June 2020 Tax & Accounting Insight

Newsletter

Dear Clients, Colleagues and Friends,

As I write this email we are still facing uncertainty regarding the future prospects of the economy. People are relying less on the statistics they read and this has impacted consumer confidence. A recent survey by the AICPA detailed “flat” results as we move out of the initial lock down phases. I believe many people are in a “wait and see” mode. This will most likely stay until we know more about potential “hotspots or upticks”.

On our end, we have been working with clients on their PPP applications as well as starting to understand the tax components of the CARES act for individuals and businesses. We have seen an uptick in inquiries regarding bankruptcy services as well as business interruption claims. I am also amazed in times like this how the phone rings with individuals “discovering fraud” of some sort.

I remind business owners and leaders to stay mindful of the current economy, but also determine how the current risk may lead to future opportunities.

Josh Shilts, CPA/ABV/CFF/CGMA, CFE

Some of the articles and content we want to make you aware of are

  1. Loan Forgiveness Under the Paycheck Protection Plan – Many small business owners were able to apply for a loan under the Paycheck Protection Program (PPP). If the loan proceeds are used as specified, business owners may apply to have the loan forgiven.
  2. Pass on Wealth to Heirs Using These Strategies – Low interest rates and a volatile stock market are creating additional opportunities for wealthy individuals to transfer money to heirs tax-free.
  3. Preparing an Effective Business Plan – A business plan is a valuable tool whether you’re seeking additional financing for an existing company or starting a new one.
  4. Avoid These Common Errors When Filing a Tax Return – Avoid these common errors by using a certified public accountant, enrolled agent, or other knowledgeable tax professional to prepare your tax return.
  5. The Coronavirus Will Cost the Economy Nearly $8 Trillion, Congressional Budget Office Say
  6. Financial Planning Strategies for Depressed Asset Values
  7. The Unemployment Impacts of COVID-19: Lessons from the Great Recession
  8. Hours of Operation – In order to best follow CDC guidelines, both Shilts CPA office locations (Ocala & Jacksonville) are open by appointment only, Monday – Thursday 9am – 1pm. Please contact our office if you would like to make an appointment.

Tax Tips

Quickbooks Tips

Upcoming Events

The following are events Mr. Shilts will be speaking at. If you have questions or are interested in attending refer to the links below or contact us by clicking here.

  1. June 25, 2020 – Business Valuation Resources will host a webinar by Mr. Shilts named “The Balance Sheet and its Correlation to Company Specific Risk” wherein the Balance Sheet is analyzed and used to support Company Specific Risk Premiums
  2. July 2020 – Business Interruption presented by Shilts CPA. More information to follow.
  3. August 27, 2020 – The American Academy of Matrimonial Lawyers has asked Mr. Shilts to present on “The Valuation of Distressed vs. Impaired Companies“

Tax Due Dates

  • June 10 – Employees Who Work for Tips – If you received $20 or more in tips during May, report them to your employer. You can use Form 4070.
  • June 15 – Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in May. Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in May.

Financial Planning

Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.