PPP has run out of money for most borrowers

Ferrone & Associates CPAsBlog

The Paycheck Protection Program has run out of money for most borrowers before its planned May 31 end, the Small Business Administration said. Going forward, the program will only accept new applications from community financial institutions, which typically serve minority borrowers, as about $8 billion in funding was set aside for such businesses. The SBA will continue to fund outstanding … Read More

7 Ways to Handle Difficult Conversations at Work

Ferrone & Associates CPAsBlog

A few tips to help you navigate relationships with clients and coworkers alike: 1. Have a Direct Approach When having a conversation with a client, be direct and clear from the start. If possible, layout a plan of next steps instead of dancing around the subject or making excuses. People will appreciate an honest and direct approach about what happened … Read More

5 Business investment ideas for unused stimulus checks

Ferrone & Associates CPAsBlog

Since the beginning of the coronavirus pandemic, the government has sent out a few rounds of stimulus checks. Here’s a breakdown of the COVID-19 legislation and stimulus check amounts: CARES Act: $1,200/person maximum Consolidated Appropriations Act: $600/person maximum American Rescue Plan: $1,400/person maximum Not all taxpayers received checks each round, as they were based on an individual’s adjusted gross income. … Read More

IRS offers safe harbor for claiming PPP loan deductions

Ferrone & Associates CPAsBlog

The IRS and the Treasury Department are giving small businesses that received Paycheck Protection Program loans in the first round a way to deduct expenses they couldn’t claim last year. The Internal Revenue Service and the Treasury released Revenue Procedure 2021-20 on Thursday, which provides a safe harbor in accordance with a provision in last December’s COVID-19 relief package. Under … Read More

IRS and COVID vaccine email scams proliferating this tax season

Ferrone & Associates CPAsBlog

Security experts are seeing a rise this tax season in phishing schemes and malware tied to hot-button subjects like tax refunds, stimulus payments and COVID-19 vaccines. The Internal Revenue Service recently warned about an ongoing IRS-impersonation scam that mainly targets educational institutions, including students and staff who have “.edu” email addresses. The emails show the IRS logo and use subject … Read More

Form 1099-K Update

Ferrone & Associates CPAsBlog

The IRS is planning to bring important changes to Form 1099-K filings. Prior to this update, the IRS required each payment settlement entity (PSE), aka credit card processing companies, to send Form 1099-K to both the IRS and the recipient (or customer) if the PSE has processed payments amounting to at least $20,000 and at least 200 transactions per customer … Read More

Estimated Tax Payments Due April 15th

Ferrone & Associates CPAsBlog

Estimated tax payments are still due April 15th!The extension to May 17, 2021 for individuals to file their 2020 federal income taxes does not apply to estimated tax payments. Form 2021 Form 1040-ES can help taxpayers estimate their first quarterly payment. Income taxes are pay-as-you-go. So taxes must ne paid as income is earned or received during the year. Most … Read More

How the American Rescue Plan Affects Families

Ferrone & Associates CPAsBlog

The American Rescue Plan Act (ARPA)  went into effect in March 2021. This bill introduced a $1.9 trillion COVID-19 relief package designed to help boost the economy amidst the effects of the pandemic. Among other things, the act affects tax planning for individuals who are unemployed and for people who have children. It also authorized the sending of a third … Read More

New Paycheck Protection Information!

Ferrone & Associates CPAsBlog

The Paycheck Protection Program Extension Act passed overwhelmingly in the Senate, following a similar passage in the House. The PPP Extension Act will allow small businesses to continue applying for aid through the end of May and the SBA to process applications through June. The bill has been sent to President Biden for signing. There is nearly $79 billion left … Read More

First Some Good News from the IRS:

Ferrone & Associates CPAsBlog

The IRS will Handle Unemployment Returns, Don’t Amend Returns that reported unemployment benefits prior to the $10,200 exclusion enactment should not be amended. The IRS has indicated it will refigure taxes on these returns and adjust the taxpayer’s account accordingly. The IRS will then send any refund amount directly to the taxpayer. And now the not so good news; The IRS … Read More