PPP LOAN FRAUD ALERT – BE SMART!!!!

PPP LOAN FRAUD ALERT – BE SMART!!!!

Your mistakes may not impact you today but will two years down the road!

The recent launch of the Second Draw PPP Loan funding carries with it a key requirement for documentation:

“For loans with a principal amount greater than $150,000, the applicant must also submit documentation adequate to establish that the applicant experienced a revenue reduction of 25% or greater in 2020 relative to 2019.  Such documentation may include relevant tax forms, including annual tax forms, or, if relevant tax forms are not available, quarterly financial statements or bank statements. “

The problem with the law is there is no specific guidance. What is relevant information? Is it tax returns, quarterly CPA prepared financial statements, or is it internally prepared financial statements?

My clients have all of the above, however each may indicate completely different results. Why? Tax Returns can be prepared on a different basis of accounting than financial statements, and internal financial statements may be incorrect or misleading for many reasons..( sales and purchase cut-off, cash basis collections vs accrual, % of completion estimates, bookkeeping errors, timing issues).

ADVICE FROM THE TRENCHES

BE CONSISTENT AND ETHICAL!!!!!!!!!!!

Select the method of comparison that most clearly reflects the results of operations of your business.

Don’t choose one comparison because you like the results, nor compare two different types of information (financial statements to tax returns) that could be inconsistent with each other.

Ethically, I believe you should you use the financial information that you rely upon to base your business decisions. The government may disagree on the information chosen, but at least you have an argument that you used good faith when obtaining the loan.

Samantha Kittle, CPASamantha Kittle, CPA

Samantha is a partner at Howard, Kittle and Company CPAs, LLP. She manages the accounting staff, overseeing all facets of each tax and accounting engagement, as well as working extensively in litigation support and tax controversy engagements. Samantha earned her M.S. in Taxation from Golden Gate University.

Happy New Year!

Thank you for your support of our firm in 2020. We were pleased to recognize Samantha Kittle’s accomplishments by changing our name from GL Howard and Company CPAs, LLP to Howard, Kittle and Company CPAs, LLP on January 1, 2020.

We are happy to report we had a very successful first year under our new name of Howard, Kittle and Company CPAs, LLP.

We wish you the best as we enter 2021 and look forward to serving you throughout the year.

Gary L. Howard, CPAGary L. Howard, CPA

Gary Howard is the Managing Partner of Howard, Kittle and Company CPAs, LLP. He has over 35 years of experience working on tax controversy and white-collar crime issues. Gary is a nationally-recognized expert in these fields and is a frequent speaker at major conferences.


Samantha Kittle, CPASamantha Kittle, CPA

Samantha is a partner at Howard, Kittle and Company CPAs, LLP. She manages the accounting staff, overseeing all facets of each tax and accounting engagement, as well as working extensively in litigation support and tax controversy engagements. Samantha earned her M.S. in Taxation from Golden Gate University.

Pre- and Post-Marital Agreements: Key Considerations

marriagePre- and Post-Marital Agreements: Key Considerations

With Valentine’s Day around the corner, many couples may be thinking of popping the big question. The moment you say “yes” to the big question, you may immediately start planning for your wedding, from food to invitations to center pieces; normally there is a list of tasks that need to be done before your moment at the altar. With all of this planning, you might not realize that among those tasks is evaluating whether or not to prepare a pre-marital agreement.

Typical Scenarios
At Mortensen & Reinheimer, PC, we have consulted with and helped many couples throughout the years, with varied scenarios that created the need for a pre-marital agreement. These agreements help protect each party and streamline the process for their families, in the event of a divorce or after they have passed.

While there are various pros and cons, the most common two reasons to having such agreements are for a second marriage or when one partner has a stronger economic standing. A pre-marital agreement can be important for a second marriage, and especially so when either party has children from a previous marriage. With financial issues being a major cause of divorce, couples who establish pre-marital agreements are taking a positive step toward preventing future financial misunderstandings. Any kind of marital agreement will help ensure that your assets are taken care of in the event that something unforeseen happens to you.

Community vs. Separate Property
Pre-marital and post-marital agreements help clearly define which assets are “separate property” and/or “community property,” which are important legal concepts.  California is a community property state, which means that each spouse or partner owns one-half of the community property and each spouse or partner is responsible for one-half of the debt. Community property and community debts are usually divided equally. Therefore, it is paramount that you understand the differences between separate and community property and what are the default characterizations.

  • Community property refers to any income or assets that are acquired by either spouse during marriage. Each spouse owns 50 percent of all community property.
  • Separate property, generally speaking, refers to everything else. For example, all property you own and acquire before you get married is separate property. All gifts to you are separate property. Each spouse also solely owns 100 percent of their separate property.

Ramifications of Post-Marital Agreements
Many couples decide to enact a post-marital agreement. There is no structural difference between pre-marital and post-marital agreements, other than the timing of when the agreement was signed (i.e., before or after marriage).

Regardless of when you sign an agreement, it is typically required to be in writing, signed by both parties, and be duly notarized. The agreement must have full disclosure of all assets, as it can affect the validity of the agreement. Any attempt to force the other spouse to sign the agreement will also void it.

Practicality vs. Emotions
They might not be romantic to bring up, but in situations when a pre- or post-marital agreement is advisable, experienced legal counsel can prepare an effective agreement. At Mortensen & Reinheimer, PC, we can fully assist you with a pre-marital or a post-marital agreement tailored to your individual objectives and needs.

Weily-Yang_150x134About the author:
Weily Yang is an attorney at Mortensen & Reinheimer, PC, an estate planning and probate firm in Irvine. Weily is a zealous advocate for individuals with special needs. His primary focus is special needs trusts and probate conservatorships together with estate planning, trust administration, and probate. He can be reached at weily@ocestateplanning.net.

Thread Lifts for Facial Rejuvenation – Advancements & Recent Product Launch

Novathreads logo + faceThread lifts offer a non-surgical option for facial rejuvenation.

The recent launch of Infinity Plus molded threads, made by NovaThreads, offers increased precision and accuracy for facial aesthetics. How do they work? The threads are made of absorbable material.  They are placed underneath the skin to reposition overlying tissue to a more favorable location, while maintaining a natural appearance. As the threads absorb over time, new collagen is formed which will tighten your skin. Where can they be used? The threads can be placed for lifting the brows, cheek, jowl line, and neck. Also, they can be used to soften fine lines, stimulate collagen, and tighten skin on forehead, around the eyes, lips, jowls, and neck. More info: Results last approximately 8-12 months. No incisions are required. The procedure is performed in our office. No anesthesia is required.

THE THREAD YOU’VE BEEN WAITING FOR IS FINALLY HERE!

Ready to proceed? I am safely seeing patients in the office, following CDC guidelines. I am also available for telehealth phone consultations (714-997-4300) and photos and communication via HIPAA secure email at zeineh@orangeplasticsurgeons.com.

Please let me know of any questions or concerns that you may have.

Thank you so much.

Sincerely,

Linda L. Zeineh, MD, FACS

About Linda L. Zeineh, M.D.

Dr. Zeineh is an active member of the American Society of Plastic Surgeons and the American Society for Aesthetic Plastic Surgery. She combines over 15 years of experience with cosmetic and reconstructive surgery in private practice with new technology and techniques in the care of her patients. Her first priority is the satisfaction and well-being of her patients, providing compassionate and personalized care.

A complete range of non-surgical and minimally invasive rejuvenation procedures are personally performed by Dr. Zeineh on her patients to achieve and maintain a youthful, refreshed, and natural appearance, including facial injections, skin tightening and facial/body contouring. Surgical procedures that Dr. Zeineh performs include: facial rejuvenation, body contouring, reconstructive and cosmetic breast surgery, and reconstructive surgery.