Hawkins Ash CPAs https://hawkinsashcpas.com Part of your business. Part of your life. Tue, 07 Apr 2020 17:04:19 +0000 en-US hourly 1 https://wordpress.org/?v=5.4 Executive Compensation Requires Informed Decision-making https://hawkinsashcpas.com/executive-compensation-requires-informed-decision-making/ Tue, 07 Apr 2020 17:02:00 +0000 https://hawkinsashcpas.com/?p=9775 Business owners want to compensate themselves and their top executives fairly and competitively for their work, results and commitment. So, how do you achieve that goal without attracting undue IRS scrutiny and claims of inappropriate compensation? By making informed, astute decisions. Start with the Basics Compensation is affected by the amount of cash in your […]

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Business owners want to compensate themselves and their top executives fairly and competitively for their work, results and commitment. So, how do you achieve that goal without attracting undue IRS scrutiny and claims of inappropriate compensation? By making informed, astute decisions.

Start with the Basics

Compensation is affected by the amount of cash in your company’s bank account. Just because your financial statements report a profit doesn’t necessarily mean you’ll have cash available to pay owners a salary or make annual distributions. Net income and cash on hand aren’t synonymous.

Other business objectives—for example, buying new equipment, repaying debt, and sprucing up your offices or facilities—will demand dollars as well. So, it’s a balancing act between owners’ compensation and dividends or distributions on the one hand, and capital expenditures, expansion plans and financing goals on the other.

C Corporation Challenges

If you operate as a C corporation, your business is generally taxed twice. First, its income is taxed at the corporate level, and then it’s taxed again at the personal level as the owners draw dividends. This is a long-running challenge to those who own C corporations.

In light of the situation, many owners have been tempted to classify all the money they take out as salaries or bonuses to avoid being double-taxed on dividends. But the IRS is wise to this strategy: It’s on the lookout for excessive compensation to owners and will reclassify above-market compensation as dividends, potentially resulting in additional income tax as well as interest and penalties.

The IRS also monitors a C corporation’s accumulated earnings. Much like retained earnings on your balance sheet, accumulated earnings measure the buildup of undistributed earnings. If these earnings get too high and can’t be justified as needed for things such as a planned expansion, the IRS will assess a tax on them.

Know Your Flow-through

Perhaps your business is structured as an S corporation, limited liability company or partnership. These are all examples of “flow-through” entities that aren’t taxed at the entity level. Instead, income flows through to the owners’ personal tax returns, where it’s taxed at the individual level.

Dividends (typically called “distributions” for flow-through entities) are tax-free to the extent that an owner has tax basis in the business. Simply put, basis is a function of capital contributions, net income and owners’ distributions.

So, the IRS has the opposite concern with flow-through entities: Agents are watchful of dealer-owners who underpay themselves to avoid payroll taxes on owners’ compensation. If the IRS finds you’re downplaying compensation in favor of payroll-tax-free distributions, it’ll reclassify some of your distributions as salaries. In turn, while your income taxes won’t change, you’ll owe more in payroll taxes than planned plus, potentially, interest and penalties.

Beware of Eyebrow-raisers

Above- or below-market compensation raises a red flag with the IRS, and that’s always undesirable. Not only will the agency evaluate your compensation expense—possibly imposing extra taxes, penalties and interest—but a zealous IRS agent might turn up other challenges in your records, such as nonsalary compensation or benefits.

What’s more, it might cause a domino effect, drawing attention in the states where you do business. Many state and local governments face budget shortages and are hot on the trail of the owners’ compensation issue; they’ll follow federal audits to assess additional taxes when possible.

Follow the Regulations

When setting executive compensation, you want to be aware of all current IRS regulations and other applicable requirements. We can explain in detail how federal and state laws will affect your compensation decisions. Contact us to discuss.

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Preventing Others from Impersonating You in Email: Using Sender Policy Framework Records https://hawkinsashcpas.com/preventing-others-from-impersonating-you-in-email-using-sender-policy-framework-records/ Tue, 07 Apr 2020 15:59:26 +0000 https://hawkinsashcpas.com/?p=9754 For many companies, their web domains have become key parts of their business’ brand and identity. However, some companies have not taken the necessary steps to ensure that their emails cannot be impersonated by others. This may not be thought of as being a possible risk, but criminals around the world are doing this every […]

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For many companies, their web domains have become key parts of their business’ brand and identity. However, some companies have not taken the necessary steps to ensure that their emails cannot be impersonated by others. This may not be thought of as being a possible risk, but criminals around the world are doing this every single day.

For Example

To better understand how this can happen, and how easy it may be to do, here is a story example of a simple technology: A letter being sent through the U.S. Postal Service.

ACME Corp. sends out all invoices to their clients each month via mail. They have the ACME Return address in the corner of the envelope and the client’s invoice on the inside.

Now, a hacker named Coyote decides he wants to use ACME’s good name and scam the clients. He produces a fake invoice that looks like ACME’s—except the “remit to” address is a P.O. Box Coyote setup.

A client named Roadrunner receives the fake invoice and sees the return address it came from as ACME, just as it has always been. Roadrunner opens the envelope, sees the invoice and pays it without thinking. ACME has no idea that someone else is sending out these letters on their behalf, and ACME’s clients will lose trust in them if they cannot solve it.

ACME wants to prevent this from happening, so the company contacts its post office and asks to put a record on their company account that says the postal service shall not deliver any mail from ACME unless it originates from that one local post office. This is a simple solution that will greatly reduce the chances of ACME being impersonated.

Tools You Can Use

Sender Policy Framework (SPF) is a similar tool that you can add to your public domain records that specifies which email servers are approved to send out email on your company’s behalf. There is no cost to implement SPF; it is simply additional records that are entered onto the DNS Public records of your domain. This address record is then verified by most E-mail Gateways to ensure the sender is who they say they are.

There are a number of tools out there that can easily validate if a domain’s records are setup correctly. My favorite is MXToolbox (https://mxtoolbox.com/spf.aspx). This allows people to check their own domains for valid SPF Records.

If you check your own domain and the results show a failure, please share this article with your IT professionals to start a conversation about better securing your domain and protecting your company’s identity.

For more details, see this introduction to SPF.

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Tax+Business Alert – April 7, 2020 https://hawkinsashcpas.com/taxbusiness-alert-april-7-2020/ Tue, 07 Apr 2020 15:05:37 +0000 https://hawkinsashcpas.com/?p=9748 View and sign up for our latest Tax+Business Alert newsletter. Headlines in this edition include the following:   Preventing Others from Impersonating You in Email: Using Sender Policy Framework Records PODCAST: The Paycheck Protection Program: An Overview Don’t Wait to File Your Taxes Executive Compensation Requires Informed Decision-making Hawkins Ash CPAs Receives Highest Rating in […]

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View and sign up for our latest Tax+Business Alert newsletter. Headlines in this edition include the following:

 

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La Crosse Accountant Achieves Certified Public Accountant License https://hawkinsashcpas.com/la-crosse-accountant-achieves-certified-public-accountant-license/ Fri, 03 Apr 2020 19:28:50 +0000 https://hawkinsashcpas.com/?p=9743 Hawkins Ash CPAs has a new Certified Public Accountant (CPA) in the firm’s La Crosse, WI, office. Senior Associate Eric Trautman recently achieved his CPA designation from the State of Wisconsin Department of Safety and Professional Services. To qualify, he had to pass a rigorous, four-part written exam, have a four-year college degree and demonstrate […]

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Eric Trautman, CPA

Eric Trautman, CPA

Hawkins Ash CPAs has a new Certified Public Accountant (CPA) in the firm’s La Crosse, WI, office.

Senior Associate Eric Trautman recently achieved his CPA designation from the State of Wisconsin Department of Safety and Professional Services. To qualify, he had to pass a rigorous, four-part written exam, have a four-year college degree and demonstrate at least a year of experience in public or private accounting.

Trautman began his career in public accounting as an intern with Hawkins Ash CPAs in 2016. Now a Senior Tax Associate, he provides tax planning and preparation services to individuals, businesses and nonprofit organizations.

As a Certified QuickBooks Online ProAdvisor, Trautman also provides support for QuickBooks Online. He compiles and reviews financial statements and serves as the in-charge auditor for religious organization Agreed-Upon-Procedure engagements.

“One thing I love about my job is the feeling of being able to have a direct, positive influence in each client’s business and personal finances,” said Trautman. “Meeting with clients to tell them we’ve figured out a way to save them money or improve their accounting processes is a very rewarding feeling!”

Trautman is a member of the Wisconsin Institute of Certified Public Accountants and the American Institute of Certified Public Accountants.

In the community he is director of the West Salem Community Fitness Center, as well as a member of the Young Professionals of the Coulee Region.

More About Eric Trautman

 

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Hawkins Ash CPAs Receives Highest Rating in Peer Review https://hawkinsashcpas.com/hawkins-ash-cpas-receives-highest-rating-in-peer-review/ Thu, 02 Apr 2020 20:20:36 +0000 https://hawkinsashcpas.com/?p=9726 Hawkins Ash CPAs announced that it has successfully completed a rigorous peer review of its accounting and auditing practice and received the highest mark possible for an accounting firm: A pass. The independent reviewer concluded that Hawkins Ash CPAs complies with the stringent quality control standards set by the American Institute of Certified Public Accountants […]

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Hawkins Ash CPAs announced that it has successfully completed a rigorous peer review of its accounting and auditing practice and received the highest mark possible for an accounting firm: A pass. The independent reviewer concluded that Hawkins Ash CPAs complies with the stringent quality control standards set by the American Institute of Certified Public Accountants (AICPA), a national professional organization of CPAs.

“We value the peer review process. It benefits our clients, and the results prove our entire team is committed to providing services that meet the highest quality standards,” said Randy Miller, Quality Control Partner at Hawkins Ash CPAs.

Carried out in conjunction with the Peer Review Alliance Administering Entity and overseen by the AICPA, the peer review program requires CPA firms to have a thorough, outside review of their accounting and auditing practice once every three years. These reviews determine whether a firm has suitable quality control policies and procedures over its accounting and auditing practice and is complying with them.

2020 Peer Review

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COVID-19: The Paycheck Protection Program: An Overview https://hawkinsashcpas.com/covid-19-the-paycheck-protection-program-an-overview/ Thu, 02 Apr 2020 15:34:22 +0000 https://hawkinsashcpas.com/?p=9713 We recorded this show on April 1, 2020, and things are changing daily. So this is what we know as of the time of recording. What’s new this week with taxes and the coronavirus? There has been a lot of talk about this new Coronavirus Aid, Relief, and Economic Security (CARES) Act that was passed […]

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We recorded this show on April 1, 2020, and things are changing daily. So this is what we know as of the time of recording.

What’s new this week with taxes and the coronavirus?

There has been a lot of talk about this new Coronavirus Aid, Relief, and Economic Security (CARES) Act that was passed last week, and it’s hard to know where to start. Many of these provisions in the act are really important, but I think one of the most important items is what’s called the Paycheck Protection Program (PPP).

So let’s start there, then. What is this PPP?

Some are referring to it by its Small Business Administration (SBA) number of “7A loans,” so if you hear any one of those three terms—Paycheck Protection, PPP or 7A—we’re all basically talking about the same thing. These loans (PPPs) are potentially forgivable loans that businesses and organizations with payroll can use to infuse cash into their companies during this difficult time.

Now, companies can start applying for these loans as of April 3, 2020—so just a day or so from now. So if you haven’t heard anything about this from your accountants or your bankers, you definitely want to get in touch with them, make sure you’re on their radar and get ready to apply.

Who’s actually eligible for this program?

It’s all businesses with less than 500 employees. Now, when I say “businesses,” I mean sole proprietorships, self-employed individuals and independent contractors, but I also mean not-for-profits—501(c)(3)s, to be exact.

How large can this loan be? Do we know that answer?

We do. It’s going to obviously be different for every single business, because the loans are capped at 2 ½ months of your average payroll cost, and that average payroll cost is what you paid per month over the last 12 months. There’s a $12 million cap, which most companies aren’t going to hit. So this 2 ½ month average is made up of the following: Salary, wages, commissions, company-paid retirement benefits and the company portion of health insurance.

Now, in regard to the salaries, you can include in this calculation salaries up to $100,000 per employee. So for example, let’s say that your total payroll expenses were about $240,000 over the last year. Dividing by 12 [months], this is going to make a monthly average of $20,000 per month. So the maximum loan that you’d be able to get is 2 ½ times that amount, or $50,000.

So then how does this “forgiveness” part actually work?

Once the company receives the loan, they’re going to be able to accumulate certain costs over the next eight weeks—essentially eight weeks from the day they receive the loan until the end of that eight-week period. Those costs are then used to determine how much of the loan is forgiven. Now, those costs are similar to what we talked about earlier with the payroll costs, but they also include interest if you have a mortgage, rent and utilities. Now, what the Treasury is trying to avoid is people coming in and just opening up businesses just to try and get these funds. So you had to have the interest, utilities and rent before Feb. 15, 2020, in order for those expenses to qualify.

I heard that all those costs would be used for loan forgiveness in total, but you seem to be a little more cautious …?

I am. So the way that the rule is written, when you add up those costs that we just talked about, as long as you fit within all of the regulations, that whole amount should be allowable for the loan forgiveness, but I’m a little more conservative. So in this case, the Treasury hasn’t come out with total guidance on this, but they did say that due to high requests that are anticipated, they think that not more than 25 percent of the forgiven amount is going to be allowed for those non-payroll costs—those interest, rent and utilities. There is “only” $349 billion in this program, and I think that if you look over the whole United States, that’s going to get used up really quickly.

Now, I also heard that there were reductions in the forgiveness amount if you decrease the number of people that work for you, is that correct?

There is. So one of the important things to be aware of is that a lot of the reimbursement is based off of your average employees and average payroll to a certain extent—over the last 12 months. So if you have 25 percent less employees now than you did in your historical average, your forgiveness amount is going to be decreased by 25 percent. So there are things on the payroll side that you’re going to want to talk about.

So basically companies should not be banking on 100 percent forgiveness, correct?

I think that some will, but it’s always good to be conservative. But hey—if in our example earlier where you get $50,000 loan, and let’s say only $25,000 of it is forgiven, that’s still a $25,000 cash infusion into your business that you can use for expenses right now. The remaining amount of that $25,000 (if there’s anything that’s not forgiven) has to be paid back within 10 years.

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We Are Here for You

Contact us to talk through the challenges your business faces as you navigate through this unprecedented time. No doubt you’ll need help assessing cash flow and making smart projections, reviewing loan covenants, lining up bridge financing, talking to banks and lenders, figuring out staff loads and employee counts, handling disrupted supply chains, and so much more.

Read An Important Message from Our Firm

 

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COVID-19: Business Relief to Act on NOW https://hawkinsashcpas.com/covid-19-business-relief-to-act-on-now/ Wed, 01 Apr 2020 19:16:00 +0000 https://hawkinsashcpas.com/?p=9699 [UPDATED: 4-1-2020] For businesses, there are many relief provisions to consider as a result of the COVID-19 pandemic. Each can help your organization in different ways. From loans to loan forgiveness and emergency grants, it is important to understand your options and how to apply for relief. Please review a brief description below of the […]

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[UPDATED: 4-1-2020]

For businesses, there are many relief provisions to consider as a result of the COVID-19 pandemic. Each can help your organization in different ways. From loans to loan forgiveness and emergency grants, it is important to understand your options and how to apply for relief.

Please review a brief description below of the choices you and your business have as of April 1, 2020. We understand that there are many facets to these relief options and we are here for you, paying close attention to the details in order to maximize the potential benefits.

Small Business Administration COVID-19 Economic Injury Disaster Loan and Emergency Grant

The Small Business Administration’s (SBA’s) Economic Injury Disaster Loans (EIDLs) are a provision of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, providing working capital for small businesses, small agricultural cooperatives, employee stock ownership plans and nonprofits that cannot meet their ordinary and necessary financial obligations (i.e. debts, payroll, accounts payable and other bills) as a result of the COVID-19 disaster.

Through the program, entities with less than 500 employees, including sole proprietors and independent contractors, can apply immediately for a $10,000 emergency grant to be paid within three days, even if they do not qualify for additional funds. This grant must be spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments, or repaying obligations that cannot be met due to revenue loss.

The EIDLs can be up to $2 million, with up to a 30-year term with fixed interest rate set by the law, ranging from 2.75 to 3.75 percent. EIDLs can be approved by the SBA based solely on an applicant’s credit score (not repayment ability and no tax return is required), and delayed repayment options are available. The SBA can require the borrower to pledge collateral and obtain and maintain appropriate hazard insurance for the life of the loan on the property pledged as collateral.

We strongly encourage you to apply for the loan now. Even if later you decide you do not want to take the loan, you can reject it at that time.

Again, any business can sign up for the $10,000 grant directly through the SBA and it takes less than 20 minutes to complete the application. After you receive your confirmation number, you should expect the SBA to be contacted within seven to 10 days.

Apply directly on the SBA website.

SBA Application

 

Paycheck Protection Program

The CARES Act’s Paycheck Protection Program (PPP) Loan Guarantee is another aid option for businesses with less than 500 employees. Starting April 3, 2020, small businesses, nonprofits, and sole proprietorships can apply to receive loans that cover their payroll and other certain expenses through existing SBA lenders. Starting April 10, 2020, independent contractors and self-employed individuals can apply.

Loan amounts can be made for up to two months of your average monthly payroll costs from the last year plus an additional 25 percent of that amount, capped at $10 million and $100,000 annualized for each employee. Amounts spent during the first eight weeks from loan origination may be forgiven based on the following terms:

  • Your workforce remains consistent.
  • Funds are used for qualified expenses such as payroll, insurance, rent and mortgage interest.

Any unforgiven portion of the loan will have a six-month payment deferral period.

We encourage you to apply for this loan with your local financial institution as soon as you are able. You will need to provide your lender with payroll documentation. No personal guarantee is required.

PPP Guide PPP Application

 

Additional Considerations

You can have both loans at the same time; you just are not able to use them for the same expenses. Therefore, organizations need to review the expenses they have and determine how much financing is needed and what the best source for it is.

If you get a $10,000 emergency grant and then are accepted for a PPP loan, the $10,000 grant will be subtracted from the PPP loan amount.

Stay Informed

New details on these relief programs seem to be revealed daily. We will keep updated dated information about the business relief described in this article right here. If you have questions you would like to talk through, please contact one of our business advisors.

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Be sure you’re getting the latest insights as legislative developments occur. We’re here for you with tax insights and business resources.

 

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We Are Here for You

Contact us to talk through the challenges your business faces as you navigate through this unprecedented time. No doubt you’ll need help assessing cash flow and making smart projections, reviewing loan covenants, lining up bridge financing, talking to banks and lenders, figuring out staff loads and employee counts, handling disrupted supply chains, and so much more.

Read An Important Message from Our Firm

 

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Nonprofit COVID-19 Resources https://hawkinsashcpas.com/nonprofit-covid-19-resources/ Tue, 31 Mar 2020 16:16:47 +0000 https://hawkinsashcpas.com/?p=9684 In this special edition of our Nonprofit Connection newsletter, several of our CPAs provide updates and coverage of the following COVID-19-related topics as they relate to not-for-profit Organizations:   We Are Here for You Not-for-Profit Year-End Reporting Deadlines for IRS and State Government Navigating the Challenges of COVID-19: What Should You Do Now? Small Business […]

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In this special edition of our Nonprofit Connection newsletter, several of our CPAs provide updates and coverage of the following COVID-19-related topics as they relate to not-for-profit Organizations:

 

  • We Are Here for You
  • Not-for-Profit Year-End Reporting Deadlines for IRS and State Government
  • Navigating the Challenges of COVID-19: What Should You Do Now?
  • Small Business Administration Provides Economic Injury Disaster Loan Assistance
  • Coronavirus Aid, Relief and Economic Security Act (CARES Act)
View Newsletter Subscribe Browse Our Nonprofit Newsletter Articles in CPA-HQ

 

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Navigating the Challenges of COVID-19: What Should You Do Now? https://hawkinsashcpas.com/navigating-the-challenges-of-covid-19-what-should-you-do-now/ Tue, 31 Mar 2020 15:34:50 +0000 https://hawkinsashcpas.com/?p=9666 During this unprecedented time, almost all organizations and businesses are facing current challenges, from stay-at-home orders to employee layoffs. This has been a difficult time for leadership, employees and those individuals in the communities that you serve. As the situation continues to evolve on a daily basis, it is important to remain calm. As each […]

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During this unprecedented time, almost all organizations and businesses are facing current challenges, from stay-at-home orders to employee layoffs. This has been a difficult time for leadership, employees and those individuals in the communities that you serve.

As the situation continues to evolve on a daily basis, it is important to remain calm. As each day seems to come with a new set of challenges, it is important to take a step back and evaluate the financial impacts this will have on your Organization. Decisions made now can help limit prolonged disruptions in fulfilling your mission. As we encounter new challenges, this is a great time for collaboration, creativity and compassion—concepts to which nonprofit organizations are not strangers.

For a majority of Organizations, financial impacts are going to be a reality. Your first step should be to put together a budgeted cash projection for the coming months to determine what your exact needs will be, taking into account potential decreases in revenues and expenses due to the impacts of COVID-19. If financial shortfalls are the reality for your organization, here are just a few recommendations on navigating those impacts:

Expenses

Look at your expenses and try and determine areas where costs could be reduced or eliminated.

For example:

  • Can you scale back on any overhead costs?

Personnel

Before resorting to employee layoffs, are there other ways you could get creative with your personnel costs to keep all individuals employed?

For example:

  • Cut back or defer retirement contributions
  • Ask employees to take a brief pay cut (note that you will still need to abide by all wages and hours laws in your state)
  • Consider intermittent employee furloughs or universal part-time hours

Fundraising

Now is not a time to stop your fundraising efforts; it is a time to get creative! While many individuals in your communities also will feel the financial impacts of COVID-19, unprecedented times like these bring out generosity and kindness in all of us. Make sure your donors know that you are not immune to the economic effects of COVID-19 and remind them of the essential impact you have on the people in your communities.

Although all in-person fundraising events have been halted, we have endless amounts of technology at our fingertips (literally) to keep these fundraising efforts going.

For example:

  • Social media platforms
  • Email
  • Direct mail
  • Phone calls
  • Video chats

Legislation

Stay up to date on the federal financial assistance packages that are being made available. The paid sick and family leave act will help organizations substantially (see additional links provided on our website for more information and resources). We will keep you up to date on the various assistance packages that are evolving daily.

Families First Coronavirus Response Act: Questions and Answers

The U.S. Department of Labor Wage and Hour Division defines “Paid sick leave” and “Expanded family and medical leave,” in addition to providing answers to dozens of pressing questions.

 

Read the FAQ

Local Resources

Reach out to your local resources to determine if there are grants, loans or other financial resources available.

For example:

  • Small Business Administration (SBA) disaster assistance loans (see below for details)
  • Private community foundation grants
  • Business interruption insurance
  • Local, city or county assistance
  • Your local Chamber of Commerce and United Way

Finances

Have open communication with your lenders and vendors. Many banks and credit card companies have offered deferred payment options.

During these uncertain and challenging times, it is important that you take a step back, take a deep breath and remember your mission. Nonprofit organizations are essential pieces for the communities in which we live. Strategic decision making and compassion in times of crisis will help you overcome these challenges. At Hawkins Ash CPAs, we appreciate you and are here to help you.

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We Are Here for You

Contact us to talk through the challenges your business faces as you navigate through this unprecedented time. No doubt you’ll need help assessing cash flow and making smart projections, reviewing loan covenants, lining up bridge financing, talking to banks and lenders, figuring out staff loads and employee counts, handling disrupted supply chains, and so much more.

Read An Important Message from Our Firm

 

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Not-for-Profit Year-End Reporting Deadlines for IRS and State Government https://hawkinsashcpas.com/not-for-profit-year-end-reporting-deadlines-for-irs-and-state-government/ Tue, 31 Mar 2020 15:07:22 +0000 https://hawkinsashcpas.com/?p=9659 Most of the not-for-profit (NFP) reporting forms are outside of the April 15, 2020, deadlines that have been extended, but all can be extended except for the 990-N. Any tax payments that are due are still required at the time of filing the extension. Annual Reporting Returns 990-N Due on the 15th day of the […]

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Most of the not-for-profit (NFP) reporting forms are outside of the April 15, 2020, deadlines that have been extended, but all can be extended except for the 990-N. Any tax payments that are due are still required at the time of filing the extension.

Annual Reporting Returns

990-N

  • Due on the 15th day of the fifth month after year-endno extensions

Form 990EZ, 990 and 990T

  • Due on the 15th day of the fifth month after year-end
  • Form 8868 can be filed for an automatic six-month extension

Wisconsin Annual Reporting (www.wdfi.org)

  • Annual report is due 12 months after fiscal year-end

Minnesota Annual Report (www.ag.state.mn.us)

  • Has been extended for four months for reports that are currently due between April 15, 2020, and July 15, 2020; no request for extension is necessary
  • For example, December 31, 2019, year-end normally due July 15, 2020, is now due November 16, 2020

Unrelated Business Income Tax Returns

Federal Form 990-T

  • Due on the 15th day of the fifth month after year-end
  • Form 8868 can be filed for an automatic six-month extension

WI Form 4-T

  • Due the same time as the Federal Form 990-T and if federal is extended, Wisconsin is automatically extended

MN M4NP

  • Due the same time as the Federal Form 990-T; an automatic extension of seven months is allowed by checking a box when filing the M4NP

Read this article to learn about federal and state tax extensions for individuals and businesses.

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We Are Here for You

Contact us to talk through the challenges your business faces as you navigate through this unprecedented time. No doubt you’ll need help assessing cash flow and making smart projections, reviewing loan covenants, lining up bridge financing, talking to banks and lenders, figuring out staff loads and employee counts, handling disrupted supply chains, and so much more.

Read An Important Message from Our Firm

 

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