HHS Provider Relief Fund Available

Good news for Dental practices that didn’t qualify for the HHS Provider Relief Fund. According to the ADA;

Dentists who were previously ineligible for relief can now apply to receive funding from the U.S. Department of Health and Human Services' Provider Relief Fund.

The American Dental Association worked closely with HHS and the Health Resources and Services Administration, which administers the fund, to implement this for dentists. As a result of this advocacy, eligible dentists will receive a reimbursement of 2% of their annual reported patient revenue.

"The ADA Council on Government Affairs was proud to advocate for this important funding that will provide badly needed relief to dentists during the pandemic. We thank HHS for their support," said Dr. Phillip Fijal, council chair.

Dentists have until Aug. 3 to apply for funding through the Enhanced Provider Relief Fund Payment Portal.

The following dental providers are eligible:

• Dentists who have directly billed their state Medicaid/Children’s Health Insurance Programs or Medicaid managed care plans for health care-related services during the period of Jan. 1, 2018, to Dec. 31, 2019.
• Providers who own an included subsidiary that has either directly billed their state Medicaid/CHIP programs or Medicaid managed care plans for health care-related services during the period of Jan. 1, 2018, to Dec. 31, 2019.
• Providers who have either directly billed health insurance companies for oral health care-related services, or who own an included subsidiary that has directly billed health insurance companies for oral healthcare-related services.
• Licensed providers who do not accept insurance and have either directly billed patients for oral health care-related services, or who own (on the application date) an included subsidiary that does not accept insurance and has directly billed patients for oral health care-related services.

Eligible providers must also meet all of the following requirements:

• Not have received payment from the $50 billion General Medicare Distribution.
• Have filed a federal income tax return for fiscal years 2017, 2018 or 2019 or be an entity exempt from the requirement to file a federal income tax return and have no beneficial owner that is required to file a federal income tax return (for example, a state-owned hospital or health care clinic).
• Have provided patient dental care after Jan. 31.
• Not have permanently ceased providing patient dental care directly or indirectly through included subsidiaries. However, dental offices that shut down during the pandemic are eligible.
• If the applicant is an individual, have gross receipts or sales from providing patient dental care reported on Form 1040, Schedule C, Line 1, excluding income reported on a W-2 as a statutory employee.

HHS will use a curated list of dental practice Taxpayer Identification Numbers to determine eligibility, but it will work to validate applicants who are not on the list. Providers with TINs on the list must meet other eligibility requirements, including operating in good standing and not being excluded from receiving federal payments. When entering their TIN in the portal, dentists should not use dashes as this will result in their number not processing correctly.

Dentists who previously received payments from the Medicare general distribution or the Medicaid and CHIP distribution — even if they rejected and returned the payment — are not eligible to apply now, but they may be eligible in future distributions of the fund, according to HHS. The ADA has been advocating for this eligibility restriction to be lifted.

For more information about the ADA's advocacy efforts during the COVID-19 pandemic, visit ADA.org/COVID19Advocacy.

If you need more information you can email us directly at Info@BJKane.com or contact Malika Azargoon at Malika@zardentalconsulting.com or call  (703) 255-0400.

Telemedicine and Tax Considerations During COVID-19

Telemedicine’s remote delivery of services also brings up some interesting employment tax-related considerations. As a general rule, the value of cash and noncash benefits provided to an employee by an employer is taxable income unless otherwise excluded.

Such expenses can be excluded from income for employees if the expense is a working condition fringe benefit under section 132 of the Internal Revenue Code. This benefit includes property or services provided to an employee, which the employee can deduct as a trade or business expense. For employees to get reimbursed, they need to include these amounts as income and they need to follow an accountable plan that explains the business reason, provides substantiation, and includes reasonable amounts. In addition to computers and other tech equipment needed for job performance, these expenses can also extend to cell phones, travel costs and, in some cases, uniforms.

Since telemedicine can be delivered from medical office locations as well as home offices, it’s necessary to determine which should be used as the “tax home.” If most of the time, services are delivered from a home office, it’s the tax home. This is important because a home office may be in another state or tax jurisdiction, which means different withholding rules may apply.

Since a public emergency was declared, these additional expenses fall within section 139 of the Internal Revenue Code, which is a provision enacted during the tragic events of 9/11. Section 139 allows individuals to give money to others to cover their additional expenses incurred as a result of the national disaster or emergency. Individuals are not taxed on the amounts they received. And in most instances, those that had given the amounts could deduct it. Employers have been using this provision for additional expenses incurred due to the COVID-19 emergency. Such expenses may include additional childcare, safety, sanitation and other expenses, such as masks, gloves, and other protective gear. Expenses related to working from home like increased utilities or home office supplies are also covered.

New PPP guidance from SBA might change your forgiveness calculation

Who is your landlord? New PPP guidance from SBA might change your forgiveness calculation 

According to the Washington Business Journal;

New rules issued this week by the Small Business Administration could make some Paycheck Protection Program borrowers’ rent or mortgage interest payments ineligible for forgiveness.

Generally, the rules of the federal Covid-19 stimulus program deem rent and mortgage interest as expenses that count toward loan forgiveness so long as 60% of the proceeds are spent on payroll. But this week, the federal agency overseeing the program announced a new position on those outlays for businesses that have a landlord-tenant agreement between related parties.

The rule, issued Aug. 24, states rent paid to a related party is eligible for forgiveness only if the amount of forgiveness requested for that expense is “no more than the amount of mortgage interest owed on the property during the covered period that is attributable to the space being rented by the business.” The agreement had to be in place before Feb. 15.

Parties are considered related if they have any common ownership, no matter the size.

“Now you have to look to the level of mortgage interest expense during the covered period that lessor incurred,” said Terry Hoover, a partner at accounting firm Wipfli LLP. “That is the upper limit of how much rent can be included.”

To demonstrate the rent amount – if any – eligible for forgiveness, the SBA said the borrower must provide its lender mortgage interest documentation to back up the payments.

The agency went further to say mortgage interest payments to a related party will not be forgiven.

“PPP loans are intended to help businesses cover certain non-payroll obligations that are owed to third parties, not payments to a business’s owner that occur because of how the business is structured” the SBA reasoned. “This will maintain equitable treatment between a business owner that holds property in a separate entity and one that holds the property in the same entity as its business operations.”

But some advisers say these new regulations penalize some businesses and place them in a vulnerable position.

Hoover said a common arrangement in family-held businesses is that family members in a senior generation own real estate and lease it to their company. The next generation of the family often has a minority or majority interest in the company. If the real estate has been held for years, the debt on it might have been paid down or paid off.

“In that situation, unfortunately, if it’s a debt-free property that is being leased, then the rent that’s paid during the covered period is not an eligible forgivable cost,” Hoover said. “It effectively penalizes situations where people have managed their real estate conservatively and not maintained a large amount of debt against it.”

The issue the SBA said it was trying to protect against may arise, Hoover said. But the new rule will have a negative impact on many other businesses with different circumstances – such as generational operations.

Hoover added that the rule is a deviation from the agency’s prior position, which did not indicate otherwise qualifying mortgage interest payments would not be eligible for forgiveness.

“There are certainly valid financing agreements that were in place on Feb. 15 between related parties that were necessary in order to support the business, and yet the interest expense owed on those obligations is completely excluded from potential forgiveness,” Hoover said.

He added that the new rules apply to all borrowers who have not yet received notification from their lender about approval of their forgiveness application. Given the hesitation by many lenders to start processing forgiveness applications with potential program changes forthcoming, that’s most of the 5.2 million businesses that used the PPP for funding, Hoover said.

The SBA opened a portal Aug. 10 to accept forgiveness applications from lenders. The SBA will not say how many applications have been submitted so far, but lenders have said they are waiting to see what lawmakers decide about potential automatic forgiveness for loans of certain sizes.

Hoover said the SBA’s new regulation could affect the forgiveness calculation for businesses, particularly those that used the shorter eight-week covered period versus those using the full 24 weeks.

“The longer one chooses to let their covered period run, then, generally speaking, the more ability a borrower would have to compensate for this change if it applies to them and still end up with maximum potential forgiveness,” he said.

Tax and Stimulus Update

Congress and the White House want to pass the next stimulus bill quickly.

They will do it, but it won’t be easy. Some of the major sticking points include additional funding for states and localities, unemployment benefits, and liability protection for businesses and others from coronavirus-related lawsuits.

Among tax items that have a good chance of making it into final legislation:

A second round of stimulus checks for individuals. Tax breaks for businesses to help cover part of the cost of making their premises safe for workers and customers. Expanded employee retention tax credits for employers who are affected by COVID-19 but keep paying workers. Funding and tweaks to Payroll Protection Program loans. Plus relief for workers with unused funds in their health flexible spending accounts.

Could the Schedule A medical expense deduction be expanded?

A House proposal would lower the current 7.5% AGI threshold to 5% for 2020 and 2021 in light of the COVID-19 pandemic. This idea has bipartisan support on Capitol Hill.

Leasing a vehicle to use in your business is a bit cheaper, tax-wise, in 2020.

If a car worth more than $50,000 is first leased for business during the year, the lessee must pay income tax each year on an amount spelled out in IRS tables. For example, on a three-year lease for a $60,000 car first put in service this year, you reduce the size of your tax deductions for the lease payments on the vehicle

by $22 in 2020, $49 the next year, and $72 in 2022. See Rev. Proc. 2020-37.

A man whose tax debt that is discharged in bankruptcy gets another win:

A private tax-debt collector owes him damages, a federal court decides. 

IRS uses private companies to collect inactive tax receivables owed by individuals. In 2016, a bankruptcy court discharged the man’s liabilities, including taxes that he owed to IRS. Collection efforts should have ceased at that time. But instead, the IRS hired a private collector to collect the man’s taxes. The man sued, and the bankruptcy court has now ruled that the collector owes him $3,644 for attorneys’ fees and the emotional distress (in re Starling, D.C., N.Y.).

Can’t pay your taxes and worried about penalties?

File your return regardless. Ask IRS about penalty abatement if you owe late filing or payment penalties. Under its first-time abatement program, IRS will OK a waiver of the fines for filers who paid or arranged to pay the tax and who have been tax-compliant for three years.

Making an offer to settle your federal tax debt at less than what you owe?

There are two payment options: Lump sum cash, which requires 20% The total offer amount to be paid upfront, with the remaining balance to be paid in five or fewer installments within five months of the date your offer is accepted. Periodic payment requires that your first payment be made with the offer, with the remainder remitted in monthly installments over 6-24 months. Check out IRS’s Form 656 booklet for forms and eligibility requirements. IRS also has an online tool at https://irs.treasury.gov/oic_pre_qualifier.

Keep this rule in mind if the service accepts your offer in compromise: 

You must timely file returns and pay taxes for five years, starting with the date of IRS’s acceptance of the request and ending through the fifth year, including extensions. Take this case involving a couple who entered into an offer-in-compromise agreement with IRS in 2013, paid off their offer in 2016, but then failed to pay their 2015 taxes. IRS revoked the compromise offer and ordered the couple to pay the full amount

they originally owed, less than they already paid in (Sadjadi, 5th Cir.).

Promises to settle your IRS tax debts for pennies on the dollar are just that: Promises.

 Firms that hawk these types of tax-debt relief plans are referred to by the IRS as “offer in compromise mills.” IRS says these companies charge hefty up-front fees and churn out applications that most of their clients cannot qualify for the offer and compromise.

IRS is still behind on issuing tax refunds.

Tax refunds include direct-deposit refunds and paper checks owed to people who filed returns after the IRS shut its offices because of the coronavirus pandemic. IRS statistics bear this out. As of July 17, the service processed 6.8% fewer direct-deposit refunds and 5.1% fewer total refunds than last year. Refunds on paper returns take the longest. To check on your refund status, use “Where’s My Refund” on IRS’s website.

Employer leave donation programs to COVID-19 charities get IRS’s blessing.

Employers allow their employees to forfeit their accrued but unpaid vacation or sick days for cash payments that the employer donates in 2020 to charitable organizations, which will assist victims of the coronavirus pandemic. Workers won’t be subject to payroll or income taxes on the value of the donated leave. Still, they also are not able to take charitable deductions on their individual income tax returns. According to the Internal Revenue Service, employers can write off the payments as charitable contributions or business expenses.

Tax Refund Insights

Are you wondering where your refund is based on a paper return you filed?

 Due to limited IRS staffing, there are significant delays in the processing of paper returns were filed in March or late. IRS is advising taxpayers not to call about the status of a filed return paper or electronic. 

It is essentially a waiting game for your refund.

The good news is that the IRS will pay interest on delayed tax refunds.

For returns filed by July 15, the interest will run from April 15 through the refund date. The Service says that it may send out refunds and interest payments separately.

529 Relief

What if you use 529 funds for your kid’s education…

And the money is refunded because the school closes for COVID-19:

The tax law waives tax and penalties if, after a distribution is made from a 529 account, the student gets a refund. To get relief, you must redeposit the funds into a 529 account for the same beneficiary within 60 days of receiving the refunds.

Payroll Tax Credit Update

There is a payroll tax credit available to businesses in 2020 that are economically or financially hurt by the coronavirus but continue to keep employees on the payroll. Employers must suffer economic hardship from the COVID-19 pandemic to qualify for the credit. Eligible employers are those who had to close their business or reduce hours because of governmental order, or whose gross receipts in a given quarter have declined by over 50%, compared to the same quarter in 2019. Tax-exempt groups qualify as well. However, states, local, and cities do not, nor do employers who get a loan under the Paycheck Protection Program. The credit is 50% of up to $10,000 in qualified wages paid per employee or a maximum credit of $5,000 per worker annually. Qualified wages are wages paid from March 13 through December 31 of this year and depend on the number of employees in 2019. For companies averaging more than 100 employees, qualified wages are wages paid to employees who aren’t providing services. For smaller firms, all wages are qualified. Qualified wages also comprise the firm’s cost of employer-provided health care, including the employer’s cost of health coverage for unpaid, furloughed workers. Qualified wages do not include wages computed in figuring the new payroll credit for providing mandated paid sick and family leave to workers affected by COVID-19. The credit offsets the employer’s 6.2% share of Social Security taxes and the excess refundable. Employers claim the credit on Form 941. They can get the breaks quickly by reducing employment tax deposits otherwise owed to IRS by the amount of payroll credits the business qualifies for. Employment taxes that can be reduced include withheld federal income tax and the employees’ and employer’s shares of Social Security tax and Medicare tax. Companies can also seek advance payment for credits above payroll deposits by filing new Form 7200. Employers can fax the 7200 to IRS at 855-248-0552. Employers will need to reconcile the payroll tax credits, reduced deposits, and any advance payments they got when they file their quarterly Form 941. The Service has provided guidance on this credit in a set of FAQ covering 17 topics, which are available online by visiting www.irs.gov. One series of questions addresses how the credit interacts with other payroll credits. However, The House’s new stimulus bill would significantly enhance the credit. The proposed changes are: Increasing the maximum payroll credit to $12,000 per worker per quarter (up from $5,000 per worker per year now). Extending the credit to eligible State and Local government employers and allowing employers that take out PPP loans to qualify for the credit.

Senate Nears Deal to Extend PPP Spending Window

WASHINGTON—The Senate worked to coalesce on a deal that would double the amount of time businesses have to spend loans obtained through the Paycheck Protection Program, which is designed to help keep workers on payroll during the coronavirus epidemic.

“We have an agreement in principle on the basis of the language. We’re awaiting technical feedback from our Democratic colleagues,” Sen. Marco Rubio (R., Fla.) told reporters, with senators aiming to pass it as early as Thursday through unanimous consent before leaving Washington until June.

The change to the program would extend the time period to 16 weeks, and must be approved by the House. Under the current rule, the earliest recipients of PPP funds must finish using them by May 29.

Separately, House Democrats are expected next week to bring to the floor a bill to change the $660 billion program’s time frame, and change accessibility requirements. To become law, either bill would have to pass both chambers and be signed by the president.

The Resilience of the Concierge Medicine Practice (Featuring Brian Kane, CPA)

Please join us for this fast paced webinar that will outline everything you need to know about The Concierge Medicine Practice.

Webinar title: The Resilience of the Concierge Medicine Practice

Webinar tagline: A Model for Thriving Professionally, Personally and Financially in Uncertain Times

 REGISTER HERE

Description/Learning objectives: For physicians committed to their independence, the COVID-19 crisis has been a pressure test, starkly revealing the weaknesses and vulnerabilities of traditional practices. The pandemic has also served as a genuine catalyst for change, providing physicians with a compelling reason to consider the professionally fulfilling and economically sustainable alternative of concierge medicine.

In this informative webinar, learn how the financial, clinical and operational hallmarks of a concierge practice are key to its resilience during COVID-19 and healthcare reform…and why the model is strong enough to withstand other challenges yet to come in a constantly evolving healthcare system.

Join us for a revealing, fast-moving discussion with:

• Concierge physicians John Valenti, MD and Shalini Kaneriya, MD, who share their personal journeys of change to the membership medicine model, and how their practices continue to sustain during the pandemic.

• Brian Kane, CPA, founder of BJ Kane & Co., a financial advisor who specializes in setting up efficient and profitable private practices for physician clients.

• Terry Bauer, CEO of Specialdocs Consultants, a pioneer in transitioning and supporting successful concierge practices nationwide for almost two decades.

Details to follow, so follow us on our social media pages, @BJKaneandCo. Presented by Medical Economics and Specialdocs Consultants.

EIDL

Notice: Lapse in Appropriations

SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. 

Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.

For more information go to coronavirus-covid-19

Important PPP update

Many of you have applied for the PPP loan being offered by the government/SBA and expect your funds to be available within the next couple of weeks.  B.J. Kane & Company, P.C. is advising all of our clients to make sure that any and all PPP funds are deposited into a dedicated Corporate checking account. This means that most of you will probably need to open a second checking account with your current bank.  The purpose of having a dedicated PPP account is to have clear and concise tracking of all PPP funds and not to comingle these funds with any other Corporate monies.  At some point, the government/SBA will want records and documentation that PPP funds were only used for payroll, rent, and utilities. This will be much easier to prove with a dedicated checking account and will minimize the chances of having to pay back the loan, provided all other requirements were met.  Once you open your dedicated PPP checking account, please remember to give your new checking account information to your payroll processing company as well.

If you have any questions or need additional advice, please feel free to reach out to your primary point of contact at B.J. Kane & Company, P.C.  Wisihing you all continued health and safety!  

Medicare Accelerated and Advance Payments Program for Providers During COVID-19 Emergency

Medicare is accepting and processing the Accelerated/Advance Payment Requests during COVID-19 emergency.  Most providers will be able to receive up to 100% of the Medicare payment amount for a three-month period.  MD, DC, and PA Medicare (MD, DC, PA) carrier (Novitas) will calculate the maximum payment amount.  VA Medicare (Palmetto GBA) has a different form and VA divisions need to specify the request payment amount.

 The request form will be completed with your Medicare PTAN and Group NPI combination.  CMS will issue the payment check and recoupment of payment from your Medicare PTAN and Group NPI combination. 

The below link shows an informational fact sheet on the accelerated/advance payment program:

Fact Sheet

CMS anticipates that the payments will be issued within seven days of the provider’s request.

Paycheck Protection Program (PPP) Information

PAYCHECK PROTECTION PROGRAM (PPP) INFORMATION SHEET: 

BORROWERS 

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 lenders. 

 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? Only one. 

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 employee. 

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 employee. 

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 employee headcount. 

 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 2019. 

 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. 

Tips for organizing your tax information 4

4. Start worksheets and lists for 2019 and 2020

If you plan to itemize your tax deductions, a good rule of thumb is to start a checklist of questions to gather pertinent information.

For example, you may need to get tax information from your child care provider, or you may need to figure out the number of square feet in your home office.

You should also keep a record showing how you estimated amounts or allocated them between different categories.

Aside from being necessary if the Internal Revenue Service (IRS) ever questions your return, that information may be useful in future tax years.

Tips for organizing your tax information 3

3. Find last year’s return

Last year’s return is a great starting point for this year’s filing.

By looking at your return from last year, you can quickly see what information you probably need now.

In addition, you may need to use some information from last year, such as depreciation or inventory information, to complete your new return.

Tips for organizing your tax information 2

2. Group tax documents by category

Depending on the complexity of your tax return, you may want to use file folders, paper clips, boxes, or other methods to categorize documents.

Entering information in TaxAct is much easier if you separate your income, deductions, and credits information.

If you have one or more businesses, you’ll need to keep each business’ information separate as well.

Tips for organizing your tax information

1. Designate an easy-to-access place for tax documents

If the place you want to keep documents isn’t easy to get to, it won’t get used consistently.

Even if you intend to scan documents, you need a place to store them temporarily.

Consider choosing something you can reach with one hand, like a shelf or folder, even while holding a stack of mail.

If you don’t let that Form W-2 or Form 1099 hit the kitchen counter, it won’t get lost.