Happy Spring & News from DMR!

Spring is here and we’re looking forward to enjoying the outdoors with with longer days and warmer weather!  For more health and happiness, here’s a quick read on how to incorporate the outdoors into a busy workday.


Announcing…

Our DMR team has a new member and we are excited to introduce Elsie Meyer to you! 

Elsie joined us last fall and has been training with our Accounting and Bookkeeping Services Team on our time tested DMR procedures. She will complete her Associate Degree in Accounting and Full Charge Bookkeeping from Austin Community College this July. 

Elsie’s prior experiences in bookkeeping, project management, and data analysis make her a great addition to our Accounting and Bookkeeping Services team.  We are thrilled to be working with Elsie!

For all of our current and future accounting and bookkeeping services clients, it is important that you to know about our company-wide cross-training initiative.  This training takes place at no charge to our clients which is a win-win for both for the professional development of each DMR team member, and most importantly, for each of our client organizations.  

Teamwork makes the Dream Work After all the uncertainty we have collectively experienced in the last few years, we are proud to provide you with a highly qualified and experienced team that work together harmoniously and seamlessly to make your life easier.   

Continual cross-training is another way we go Above and Beyond for you.


Did you know…?

Texas has an Unclaimed Property Day. Read more about it here and feel free to ask your DMR bookkeeper if you have questions or would like assistance in the future.


Tax Deadlines…

For your convenience, here is a list of the upcoming deadlines:

Individual Federal Tax Returns (IRS Form 1040)

These are due by Friday, April 15, 2022. For an automatic extension, file Form 4868, and deposit estimated tax by the same date. The extension is only for filing the return. You must submit an estimated payment amount by April 15, 2022, if you expect to owe additional income tax.  

2022 Estimated Tax Payment Due Dates

Form 1040-ES, Estimated Tax for Individuals

Payment PeriodDue Date
January 1 – March 31, 2022 Friday, April 15, 2022
April 1 – May 31, 2022Wednesday, June 15, 2022
June 1 – August 31, 2022Thursday, September 15, 2022
September 1 – December 31, 2022January 15* of the following year. *See January payment in Chapter 2 of Publication 505, Tax Withholding and Estimated Tax
Fiscal-Year TaxpayersIf your tax year doesn’t begin on January 1, see the special rules for fiscal year taxpayers in Chapter 2 of Publication 505 

C-Corporation returns (IRS Form 1120)

These are due Friday, April 15, 2022. The extended deadline is October 15, 2022. If an entity operates on a fiscal year rather than a calendar year, the return is due on the 15th day of the fourth month following the end of the fiscal year.  

Form 1120, U.S. Corporation Income Tax Return

Texas Franchise Tax

Annual Texas franchise tax reports are due Monday, May 16, 2022. When tax due dates fall on a weekend or holiday, the due date will be the next business day. There are distinctions between Non-EFT and EFT Franchise Taxpayers. You can see more information on the Texas Comptroller tax page.

IMPORTANT NOTE:  Be sure to file this report on time even if you are only required to file a NO TAX DUE Report.  

Otherwise, the state will fine you with a $50 penalty and no one ever wants to pay extra taxes, especially for missing a silly deadline!

Non-profit Organization Tax Returns (IRS Form 990)

Tax-exempt organizations need to file their return by Monday, May 16, 2022. The extended deadline is November 15, 2022. 


Our team is here to help you through this spring season (and all seasons year-round) so that you can rest and enjoy life knowing that your finances are solid and reliable.

Please reach out to your current DMR bookkeeper if you have any questions. 

We encourage you to contact Carrie Jareed, our Virtual Client Services Coordinator at csc@dmraccounting.com, or reach out to us via our DMR Client Online Solutions Box anytime.  Your feedback is welcome!

We know you have choices when it comes to meeting your business and accounting needs.

Thank you for choosing DMR Accounting & Consulting!

DMR Accounting & Consulting – Our Purpose and Values

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Happy New Year & Important Tax Deadlines for 2022

We hope you are looking forward to what this new year will bring, we are! 

Did you know that the standard mileage rates have increased for 2022? 

You can read more about the details in this article from the Journal of Accountancy.


Tax Deadlines…

For your convenience, here is a list of the upcoming deadlines:

Employers or Institutions (IRS Form W-2 and Form 1099)

These must be sent to employees or independent contractors by Monday, January 31, 2022, to avoid penalties.

Last year the IRS released a new Form 1099-NEC for nonemployee compensation.  Form 1099-NEC replaces Form 1099-MISC for nonemployee compensation only. If you haven’t already, please let us know as soon as possible if you would like our assistance with the mapping setup required in your accounting software to be compliant with this new form.  Form 1099-NEC is due Monday, January 31, 2022, the same as Form 1099-MISC.

Individuals (IRS Form 1040)

These are due by Friday, April 15, 2022. For an automatic extension, file Form 4868, and deposit estimated tax by the same date. The extension is only for filing the return. You must submit an estimated payment amount by April 15, 2022, if you expect to owe additional income tax.  

Estimated Tax Payments

Form 1040-ES, Estimated Tax for Individuals

Payment PeriodDue Date
January 1 – March 31, 2022 Friday, April 15, 2022
April 1 – May 31, 2022Wednesday, June 15, 2022
June 1 – August 31, 2022Thursday, September 15, 2022
September 1 – December 31, 2022January 15* of the following year. *See January payment in Chapter 2 of Publication 505, Tax Withholding and Estimated Tax
Fiscal-Year TaxpayersIf your tax year doesn’t begin on January 1, see the special rules for fiscal year taxpayers in Chapter 2 of Publication 505 

Partnership returns (IRS Form 1065) 

These are due Tuesday, March 15, 2022. The extended deadline is September 15, 2022. 

Form 1065, U.S. Return of Partnership Income

S-Corporation returns (IRS Form 1120-S)

These are due Tuesday, March 15, 2022. The extended deadline is September 15, 2022. If an entity operates on a fiscal year rather than a calendar year, the return is due on the 15th day of the fourth month following the end of the fiscal year. 

Form 1120-S, U.S. Income Tax Return for an S Corporation

C-Corporation returns (IRS Form 1120)

These are due Friday, April 15, 2022. The extended deadline is 

October 15, 2022. If an entity operates on a fiscal year rather than a calendar year, the return is due on the 15th day of the fourth month following the end of the fiscal year.  

Form 1120, U.S. Corporation Income Tax Return

Texas Franchise Tax

Annual Texas franchise tax reports are due Monday, May 16, 2022. When tax due dates fall on a weekend or holiday, the due date will be the next business day. There are distinctions between Non-EFT and EFT Franchise Taxpayers. You can see more information on the Texas Comptroller tax page.


Our team is here to help you have a great start in 2022. 

Please reach out to your current DMR bookkeeper if you have any questions about the above deadlines

 You are also welcome to contact Carrie Jareed, our Virtual Client Services Coordinator at csc@dmraccounting.com, or reach out to us via our DMR Client Online Solutions Box.

Thank you for choosing DMR Accounting & Consulting!

DMR Accounting & Consulting – Our Purpose and Values

Connect with us on Facebook!

 

Happy Thanksgiving & Important Reminders to Wrap Up 2021

We are thankful for you!  We hope you are having a wonderful fall and are looking forward to the Thanksgiving holiday.

Below are some reminders and tips plus heartwarming and yummy client highlights.


Tax Planning with Deidra – Sign up now!

Please sign up now if you would like Deidra to join a tax planning meeting with your tax accountant before year-end.  Spots are filling up fast!  Please schedule your meeting with Deidra soon.

Reminder: the Q4 2021 quarterly estimated tax payment is due January 15, 2022. 

Note:  Our office will be closed for the Thanksgiving holiday and from December 23 through January 4.


Have you heard…about DMR’s YES! Program

The program is designed for Your Empowered Success and offers Year-round Entrepreneurial Support. 

We’ve received rave reviews about our YES! Program which is offered on a monthly, quarterly, or semi-annual basis. Learn more about it here.


Helpful Tip

Cybersecurity isn’t just for large corporations. The trend towards cyberattacks on small businesses is growing. We encourage you to take a closer look at your security protocols. Here’s a short article with easy-to-implement tips.


HorseLink

HorseLink is a 501(c)3 nonprofit founded by our client, Julie Puentes. HorseLink farm located in Bastrop, Texas, offers equine therapy to people in need of trauma support, training in emotional resilience, and leadership and communication. You can visit their website to learn more as well as read this article from the Austin American-Statesman. 

They are also a part of Tito’s Handmade Vodka fundraising challenge 2021 and have some really great winning opportunities with every donation including a great Glamping Trip Giveaway!


We love Becky’s pies and you will too!   

Our client, The Loving Libbie Foundation, helps families battling cancer.  This is a sweet way to give back and add to your Thanksgiving celebration at the same time! 

Get your Thanksgiving Pies while they are available!


We love when our clients are featured for their good work. We’d love to highlight your business, too! 

Please email our Client Services Coordinator at csc@dmraccounting.com if you have news to share!  


Our team is here to help you wrap up 2021.

As 2021 comes to a close, we encourage you to connect with your current DMR bookkeeper. They will be reaching out to gather important year-end information to have everything in order for the upcoming tax filing season. 

Our virtual Client Services Coordinator, Carrie Jareed, is available to onboard new clients, answer questions about your account, or the YES! Program. Please do not hesitate to contact her at csc@dmraccounting.com, or reach out to us via our DMR Client Online Solutions Box.

Please share this newsletter if you know a small business in need of assistance.  Your referrals are always welcome!

We are thankful that you trust us with your business and accounting needs and wish you a very Happy Thanksgiving holiday!

Meet the DMR Team! We are growing and are here for you!

We hope you are having a wonderful summer and are staying cool!

We are excited to announce a client celebration, and a bit about our team.  Additionally, we would like to make you aware of an IRS tax scam warning.


The IRS is warning of a wave of pandemic-related tax scams. 

This article from the Journal of Accountancy has more details. The article mentions the IRS Dirty Dozen of tax scams for 2021. Please take a moment to read through these short articles. We want you to be aware and stay vigilant in protecting your information.


Shout out to our client, Sayers Real Estate Advisors! They were nominated for Austin Business Journal’s 2021 Family Business Award. You can read the full article here and see our post on the DMR Facebook page

We love when our clients are featured for their good work. We’d love to highlight your business, too! 

Please email our Client Services Coordinator at csc@dmraccounting.com if you have news to share!  


A little more about the DMR Team… You probably know most of us in our professional capacity, so today we’re sharing some personal tidbits…

Deidra Ryan, CPA, is our fearless leader, and has a life-long passion for learning and teaching. She enjoys hiking and traveling with her husband and two children. They are also pickle connoisseurs and enjoy periodic “pickle runs” to Fredericksburg where they can stock up on their favorite homemade dill pickles. They love animals especially their black lab, Jada, and lucky black cat, Ella.

Kyle Ryan has been a results-oriented Information Technology (IT) professional for over 20 years. He also happens to be a fantastic chef! He loves keeping up with the latest in tech gadgets and has a collection of tech toys with 2 Google Homes, Alexa, and Siri, Apple Watch, iPads, Kindles, and Airpods.

Nayana Shahane has enjoyed working in small business operations for over 10 years. She also enjoys singing in a local women’s chorus, seeing live music, and traveling with her husband and three teenage boys.

Nicole McClendon loves her client relationships and supporting each client in their unique business endeavors. She enjoys gardening, playing Mah-Jong, traveling, and spending time on the lake. 

Carrie Jareed has been consulting for entrepreneurs for over 15 years helping them develop and streamline their business processes. She loves scrapbooking, camping, and spending time with friends she’s known since her three grown boys were in preschool.

Dianne Szabo is a master of turning chaos into calm. When she’s not breaking down complex tasks she enjoys music and photography, as well as spending time with her family and traveling. Dianne is working on her goal to travel to all the national parks and all 50 states.

Courtney Schacherer has a love of numbers and a mission to help clients; the accounting field is an excellent fit for her. In her downtime, she enjoys gardening, jigsaw puzzles, and hiking with her corgi, Hazel.

Ashlyn McClendon is our amazing intern and a Class of 2021 graduate of Vandegrift High School. When she has a break from studying she enjoys drawing, painting, and baking. She plans to continue with DMR as she pursues her undergraduate studies at American University.


Our team is available to answer your questions.

As the small business environment continues to evolve, we encourage you to reach out to your current DMR bookkeeper or CPA, to assist in navigating these changes. 

Our virtual Client Services Coordinator, Carrie Jareed, is available to onboard new clients as well as answer your account questions. Please do not hesitate to contact her at csc@dmraccounting.com, or reach out to us via our DMR Client Online Solutions Box.

Please share this newsletter if you know a small business in need of assistance.

We wish you continued success as you head into the 2021 fall season!

Deidra & the entire DMR Team

DMR Accounting & Consulting – Our Purpose and Values

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IRS Tax Deadline Extensions and American Rescue Plan Act

We hope you are well and have recovered from the severe February winter storms. 

We are reaching out to share some good news. Here is the shortlist. Please scroll down for additional details and links to full news releases.

  • IRS has extended tax deadlines to June 15, 2021, for Texas businesses and individuals due to the severe winter storms.
  • The American Rescue Plan Act of 2021, a 1.9 trillion dollar relief package, was signed into law by President Biden yesterday. 
  • Texas Workforce Commission (TWC) has postponed tax payment due dates and rate adjustments for Texas employers.
  • We welcome your referrals and have openings for new bookkeeping client work.
  • Our team is available to answer your questions and support your business needs during these ever-changing times.

The IRS is extending tax deadlines for victims of Texas winter storms.

Automatic filing and penalty relief are granted to any taxpayer with an IRS address of record located in the state of Texas. Taxpayers do not need to contact the IRS. 

Eligible taxpayers impacted by the severe winter storms have until TuesdayJune 15, 2021, to file individual tax returnsbusiness tax returnsquarterly estimated tax paymentsquarterly payroll and excise tax returns.

Additionally, 2020 IRA contributions have been extended to Tuesday, June 15, 2021. 

Details on other returns, payments, and tax-related actions that qualify for extensions can be found here: IRS Disaster Relief Page.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses (example: the February 2021 ice storm) may claim them on either:

a) the return for the year the loss occurred (i.e. on the 2021 tax return filed in 2022)

OR

b) claim these losses on the 2020 tax return this tax season.**

**Include FEMA declaration number – 4586 – on any return claiming a loss. See Publication 547 for details. 

For more information on disaster recovery, visit DisasterAssistance.com

See the original IRS publication for full details.  


The American Rescue Plan Act of 2021 was signed into law yesterday after being passed by the U.S. House and Senate earlier in the week. 

The 1.9 trillion dollar relief package was signed into law by President Biden yesterday, Thursday, March 11, 2021.

There are a number of small business provisions in the plan, including PPP funding, restaurant support, and targeted Economic Injury Disaster Loan (EIDL) advances. You can read an overview of the bill here, and more details about the tax components of the plan here.


The Texas Workforce Commission (TWC) has postponed tax due dates and the annual rate adjustment for Texas employers. 

New Texas unemployment tax rates will be issued in late June 2021. 

Due dates for first and second quarter Texas unemployment tax payments have also been extended, however, report due dates remain the same. 

Read the full news release from TWC and check your email for additional notices directly from TWC.

Wages Paid

Quarter Ends

Report Due (No Change)

Payment Due

1Q21

Mar 31

Apr 30, 2021

Aug 2, 2021

2Q21

Jun 30

Aug 2, 2021

Sept 30, 2021

We have a few openings for new bookkeeping clients and welcome your referrals.  

If you know a small business in need of assistance, please share this information with them. It would be greatly appreciated.  We thank you for your trust in us!


Our team is available to answer your questions and demystify the new federal and state small business opportunities and guidance during these ever-changing times.

We know that this rapidly changing environment can be challenging for small businesses. We urge you to reach out to your current DMR bookkeeper or CPA, to assist in navigating these changes. 

Additionally, our Virtual Client Services Coordinator, Carrie Jareed, is available to answer your account questions and onboard potential new clients. Please do not hesitate to contact her at csc@dmraccounting.com, or reach out to us via our DMR Client Online Solutions Box.

We are here for you and are happy to help!

DMR Accounting & Consulting – Our Purpose and Values

Happy New Year! Important PPP Loan and Tax Deadline Information

Happy New Year!

We wish you a joyful and prosperous 2021.

We have exciting news from the Small Business Administration (SBA). They announced that the Paycheck Protection Program (PPP) has resumed and will remain open through March 31, 2021. 

The next round of PPP loans has $284.5 billion available, including $35 billion for first-time borrowers. 

Costs eligible for loan forgiveness include:

  • Payroll, mortgage interest, rent, utility payments
  • PPE and costs to comply with COVID-19 safety guidelines
  • Covered supplier costs (i.e. essential operations expenditures)
  • Covered operations expenditures (i.e. software, cloud computing, other HR/accounting)
  • Covered property damage costs

Borrowers can choose a covered period for loan forgiveness that is between 8 and 24 weeks. 

More Good News!

If you already received a PPP loan during the first round of funding, the amount that is forgiven will NOT be taxable!

This is a brief summary. Please see the SBA website for full details of the Paycheck Protection Program and/or reach out to us for support…we are here for you!

Tax Deadlines…

The new year also means tax deadlines are fast approaching. For your convenience, here is a list of the upcoming deadlines:

Employers or Institutions (IRS Form W-2 and Form 1099)

These must be sent to employees or independent contractors by Monday, February 1, 2021, to avoid penalties.

The IRS has released a new Form 1099-NEC for nonemployee compensation for 2020.  Form 1099-NEC replaces Form 1099-MISC for nonemployee compensation only. Please let us know as soon as possible if you would like our assistance with the mapping setup required in your accounting software to be compliant with this new form.  Form 1099-NEC is due Monday, February 1, 2021, the same as Form 1099-MISC.

Individuals (IRS Form 1040)

These are due by Thursday, April 15, 2021. For an automatic extension, file Form 4868, and deposit estimated tax by the same date. The extension is only for filing the return. You must submit an estimated payment amount by April 15, 2021, if you expect to owe additional income tax.  

 

Estimated Tax Payments

Form 1040-ES, Estimated Tax for Individuals

Payment Period Due Date
October 1 – December 31, 2020 Friday, January 15, 2021
January 1 – March 31, 2021 Thursday, April 15, 2021
April 1 – May 31, 2021 Tuesday, June 15, 2021
June 1 – August 31, 2021 Wednesday, September 15, 2021
September 1 – December 31, 2021 January 15* of the following year. *See January payment in Chapter 2 of Publication 505, Tax Withholding and Estimated Tax
Fiscal-Year Taxpayers If your tax year doesn’t begin on January 1, see the special rules for fiscal year taxpayers in Chapter 2 of Publication 505

Partnership returns (IRS Form 1065)

These are due Monday, March 15, 2021. The extended deadline is Sept. 15, 2021. 

Form 1065, U.S. Return of Partnership Income

S-Corporation returns (IRS Form 1120-S)

These are due Monday, March 15, 2021. The extended deadline is Sept. 15, 2021. If an entity operates on a fiscal year rather than a calendar year, the return is due on the 15th day of the fourth month following the end of the fiscal year. 

Form 1120-S, U.S. Income Tax Return for an S Corporation

C-Corporation returns (IRS Form 1120)

These are due Thursday, April 15, 2021. The extended deadline is Oct. 15, 2021. If an entity operates on a fiscal year rather than a calendar year, the return is due on the 15th day of the fourth month following the end of the fiscal year.  

Form 1120, U.S. Corporation Income Tax Return

Texas Franchise Tax

Annual franchise tax reports are due Monday, May 17, 2021. When tax due dates fall on a weekend or holiday, the due date will be the next business day. There are distinctions between Non-EFT and EFT Franchise Taxpayers. You can see more information on the Texas Comptroller tax page.

Please reach out to your DMR Accounting and Bookkeeping Services team member if you have questions about the above deadlines. 

You are also welcome to contact Carrie Jareed, our Virtual Client Services Coordinator at csc@dmraccounting.com, or reach out to us via our DMR Client Online Solutions Box

We look forward to partnering with you again for your business and financial success in 2021.

Wishing you a happy, healthy, and prosperous new year!

Important News from DMR Accounting & Consulting

In an unpredictable world, it can be hard to know who you can count on. Client success remains our primary focus and objective here at DMR Accounting and Consulting.

Accordingly, we have several new initiatives at DMR Accounting as we wrap up 2020, and what a year it has been!  We are looking forward to 2021 and what the new year will bring!

  • DMR Core Purpose & Values, how we serve you   
  • Online Solutions Box, tell us what you need and how we can improve
  • PPP2 Relief, a matter of “when” and not “if” additional financial support will be coming from Congress
  • Client Services Coordinator, Carrie Jareed is available and at your service
  • We are fully staffed, welcome your client referrals, and thank you for your continued business and support!

Please read below for important details:

  1. We are committed to your success every day with our CORE PURPOSE  and VALUES that align our team members with you and your business needs. Your success is our success!

                FEARLESS Accounting, One empowering moment at a time. 

      • Clear Direction, Steady Support – We meet people where they are, demystifying the accounting process, gently eroding fears, and transforming lives from floundering to flourishing. 
      • Invest in Your Success – We expect all stakeholders to take ownership of their part in co-creating our mutual success. 
      • We’re 100% ALL IN – We treasure all our relationships. We show up fully, powerfully, honestly, collaboratively, and courageously. 
      • Teamwork makes the Dream Work – We recognize our interconnectedness and the power of a positive and nurturing environment. We call forth and celebrate the highest potential of all. 
      • Above & Beyond – We deliver exceptional, comprehensive solutions in an accurate, responsible and proactive manner.
  1. New for You! We’ve set up a new Online Solutions Box where you may share your kudos, concerns, and suggestions.  Please click the link to complete this form and we will respond to you within two business days. We welcome your thoughts and feedback!
  1. PPP2 Relief: It is a matter of “when” and not “if” additional financial support will be coming from Congress which will hopefully occur before the new year. 

We are committed to keeping you informed about new congressional legislation regarding additional COVID-related small business financial relier. We are attending, at a minimum, bi-weekly professional training sessions sponsored through the American Institute of Certified Public Accountants (AICPA).  

As of yesterday, Congress will likely enact new business support legislation before the end of the year and possibly as early as December 11th as a stand-alone bill or as a part of a new budget bill.  Since they are required to take up both a budget and a defense spending bill in the next few weeks to keep the government open, things could change. 

However, we are hopeful because it seems there is renewed bipartisan support after the Congressional members returned from the Thanksgiving holiday and especially since COVID numbers are on the rise again. 

The three big issues around additional Paycheck Protection Program (PPP) funding relates to: 

(1)  Making expenses deductible (currently they are not) for loan dollars that are forgiven. 

The AICPA believes that there is a high likelihood that the PPP forgivable loan expenses will not be taxable.  However, until a new law is signed, the expenses are currently non-deductible.  Accordingly, we recommend that business owners set aside dollars to pay the tax on PPP loan amounts (possibly due in March/April  2021) even if there is a reasonable expectation that the PPP loan will be forgiven.    

(2)  Potential for automatic forgiveness or simplified forgiveness for some loans.

Smaller PPP loans such as those $150k or less may be given automatic forgiveness or at a minimum, a simplified forgiveness process.  Depending on congressional negotiations, this number could be lower (for example, $50k or less instead of $150k).  Regardless of the amount, for now, we recommend delaying a forgiveness application submission to your bank until a new law is passed or current law guidance details are given.

(3)  PPP2 eligibility will be dependent on businesses who have suffered a 25-35% reduction in revenue.

PPP2 eligibility will be dependent on a 25-35% reduction in revenue for entities with less than 300 employees.  As soon as the law is passed, businesses will need to move quickly to apply for this additional funding.  The application process will be similar to the PPP1 framework.

Please let us know if you have any questions or need our assistance to apply for new PPP2 funding or with your PPP1 forgiveness application. We’re here to help you navigate the financial relief waters.

  1. Carrie Jareed, our Virtual Client Services Coordinator, is your direct contact for questions about your account management. Carrie’s contact information is csc@dmraccounting.com or by phone at 512-655-3679.  Please contact Carrie if you have a change in bill payment type, a concern, a last-minute scheduling change, a change in address, a new client referral, or any other administrative need.
  1. Your Referrals Are Welcome: We are pleased to say that we are fully staffed with experienced financial professionals. If you are happy with our service, a referral is the highest compliment we can receive. If you have colleagues, friends, or family members who could benefit from our services, we would greatly appreciate your trust and support by sending an introduction email with their contact information to Carrie Jareed at csc@dmraccounting.com.

We appreciate our clients continued business and strive to deliver accurate and timely financial performance records. We want to enable you to grow while meeting the unique opportunities and challenges you may face today, tomorrow, and years into the future.   

We send you wishes for health and prosperity this holiday season, and a very Happy New Year!

Wishing You a Safe and Happy 2021

PPP Loan Forgiveness & Updated Tax Deadline Support for you!

I hope this note finds you well given the recent tumultuous times. I know we’re all experiencing varying levels of uncertainty between the pandemic, the related economic fallout, and the sobering societal unrest. Please reach out if I can be of assistance with questions related to the CARES economic relief package. 

We’ve heard that many of you have received PPP Loans which are offering such great relief during these challenging times!  Please let us know if you would like assistance with navigating the rules or for submitting the loan forgiveness application.  

I’m also writing to you today with an update of upcoming tax deadlines. There have been many changes and I want to send you a short reminder with some helpful links. 

Updated 2020 Tax Deadlines:

Many state franchise tax and federal tax return deadlines have changed so we wanted to give you a list for your reference.

Internal Revenue Service

According to the IRS website many federal tax filing and payment deadlines from April 1, 2020, to July 14, 2020, have been pushed to July 15, 2020.

 

Individuals

File Form 1040, or for an automatic extension, file Form 4868 and deposit estimated tax.

Estimated Tax Payments
Form 1040-ES, Estimated Tax for Individuals

Payment Periods and Due Dates:
Payment Period: January 1- March 31
Due Date: Normally April 15, See Filing and Payment Deadline Extended to July 15, 2020 – Updated Statement for tax relief on account of Coronavirus Disease 2019.

Payment Period: April 1- May 31
Due Date: June 15 – Extended to July 15, 2020

Payment Period: June 1- August 31
Due Date: September 15

Payment Period: September 1 – December 31
Due Date: January 15* of the following year. *See January payment in Chapter 2 of Publication 505, Tax Withholding and Estimated Tax

Payment Period: Fiscal Year Taxpayers
Due Date: If your tax year doesn’t begin on January 1, see the special rules for fiscal year taxpayers in Chapter 2 of Publication 505.

Partnerships, Corporations, and S-Corporation details

If a fiscal year partnership or S-corporation has a return due to be filed on or after April 1, 2020, and before July 15, 2020, that filing requirement has been postponed to July 15, 2020. Any return filings that were due on March 16, 2020, were not postponed. 

Form 1065, U.S. Return of Partnership Income

Form 1120, U.S. Corporation Income Tax Return

Form 1120-S, U.S. Income Tax Return for an S Corporation

Texas Franchise Tax

The Texas Comptroller of Public Accounts is automatically extending the due date to file and pay the 2020 Texas franchise tax reports to July 15, 2020. There are distinctions between Non-EFT and EFT Franchise Taxpayers. You can see more information on the Texas Comptroller tax page.

Stay well and know that DMR Accounting & Consulting is here to help!

We CARES About You! SBA COVID-19 Relief Info

Patience is not my greatest virtue. However, patience is required during these trying times!

A prime example of much-needed patience is what I have been dealing with this week. Since the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act was enacted last Friday afternoon, March 27, 2020, there has been a flurry of new information for small business owners like you and me to digest.

On Monday, March 30th at 10 A.M. CDT, I attended a conference call/presentation by Small Business Administration (SBA) San Antonio district office. The meeting was flubbed from the start because they did not have any information for us related to the CARES Act. One attendee said in the chat “This is a waste of time.” which wasn’t too far from the truth since they were having technical difficulties and were unable to present as they had intended.

However, I did learn a little tidbit about the Economic Injury Disaster Loan (EIDL) forgivable loan advance (grant) application process and then promptly applied for a DMR Accounting & Consulting EIDL loan in order to learn about the process so I am able to share my experiences with you.

Important note: at Monday’s meeting the SBA rep said that anyone who had started or completed an SBA disaster relief loan application during the prior week would need to start over and re-submit a new application this week. The rep said it was because they had problems with their legacy system crashing that they now have a new website.

Fast forward to today, Thursday, April 2, 2020, which is 3 days after I completed the “new” EIDL application and when the “up to $10K forgivable loan (i.e. grant)” should have been deposited into my business bank account. And no, I haven’t heard anything back from the SBA…no email, no deposit, no phone call, no nothing, nada.

At another presentation by the SBA San Antonio office yesterday, the representative said to call the SBA disaster customer service center number (1-800-659-2955) if we haven’t heard anything yet.

So, I dutifully called them around 8:30 this morning where I was put on hold and number 368 in the queue. Since I am determined to learn as much about this SBA loan process as possible, I sat on hold for 29 minutes before a really sweet lady named Pamela answered. After I gave her my application identification number, she said “All of the applications received by the SBA before Tuesday, March 31st had been “discontinued” so my confirmation code was not valid and the application needed to be completed and submitted again.”

I asked Pamela “why did this happen?” and she said that she was sorry and offered some kind words about how she thought my business was important to the world. It was very nice to hear even though I know it was a script that she was trained to say to everyone. I felt sorry for her since I heard her voice waiver like she was choking back tears, so I told her “thank you” and hung up with her. I then completed the EIDL application process for a second time.

On today’s EIDL application, some of the wording had changed since the application I filled out on Monday, but the majority of the questions were the same. These are examples of the some of the info it required:

  • business name, address, EIN number and start date of business
  • ownership info including % of ownership, SSN(s) and home address(es)
  • # of employees
  • Annual revenue last 12 months – Feb 2019-Jan 2020
  • Cost of Goods Sold last 12 months – Feb 2019-Jan 2020
  • Bank account info = account # and routing number

Fingers crossed that in 3 business days, I will hear something from them and won’t have to fill out the form for the third time…I’ll keep you posted.

With all this said, I recommend that ALL small business owners apply for this EIDL loan and in the process be sure to check the box on the application regarding consideration of the “up to $10K forgivable loan advance (grant)”. Also, be sure to use either Microsoft Explorer or Microsoft Edge when you apply as these work best with the SBA’s system.

It is a simple process and doesn’t require you to go to your bank, plus, according to the SBA representative yesterday, you can apply for both this disaster relief as well as the other Paycheck Protection Program (PPP) loan and other SBA loans as well.

There are 3 flavors of SBA COVID-19 disaster relief loans as follows:

1. Economic Injury Disaster Loan and loan advance (EIDL-discussed above) https://covid19relief.sba.gov/#/

2. Paycheck Protection Program (PPP) – Applications for this loan will open tomorrow, Friday, April 3rd for businesses with 1-500 employees and Friday, April 10th for self-employed and independent contractors.

· 75% of these loan proceeds must be used for payroll for 8 weeks in order to be forgivable.

· If companies have already laid-off employees and if the employees are restored in full by June 30th they may be eligible for the forgivable portion of this loan…the details are still fuzzy but more info will be coming soon.

3. SBA Express Bridge Loans 

The first loan option is what I completed which requires the completion of a short application on the SBA website. The EIDL application is similar to (albeit a little longer) a credit card application.

Again, you can apply for multiple SBA assistance loan programs. The only caveat, if you choose to do so, is that you cannot use funds from multiple sources to pay for the same expenses (i.e. you cannot double-dip and pay for April’s rent or mortgage payment with the SBA loan money from both the EIDL and PPP funds. Instead, you could pay April’s office costs with EIDL funds and once those dollars are exhausted then future costs can be paid by the PPP funds).

When applying for one or both of the second two assistance loans (#2 and #3 above), you must go through an SBA approved lender.

There is also a fourth SBA Debt Reduction program for those who already have or will receive an SBA 7(a) loan prior to September 27, 2020, as well.

A summary of all four of these resources can be found here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options

From what I understand so far (keep in mind this is an extremely dynamic situation that has been changing daily as new guidance is being released), the SBA is trying to get as many banks as possible on the PPP lending program hopefully by the end of this week or next. Accordingly, if your bank is not currently approved by the SBA, please check back later to see if it is added to the approved list and/or contact your bank directly to ask them if they have plans to work with the SBA sometime soon.

Also, per another SBA class I took last week, the SBA approved banks are requiring that you have an existing relationship in order to apply for an SBA loan. Therefore, an SBA approved bank may not be able to offer SBA coronavirus relief loans to new banking customers.

Since this is such a fluid situation and likely we will not have all the guidance for another week or two, please hang in there and be patient! We are all in this together and the more we are kind to each other and ourselves, the easier it will be on all of us collectively.

Please let us know if you would like assistance with navigating the loan application maze or any other accounting and bookkeeping needs. We are here for you!

Big virtual xoxo’s to you and your loved ones,

Deidra Ryan and the entire DMR Accounting & Consulting team

P.S. Public Service Announcement: Please stay home if you can and keep washing your hands!

We are sending our love and prayers to all the grocery workers, truck drivers, farmers and health care workers who are keeping us well fed and healthy while being on the front lines of this unfortunate disease. We are also doing our part – all of us, here at DMR, are working remotely with each other and all our clients.

Finally, to all of you parents, may God bless you during these unprecedented times. Our prayers of understanding (Kyle and I have a 5th grader and a 1st grader, so we truly feel your pain!) and peace are going out to each of you for your strength and courage on the homeschooling front. It certainly isn’t for the faint of heart!

Take care, everyone!

We’re here for you… more Coronavirus resources

We are living in unprecedented times. As a result, I want to keep you apprised of the small business financial and tax resources that are available as we all navigate this new territory together.

First, the good news! Treasury Secretary Steven Mnuchin announced this morning that tax returns normally due on April 15 will not be due until July 15 this year. Note: the news came in a tweet, and the IRS has not yet issued official guidance on the move. This announcement gives us a little more breathing room both in preparing and filing returns as well as not accruing penalties and interest if you owe taxes normally due April 15th.

Second, over the last several days, I have attended three separate training classes to learn more about the Families First Coronavirus Response Act that was signed into law Wednesday evening. This law affects small businesses with 1 to 499 employees (i.e. less than 500 employees). The federal government will reimburse employers 100% for paying their employees for both paid sick leave and family/medical leave time off from work. Because the law is so new, there are many questions to be answered regarding specific implementation details which will go into effect between now and April 2nd.

Next, for those of you who are considering applying for an SBA disaster loan per the link I sent you on Wednesday, you may want to hold off until next week. There is a third bill called the CARES Act that was introduced by Senate Republicans yesterday that may offer business interruption loans. Senate Majority Leader, Mitch McConnell is likely going to consider it on Monday. 

Finally, here is a list of resources I recommend:

As these resources for small businesses are changing by the minute, we will keep you posted as news develops. Please do not hesitate to reach out if you have any questions. We are all in this together!