Daily CPE webinars for week of Jun 29 – Jul 3 2020

Next week, we’ll be doing daily webinars, including some much-requested topics. All sessions will start at 10am PDT (1pm EDT) and run for a full two hours.

Click on the session title below for complete course details and to register.

Monday: Intro to IRS Collections, Enhanced Edition
Tuesday: Pre-Resolution Case Actions
Wednesday: Ethics! The Musical
Thursday: CPE by IRS – People First Initiative
Friday: Introduction to 941 Collections ResolutionContinue reading

What your tax resolution clients need to know about Economic Injury Disaster Loans

With the implementation of a significant IT upgrade two weeks ago, the Small Business Administration (SBA) has suddenly gone from processing just 900 disaster loan applications per day, to over 10,000 per day. Given the fact that millions of small businesses have applied for these loans and are desperately in need of these funds in order to simply stay in existence during the COVID-19 recession, this will be welcome news for these small businesses.

However, these loans come with a LOT of strings attached. As their professional advisor, it behooves you to have an understanding of these loan conditions, some of which are quite draconian. This will help you to help your clients make a wise decision about accepting this loan or not, and if they do, how to properly utilize the funds.

This should probably be a CPE webinar, but due to other projects I’m working on this week, this blog post will need to suffice.

There are three main things that I want you, as a tax professional, to be aware of on behalf of your clients in relation to the Economic Injury Disaster Loans:

  1. The terms of the loan agreement.
  2. Restrictions on use of proceeds.
  3. The realization that this may be a once in a lifetime opportunity to “refinance” IRS tax debt into a 30 year, fixed rate loan at 3.75%.

Let’s briefly address each of these items.

 

EIDL Loan Terms and Conditions

SBA Form 1391 is the loan agreement for an Economic Injury Disaster Loan, and spells out the terms and conditions of the loan. Their are two very important things to understand about this loan agreement.

First, on loans in excess of $25,000, the SBA will secure their loan position with a general lien against all the business’ assets. This collateral for the loan is secured by use of a UCC-1, which will be filed in the county in which the business is located. The SBA deducts a $100 fee from the loan proceeds in order to cover the preparation and filing of the UCC-1. When I say that this lien covers all assets, I do mean all. It operates very similarly to a federal tax lien, and covers all property, rights to property, and property that may be acquired in the future. Heck, it even includes intangible intellectual property that the business may create in the future. It’s a very broad lien.

This may make it very difficult … Continue reading

Webinar Replay: IRS People First Initiative and Collections Response to COVID-19 Pandemic (Plus 2-hour Q&A)

 

This 50-minute webinar, which turned into three hours after the unintended 2-hour Q&A, covers information that CPAs, Enrolled Agents, and tax attorneys need to know in regard to IRS Collections Division actions during the coronavirus situation. This webinar includes technical guidance, marketing suggestions, and tasteless jokes for your entertainment. Recorded: March 27, 2020. Information was accurate as of the date of recording, but may be grossly outdated by the time you actually watch this. Replay not eligible for CPE.

 

Full Text of the People First Initiative News Release

Reposted for archival and informational purposes. Original news release at irs.gov. IR-2020-59, March 25, 2020 WASHINGTON — To help people facing the challenges of COVID-19 issues, the Internal Revenue Service announced today a sweeping series of steps to assist taxpayers by providing relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions. “The IRS is taking extraordinary steps to help the people of our country,” said IRS Commissioner Chuck Rettig. “In addition to extending tax deadlines and working on new legislation, the IRS is pursuing unprecedented actions to ease the burden on people facing tax issues. During this difficult time, we want people working together, focused on their well-being, helping each other and others less fortunate.” “The new IRS People First Initiative provides immediate relief to help people facing uncertainty over taxes,” Rettig added “We are temporarily adjusting our processes to help people and businesses during these uncertain times. We are facing this together, and we want to be part of the solution to improve the lives of all people in our country.” These new changes include issues ranging from postponing certain payments related to Installment Agreements and Offers in Compromise to collection and limiting certain enforcement actions. The IRS will be temporarily modifying the following activities as soon as possible; the projected start date will be April 1 and the effort will initially run through July 15. During this period, to the maximum extent possible, the IRS will avoid in-person contacts. However, the IRS will continue to take steps where necessary to protect all applicable statutes of limitations. “IRS employees care about our people and our country, and they have a strong desire to help improve this situation,” Rettig said. “These new actions reflect just one of many ways our employees are working hard every day to assist the nation. We care, a lot. IRS employees are actively … Continue reading