Russell W. James, CPA, pc
Business Start-up Forms
The PPP is a loan program managed by the Small Business Administration (SBA) and enables certain lenders (including banks, FinTech companies, and community lenders like CDFIs and MDIs) to distribute PPP loans on behalf of the SBA to small businesses.
Want a quick look at everything that’s changed under the new bill? Here’s PPP under the Consolidated Appropriations Act, 2021 at-a-glance:
Ready to get into it? For all the details about PPP Round 2, read on.
To be eligible for a first-draw PPP loan:
To be eligible for a second-draw PPP loan:
Businesses eligible for first- and second-draw PPP loans include:
The following businesses remain ineligible for PPP loans:
We will post more information as it comes available
The IRS has released a new form for the tax year 2020 – Form 1099-NEC – which you will need to become familiar with. This Client Alert will provide you with some general guidelines and resources to help you determine which form you need to file. It will also address questions that we often receive from clients.
You will still be required to file Form 1099-MISC for payments in the amount of $600 or more (unless otherwise noted) made in the course of your trade or business (including not-for-profit organizations) that are related to the following items:
Form 1099-NEC is used to report non-employee compensation. This new form replaces form 1099-MISC, Box 7, for reporting non-employee compensation only. You will need to file Form 1099-NEC, Nonemployee Compensation (NEC), for each person to whom you have made payments during the year when the following four conditions are met:
Generally, amounts paid to individuals, sole proprietors and partnerships for the items above should be reported. Payments to tax-exempt organizations and corporations (C or S Corporations) are exempt.
Whether or not a 1099 should be issued to a limited liability company (LLC) will depend on how that company is classified for tax purposes. If treated as a single member LLC that is disregarded or as a partnership, payments are reportable. If treated as a C or S Corporation, payments are exempt.
All payments of at least $600 to attorneys should be reported, even if the attorney is a professional corporation.
INFORMATION NEEDED TO FILE
Recipient information (i.e., name, address and tax identification number), the amount paid during the calendar year and type of payment are required information.
To assist with procurement of the proper information required to file (i.e., missing taxpayer identification number, current address or tax classification status), you should obtain Form W-9, Request for Taxpayer Identification Number and Certification, from vendors as soon as possible.
Forms must be transmitted to the IRS before the deadline of January 31. However, when the due date falls on a weekend or holiday, it will be due on the next business day. Additionally, other important due dates are as follows:
RESOURCES AND LINKS
For additional information, visit the following links:
2020 Instructions for Forms 1099-MISC and 1099-NEC
The IRS Guide to Information Returns
Form W-9, Request for Taxpayer Identification Number and Certification
If you need help filing your 1099NEC or 1099misc we would be happy to help or if you have any questions contact us at email@example.com or 801-409-1309
firstname.lastname@example.org (801) 409-1309 fax (801) 409-1310