Verdant COVID-19 Update Center

Keeping you up to date on the lastest government changes.

SCROLL

Recent Posts

Latest Government Pandemic Relief

Latest Government Pandemic Relief On 12/31/20, Congress passed another large bill that includes several financial and tax provisions benefiting individuals and businesses.  On Sunday, 12/27/20

Read More

Resources

Verdant Operations

Our offices remain open with essential staff. All other employees are set up and working remotely. Tax professionals are available by phone, email, and/or video call, during our normal business hours of 8:30 a.m. – 4:30 p.m.

We would like to remind you that we have resources by which you can send any information needed without coming into the office.

Updates

As of 01/13/2021

We are excited to share the latest developments on the extended Paycheck Protection Program (PPP).

Many of our clients applied for and received the first round of PPP loans.  The second federal stimulus package provides additional PPP funds for new and second-time borrowers.

The Small Business Administration (SBA) expects to begin accepting applications the week of January 11, 2021.  Funds will be awarded on a first-come, first-serve basis.  Consequently, we highly encourage interested clients to begin collaborating with their business banker as soon as possible.

 General Highlights

The loan amount will be based on 2.5x the borrower’s average monthly payroll.

Use of the funds generally remains the same as before—

  • PPP funds received must be spent within the 8- or 24-week covered period following disbursement.
  • Staffing and compensation levels must be maintained.
  • Loan proceeds must be spent on payroll and other eligible expenses such as rent, utilities, and mortgage interest.
    • At least 60% of the funds are used for payroll.
    • The second round PPP provisions also add a few other categories of qualifying expenses.

Funds are available for some new businesses and for many types of organizations that were ineligible to participate in the first round of PPP loans.

Only businesses that can demonstrate a significant revenue decline should apply for “second draw” PPP funds.

 “Second Draw” PPP Borrowers

To qualify to receive additional PPP funds and forgiveness, applicants must—

  • Use or will use the full amount of the first PPP loan before disbursement of a second PPP loan.
  • Have fully spent first-round PPP funds on eligible expenses.
  • Have experienced a revenue decline of 25% or more for at least one quarter in 2020 compared to the same quarter in 2019.

Additional Information

For more detailed information, please visit the SBA website and check out the application links below:

https://www.sba.gov/document/sba-form-2483-paycheck-protection-program-borrower-application-form

https://www.sba.gov/document/sba-form-2483-sd-ppp-second-draw-borrower-application-form

Verdant PPP Support

We will be glad to assist you in the following ways—

  • Submit tax and financial documentation to you or lender as part of the application process.
  • Help PPP borrowers comply with rules for the proper use of funds.
  • Process PPP-related payrolls, as needed.
  • Assist with preparation of PPP loan forgiveness applications.

Latest Government Pandemic Relief

On 12/31/20, Congress passed another large bill that includes several financial and tax provisions benefiting individuals and businesses.  On Sunday, 12/27/20 the president signed the bill into law.

The bill is quite lengthy—5,593 pages—but we have for now highlighted some of the most pertinent provisions of the bill below.

  • Second round of stimulus funds
  • PPP Funds Taxability
  • New Round of PPP Loans
  • Simplified PPP Forgiveness for Loans Up to $150K
  • Government Payments on SBA Loans Not Taxable
  • Extension of Paid Leave Under the FFCRA
  • 100% Deductible Business Meals
  • Employee Retention Credit
  • Tax Extenders

Small Business Stabilization Program

For more information and for application visit: https://coronavirus.nebraska.gov/Programs&Grants#SmallBusinessStabilizationProgram

https://www.sba.gov/article/2020/oct/08/sba-treasury-announce-simpler-ppp-forgiveness-loans-50000-or-less

The Paycheck Protection Program (PPP) Flexibility Act

Signed into law by the President June 5, 2020, The Paycheck Protection Program Flexibility Act amends the Paycheck Protection Program (PPP) to give borrowers more freedom in how and when loan funds are spent while retaining the possibility of full forgiveness.

Key points:

  • Borrowers now have 24 weeks to spend loan proceeds, up from 8 weeks.
  • The PPP Flexibility Act reduces mandatory payroll spending from 75% to 60%.
  • Two new exceptions let borrowers obtain full forgiveness even without fully restoring their workforce.
  • The time to pay off the loan has been extended to five years from the original two.
  • Payment deferment extension
  • The PPP program was extended to December 31, 2020
  • Enhanced rehiring exemptions
  • Deferred payroll taxes

Read more about each key point here

Economic Impact Payments

The IRS is committed to helping you get your Economic Impact Payment as soon as possible. The payments, also referred to by some as stimulus payments, are automatic for most taxpayers. No further action is needed by taxpayers who filed tax returns in 2018 and 2019 and most seniors and retirees.

Where’s my stimulus check? Click here to track.

View IRS Economic Impact Payments resource

Non-filers enter payout info here

Paycheck Protection Program

The SBA loans available to small businesses seem like a fantastic deal. The experts, and the people that actually need to process the loan are banks that facilitate SBA loans. If your bank does not facilitate SBA loans, we have been working with:

Carrie Weiler with Union Bank and Trust | [email protected]
Chris Kortus with Arbor Bank  | [email protected]

Download the Borrower Paycheck Protection Program Application (updated)

Applications open April 3.

Resources for the Paycheck Protection Program

FAQ for the Paycheck Protection Program
US Chamber of Commerce Small Business Emergency Loan Guide & Checklist
Eligible leader finder

Extended Tax Deadline

Secretary Steven Mnuchin announced that the April 15th tax filing deadline will be extended to July 15th. This gives all taxpayers and businesses three extra months to file and make payments without interest or penalties. Governor Ricketts has not officially announced the extension of the Nebraska filing deadline, but we expect it will be coming soon.  

What does this mean for you? During this time of uncertainty and change, you have one less thing to worry about. Take care of yourself, your family and stay safe. We now have extra time to get your taxes filed. If you are expecting a refund, or need your taxes filed soon for another reason (like a loan application), contact your tax professional and we will prioritize the filing of your return.  

Filing and Payment Deadlines Questions and Answers

Overview of Extensions Granted

Type of Tax Return
Form*
2020 Deadline
Individual/married tax return and payment
Form 1040, 1040-SR, 1040-NR, 1040-NR-EZ, 1040-PR, 1040-SS
July 15
Trust and Estate tax return and payment
Form 1041, 1041-N, 1041-QFT
July 15
Partnership Returns
Form 1065; Form 1066
July 15
Corporation tax return & payments
Form 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-S, 1120-SF
July 15
United States Estate and Generation-Skipping Transfer Tax Return & payment
Form 706; 706-NA, 706-A, 706-QDT, 706-GS(T), 706-GS(D), 706-GS(D-1)
July 15
Form 706 pursuant to Rev. Proc. 2017-34
Form 706
July 15
Information Regarding Beneficiaries Acquiring Property from a Decedent
Form 8971
July 15
United States Gift and Generation-Skipping Transfer Tax Return and payment
Form 709
July 15
Exempt Organization Business Income Tax Return & payment
Form 990-T
July 15
Excise tax payments on investment income & payment
Form 990-PF; Form 4720
July 15
Quarterly Estimated Income Tax Payments & payments
Form 990-W; Form 1040-ES; 1040-ES (NR), 1040-ES (PR); Form 1041-ES; Form 1120-W
July 15
Return of Organization Exempt from Income Tax**
Form 990
July 15
Annual Return/Report of Employee Benefit Plan**
Form 5500
July 15

* = This relief includes not just the filing of specified Forms, but also all schedules, returns, and other forms that are filed as attachments to specified forms or are required to be filed by the due date of Specified Forms.

** = This relief comes through Rev. Proc. 2018-58 for affected taxpayers with a time sensitive which is due to be performed on or after April 1, 2020.

NOTE: The above list is not intended to be all inclusive. Rev. Proc. 2018-58 provides other disaster-related relief for time-sensitive actions and elections.

Join our e-mail list for direct updates

Close Menu

Disclaimer

No Rendering of Advice
The information contained within this website is provided for informational purposes only and is not intended to substitute for obtaining accounting, tax, or financial advice from a professional accountant.

Presentation of the information via the Internet is not intended to create, and receipt does not constitute, an accountant-client relationship. Internet subscribers, users and online readers are advised not to act upon this information without seeking the service of a professional accountant.

Any U.S. federal tax advice contained in this website is not intended to be used for the purpose of avoiding penalties under U.S. federal tax law.

Accuracy of Information
While we use reasonable efforts to furnish accurate and up-to-date information, we do not warrant that any information contained in or made available through this website is accurate, complete, reliable, current or error-free. We assume no liability or responsibility for any errors or omissions in the content of this website or such If you wish to contact the webmaster of this website, please call CPA Websites Solutions at 802-655-1519.

Disclaimer of Warranties and Limitations of Liability
This website is provided on an “as is” and “as available” basis. Use of this website is at your own risk. We and our suppliers disclaim all warranties. Neither we nor our suppliers shall be liable for any damages of any kind with the use of this website.

Links To Third Party Websites
For your convenience, this website may contain hyperlinks to websites and servers maintained by third parties. We do not control, evaluate, endorse or guarantee content found in those sites. We do not assume any responsibility or liability for the actions, products, services and content of these sites or the parties that operate them. Your use of such sites is entirely at your own risk.

Privacy Policy

Here is our Privacy Policy required by the Gramm-Leach-Bliley Act of 1999.

We collect nonpublic personal information about you from the following sources:

  • Information we receive from you on applications, tax organizers, worksheets and other documents;

  • Information about your transactions with us, our affiliates, or others;

  • Information we receive from a consumer-reporting agency.

We do not disclose any nonpublic personal information about our clients or former clients to anyone, except as permitted by law.

We restrict access to nonpublic personal information about you to those members of our firm who need to know that information to provide services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information.

Online information is stored on secure servers located in CPA Website Solutions SOC 1 certified data centers.

If you have any questions about this policy, please do not hesitate to contact us.