Kingfisher Financial-CPA

09/21/2021

Is your business or organization looking for more stimulus funding during the pandemic? If you have employees the Employee Retention Credit may be a good solution for you. Here is guidance from the IRS https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act Not-for-profit employers have an advantage in this regard. Businesses will typically need to file an amended tax return after getting one or more ERC refunds. Not-for-profit organizations typically will not. Let us know if you need help evaluating this opportunity. Email [email protected]

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, is designed to encourage Eligible Employers to keep employees on their payroll, despite experiencing economic hardship related to COVID-19, with an employee retention tax credit (Employee Retention Credit)...

08/04/2021

I am pleased to announce that I will be delivering an online presentation tomorrow about funding available to small businesses. Matthew Fulton, co-founder of the facebook group "QB Community Live!" will be interviewing me. You can sign up to attend here

In this presentation Fred will discuss the challenges of managing cash flow during the pandemic, from the first rush for EIDL and PPP funding in March and April of 2020 to the challenges and opportunities of the present. He will share guidance from the federal government and the AICPA that members o...

07/30/2021

I enjoyed hearing from Kamala Harris and Isabella Guzman yesterday on the zoom call "Getting Your Business Back on Track" sponsored by the Small Business Administration and the Public Private Strategies Institute . The Vice President spoke about a two pronged approach to supporting small businesses nationwide, focusing on access to capital and infrastructure improvements. The SBA Administrator elaborated on access to capital, emphasizing the very favorable terms of the EIDL loans, as well as the SBA's business disaster loans, traditional 7A and 504 loans, and their microloans. Let us know if your business or not-for-profit organization needs help accessing these sources of capital.

05/06/2021

Are you considering applying for a new PPP loan from the SBA? Check with your lender because it may be too late. The AICPA reported yesterday that it is only accepting applications from "Community Financial Institutions" at this point. Let me know if you have questions about that.

The SBA has informed lenders that it is no longer accepting new applications from most lenders for the Paycheck Protection Program because the $292 billion program’s general fund is nearly exhausted.

04/30/2021

SBA Grant Money: After a stop-and-go start the SBA is accepting applications for "shuttered venues". Restaurants, food trucks, breweries and wineries can apply for Restaurant Revitalization Fund Grants on Monday. Today is the first day they can create an account. If you are eligible or know someone who is, this is the webpage to go to

This program provides emergency assistance for eligible restaurants, bars, and other qualifying businesses impacted by COVID-19.

03/31/2021

For those interested in the $16 billion in grant money for theaters, concert halls and other live venues: Yesterday I attended the Small Business Administration presentation on how to apply for the Shuttered Venue Operators Grants . This is serious business. Applicants will likely need to understand DUNS numbers, SAM registration, eligibility requirements, which applications will be prioritized, initial disbursement vs. subsequent disbursement, SBA reporting, financial statement audit requirements, the Single Audit Act, the risk of audits by the SBA and the OIG, and the risk of recapture and False Claims lawsuits. Despite the risks, there is $16 billion available for "shuttered venues" with $2 billion set aside for those with 50 or fewer employees. Funding will be grants, not loans. The SBA says the application will open on April 8th and will remain open until the funds run out.

03/30/2021

Now it is official. PPP loan applicants have until May 31 to submit their application. Let us know if you need help determining if you are eligible, if you want help with the application, or if you want help with a forgiveness application.

03/05/2021

Today there is good news if you are a sole proprietor and considering applying for a PPP loan. The SBA just announced that business owners who file a Schedule C can use gross income instead of net income to calculate your loan amount. There is also good news for employers who reported payroll costs in excess of a PPP loan amount that was forgiven. The SBA has announced that the excess payroll costs may be used to apply for an Employee Retention Credit. Let me know if you want to know more about either of these opportunities.

02/19/2021

Here is a little known provision of the tax code. If a corporation made a "disaster relief contribution" in 2020 it may be eligible for this tax credit. If a corporation wants to make a disaster relief contribution and get a tax credit for 2021, it has another 6 days to make the contribution. Here are the details

IR-2021-27, January 29, 2021 — The Internal Revenue Service today explained how corporations may qualify for the new 100% limit for disaster relief contributions and offered a temporary waiver of the recordkeeping requirement for corporations otherwise qualifying for the increased limit.

11/02/2020

Dear friends,

Today I am celebrating the first anniversary of Kingfisher Financial Public Benefit Corporation. It has been a rewarding year working with business owners and not-for-profit leaders to navigate challenges that none of us foresaw a year ago. I have really enjoyed helping businesses and organizations manage their cash flow, access available funding, get their books in order, and improve the quality of financial reporting. It sets them up for stability and growth, which is important now more than ever.

I am excited to offer you, or anyone you know, a free initial evaluation of your business or not-for-profit accounting system, to see where you may need help. Lets work together to get your finger on the pulse of your financial health!

If you need help with SBA funding, PPP loan forgiveness, year-end tax planning, starting a business or tax exempt organization, or converting to a better accounting software, I am ready to help with that.

I look forward to hearing from you!

Fred Peck, CPA
Founding Shareholder
[email protected]
509-879-4716

09/08/2020

Greetings to my clients and friends. I hope you had a great Labor Day weekend. This is to provide an update regarding CARES Act funding and what many are calling PPP2.

For PPP loan recipients, I know that many of you are eager to have your loan forgiven and get the liability off of your balance sheet. Lenders have not been rushing to process application because the rules have changed in the past and the smaller loans may receive automatic forgiveness. The loans, however, are accruing interest at an annual rate of 1%. The American Institute of CPAs is advising borrowers to be patient and wait a little longer before applying for forgiveness https://blog.aicpa.org/2020/07/5-reasons-borrowers-shouldnt-rush-their-ppp-forgiveness-applications.html .PzQwB5Ak.3ehXlOaL.dpbs. For any payments due to the lender, time is not of the essence. When you apply for forgiveness and elect a “covered period”, the clock starts ticking and the first of any required payments is due 10 months after the end of the covered period. The question remains whether qualified expenses on the forgiveness application are tax deductible. Here is an example to illustrate:

A fictional small business received a PPP loan of $100,000 from their bank. They elect the 24 week coverage period and demonstrate that their qualified payroll costs exceed $100,000 during the 24 weeks. Their application for forgiveness is approved and the SBA pays off the bank and 100% of the loan is forgiven. Interest was accruing at 1% for 6 months so the business pays the bank $500 and the loan is retired. What about a 2020 tax liability? The CARES Act states that PPP loan forgiveness does not trigger “cancellation of debt income” (see TAXABILITY on page 52 of the Act). But the IRS has taken the position that the expenses used to qualify for forgiveness can’t be used as a tax deduction. The fictional business has a tax rate of 21%. The $100,000 in income is not taxed but 2020 payroll expenses are adjusted down by $100,000. So taxable income increases by $100,000 and the owners of the business need an additional $21,000 to pay their tax liability in 2021. That means that, in that scenario, of the $100,000 the government provided to the fictional business as CARES Act funding, they have to return $21,000 to the government.

Congress may over-rule the IRS on the deductibility of expenses but that remains to be seen. In the meantime, I suggest business owners with a PPP loan estimate your 2020 tax rate, apply that to your PPP loan amount and strive to maintain that as a tax reserve. Let me know if you need help with your tax planning for 2020. This fall is a great time to do it.

If your business or organization is cash flow challenged because of the pandemic there may be more relief on the way. Congress is likely to pass some form of PPP2 funding, whether it is a trimmed down version of the House’s HEROES Act, a revised version of the Senate’s HEALS Act, or a new bill that focuses on what the House and Senate do agree on. They do agree on making more PPP funding available. Congress may make the $134 billion of unused PPP funds available to borrowers who have revenues below 50% of a year ago. And they may add to the dollar amount. A second round of stimulus checks to individuals is also likely.

There is, however, no guarantee of what additional pandemic assistance will be signed into law. Congress will be debating a continuing resolution this month to avoid another government shut-down. Other sources of cash that you may need to access include:
• Cash flow from a new revenue stream if you can develop one or more
• CARES Act funding if you have a state or local government agency making grants or low interest loans (yes, for-profit businesses are getting grants in this environment)
• The Employee Retention Credit defined in the CARES Act, for those who did not receive and retain a PPP loan https://www.irs.gov/newsroom/covid-19-related-employee-retention-credits-general-information-faqs
• Debt financing; the traditional SBA funding or Main Street Lending Program funding that I have talked about in the past

If you need help with financing, scenario planning or cash flow forecasting I am happy to help with that as well.

Best wishes to all for a healthy and prosperous week,

Fred
Fred Peck, CPA
Owner, Kingfisher Financial PBC

21146 Camper Road
Suite 100
Rathdrum, ID 83858
509.879.4716
www.kingfisher-cpa.com
[email protected]

Offering CPA services in the Inland Northwest and nationwide, Fred Peck can help you reach your personal and corporate financial goals

07/10/2020

Paycheck Protection Program (PPP) loans are still available. When the deadline came on June 30th there was still about $130 billion available. So Congress passed, and the President signed, the authorization to extend the deadline until August 8th. Let me know if you need help with an application. If you received a PPP loan and need help applying for loan forgiveness I can help with that too.