Platinum Tax Filing & Accounting Services INC

06/10/2021

Hi gang! Update on what’s been happening lately and hopefully some useful information. We will cover
1) Pandemic Small Business Recovery Grant Program (opens tomorrow!)
2) Rent Relief
3) EIDL – Targeted & Supplemental advance to new applicants
Feel free to scroll to whatever can be relevant for you!
1) PANDEMIC SMALL BUSINESS RECOVERY GRANT PROGRAM (Opens tomorrow Jun 10th at 9am)
Grant Amounts
• $25k-$49,999 Annual Gross Receipts - $5,000
• $50K-$99,999 Annual Gross Receipts - $10,000
• $100K-$500K Annual Gross Receipts – 10% (max grant is $50K)
Eligibility:
• Have 2019 or 2020 gross receipts of between $25,000 and $500,000
• Positive net profit on 2019 business return
• Total expense on 2020 business income return are greater than the grant amount
• At least 25% loss in annual gross receipts from 2019 to 2020
• Be in Substantial compliance with applicable federal, state, and local laws, regulations, codes and requirements
• Not owe any federal, state or local taxes prior to July 15, 2020 or have an approved repayment or deferral plan
• Not have received any Federal assistance from the American Rescue Act of 2021 (other than targeted and supplement advance or PPP below $100k)
Ineligible Businesses:
• All non-profits, churches or religious institutions
• Government-owned entities or elected official offices
• Businesses primarily engaged in political or lobbying activities
• Businesses that received awards from the SBA Restaurant Revitalization Fund Grant Program
• Landlords and passive real estate income businesses
Documents Required:
• Proof of Gross Receipts loss between 2019 & 2020 Business Tax Return
- Corps & LLC – 1120
- Partnerships – 1065 and Sch K-1
- Sole Proprietors – Schedule C
• Completed Form 4506-C
• Proof of Business location and current operation (must include 2 of the following)
- Current lease
- Utility bill
- Business bank statement
- Business mortgage statement
- Business CC statement
- Professional insurance bill
- Payment processing statement
- NYS ST-809 or ST-100 sales tax collection documentation
• Names, Addresses, SSN, Phone Numbers, Emails, % ownership and photo ID for any owners with more than 20% ownership of the business
• Proof of number of employees – Most recently submitted NYS-45 for employer firms
• W-9 & Bank Account Info for Funds
Eligible Use of Funds:
• Payroll Costs
• Commercial Rent/Mortgage payments for NYS-based property
• Payment of local property or school taxes associated with small business location in NYS
• Insurance costs
• Utility costs
• Cost of PPE/supplies and materials for COVID-19 health and safety protocols
• HVAC costs
Ineligible Uses of Funds
• Can not be used to re-pay or pay down any portion of a loan obtained through a federal COVID-19 relief package
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2) RENT RELIEF (NY)
NYS is offering a rent relief for those behind in rent. Landlords or tenants can apply for this program.
Can receive:
• 12 months rent arrears
• 12 months utility arrears
• Up to 3 additional months rent if rent expense is at least 30% of monthly income
Eligibility:
• Household gross income is 80% of AMI
• After March 13, 2020: 1 member had unemployment, reduction of income, or had increased expenses (or hardship) due to Covid.
• For Primary residence.
• Needs to be behind in rent.
For first 30 days priority will be given to:
• Household income up to 50% of AMI, AND 1 of
A) Currently unemployed for 90 days
😎 Lives in eligible ZIP codes (see AMI table https://otda.ny.gov/.../ERAP-80-area-median-income.pdf)
C) Dwelling of 20 or fewer units
After 30 days, first come first serve.
Documents Needed:
• ID for entire household: Non/Drivers license, passport, birth certificate, EBT card
• SSN for entire household.
• Proof of rent amount: Signed lease, rent receipt, Landlord attestation, canceled check
• Proof of residency: Current; Signed lease, rent receipt, utility bill, bank statement, any mail with name & address, driver license.
• Proof of income:
- monthly income: Pay stubs, Bank statements showing deposits,
- 2020 income: W2, 1099, tax return
- Self attestation for, “Certain self-employment.”
• Utility bill: If applying for utility help.
For Landlords Applying:
• W9 Form
• Lease or other evidence
• Rent due documentation or landlord attestation
• Bank info
• Landlord can’t increase rent or evict tenant for 1 year after receiving payment. (If landlord applies)
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3) EIDL (ECONOMIC INJURY DISASTER LOAN)
EIDL is not a new program. However, they just opened the program to new applicants (previously they’ve only been processing applications submitted prior to Dec 27th of 2020). You can now apply for the loan and if eligible for the targeted advance (as well as the supplemental if qualified). For your convenience we summarized the benefits and eligibility of the program (for those who are familiar with this program, eligibility requirements remain the same).
EIDL Loan
The initial guidance of the Cares Act would have allowed loans for up to $2 million but SBA cut it down to $150K. Recently (as of 2 months ago) the SBA picked it up to $500K.The loans must be paid back in the future at 3.75% (non- profits are based at 2.75%).
EIDL Grants
The SBA is offering a targeted advance of $10,000 to eligible business plus a supplemental advance of another $5,000 if qualified (less what was already received from previous EIDL grants).
Eligibility
A- Must have a decrease of 30% in income year over year in any 8 week period for same period in the prior year (to also qualify for the Supplemented advance you need to show a loss of 50%).
B- Business must be in a low income community (see sba map https://sbaeidl.policymap.com/newmaps #/)
C- Must have fewer than 300 employees (for supplemental advance must have 10 or fewer employees)
Reach out with questions.
Talk soon!
Moshe Wolcowitz, CPA
Certified Public Accountant
Tel: 212-920-6310
Cell: 917-251-8401
Fax: 815-301-3689
Email: [email protected]
Website: www.ACCMoshe.com

Certified Public Accountants Let’s keep it real. Accounting, tax returns, and bookkeeping might not be the most exciting topics. But being financially successful, keeping your cool during tax season, and building the business of your dreams – those are exciting. And in order to achieve those thi...

02/15/2021

Hi Friends, below is a helpful & Informational post in regards to the PPP loans. If you have any further questions please feel free to reach out as we are here to help!

What is the Paycheck Protection Program?

The first Paycheck Protection Program is a Key section within the Corona-virus Aid Relief & Economic Security (CARES) Act that divides $349 billion in loans among small business with 500 employees or less to uphold payroll and various other expenses. The SBA has introduced a Second Draw PPP loan for eligible business that already received a PPP loan, that Act had divided $284 billion for both First and Second Draw loans. The Second Draw of PPP loans does have some changes read for more information.

Second Draw of PPP Loans (tax Free)

The Second Draw of PPP loans is similar to the first round except it comes with a few changes, read below to learn more.

In order to qualify in this round (tax free and will be forgiven eventually, businesses must have 300 employees or less. The loan amounts are 2.54x average monthly payroll goes up to $2M. Tax payer must be able to demonstrate a revenue of at least 25% in at least one quarter in 2020 relative to 2019. Tax payers must also have had used the full amount of the First Draw PPP Loan on or before their second draw PPP Loan is disbursed.

The Funds from your Loan can be used for the following purposes:
- Payroll- salary, wage, vacation, parental, family, medical, or sick leave, health benefits
- Mortgage interest- as long as the mortgage was signed before February 15, 2020 Rent- as long as the lease agreement was in effect before February 15, 2020
- Rent- as long as the lease agreement was in effect before February 15, 2020
- Utilities- as long as the lease agreement was in effect before February 15, 2020
- Operations Expenditures- any software, cloud computing, or other human resources and accounting needs
- Property Damage Costs- any cost from damages due to public disturbances occurring in 2020 and not covered by insurance
- Supplier cost- any purchase order or order of good made prior to receiving a PPP loan essential to operations.
- Worker Protection expenditures- any personal protection equipment or property improvements to remain COVID compliant from March, 2020 on wards.

02/10/2021

Here at Platinum Tax Filing our main goal is to have a complete understanding of our clients and their specific needs. With this, we can proceed to deliver a customized approach for each and every individual. Our team is here to support our clients through every step of the way with personalized attention for any of your accounting needs for an affordable rate. Please feel free to call or message us to learn more about our services.

Happy season Friends!!

01/29/2021

Accounting, tax returns, and bookkeeping might not be the most exciting topics. But being financially successful, keeping your cool during tax season, and building the business of your dreams – those are exciting.

In order to achieve those things, you need things like…accounting and tax returns! So we do it all for you.
At Platinum Tax Filing, we have real humans running the show. In a world where screens have replaced people and ‘auto’ is always best, there’s still a need for real people who slow down and listen – who strive to understand you, your needs, and your goals – when you want things done your way.