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!