Took a COVID EIDL loan and have not thought about it in years? Check your status today. In late March the SBA moved hundreds of thousands of non-performing EIDL and PPP loans to the Treasury Department for enhanced collection, the hardship payment plans ended, and an EIDL loan default now gets collected like any other federal debt. The Treasury Offset Program can take your tax refund, administrative wage garnishment can take up to 15 percent of your paycheck, and a collection fee of roughly 30 percent gets added to the balance. No lawsuit, no day in court. In this episode of The Tax Strategy Playbook, David Wiener, Mr. Cash Flow, sits down with Phillip Zagotti, JD and CPA, founder of North Star Law Firm in Houston, to walk through what happens after an SBA loan default: who actually signed a personal guarantee, what the $25,000, $200,000 and $500,000 thresholds mean, why closing your business does not make the debt disappear, the 1099-C cancellation of debt surprise that follows EIDL loan forgiveness, the SBA offer in compromise window, and why Subchapter V bankruptcy may still be on the table even when the business is gone.

This one is for the business owner who took an EIDL loan during COVID and assumed it was forgotten, the real estate investor whose operating company or rental business carried one, and the CPAs, EAs, and tax professionals who are about to get the call when a client's refund does not show up.

Phillip Zagotti, JD and CPA, founder of North Star Law Firm, Houston. Admitted to the U.S. Tax Court, federal courts in Texas, and the California State Bar. His contact information is in the show notes at https://www.taxstrategyplaybook.com

Nothing in this episode is tax or legal advice for your situation. Your facts are your facts and they need a professional who knows them.

Your host: David Wiener, "Mr. Cash Flow"

https://davidhwiener.com

David.wiener@cashflowstrategies.us

770-224-8504x2

Schedule a conversation or free consultation at

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