In this issue:
  • Tax Corner: Updates and Deadlines
  • EIDL Lending Limit Increase
  • LLC vs PLLC
  • Tax Facts
  • Good Reads
  • Important Dates
New Tax Deadlines and Provisions That Could Impact You

Well, 2021 is certainly keeping us on our toes! Earlier this month, President Biden signed the American Rescue Plan Act into law. Shortly thereafter, the IRS announced that the personal income tax filing deadline has been extended from April 15, 2021 to May 17, 2021.
The ARPA bill includes many provisions that have major tax impacts on 2020 and 2021 tax returns. (Read more about them here.) We are awaiting additional tax guidance from the IRS concerning these changes and will be helping each of our clients decide whether to go ahead and file or to file an extension or an amended return.
Our recommendations will be made on a case-by-case basis. We encourage you to submit your tax return documentation and questionnaires ASAP so that we can help determine the best course of action and ensure that you get the maximum tax benefits you are entitled to.
We are here to support you throughout these uncertain times. Don’t hesitate to reach out to us!
Susan Clarke & The CPA Team
Tax Corner: New Updates and Deadlines
In addition to the tax implications of the ARPA provisions, here are some other important updates and deadlines to note:
EIDL payments deferred until 2022
Earlier in March, the U.S. Small Business Administration (SBA) announced that small businesses that received a COVID-19 Economic Injury Disaster Loan (EIDL) will have until 2022 to start making payments on the loan. All of the SBA’s disaster loans were given extended deferment periods, but the details change according to the date in which the loan was made:
  • For SBA disaster loans made in 2020, the first payment is due 24 months from the date of the note (extended from 12 months).
  • For SBA disaster loans made in 2021, the first payment is due 18 months from the date of the note (extended from 12 months).
  • For existing disaster loans made prior to 2020 that were in regular servicing status as of March 1, 2020, the SBA granted an additional 12-month deferment of principal and interest payments (this is the third deferral extension for these loans).
It’s important to note that interest will still continue to accrue on the outstanding loan balance during the deferment period. Read more here.
PPP application deadline extended to May 31, 2021
On March 25, 2021, Congress approved a bill to extend the application deadline for the Paycheck Protection Program (PPP) from March 31 to May 31, with an additional 30 days to process applications received by May 31, 2021. Once President Biden signs the bill, it will be official. Read more here.
IRS extends April 15 filing deadline to May 17, 2021
The IRS extended the filing deadline by 30 days. This filing extension provides taxpayers and tax preparers some much-needed time and flexibility in filing and paying 2020 federal taxes. Many states have also pushed back their filing deadline to May 17, 2021 – including Illinois. However, it’s important to remember that your estimated tax payments for 2021 are still due on April 15!
The EIDL Lending Limit Will Increase
The SBA is increasing the maximum amount small businesses and non-profit organizations can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program.
According to their latest release:
“Starting the week of April 6, 2021, the SBA is raising the loan limit for the COVID-19 EIDL program from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000.”
For businesses that already received a loan subject to the current limits, the SBA will reach out to you closer to April 6th via email with details on how to request an increase. Any new loan applications after April 6 will automatically be considered for loans covering 24-months of economic injury up to $500,000.
This increased limit works together with the extended deferment periods for all disaster loans so that businesses have more time to recover from the impact of COVID-19. 
Please note: All communications from SBA will be sent from an official government email with an @sba.gov ending. Please do not send sensitive information via email to any address that does not end in @sba.gov.
If you are licensed by the IDFPR to provide professional services, this may apply to you! This includes those in healthcare, counseling, and other occupational industries.
Most* limited liability companies licensed by the Illinois Department of Financial and Professional Regulation (IDFPR) must now be registered as a Professional LLC (PLLC) by the Illinois Secretary of State. This means that if you are already registered as an LLC, you must amend your Articles of Organization to form a PLLC instead. (The good news is that there is not a fee associated with amending your formation documents!)
This also means that if you are starting a new business offering professional services (licensed by the IDFPR), you must file with the Secretary of State as a PLLC before registering with the IDFPR. 
You might be wondering why you haven’t heard about this…
Well, this statute change actually went into effect in August of 2018, but it was largely unenforced — until now.
The IDFPR has started cracking down. They are rejecting new license applicants who register as an LLC instead of a PLLC.
What about those professionals that are already registered and licensed with the IDFPR?
It is suspected that deficiency notices will be sent out, and you may not be able to renew your license without your PLLC registration.
*There are some LLCs that offer professional services that are exempt from the new regulations. We strongly suggest you reach out to your attorney and inquire about the PLLC requirements for your business. 
CPA clients receive special pricing with RGC Law Group
If you need advice or assistance in filing/amending your LLC formation documents, RGC Law Group is offering a free 20-minute consultation and special pricing on PLLC conversion services for CPA Clients.
Visit the RGC Law Group website or email info@rgclawgroup.com for more information.

Tax Day Wasn’t Always on April 15
When the modern income tax was established, the deadline for filing was set for March 1 each year. But over time, taxes got more complicated and the IRS needed more time to process the returns. So in 1955, the new deadline of April 15 was set. Source

Goods Reads
Important Dates & Deadlines
April 15, 2021
1st Quarter 2021 Estimated Tax Payment Due
Due date for filing Calendar Year C Corporation Tax Returns or Extension
Due date for 1041 Trust & Estate Returns
May 17, 2021
Individual Tax Returns Due for Tax Year 2020
Individual Tax Return Extension Form Due for Tax Year 2020
Due date for Exempt Organization Returns
Last day to make a 2020 IRA Contribution
Last day to fund an H.S.A. for 2020
 
June 15, 2021
2nd Quarter 2021 Estimated Tax Payment Due

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