I have a few quick-hit things to cover today.
The first of which relates to some timing issues. Labor Day is behind us (though many of my Hampton Roads business owner friends and clients don’t really take time off for that).
(You can’t really take a vacation in the same way when you are where the buck stops. Because, well, you don’t want those bucks to stop for your family. And, of course, 2020 has made “vacation” a bit of a different kind of target for many — but that’s a subject for another day.)
Back to some deadlines:
1) Estimated taxes for the third quarter are due on Tuesday September 15th. If this applies to you, you know who you are. We’d be glad to help you, though, if you need a quick word of advice:
2) Corporate filings for returns on extension are also due on the 15th. Again, you know who you are, if this is for you … but let these simple reminders not be wasted.
Now … here’s the part about if you accept credit cards.
Some quick news, and most of all a warning:
You may have already heard about the multi-billion dollar legal settlement if you accepted credit cards from 2004-2019.
Here’s the warning: you do NOT need a lawyer to claim your part of this settlement. But there are lawyers now advertising to do it all for you, for 20% of any recovery. All of the information you need is here: https://www.paymentcardsettlement.com/en (the official website)
Any lawyer who tells you that they can handle this for you isn’t lying per se … but none of the forms have been created, because the settlement hasn’t finished going through appeals. So, patience. We’ll let you know when the settlement is released and what to do about it.
Speaking of patience, my last quick-hit thought for you today is about PPP forgiveness.
(And forgive the scattered nature of today’s strategy note— we’re wrapping up a bunch of corporate filings due — ahem — on the 15th.)
About That PPP Forgiveness Application For Hampton Roads Businesses
“The key to everything is patience. You get the chicken by hatching the egg, not by smashing it.” – Arnold H. Glasow
Banks and lenders are beginning to release PPP forgiveness applications, and we have been working with some clients to help them put this together.
So here’s some advice.
It might make sense to hold your fire on this application process if your PPP loan was less than $150K.
This is not a “definitely happening” development, but as we have been listening to webinars and researching the process on behalf of our Norfolk clients, we are hearing more and more bankers and experts suggest that a VERY simple form will be established for businesses with these kinds of loans.
This would be more than merely streamlined but something more akin to a simple “attestation” that would need to be signed, simply declaring that the funds were used in the manner for which they were applied.
That would mean no complex paperwork, no days of digging into records, etc.
So if what we are hearing about comes true (and this is still “if”), I recommend waiting until this “streamlined” new rule comes out….or, see if it gets trashed. Either way, we should hear something pretty soon.
The reason people are predicting this as a strong possibility is that the number of forgiveness applications that would need to be reviewed that fall into this category is astounding, and the SBA is already (and still) overwhelmed.
This is not an “official” recommendation, and you should check your deadline with your banking contact. It usually is 24 weeks after funds were received.
But if you do have some leeway, and you have one of these smaller loans, I suggest you wait this process out until everything becomes clear.
Let’s make smart calls together.
Virginia Accounting Services
Feel free to forward this article to a business associate or client you know who could benefit from our assistance. While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for families and business owners.