![]() ![]() The SBA also released an Interim Final Rule called “Business Loan Program Temporary Changes Paycheck Protection Program as Amended by Economic Aid Act” (“ Consolidated First Draw PPP IFR”). These rules announced the implementation of section 311 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the “ Economic Aid Act”). We look forward to speaking with you soon.Shareholder January 6, 2021, the Small Business Administration (the “ SBA”) and the Department of Treasury released an Interim Final Rule called “Business Loan Program Temporary Changes Paycheck Protection Second Draw Loans” (“ Second Draw Rules”). For additional information, call us at 94 or click here to contact us. If you have questions about the information outlined above or need assistance with a tax or accounting issue, JLK Rosenberger can help. When determining whether a business can meet revenue reduction requirements, it is essential to review SBA guidance. The second draw PPP loan program provides another opportunity for businesses facing persistent challenges from the pandemic to obtain relief. If an applicant has not yet filed a 2020 return, all forms must be completed, relevant gross receipts determined, and attestation given that the gross receipts calculation matches what will be filed on the tax return. Tax Returns – Tax returns for the reference period.If it is not evident, the applicant will need to provide notes on which deposits are classified as gross receipts and which are not. Bank Deposits – Monthly bank statements are needed to show deposits from the relevant quarters.Quarterly Financial Statements – If the financial statements have not been audited, the applicant must sign the bottom and date each page of the financial statement attesting to accuracy.To substantiate the gross receipts test has been satisfied, an applicant must provide the following documentation. Note that these items should be included without reduction for the costs related to the sale, transaction, or acquisition of various income sources. Total amount received from investment income such as rents, dividends, rents, and royalties.The amount received from the sale of assets.Total sales from business activities for which the organization qualifies for exemption. ![]() The amount received as dues and assessments from members or affiliated organizations.Amounts received as contributions, gifts, grants, or similar amounts. ![]() Nonprofit Organizations – For 501(c)(3), 501(c)(6), and 501(c)(19) organizations gross receipts includes the total amount received during the annual accounting period from all sources without reduction for costs or expenses, including costs of goods sold or operating expenses.It is important to note that taxes collected and remitted to a taxing authority (i.e., sales tax) included in gross income, proceeds from transactions between a company and its foreign affiliates and amounts collected for another by a travel agent, real estate agent, conference management service provider or customs broker should be excluded. ![]()
0 Comments
Leave a Reply. |