.png)
Take this as a warning shot as Biden builds his IRS Army! The IRS has already pulled the trigger on CP2000 notices (automated notices sent to inform the Taxpayer their tax return doesn't match what they have on file). Next up, #taxaudits and that includes not adding #ppp loan forgiveness proceeds that were forgiven based on misrepresentation or omissions. As Biden vamps of tax audits, hand in hand, the PPP audits will also increase. MAKE IT MAKE SENSE. That money was deposited somewhere and the IRS will find it. It's actually their mission now, YIKES!
Generally tax returns that are passed the 3 year statue would be safe from an audit, unless there is a 25% omission of income, then the statue is extended to 6 years or....theres no statue at all if #fraud is detected aka "misrepresentation". The IRS is suggesting that if either a misrepresentation or an omission occurred when applying for the PPP forgiveness, that you file an amended return to "correctly represent" your financials for that year. I always get the question "But Tammie isn't that me snitching on myself?. To an extent, yea it is...but you're more likely to get a lessor charge being that you fixed the majority of the problem, playing with the Governments money (sorry, it is what it is if you've gotten to that point).
Whether you sold drugs, scammed a few bank accounts or accepted a bribe, or were involved in any other illegal activities which provided you with income, the Internal Revenue Service says you must report it when you file your taxes per IRS Publication 17.
Below is the IRS guidelines for "proper" PPP loan forgiveness....Best of luck!
The PPP loan program was established by the Coronavirus Aid, Relief and Economic Security Act (CARES Act) to assist small US businesses that were adversely affected by the COVID-19 pandemic in paying certain expenses. The PPP loan program was further extended by the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act.
Under the terms of the PPP loan program, lenders can forgive the full amount of the loan if the loan recipient meets three conditions.
The loan recipient was eligible to receive the PPP loan. An eligible loan recipient:
is a small business concern, independent contractor, eligible self-employed individual, sole proprietor, business concern, or a certain type of tax-exempt entity;
was in business on or before February 15, 2020; and
had employees or independent contractors who were paid for their services, or was a self-employed individual, sole proprietor or independent contractor.
The loan proceeds had to be used to pay eligible expenses, such as payroll costs, rent, interest on the business' mortgage, and utilities.
The loan recipient had to apply for loan forgiveness. The loan forgiveness application required a loan recipient to attest to eligibility, verify certain financial information, and meet other legal qualifications.
If the three conditions above are met, then under the PPP loan program the forgiven portion is excluded from income. If the conditions are not met, then the amount of the loan proceeds that were forgiven but do not meet the conditions must be included in income and any additional income tax must be paid.
Comments