
If your, Schedule C line 31 net profit is $0 or less, you are not eligible, even if the loss is related to non-cash deductions.
Eligible expenses are the same however, if you were not entitled to claim the deduction on your 2019 Schedule C it will not be considered an eligible expense.
We are still waiting for guidance addressing Schedule C filers who were non-operational in 2019 however, should be eligible as they were operational as of February 15th, 2020. (As of today these individuals would be denied based on this guidance from the SBA.)
Any advice contained in this article, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.