3.30.2020 COVID-19 Update

Sec. 1110 of the Phase 3 bill authorizes banks participating with the SBA program to make emergency “grants” of up to $10,000 within 3 days to a qualified applicant. The qualified applicant pretty much just needs to show that they are facing economic hardship due to COVID-19 and need to get the funds to pay employees, rent, etc. If they eventually get approved for the big Payroll Protection...
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3.28.2020 COVID-19 Update

Dear VRS Clients, It has been a busy few days with additional guidance on the Phase 2 bill, and now we have the Phase 3 bill signed into law. This update will focus entirely on the impacts of the Phase 3 bill, but it is by no means a complete summary – we are only hitting the high points of the 850+ page bill. Individuals If you have been laid off or seen a reduction in hours, the bill boosts...
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3.27.2020 Update

VRS continues to monitor the situation in an effort to help our clients make the best possible decisions through this difficult time. Things are changing daily, so please make sure to check our most recent communications and posts on our website for the most up-to-date information. A message we put out a week ago may have changed. We had a great conversation yesterday with Dusty Johnson’s...
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3.24.2020 COVID-19 Update

Dear VRS families, We have been working tirelessly to try to find answers regarding this COVID-19 bill and how it will affect our small business owners and their employees. We will do our best to lay out all of the facts as we understand them today, but as you well know – things are changing every hour so please understand that if I am misstating something it is not intentional. The bill that...
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Coronavirus (COVID-19): Tax relief for small businesses

Businesses across the country are being affected by the coronavirus (COVID-19). Fortunately, Congress recently passed a law that provides at least some relief. In a separate development, the IRS has issued guidance allowing taxpayers to defer any amount of federal income tax payments due on April 15, 2020, until July 15, 2020, without penalties or interest. New law On March 18, the Senate passed...
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3.21.2020 COVID-19 Update

March 21, 2020 Re: COVID-19 Update Dear VRS Client, We are entering uncharted territory with the COVID-19 pandemic, and VRS is closely monitoring all developments to both protect our clients and staff AND provide you with developments that will affect your business and/or tax return. Please recognize that the situation and laws are changing by the hour, so this letter is only meant to cover the...
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3.18.2020 COVID-19 Update

Dear VRS P.C. Clients, We are thinking of you all during these uncertain times and want to be an essential resource to you as you make critical business decisions. Every minute we are educating ourselves on the new federal and state legislation related to COVID-19, and how it will impact your business. As part of federal House Resolution 6201, Families First Coronavirus Response Act, signed into...
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Small business owners still have time to set up a SEP plan for last year

Do you own a business but haven’t gotten around to setting up a tax-advantaged retirement plan? Fortunately, it’s not too late to establish one and reduce your 2019 tax bill. A Simplified Employee Pension (SEP) can still be set up for 2019, and you can make contributions to it that you can deduct on your 2019 income tax return. Even better, SEPs keep administrative costs low. Deadlines for...
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Determine a reasonable salary for a corporate business owner

If you’re the owner of an incorporated business, you probably know that there’s a tax advantage to taking money out of a C corporation as compensation rather than as dividends. The reason is simple. A corporation can deduct the salaries and bonuses that it pays executives, but not its dividend payments. Therefore, if funds are withdrawn as dividends, they’re taxed twice, once to the...
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