Identity Protection PINs Will Be Available to All Taxpayers in 2021
The IRS announced that all taxpayers will be able to opt in to using an Identity Protection PIN (IP PIN) in 2021 on Wednesday. A new IRS tool will be available online to create IP PINs on their website in January 2021. Each IP PIN is valid for one tax year only. The IRS announcement can be read here. We encourage taxpayers to use this option to help combat identity theft.
PPP Forgiveness Simplification
A new simplified forgiveness application was provided today by the U.S. Treasury and the SBA. To use the new simplified form to apply for forgiveness, borrower’s loans must be $50,000 or less. Under the Interim Final Rule (IFR), qualifying PPP borrowers are exempted from any reductions in forgiveness based on:
- Reductions in full-time-equivalent (FTE) employees; and
- Reductions in employee salary or wages.
The new form can be found here, and instructions here.
What To Expect If Your PPP Loan Is Audited
The SBA is expected to audit PPP loans, covering everything from eligibility to the forgiveness calculations.
This article provides background on what to expect if your PPP loan is selected for review.
SBA Provides Further Guidance on PPP Loan Forgiveness
The SBA recently updated their FAQ pages to clarify certain PPP forgiveness matters. A Journal of Accountancy article describes the updates and provides links to the SBA pages here.
IRS Provides Update on Operations
The IRS recently provided a public update regarding the status of their operations in light of the coronavirus pandemic. The page describes expected processing times, issuance of payments, recent tax notices, and alternatives to reaching them by phone for various matters.
The page can be read here.
The Journal of Accountancy provides comments on the update here.
Considering Applying For Paycheck Protection Program Loan Forgiveness?
The AICPA has published a great article providing five key reasons to delay applying for PPP loan forgiveness and why delaying may be advantageous.
The Journal of Accountancy also recently published this article that explains deadlines and items still requiring clarification before many businesses will be prepared to apply for forgiveness.
