Pure Michigan Small Business Relief Initiative

On December 1, 2020   /   Uncategorized  

Approved November 30th the Pure Michigan Small Business Relief Initiative will use federal CARES Act funding to provide $10 million in grants to meet the needs of Michigan small businesses impacted by COVID-19. Applications will open on December 15th; up to $15,000 is eligible per applicant on a first-come, first-serve basis.

To qualify for grant support, businesses must meet eligibility criteria including but not limited to:

  • Being a business in one of the targeted industries
  • Must comply with all state and local orders related to COVID-19, including, but not limited, to the Michigan Department of Health and Human Services.
  • Be a for-profit entity (i.e., a sole proprietorship, partnership, corporation, or LLC)
  • Have a physical establishment in the Michigan County of Application and is not a home-based business
  • Provide goods or services to multiple clients or customers
  • Be current, or in a payment plan, on all local, state, and federal taxes due through 1/1/2020
  • Have an active and valid state license(s)/registration(s), if applicable
  • Is not an adverse party to litigation involving the state or municipality
  • Business or Business owner has not filed for bankruptcy in the last ten years.
  • Can identify a need for payroll, rent or mortgage payments, and utility expenses necessary to continue/restart business operations relative to the total grant amount
  • Had annual gross revenues in 2019 greater than $25,000
  • Has at least two employees, including the owner(s)
  • Has fewer than 50 employees (including full-time, part-time, and owner(s) on a world-wide basis)

Please contact your local ATS office with any questions or support during the application process.

For more information on this initiative please visit; https://www.michiganbusiness.org/about-medc/covid19/relief/

For more on the original article by Sherri Kolade please visit; https://michiganchronicle.com/2020/11/30/relief-on-the-horizon-michigan-strategic-fund-board-announces-pure-michigan-small-business-relief-initiative/#/?playlistId=0&videoId=0

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IRS makes it easier for taxpayers struggling with tax debts

On November 5, 2020   /   IRS  

Announced today the IRS has made numerous changes designed to help struggling taxpayers impacted by COVID-19. Taxpayers who owe always had options to seek help through payment plans and other tools from the IRS, but the new IRS Taypayer Relief Initiative is expanding on those tools even more.

The revised COVID-related collection procedure will be helpful to taxpayers, especially those who have a record of filing their returns and paying their taxes on time. Among the highlights of the Taxpayer Relief Initiative:

  • Taxpayers who qualify for a short-term payment plan option may now have up to 180 days to resolve their tax liabilities.
  • The IRS is offering flexibility for some taxpayers who are temporarily unable to meet the payment terms of an accepted Offer in Compromise.
  • To reduce burden, certain qualified individual taxpayers who owe less than $250,000 may set up Installment Agreements without providing a financial statement or substantiation if their monthly payment proposal is sufficient. 
  • Some individual taxpayers who only owe for the 2019 tax year and who owe less than $250,000 may qualify to set up an Installment Agreement without a notice of federal tax lien filed by the IRS.

Installment Agreement options are available for taxpayers who cannot full pay their balance but can pay their balance over time. The IRS expanded Installment Agreement options to remove the requirement for financial statements and substantiation in more circumstances for balances owed up to $250,000 if the monthly payment proposal is sufficient. The IRS also modified Installment Agreement procedures to further limit requirements for Federal Tax Lien determinations for some taxpayers who only owe for tax year 2019.

In addition to payment plans and Installment Agreements, the IRS offers additional tools to assist taxpayers who owe taxes:

Temporarily Delaying Collection — Taxpayers can contact the IRS to request a temporary delay of the collection process. If the IRS determines a taxpayer is unable to pay, it may delay collection until the taxpayer’s financial condition improves.

Offer in Compromise — Certain taxpayers qualify to settle their tax bill for less than the amount they owe by submitting an Offer in Compromise. To help determine eligibility, use the Offer in Compromise Pre-Qualifier tool. Now, the IRS is offering additional flexibility for some taxpayers who are temporarily unable to meet the payment terms of an accepted offer in compromise.

Relief from Penalties — The IRS is highlighting reasonable cause assistance available for taxpayers with failure to file, pay and deposit penalties. First-time penalty abatement relief is also available for the first time a taxpayer is subject to one or more of these tax penalties.

“If you’re having a tax issue, don’t go silent. Please don’t ignore the notice arriving in your mailbox. These problems don’t get better with time. We understand tax issues and know that dealing with the IRS can be intimidating, but our employees really are here to help.”

Darren Guillot, IRS Small Business/Self-Employed Deputy Commissioner for Collection and Operations Support

For clients and non clients alike we urge you to contact your local office or preparer so we may help you with any notices you receive. For more information or explanation of Taxpayer Relief Initiative please contact your local office or visit www.IRS.gov

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