The global COVID-19 pandemic presents challenging and unique circumstances for all our clients. We know how important your time is right now – and with the situation changing rapidly, what you need to know does as well. SKDO is working to bring you the best resources and information to help you navigate this challenging time.
Our number one priority is the health and safety of our people, their families, and our clients. We hope that you and your loved ones remain safe and healthy as this global health challenge unfolds. Click Here for our full firm response.
**UPDATED AS OF 5/19/2020** SEE OUR PAYCHECK PROTECTION PROGRAM PAGE FOR OUR LATEST UPDATE.
Here are some updates on the other ever-changing relief regulations:
SBA’s Paycheck Protection Program (PPP) Loan
- The SBA released the PPP Loan Forgiveness Application on Friday, May 15th. See our Paycheck Protection Program Page for more details!
- The IRS issued a notice stating that no tax deduction will be allowed for any expenses later forgiven under the PPP Loan. See our Paycheck Protection Program Page for more details!
Individual Economic Impact Payments (aka Stimulus Checks)
- The Treasury and the IRS are stating to send nearly 4 million Economic Impact Payments by prepaid debit cared instead of by paper check. See here for more details.
- The IRS has issued additional FAQs. Questions 10-12 provide guidance to ineligible recipients on how to return their payment.
- If you didn’t file a 2019 or 2018 tax return, use the “Non-Filers: Enter Your Payment Info Here” application on the IRS website to provide simple information so you can get your payment. Click here access the non-filer application.
- To check the status of your payment you can use this IRS tool.
SBA’s Economic Injury Disaster Loan (EIDL)
- The SBA has been issuing more of the advances. These payments do not have to be repaid but will reduce your PPP loan forgiveness amount. See our Paycheck Protection Program Page for more details.
- We’ve recently had a chance to review one of these loan agreements and what we saw raised a number of red flags. If you’ve been approved for an EIDL loan, we highly recommend you have a tax professional review the loan document before you sign since a number of the provisions in it made us question whether anyone would want to take the loan at all. A few of the more concerning ones include:
- You agree that you will not sell assets without SBA consent
- You authorize the SBA to review your records at any time, at your expense
- The SBA can require you to provide financials prepared by a CPA at your expense
- You agree to not make any distributions, loans, gifts, or bonuses to any owners or employees without SBA consent.
To ensure you aren’t signing away your first born child, make sure you’re reading the covenants carefully.
Employee Retention Credit
- The IRS has published Form 7200, Advance Payment of Employer Credits Due to COVID-19, which allows employers to request a rapid refund for both the employee retention credit and the FFCRA paid sick and child care leave tax credits. Form 7200 can be filed (by fax) to request an advance of payments at any time before the end of the month following the quarter in which the qualifying wages were paid. Click here for more information.
Families First Coronavirus Response Act – Sick Leave and Emergency FMLA
- Local governmental entities are required to pay the FFCRA sick and child care leave but are NOT eligible for the credits.
Employer Payroll Tax Deferral
- This payroll tax deferral is available to all employers with no size restriction. However, any employer whose Paycheck Protection Program (PPP) loan is forgiven is ineligible for this payroll tax delay. Click here for more information.
- Local governmental entities are not eligible for the employer payroll tax deferral.