COVID-19 Information and Resources
These are uncertain times. Our lives have been disrupted and adapting to change daily is our new “normal.” One thing you can be certain of is that Price Kong is here for you. We are staying on top of new laws, incentives, regulations and other changes, not only from a tax and accounting perspective, but in all areas that impact both individuals and businesses.
Here, you will find information and resources to help you get through this difficult time. We are here to help you survive today, so you can thrive in the future.
On Friday, May 15, 2020, the Small Business Administration (SBA), in consultation with the...
As the May 14th safe harbor deadline looms, the SBA, in consultation with the Department of the...
Since being issued in April, FAQs regarding the Paycheck Protection Program (PPP) have been...
Many cannabis operations deemed essential businesses have remained opened throughout the United...
The COVID-19 pandemic created significant health and economic impacts for which very few...
Internal Revenue Service (IRS) Provides Guidance on Federal Deductibility of Expenses Forgiven under Paycheck Protection Program (PPP)
On April 30, 2020, the IRS issued Notice 2020-32 confirming that no federal income tax deduction...
The U.S. Department of Health and Human Services (HHS) has provided an update on the distribution...
What You Need to Know
Throughout the COVID-19 pandemic, Price Kong has remained open for business and been diligent in providing excellent service to our clients. Arizona’s stay-at-home order expired on Friday, May 15, 2020. As with many other businesses, Price Kong will continue to follow the guidelines issued by the federal, state, and local governments to ensure the continued safety of our clients and personnel. We will proceed with caution as we transition back to staffing and opening up the office to visitors. The following practices will continue through the end of May:
- Safety. This continues to be our priority. Price Kong personnel has been advised to continue working from home when possible through the end of May. Reducing the number of people in our office to a skeleton crew will enable us to maintain social distancing. We are also continuing to limit in-office client meetings and firm gatherings for the remainder of this month. As an added safety measure, we will be conduction temperature checks on personnel and visitors entering our office. Personnel that exhibit signs of illness are required to stay home.
- Client Service. We are here to help you through this difficult time. Communication is key, so please contact us if you have concerns. Whether in the office or working remotely, all personnel is available by phone and email.
- Documents. If you need to send us documents, please do so by uploading electronically via our CLIENT PORTAL. If your account is not already set-up, or you need assistance logging in, contact us at [email protected]. We also have a secure drop box located in the breezeway that leads to our building’s entry.
- Resources. We understand that you have many questions, particularly regarding the federal assistance programs available through the CARES Act. We have closely followed updates and clarification, pushing this information out as we receive it. In addition. On this page you will have access to information on new regulations, tax incentives, and other as-they-happen updates for taxpayers and businesses.
- The Future. We recognize many businesses and individuals are now facing the long road to recovery. We are hopeful that the worst of the health concerns relating to the pandemic is behind us, but cognizant that things can change at any time. We will continue to closely monitor and comply with all federal, state, and local recommendations and regulations, and to send out regular updates and announcements on tax and business changes that may impact our clients.
Your safety and that of our personnel remains a priority. We appreciate your confidence and trust in knowing we have your best interests in mind, and that we will continue to meet your needs. Please take time to care for yourself and those around you. We will get through this crisis together. Price Kong personnel are available to assist in any way possible.
Please contact us if you have questions or concerns at 602.776.6300.
|2019 Federal Tax Return Filing:||July 15, 2020||Applies to all individuals, trusts, estates, corporations and other non-corporate tax filers|
|2019 Federal Tax Return Payment:||July 15, 2020||Applies to all individuals, trusts, estates, corporations and other non-corporate tax filers|
|2020 Q1 Estimated Federal Tax Payment:||July 15, 2020|
|2020 Q2 Estimated Federal Tax Payment||July 15, 2020|
|2019 Arizona State Tax Return Filing:||July 15, 2020|
|2019 Arizona State Tax Payment||July 15, 2020|
The following information highlights key areas of the Coronavirus Aid, Relief, and Economic Security (CARES) Act
CARES Act Overview
Small Business Owners Guide to the CARES ACT – U.S. Senate Committee on Small Business & Entrepreneurship
Summary of Key Tax-Related Provisions – National Law Review
IRS: Three new credits are available to many businesses hit by COVID-19 – Internal Revenue Service
Employee Retention Tax Credit
Guide to the Employee Retention Tax Credit – U.S. Chamber of Commerce
Treasury Encourages Businesses Impacted by COVID-19 to Use Employee Retention Credit – U.S. Department of the Treasury
Employee Retention Credit under the CARES Act FAQs – Internal Revenue Service
Provider Relief Funds (Medicare Fee-for-Service [FFS] Payment)
Provider Relief Fund – Department of Health and Human Services
Provider Relief Fund Payment Attestation Portal – Department of Health and Human Services
CARES Provider Relief Fund Payment Portal – Department of Health and Human Services
General Distribution Fund FAQs – Department of Health and Human Services
COVID-19 Uninsured Program Portal – Department of Health and Human Services
Taxpayers with Net Operating Losses
IRS provides guidance under the CARES Act to taxpayers with net operating losses – Internal Revenue Service
Individual Recovery Rebate
Economic Impact Payments: What You Need to Know – Internal Revenue Service
Social Security Recipients Will Automatically Receive Economic Impact Payments – Internal Revenue Service
What is the recovery rebate?
The rebate, structured as a tax credit, is designed to help low and middle-income individuals and families manage expenses and hardships during the COVID-19 pandemic. The amount taxpayers will receive is based on reported income from 2019 tax returns, or 2018 if a 2019 return has not been filed.
- Individuals filing as single: Those with an adjusted gross income up to $75,000 annually are eligible for the $1,200 rebate as long as they are not claimed as a dependent by another taxpayer. Individuals with adjusted gross incomes up to $99,000 will see checks reduced by five cents for every dollar in income above $75,000. Checks phase out for individuals with adjusted gross incomes in excess of $99,000.
- Married couples filing jointly: Those with an adjusted gross income under $150,000 annually are eligible for a $2,400 rebate. Married couples who earn up to $198,000 will received reduced rebates of five cents for every dollar above $150,000, with a complete phase out for those with adjusted gross income in excess of $198,000. Married couples also receive an additional $500 per dependent child under the age of 17, with no limit on the number of children.
- Taxpayers filing “head of household”: Those with an adjusted gross income up to $112,500 annually are eligible for the $1,200 rebate. Heads of household who earn up to $136,500 will receive reduced rebates of five cents for every dollar above $112,500, with complete phase out for those with adjusted gross income in excess of $136,500. Heads of household will also receive an additional $500 per dependent child under the age of 17.
Joint Statement by SBA Administrator Jovita Carranza and Treasury Secretary Steven T. Mnuchin on the Resumption of the Paycheck Protection Program – U.S. Small Business Administration
Small Business Guidance and Loan Resources – U.S. Small Business Administration
SBA Paycheck Protection Program Interim Final Rule – U.S. Small Business Administration
Paycheck Protection Program Loans FAQs (updated 05/13/20) – U. S. Small Business Administration
Interim Final Rule on Disbursements – U.S. Small Business Administration
Active SBA Lenders Located in Arizona – U.S. Small Business Administration
Small Business Guide and Checklist – U.S. Chamber of Commerce
Paycheck Protection Program (PPP) Information Sheet for Lenders – U.S. Department of the Treasury
Paycheck Protection Program (PPP) Loan Forgiveness Application – U.S. Department of the Treasury and Small Business Administration
The U.S. Department of the Treasury’s PPP Information Sheet for Borrowers is below in its entirety.
The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.
The loan amounts will be forgiven as long as:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
- Employee and compensation levels are maintained.
Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Loan payments will be deferred for 6 months.
When can I apply?
- Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA
- Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through
existing SBA lenders.
- Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program.
Where can I apply?
You can apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating. Visit www.sba.gov for a list of SBA lenders.
Who can apply?
All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with
500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries (click HERE for additional detail).
For this program, the SBA’s affiliation standards are waived for small businesses (1) in the hotel and food services industries (click HERE for NAICS code 72 to confirm); or (2) that are franchises in the SBA’s Franchise Directory (click HERE to check); or (3) that receive financial assistance from small business investment companies licensed by the SBA. Additional guidance may be released as appropriate.
What do I need to apply?
You will need to complete the Paycheck Protection Program loan application and submit the application with the required documentation to an approved lender
that is available to process your application by June 30, 2020. Click HERE for the application.
What other documents will I need to include in my application?
You will need to provide your lender with payroll documentation.
Do I need to first look for other funds before applying to this program?
No. We are waiving the usual SBA requirement that you try to obtain some or all of the loan funds from other sources (i.e., we are waiving the Credit Elsewhere requirement).
How long will this program last?
Although the program is open until June 30, 2020, we encourage you to apply as quickly as you can because there is a funding cap and lenders need time to process your loan.
How many loans can I take out under this program?
What can I use these loans for?
- You should use the proceeds from these loans on your:
- Payroll costs, including benefits;
- Interest on mortgage obligations, incurred before February 15, 2020;
- Rent, under lease agreements in force before February 15, 2020; and
- Utilities, for which service began before February 15, 2020.
What counts as payroll costs?
- Payroll costs include:
- Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
- Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
- State and local taxes assessed on compensation; and
- For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each
How large can my loan be?
Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each
How much of my loan will be forgiven?
You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
You will also owe money if you do not maintain your staff and payroll.
- Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time
- Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in
- Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
How can I request loan forgiveness?
You can submit a request to the lender that is servicing the loan. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender must make a decision on the forgiveness within 60 days.
What is my interest rate?
0.50% fixed rate.
When do I need to start paying interest on my loan?
All payments are deferred for 6 months; however, interest will continue to accrue over this period.
When is my loan due?
In 2 years.
Can I pay my loan earlier than 2 years?
Yes. There are no prepayment penalties or fees.
Do I need to pledge any collateral for these loans?
No. No collateral is required.
Do I need to personally guarantee this loan?
No. There is no personal guarantee requirement.
***However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.***
What do I need to certify?
As part of your application, you need to certify in good faith that:
- Current economic uncertainty makes the loan necessary to support your ongoing operations.
- The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.
- You have not and will not receive another loan under this program.
- You will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.
- Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. Due to likely
high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
- All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.
- You acknowledge that the lender will calculate the eligible loan amount using the tax documents you submitted. You affirm that the tax documents are identical to those you submitted to the IRS. And you also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.
Paid Leave under the Families First Coronavirus Response Act (FFCRA) – Federal Register (will be updated on April 6th when final copy is published.)
U.S. Department of Labor Announces New Paid Sick Leave and Expanded Family and Medical Leave Implementation – U.S. Department of Labor
Families First Coronavirus Response Act: Employee Paid Leave Rights – U.S. Department of Labor
Families First Coronavirus Response Act: Employer Paid Leave Requirements – U.S. Department of Labor
Employer Tax Credits – Paid Sick and Family Leave
Treasury and IRS Release FAQs to Help Small and Midsize Businesses Navigate Paid Sick and Family Leave Tax Credits – U.S. Department of the Treasury
Families First Coronavirus Response Act FAQs – Internal Revenue Service (IRS)
COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs – Internal Revenue Service
|Internal Revenue Service||State of Arizona Governor’s Office|
|U.S. Chamber of Commerce||Arizona Department of Revenue|
|Small Business Administration||Providing Relief to Arizonans Impacted by COVID-19|
|U.S. Department of the Treasury||Arizona Small Business Relief Grant – Arizona Community Foundation|
|COVID-19 Arizona Business Resources – Arizona Commerce Authority|
What’s in the News
IRS Extends More Tax Deadlines to Cover Individuals, Trusts, Estates Corporations and Others – Internal Revenue Service (IRS)
Tax Day Now July 15: Treasury, IRS Extend Filing Deadline and Federal Tax Payments Regardless of Amount Owed – Internal Revenue Service (IRS)