Business/negocío Business & Opportunity Updates ECONOMIC INJURY DISASTER LOANS The Small Business Association (SBA) has designated COVID-19 as a qualifying event for the provision of Economic Injury Disaster Loans (EIDL) for businesses and private nonprofits in affected communities. Texas is currently working with SBA to qualify for this declaration. Additional information about Economic Injury Disaster Loans can be found here, https:// disasterloan.sba.gov/ela/Information/EIDLLoans Please submit your Economic Injury Worksheet to: TDEMPARecovery@ tdem.texas.gov BUSINESS COUNSELING Small business owners and aspiring entrepreneurs can discuss their business ventures and get expert advice from the SBDC staff. All information will be held in strict confidence. For a counseling sessions call (806) 745-1637. FREE PRACTICE EXAMS Study guides for tests Learna-Test, a database of practice examinations, is available at the Lubbock Public Library, 1306 9th St. Hundreds of practice examinations, including SAT, ACT and elementary, middle school and high school skills improvement tests, plus graduate entrance exams, are available. LOW INCOME TAXPAYER CLINIC The TTU School of Law operates a “FREE” Low Income Taxpayer Clinic year around to provide assistance relating to issues involving controversies with the Internal Revenue Service (IRS). The LITC does not assist in any criminal tax matters, or prepare tax returns. For more info call (806) 834-7972 or toll free (800) 420-8037.
Se habla español TELEPHONE: 806.548-2100 EMAIL: frank.garcia@alsco.com Call me about products available to help you navigate through COVID-19.
Loan Recipients Take Note
IRS Changes on Paycheck Protection Program
A
month after Congress created the Paycheck Protection Program (PPP) last spring and expressly provided that forgiveness of loans under the PPP should not result in taxable cancellation of indebtedness income for the recipients, the Internal Revenue Service (IRS) ignored the clear congressional intent by issuing a notice saying that the expenses funded by each such loan should become nondeductible the moment the loan is forgiven — thereby resulting in exactly the same net tax costs for loan recipients as would have been the case if Congress had not exempted the forgiveness of the loans from tax. In response, leaders on both sides of the aisle and in both houses of Congress declared that the IRS’s interpretation of the law was erroneous, and they inserted clarifying provisions into the next round of stimulus legislation to overturn the IRS’s wrongheaded ruling. Unfortunately, that badly needed further stimulus legislation has been stalled by massive partisan
disagreements on major issues — albeit not on this one. Roll forward six months to this past week. After receiving much criticism, the IRS national office has decided to double down on its misguided position. It issued Revenue Ruling 2020-27 saying that even if a taxpayer’s PPP loan has not yet been forgiven by the end of the taxable year, the taxpayer nonetheless loses any deductions for expenses funded by the loan during the year if the taxpayer reasonably expects to receive forgiveness of the loan in the following year. The latest IRS salvo has deservedly drawn an immediate rebuke from the ranking Republican and Democratic members of the Senate Finance Committee. One hopes that ultimately the IRS’s position will be expressly overridden by Congress. In the absence of such a legislative fix, however, a taxpayer receiving a PPP loan will be left with the choice of complying with the IRS’s mistaken view of the law or taking the IRS to court.
ob statistics released by the J Texas Workforce Commission showed a drop in Lubbock’s
vilian labor force was estimated at 162,400. Lubbock’s unemployment rate one year ago (October 2019) was measured at 2.7 percent. The state’s unemployment rate fell to 6.9 percent in October. To view the full October unemployment and jobs report from the Texas Workforce Commission visit www.twc.texas. gov/texas-unemployment-rate69-percent-october.
LBK's Unemployment Rate Fell to 5.1 Percent in October
unemployment rate during the month of October. The local unemployment rate was reported at 5.1 percent, down from the reported 6.0 percent in September. An estimated 154,100 residents in the Lubbock metropolitan statistical area (MSA) were employed during the month. The ciCopyright 2020 by Latino Lubbock Magazine
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December/diciembre 2020, Vol. 14, Issue 12
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