May 2021 | Important Dates & What's New
Happy May! Here are a few important deadlines and updates that may apply to you:
May 17: Deadline to file and pay 2021 Federal individual income taxes
May 31: Deadline to apply for first and second draw PPP loans
Downtown Bellingham Storefront Improvement Grant
Application Deadline is May 26, 2021. Learn more: https://www.downtownbellingham.com/sig
This grant is available to eligible business in Downtown Bellingham and provides design and remodeling assistance to small businesses.
Restaurant Revitalization Fund
Available starting May 3, 2021. Learn more: https://www.sba.gov/rrf
This fun provides help to restaurants and other eligible business who have had pandemic-related revenue loss to keep their doors open.
Credits and Deductions
Tax Relief for Deductions for Food or Beverages from Restaurants
Learn more: https://www.irs.gov/pub/irs-drop/n-21-25.pdf
Businesses can temporarily deduct 100% for food or beverages from restaurants beginning January 1, 2021 through December 31, 2022. The business owner (or an employee of the business) must be present when food or beverages are provided and the expense must not be lavish or extravagant under the circumstances.
Paid Leave for Employees Receiving COVID-19 Vaccines
Available from April 1, 2021 through Sept. 30, 2021. Learn more: https://www.irs.gov/newsroom/employer-tax-credits-for-employee-paid-leave-due-to-covid-19
Under the American Rescue Plan, small businesses are eligible to claim refundable tax credits that reimburse the cost of providing paid sick and family leave due to COVID-19. This includes paid leave for employees taking time off for COVID-19 vaccinations. Self-employed individuals are eligible for similar tax credits.
Deductions Relating to First-Round PPP loans
Learn more: https://www.irs.gov/pub/irs-drop/rp-21-20.pdf
The IRS and Treasury Department issued guidance for certain businesses who received the first round of PPP loans but did not deduct any of the original eligible expenses because they relied on guidance issued before the enactment of tax relief legislation in December of 2020.
Please note that all businesses are different and you may have other deadlines, grants, or credits and deductions applicable to you. If you have questions related to your business or industry, you should contact your accountant or bookkeeper. Need a bookkeeper? Give us a call at (360) 756-5020 to see how we can help!