National Society of Accountants and IRS.gov — President Biden on Tuesday, March 30 signed into the law the bipartisan Paycheck Protection Program (PPP) Extension Act of 2021 (HR 1799), which moves the application deadline to May 31, 2021. The PPP application window was originally set to expire March 31.
The bill was overwhelmingly approved in the House by a 415-to-3 vote; the Senate cleared it 92-to-7.
Additionally, the measure provides the U.S. Small Business Administration (SBA) with an extra 30 days to process loans submitted prior to June 1. However, no additional funding was provided for the program, which is expected to lapse in mid-April, according to the SBA.
Information on First and Second Draw PPP Loans can be located here.
The SBA’s March 25 PPP Data Report can be located here.
Deadlines for IRA, HSA contributions also get extension
When earlier this month extending the deadline to file Form 1040 series returns to May 17, the IRS is automatically postponing to the same date the time for individuals to make 2020 contributions to their individual retirement arrangements (IRAs and Roth IRAs), health savings accounts (HSAs), Archer Medical Savings Accounts (Archer MSAs), and Coverdell education savings accounts (Coverdell ESAs).
This postponement also automatically postpones to May 17, 2021, the time for reporting and payment of the 10% additional tax on amounts includible in gross income from 2020 distributions from IRAs or workplace-based retirement plans. Notice 2021-21 also postpones the due date for Form 5498 series returns related to these accounts to June 30, 2021.
No extension for estimated tax payments: Still due April 15
Notice 2021-21, issued March 29 does not alter the April 15, 2021, deadline for estimated tax payments. These payments are still due on April 15.
Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. In general, estimated tax payments are made quarterly to the IRS by people whose income isn’t subject to income tax withholding, including self-employment income, interest, dividends, alimony or rental income.
Most taxpayers automatically have their taxes withheld from their paychecks and submitted to the IRS by their employer.
If you have questions about your individual or business tax issues, contact the experts at Pinnacle CPA Advisory Group. Reach us by phone at (614) 942-1990, by email to info@cpaagi.com, or by filling out the Contact Form at cpaagi.com/contact.