The LM Company, Inc. Tax and Accounting Services

03/18/2021

The IRS just released a notice that they will extend the filing deadline until May 17 instead of April 15. However, C-corporations will still need to file by April 15. Also...tax payers who pay estimates will still need to make their 1st installment on April 15. Stay tuned as this is a developing story...

02/26/2021

02/26/2021

There is a proposal for up to $10,200 in unemployment compensation to be tax exempt. The two politicians who are presenting the proposal are trying to include it in the next stimulus package to be approved. I'll keep you posted on the results of this proposal...

Proposed legislation introduced yesterday would remove taxes on up to $10,200 in unemployment aid for the 2020 tax filing year.

01/14/2021

Tax changes from the C.A.R.E.S. Act

06/24/2020

The deadline to obtain a PPP loan is June 30. If you have not applied for it, you must do it now to ensure that you can obtain funds for your business.

For business owners with employees, you can use 2019 payroll or 2 months of 2020 payroll records to apply. Loan is 2.5 times one month of payroll records.

For sole proprietors the net on Schedule C is divided by 12 months to get a one month average and multiplied by 2.5 to get the loan amount.

For payroll loans, 60% of funds can now be used towards payroll instead of 75% and you have up to 24 weeks to use the funds instead of the original 8 weeks.

If you need help applying for the PPP loan, feel free to message me.

06/11/2020

For those that obtained a PPP loan since April, there have been modifications on the length of time and the percentage of its use:

The new Paycheck Protection Program Flexibility Act (PPPFA) attempts to address many concerns around the PPP loan program aimed at providing COVID-19 relief.

04/27/2020

The Small Business Administration is now processing applications for the PPP loan which helps business cover payroll expenses.

Sole proprietors can now apply. The loan will be based on net income from self-employment. It is highly encouraged to apply through community banks and credit unions as they'll most likely help you process the loan than the large banks.

Those that applied in the first phase but did not get a response, should get a response soon. Check with the bank where you applied to get a status.

At this time funds for the EIDL loan are not available. I'll keep you posted if anything changes.

04/20/2020

**Updates - Coronavirus Effect On Tax Season**

I have partially updated the website to add content regarding the recent changes of the CARES Act such as the stimulus payments and individual tax changes.

The business links are still being worked so I'll post a new message when the business content will be ready.

Go to: www.thelmctax.com for all the details

Full tax services for entrepreneurs, business owners, start-ups, self-employed and individuals. Year round tax planning

03/20/2020

***NEW FLASH: Coronavirus Effect On Tax Season***

Today Treasury Secretary Steve Mnuchin has stated that the filing deadline has also been extended until July 15.

Therefore all individuals and businesses whose tax deadline was on April 15 will have until July 15 to file and pay tax liabilities for 2019.

I will keep you posted on any new changes. There is rumor that part of the financial stimulus to aid taxpayers during the coronavirus crisis, the 10% early withdrawal penalty on IRA withdrawal up to $100,000 will be waived if it is related to coronavirus purposes. Not much is known yet so stay tuned...

Treasury Secretary Steven Mnuchin announced that tax day will be delayed from April 15 to July 15.

03/17/2020

***NEWS FLASH: Coronavirus Effect On Tax season***

As you may have heard earlier in the news, Treasury Secretary Steve Mnuchin stated that individuals can defer paying taxes until July 15 up to $1 million dollars and corporations can defer paying taxes until $10 million.

There is no clarity yet if the filing deadline will remain at April 15 for individuals and C-corporations. Therefore we must continue assuming that the filing deadline remains the same and only the tax balance will be due until July 15.

There was some mentioning that if you file an extension, then both tax return and tax balance will be due until October 15, but it has not been fully clarified.

If you still need time to file your taxes, continue filing your extension by April 15 and make sure to pay what you may owe for 2019 by July 15 until we get more clarity since this is a developing story.