The short answer is: not really.
There are some caveats.
Before I get into all of that, though, a word…
This pandemic represents an opportunity for you.
Whatever it is that caused your initial problems with the IRS and other taxation authorities … our cultural moment has provided all of us with an opportunity for a “reset” — if we take it.
We can all have a long conversation about the virus, the lockdowns, the re-opening — all of it, but we’d just be blowing smoke. What matters most is your response, and my response.
So … let us know how we can come alongside you and make a plan for an epic snap-back for your family or your business: (614) 734-8359 (or shoot me an email using the email us button at the top of the page).
Now, let’s get into the details …
Back Taxes, The Stimulus Checks and the EIDL For Greater Columbus Ohio Taxpayers
“Fear is the main source of superstition, and one of the main sources of cruelty. To conquer fear is the beginning of wisdom.” – Bertrand Russell
The IRS has made it clear that the economic stimulus payments (i.e. the stimulus checks) will NOT be reduced if you have back taxes.
You’ve probably already experienced that.
But what about the EIDL (Economic Injury Disaster Loan)?
The SBA has been rolling out loan offers to those that applied, and many of our Greater Columbus Ohio clients have been getting good offers.
But there are some things you need to know…
The rates are indeed generous (3.75% over 30 years), but there are risks and stipulations that you need to know about.
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.
You also need to know: the loan terms require the Greater Columbus Ohio borrower to furnish audited financial statements at the SBA’s request.
If you want to really get nerdy, you can see all the terms and conditions of these loans right here.
But here is the VERY good news:
You can use the EIDL proceeds to pay off your IRS debt.
There are stipulations aplenty about other uses, but the IRS has specifically included federal debt as a proper use of these loans.
We can help you obtain this — or, at the least, help you navigate through the other processes for getting your IRS problems resolved.
It’s what we’re here for: (614) 734-8359
Chuck Franklin CPA, LLC