News & Announcements:

November 22, 2021

Holiday Closure

Our office will close at 12:00 PM on Wednesday, November 24, 2021 and remain closed through Friday, November 26, 2021. We will re-open at 9:00 AM on Monday, November 29, 2021. We hope everyone has a safe and happy Thanksgiving.

August 24, 2021

An Update from the Kentucky Department of Revenue

Kentucky farmers can now apply

for new agriculture exemption number

 

FRANKFORT, Ky. (August 24, 2021)—The Kentucky Department of Revenue (DOR) is now accepting applications from eligible farmers for new agriculture exemption numbers designed to protect the sales and use tax exclusions available to the agricultural community.

While the statutory provisions for agriculture sales and use tax exemptions have not changed, the new tax ID number requirement will ensure only those who have pre-qualified with DOR are able to claim these exemptions.

Under the provisions of SB 148, enacted by the 2020 General Assembly and signed into law by Gov. Andy Beshear on March 27, 2020, all eligible farmers exempt from sales and use tax for the purchase of certain items must apply for and use their new agriculture exemption number when claiming applicable tax exemptions under KRS 139.481.

“Our Department of Revenue staff have worked closely with both the farming and retail communities in the development of a simple process to qualify for the exemption number,” DOR Commissioner Thomas B. Miller said. “This application process and issuance of an agriculture exemption number will improve overall compliance with state tax codes while minimizing claims by parties ineligible for the exemptions. An upcoming release of a new searchable database will also make this process transparent and convenient for both the sellers and the buyers.”

The Application for the Agriculture Exemption Number, Form 51A800, is available at www.revenue.ky.gov under Sales Tax forms. Completed applications should be submitted by email to DOR.Webresponsesalestax@ky.gov or mailed to DOR’s Division of Sales and Use Tax, Station 66, P.O. Box 181, Frankfort, KY 40602-0181.

Applicants must verify their engagement in the type of farming eligible for sales and use tax exemptions included in KRS Chapter 139. These exclusions include certain items purchased for the purpose of raising livestock as food for human consumption or producing crops. To expedite the application process, DOR advises applicants to supply the IRS Schedule F, Profit or Loss from Farming form, if possible.

The deadline to apply for the new agriculture exemption number for current farmers is January 1, 2022. The agriculture exemption number is valid for three years from the date issued by DOR.

Contact the Division of Sales and Use Tax with questions at (502) 564-5170 or DOR.Webresponsesalestax@ky.gov.

August 19, 2021

Employee Retention Credit is available for PPP loan recipients.

July 8, 2021

Client Appreciation Day!

Mark your calendars. Davis and Davis Tax Services would like to announce our Client Appreciation Day! We will have sweet treats, free gifts and a chance at UK Football tickets.

If you participate in our UK Football ticket drawing, you will be entering to win a pair of tickets to the Kentucky VS. Tennessee game on Saturday, November 6, 2021. You will be in section 8, row 30, a perfect view to see a touchdown! You must stop by the office on October 29 to enter for a chance to win.

 

June 22, 2021

Advance Payments of Child Tax Credits

As most of you know the advance payments of child tax credits are set to begin next month. To avoid any surprises with your refund during tax season in 2022, Steve is advising opting out of the advance payments, unless you are in desperate financial need of the money to live on. As of today, the IRS has opened the portal to opt out of the payment. Please click the link below and follow the prompts on the IRS website.

https://www.irs.gov/credits-deductions/child-tax-credit-update-portal

February 17,2021

Closure Due to Weather

Due to incoming weather, Davis and Davis Tax Services will be closed on Thursday, February 18, 2021 - Friday, February 19, 2021. If you have any questions or concerns, please contact Elizabeth at elizabeth@davisanddavistaxservices.com.

January 21,2021

New PPP Loan Information: Courtesy of Intuit QuickBooks

PPP resources for eligible applicants

In an effort to serve as many customers as possible, QuickBooks Capital is creating two ways for eligible customers to apply for a Paycheck Protection Program (PPP) loan.

First, QuickBooks is working on a second PPP loan application for certain eligible QuickBooks and Intuit Online Payroll customers who received a first-time PPP loan within QuickBooks Capital in 2020. These eligible customers will be able to apply for a second PPP loan up to $150,000.

Second, QuickBooks Capital has teamed up with Cross River Bank, an SBA-approved lender, to facilitate PPP applications for a broader group of eligible QuickBooks customers directly through CRB's platform.

PPP Application through Cross River Platform

QuickBooks Capital has teamed up with Cross River Bank (CRB) to provide certain eligible QuickBooks customers with the ability to apply for a PPP loan directly through CRB's platform. For eligible QuickBooks customers, CRB will originate and service the loans as well as manage the forgiveness process. The loan application is now available. Eligible customers can apply here.

The CRB application is for certain eligible QuickBooks customers who want to apply for a first-time PPP loan. It is also available to eligible QuickBooks customers seeking a second-time PPP loan and who don't have an active Intuit payroll account or who don't meet other QuickBooks Capital eligibility requirements. Eligible QuickBooks customers applying for a loan greater than $150,000 can also apply for a PPP loan through CRB. Together, with CRB, QuickBooks Capital helped to fund $1.2 billion in PPP loans for QuickBooks customers in 2020.

PPP Application through QuickBooks Capital's Platform

QuickBooks Capital will soon provide an easy to use, automated, second PPP loan application experience for certain eligible QuickBooks customers seeking a second PPP loan up to $150,000. Eligible businesses will be able to quickly apply for a second PPP loan using their business data already available in their QuickBooks account.

Customers who are eligible to apply for a second PPP loan within QuickBooks Capital include: QuickBooks Online Payroll, Intuit Online Payroll and QuickBooks Desktop customers with open payroll accounts and who last year received their first-time PPP loan of up to $150,000 through QuickBooks Capital. Once the application becomes available, we will inform these eligible customers immediately. Additional eligibility requirements may apply.

Learn More

December 28, 2020

New COVID-19 Relief Law Signed: Courtesy of ADP

For information about applying for new Paycheck Protection Program (PPP) loans, help accessing PPP loan application reports in Accountant ConnectSM, or if you or your clients already have a PPP loan and would like information about PPP loan forgiveness, visit the ADP PPP toolkit at https://www.adp.com/PPP.

Paycheck Protection Program Reopened

The Paycheck Protection Program is reopened with over $284B in funds available for new loans. For new borrowers, as well as borrowers who have already received a loan and not yet applied for forgiveness, the law expands eligible non-payroll costs to include certain covered operations expenditures, property damage costs, supplier costs and worker protection expenditures. Non-payroll costs remain limited to less than 40% of the loan amount. Additionally, for all borrowers who have not yet applied for forgiveness, the safe harbor deadline to restore wage and employment levels is extended from December 31, 2020, to September 30, 2021.

Second Draw PPP Loans

Second PPP loans are available to businesses that received a PPP loan previously and that meet special requirements, including:

  • Second-time borrowers must have 300 or fewer employees. The rules of the program may limit participation if your organization has related entities, or if you are in certain industries. Check the Small Business Administration’s PPP website (https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program) for more information.

  • To be eligible for a second PPP loan, businesses will need to demonstrate a reduction in revenue of at least 25% between corresponding quarters in 2020 and 2019. Special rules apply to businesses that were not in operation for all or part of 2019.

  • The maximum amount for second draw PPP loans is $2 million.

  • Borrowers must have fully spent the loan proceeds from their first PPP loan before their second PPP loan is disbursed.

As a reminder, PPP loans are designed to be 100% forgivable as long as the proceeds are spent in accordance with program rules. Remember, you can access information about applying for new PPP loans, accessing PPP loan application reports in Accountant ConnectSM, and information about PPP loan forgiveness in the ADP PPP toolkit at https://www.adp.com/PPP.

Extension of Paid Leave Credits Under the Families First Coronavirus Response Act (FFCRA)

The FFCRA required employers with fewer than 500 employees to provide mandatory paid sick and paid family leave for certain reasons related to COVID-19. It provided a corresponding tax credit for any amounts paid to employees for the required paid leave. The COVID-related Tax Relief Act of 2020 (CTRA) extends the tax credit portion of the FFCRA for employers that voluntarily offer paid sick or paid family leave through March 31, 2021. The mandatory leave portion will terminate as expected on December 31, 2020.

Extension of Employee Retention Tax Credit (ERTC)

The CARES Act allows eligible employers to claim a federal tax credit with respect to qualified wages paid between March 13 and December 31, 2020. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 (the “Act”) extends the ERTC to cover wages paid through June 30, 2021. In addition, as of January 1, the Act increases the credit rate from 50% to 70% of qualified wages, increases the per employee wage cap from $10,000 in the aggregate to $10,000 per calendar quarter, decreases the required decline in gross receipts from 50% to 20%, and increases the threshold for treatment as a large employer from 100 employees to 500 employees. Retroactive to March 13, the Act provides that employers who receive PPP loans may still be eligible for the ERTC to the extent qualified wages are not paid using forgiven PPP loan proceeds, and it clarifies that group health plan expenses may be considered qualified wages even if no other wages are paid to the applicable employee.

Extension of Repayment Period for Deferred Employee Social Security Taxes

The current guidance issued by the IRS (IRS Notice 2020-65) required that any deferred employee portion of Social Security tax withholding between September 1 and December 31, 2020, must be ratably withheld and paid from wages and compensation paid to employees between January 1 and April 30, 2021, or penalties and interest would begin to accrue on May 1, 2021. The CTRA extends the repayment deadline from April 30, 2021, to December 31, 2021, and the date for penalty and interest to begin accruing from May 1, 2021, to January 1, 2022.

For More Information

ADP will be hosting a Special Edition CPE Webinar covering the new COVID-19 legislation on Monday, January 4 @ 1:00 PM ET. Click here to register now.

Additionally, ADP will issue an Eye on Washington article with more details about the new stimulus bill. You can access the Eye on Washington articles and sign up to receive alerts as new articles are released at: https://www.adp.com/spark/legislation.aspx.

December 01, 2020

Tobacco and Vapor Products Tax Update

Below you will find the link for updates regarding tax on tobacco and vapor products. 

https://revenue.ky.gov/Business/TobaccoAndVaporProductsTaxes/Pages/default.aspx

November 30, 2020

Food and Beverage Relief Fund Application

As many of you know, Kentucky has announced it will be providing funds for food and beverage relief to restaurants that meet certain criteria. The link with the requirements and application will be posted below. 

https://teamkyfbrf.ky.gov/

November 24, 2020

SBA Announces New Reduced 504 Loan Debenture Rates

WASHINGTON – The U.S. Small Business Administration announced the updated interest rates for the 504 Loan Program offered by Certified Development Companies (CDC). The program now allows for 10, 20, and 25-year interest rates at 2.231 percent, 2.364 percent, and 2.399 percent, respectively. Small businesses can now apply for a 504 loan at these low-interest rates.

“These are very encouraging terms and very supportive of our nation’s goal to bounce-back from COVID-19,” said William Manger, SBA Chief of Staff and Associate Administrator for the Office of Capital Access. “The longer terms and now lowest interest rates support and encourage entrepreneurs to step outside of the box and look at real investments.”

Partnered with the SBA are the CDCs, which are the driving force behind the 504 Loan Program. See SBA’s 504 Loan Program factsheet for more information on how to expand your business real estate or improve your working capital.

 

The 504 Loan Program is an SBA business loan program authorized under Title V of the Small Business Investment Act of 1958, 15 U.S.C. 695 et seq.  The core mission of the 504 Loan Program is to provide long-term financing to small businesses for the purchase or improvement of land, buildings, and major equipment, to facilitate the creation or retention of jobs, and to support local economic development.  Under the 504 Loan Program, loans are made in conjunction with private-sector lenders to small businesses by CDCs, which are certified and regulated by the SBA to promote economic development within their community.

For questions about the 504 Loan Program, please contact your local the SBA Kentucky District Office.                                    

About the U.S. Small Business Administration: The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov

November 1, 2020

Phone Menu Updates

With the updated phone system now in place, we thought it might be beneficial to our friends and clients to provide a written list of the menu options you'll hear when you call our office. These options have been carefully designed to put you in contact with the right person for your questions at just the touch of a button. The phone script is as follows:

Thank you for calling Davis & Davis Tax Services. Please listen carefully as our options may have changed. If you know your party’s extension you may dial it at any time. 
- For Appointments or to speak with Ashley, press 1
- For Billing, Payments or to speak with Elizabeth, press 2
- For Sales Tax, Financial Statements or to speak with Robin, press 3
- For Tax Questions or to speak with Steve, press 4
- For all other questions, please press 0.

If you are uncertain which option best suits your needs, please select option number 1 and our receptionist, Ashley, can direct your call to the appropriate person.

November 1, 2020

New Name, Same Team

As many of you have noticed, COVID-19 has brought on many different changes to our community and our business. Starting November 1st, we will no longer be Davis and Hylton Accounting and Tax Services, our new name will be Davis and Davis Tax Services. While our team may be small, our goal still remains the same, to provide you with complete satisfaction for your accounting needs. If you have any questions, please let one of us know. We appreciate your business and thank you for sticking with us during this transition.