Chris J. Scoggin Chaston Tax
Chris J. Scoggin

As we head into tax season, your partners at CS CPA Group want to help you prepare for the largest refund possible.

To say that 2020 was an unusual year is a gross understatement. These once-in-a-lifetime circumstances have had just as large of an effect on your tax situation as well. One of the most frequently asked questions is how will the two rounds of stimulus affect your tax return.

Did you receive your stimulus payments?

The IRS issued stimulus payments of $1,200 in April and then $600 in December/January for every taxpayer that had filed a 2018 or 2019 tax return. If these payment amounts were correct, there is nothing else that needs to be done. But if you did not receive the proper amount of stimulus payments or it never arrived at all, there is a way for you to still receive the stimulus on your 2020 tax return.

The IRS will be issuing two new forms, 1444 and 1444-B, to report the stimulus payments paid to each taxpayer. If there is a discrepancy between what was paid and should have been received, you will reconcile this difference on your 2020 tax return. This difference will be paid as an additional amount on your tax refund or used to reduce any amount of taxes owed. Keep a sharp eye out for your 1444 and 1444-B forms as they will be necessary to correctly complete your 2020 tax returns.

IRS delays e-filed returns

The IRS announced it has delayed the traditional date to accept e-filed returns until Feb. 14. The IRS said that it needed the additional three weeks to update and prepare its systems due to the second round of stimulus being authorized and paid so late in the year.

We are still accepting and preparing returns, so don’t let the IRS delay slow you down. We will get your return completed as soon as possible and have it ready to transmit within 24 hours of the IRS portal opening.

PPP2 loans for small business

The Small Business Administration (SBA) has reopened the PPP loan program that was immensely popular with business owners last year. This second round of loans is available to companies with the following criteria:

  • Previously received a First Draw PPP Loan and will, or has used, the full amount only for authorized uses
  • Has no more than 300 employees
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters from 2019 to 2020.

All other requirements for the PPP second draw remain the same. These loans will be limited to 2.5 times average monthly salary and must be used for paying wages, rent, utilities or commercial building mortgage interest. If you are interested, we recommend reaching out to your original PPP lender to apply by March 31, 2021.

About CS CPA Group

CS CPA Group (formerly Chaston Tax and Accounting) is a full-service accounting and tax firm that has served Maricopa for 17 years. With over 100 years of combined experience, we are the local experts in finance, business and taxation. With all of this experience and knowledge, our primary focus is providing exceptional accuracy and value to our clients.

With CS CPA Group, you will find better service at a lower price than any other firm in Maricopa. So, give CS CPA Group a try this year, and learn what it means to have a firm centered on your Success.