catch-22 (noun): A dilemma or difficult circumstance from which there is no escape because of mutually conflicting or dependent conditions.
The CARES Act allows for all sorts of SBA (Small Business Administration) loans to help with the virus pandemic. Sounds good, right? There’s just one catch: You must submit a Form 4506-T with your loan application. The SBA wants to look at your tax returns (which makes sense).
There’s a problem here: The IRS system used to process Form 4506-T’s is closed because of the virus situation. These forms go through the IVES system (Income Verification Express Service). That system is currently offline. In my most recent “Update on Practitioner Services” sent by the IRS last Friday:
The IRS is temporarily suspending acceptance of new Income Verification Express Services (IVES) requests at this time and is experiencing delays with existing IVES processing ….
Hopefully, IVES will come back on line quickly or those speedy SBA loans won’t be speedy at all.
Tags: 2020.Tax.Season