To Our Valued Clients and Associates,

Recently, the Biden administration announced its first changes to the PPP program, including a big change for Schedule C filers.  

First, effective Wednesday February 24th and continuing for two weeks, the SBA has been directed to only accept PPP loan applications for businesses with fewer than 20 employees.  The goal is to increase access for small businesses.  98% of small businesses have fewer than 20 employees but so far, they have only accounted for 45% of all PPP funding. 

Second, the SBA has been directed to change how they calculate the PPP loans for self-employed workers including sole proprietors and independent contractors.  Previously, for these Schedule C filers with no employees, their maximum loan was calculated based on their net profit from Schedule C, which for many filers resulted in a very small loan amount. To address this issue, the SBA will be revising the calculation, however, the new formula will not go into effect until the first week of March.  The new calculation has not been made available to lenders yet, but the SBA has indicated it will now be based on gross income and not net profit.  This marks a significant change to the calculation that will impact many Schedule C filers. 

As always, we will advise you of any additional guidance as it becomes known. If you have any questions, please contact us directly.

Dear Valued Client,

As we prepare for the start of tax season we wanted to remind you of important dates and items that relate to the 2023 tax season.

2022 4th Quarter Estimates
As a reminder the 2022 4th quarter individual tax estimates are due Monday January 16th.

2022 1099 filings
We want to remind you that Paresky Flitt & Company, LLP does not prepare 1099s. 1099s should be prepared in house, by your payroll provider or your bookkeeping service.

2023 Tax Filing Season

S-Corporation and Partnership Tax Return Filing Deadline
The 2022 S-Corporation and Partnership tax return filing due date is currently Wednesday March 15, 2023. We will attempt to complete your tax return by this filing deadline, however, if we receive your information after February 8, 2023, we may have to file an extension due to insufficient time available to prepare a complete and accurate tax return. If an extension of time is required, any tax due with this tax return must be paid with that extension.

Individual, C-Corporation and Trust Tax Return Filing Deadline
The 2022 Individual, C-Corporate and Trust tax return filing due date is currently Tuesday April 18, 2023. We will attempt to complete your tax return by this filing deadline, however, if we receive your information after March 7, 2023, we may have to file an extension due to insufficient time available to prepare a complete and accurate tax return. If an extension of time is required, any tax due with this tax return must be paid with that extension.

We would like to thank you for your business. We are so very appreciative that you have selected us as your CPA firm. We look forward to speaking with you soon!

Your friends at Paresky Flitt & Company, LLP