CFDA (Catalog of Federal Domestic Assistance) numbers quietly disappeared and were replaced with Assistance Living Numbers.

Let your search engine track down “Why Unrestricted Funds Matter”, a great article on the benefits of unrestricted funds.

Update your “responsible person” information with IRS if their database does not have current contact information. The solution is simple, go to IRS.gov and complete form 8822-B Change of Address or Responsible Party.

For more information see IR-2021-161, July 30, 2021.

The American Rescue Plan Act of 2021 included changes to this credit for the third and fourth quarters of 2021, and recently IRS’ notice 2021-49 provided additional information about these changes. (CAUTION-the economic stimulus package may eliminate this credit for the fourth quarter of 2021).

This credit, which can total $7,000 per employee per quarter (70% of up to $10,000 in wages per employee), can be claimed by businesses and nonprofits that experience a 20% or greater revenue decrease between corresponding quarters in 2019-2021.

Revenue Procedure 2021-33 clarifies that PPP loan forgiveness can be excluded from the calculation of gross receipts. Shuttered Venue Operators Grants and Restaurant Revitalization Grants are also excluded in determining whether there was a gross receipts reduction.

Wages claimed for PPP forgiveness do not also qualify for this credit.

Employers with under 500 employees can amend their 941 forms or file form 7200 to claim a refund. https://www.irs.gov/pub/irs-pdf/f7200.pdf

John F Heveron, Jr. Principal, Heveron and Company CPAs

Brief financial updates

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