We are pleased to announce a fall 2021 open house at our new location: 220 N Portage Street, Doylestown, OH 44230 on Thursday, November 18th from 3:00 to 5:00 pm. This is a ‘come & go’ event, visitors need not stay for the duration but are definitely welcomed to. Light snacks will be provided and a raffle basket will be available for attendees to enter to win. Need not be present when the winner is pulled. We hope to see you!
NEW LOCATION for J Ritchie CPA
220 N Portage Street, Doylestown Ohio 44230 became our home in July 2021. We outgrew our old space so we had to move to something larger while staying within the community we love!
PPP1 - a WIN for taxpayers / PPP2 still leaves some out in the cold
In December, last minute laws were enacted to seal the gaps in previous stimulus legislation and to reiterate, without a doubt, the purpose of the governments actions: to support and not over burden already struggling small business owners. Their actions negated the recent Treasury stance that PPP money was not considered taxable income, but the expenses that money paid for were not deductible as legitimate business expenses. Finally, common sense took center stage and the end result: First Draw PPP funds are not taxable income and the expenses ARE tax deductible.
In January PPP2 stimulus rolled out with the goal of further supporting those small businesses with fewer than 15 employees, especially those hardest hit in early 2020 such as restaurants, gyms or other companies forced into shut down early on. The main qualification for this Second PPP Draw is to show validation that a single quarter in 2020 gross receipts had decreased at least 25% over the same quarter in 2019. Millions of dollars are going to truly small businesses.
However, consider a restaurant who opened in October 2019, the last quarter of the year. This would be called their start-up quarter, which normally is accompanied by high expense and low income, often resulting in a loss overall for the start-up quarter. The new rules state that if a business was only in operation for Q4 of 2019 then any quarter in 2020 that results in a 25% decrease of gross receipts when compared will make the business eligible for PPP2, second draw funding. This crushes the hopes of new 2019 start-up businesses in struggling industries for some payroll assistance in 2021. Layoffs may ensure. Additional closures are expected, notably in the restaurant, fitness and small business arenas.
To combat this, I am urging you to EAT, SHOP and PLAY LOCAL. Keep those Mom & Pop businesses alive as they are the foundation on which this country, and your community, were built. Initiative, drive, hard work and the willingness to stake their livelihoods on a dream are required for success in any business venture. Support a dream, EAT, SHOP and PLAY LOCAL.
PPP: The battle for tax deductibility
Many small businesses took advantage of the programs provided by government efforts to ease the stress of shutdowns and lower than normal sales brought on by COVID-19. The most recognized is PPP, which was a loan when given and, if spent on specified expenses like payroll and rent, was completely forgivable and not taxable as income. After businesses received and spent the much needed funds, the IRS issued guidelines on the tax treatment of those forgiven funds and the related expenses incurred. IRS rules dictate that PPP funds will not be considered ‘income’ to the business but also removed the deductibility of expenses paid for with those forgiven funds. Therefore, with lowered allowable deductions the overall income will be higher than if the deductions were permitted. In short, the funds themselves are not taxable, but the taxable income overall goes up by the same amount of the forgiven funds, presuming the business spent all the money as directed. Read more to see how Ohio businesses can help support the initiative to challenge the IRS guidelines and make the expenses deductible after all.
https://ohiocpa.com/advocacy/Take_Action#/4
Labor Day
You may have thought J Ritchie CPA had fallen off the face of the earth since our last post was in June. No. We are still here, working hard.
As you know the COVID-19 crisis caused an extension to the 2019 tax filing and payment due date until July 15 this year. that meant a nearly 6 month long tax season, not 2 1/2 months. So, where have we been you ask? Tahitii? Hawaii? Again, no. We’ve been here, diligently working with those who needed to extend their returns until October 15, or strategizing with clients on the next growth steps for their businesses in the face of an uncertain future or helping small business owners navigate all the government stimulus plans. Now? Helping those same small businesses apply for the forgiveness of those same plans. All in all it has been a challenging year for everyone.
Though some believe our rights have been all but trampled this year, lets take a step back. Think: because of where you you live, even having the right and capability to protest something as simple as a mandate to wear a mask is provided to you because of who we are - Americans. Do you think in other countries, there has been such a backlash to such safety protocols? That the same freedom to openly push back against the parties in power is even acceptable? In many countries, the answer is no. So be thankful, for the fruitfulness of your life, your family, your job or search for one. We have so much due mainly to those who came before us and paved the way, like the 1882 Central Labor Union’s push for a celebration of America’s workers, efforts and contributions, which later became known as Labor Day.
As Labor Day approaches, We hope you will consider the foundations of the day and celebrate the true freedoms we have in America. Labor day, constitutes a yearly national tribute to the contributions workers have made to the strength, prosperity and well-being of our country.
We wish you a wonderful holiday weekend.
God bless America,
Jonna Ritchie
19 days left to file your taxes
HELLO EVERYONE! This has certainly been an odd year for everyone, Tax Firms included. The due date to file and pay your taxes is JULY 15 because of COVID-19. Note also that if you pay quarterly estimated payments, you must pay not only the tax due on your return by July 15 but also your first AND second quarter 2020 estimated payments as well. YOU HAVE 19 DAYS LEFT!! Get cracking, if you haven’t already filed.
STILL HERE FOR YOU...from a distance
Please SHELTER IN PLACE as required by the Governor and Director of Health. YES: the tax filing deadline has been moved to July 15, instead of April 15, to mirror the new payment deadline. BUT: it is STILL tax season and if you are think you are, or think you may be, due a refund from the IRS, the state or some other taxing authority you are advised to file as soon as possible.
Our building is locked tight but we are still working away as an essential part of the business infrastructure. We anticipate a flood of tax return requests once the April 6 order is lifted as currently expected. WE HAVE A SOLUTION: we can accept your documents curbside at our office or electronically by Dropbox and can sign everything electronically as well. We can FaceTime with you for identification purposes, communicate through e-mail and even text you to help with your questions. We are working to comply with the restrictions of the COVID 19 containment procedures while still serving you to the best of our capability. DON’T WAIT! File your returns NOW, and if you owe, you won’t pay until JULY 15.
IRS SEES THE LIGHT - Tax FILING deadline moved to July 15 to match payment due date
At 10:00 this morning the Treasury Secretary Steven Mnuchin announced the decision to move the tax return filing deadline from April 15 out to July 15, to mirror the payment extension deadline.
46 DAYS UNTIL TAX DUE DATE: April 15
That’s correct. The day you dread is the day we celebrate being able to help our customers reach the finish line, and hopefully not at the last second. But, friends, we are in the home stretch. If you need tax prep help, please call now and don’t wait until the last second. We are here to help!
“It’s a strange thing, but when you are dreading something, and would give anything to slow down time, it has a disobliging habit of speeding up.” — J.K. Rowling
10% Tax Preparation discount: Military, Police, Fire Fighter, Public Servant & Senior Citizen
We are grateful for the service and sacrifice of our military (active/honorably discharged), police, fire fighters and other public servants and are offering a 10% discount on the preparation of 2019 taxes. Please show a copy of the DD-214 to receive the military discount. Police, fire fighters and other public servants please show proof of employment or service to receive your 10% discount. Senior Citizens just mention this discount when we meet; only one senior discount per return. Thank you so much for all you do, or have done, for our families, communities and country.