Update: President Trump has signed the ECRA into law on Sunday, December 27. Downloadable Summary of Pandemic Relief for: Individuals Businesses After months of political bickering, Congress has reached an agreement on an emergency coronavirus relief bill and the President has said he would sign it. Although not all the details are fully available yet,...Read More
This past Thursday, the Treasury & SBA released a simplified application for PPP loan forgiveness for borrowers of less than $50k. In addition, a new interim final rule (IFR) was issued that provides guidance about forgiveness and loan review processes (for banks and other lenders) for these smaller loans. The good news here is that...Read More
As it stands right now, PPP loan proceeds (and the related forgiven amount) are expressly excluded from income. However, the proceeds are technically taxable because the IRS has published guidance that disallows expenses paid with forgiven PPP proceeds. This seems to be against Congress’s intent for the program, and many members of Congress are upset...Read More
With all the confusion surrounding Paycheck Protection Program (PPP) loans, much time and talk has been spent in the past couple of months in dealing with the forgiveness piece of the puzzle, and we now have some concrete answers. Congress, on Wednesday, passed the Paycheck Protection Program Flexibility Act (PPPFA), which incorporates some much-needed changes...Read More
Now that you have gotten a Paycheck Protection Program (PPP) loan , it’s time to start planning how to spend the loan proceeds so some portion of the loan will be forgiven. As the loan title implies, the purpose of the loans is to enable employers to keep their employees on staff and maintain their...Read More
The IRS has already sent out 80 million stimulus payments to taxpayers that included their direct deposit information on their most recently filed 2019 or 2018 return. So, if you had filed either your 2019 or 2018 return before the direct deposits were issued, you should already have the money in the bank, UNLESS: You...Read More
To help businesses retain employees and keep them employed during the COVID-19 crisis, Congress has provided a refundable employer retention credit available to all qualifying employers regardless of size, including tax-exempt organizations. To qualify for the credit, employers must fall into one of two categories: Business Operations Curtailed: Eligible employers were carrying out a trade...Read More
The IRS is planning to create a new, online portal called “Where’s My Economic Impact Payment” where people can obtain details about their payment from the economic stimulus package and also provide their banking information. Background After the CARES Act passed through Congress, Treasury and the IRS had estimated there would be 171 million rebate...Read More
In addition to the stimulus payments discussed earlier, the CARES Act has some other tax provisions that individuals may be able to take advantage of, if only temporarily. What follows is a brief discussion of each of the individual tax changes contained in the new law: Waiver of 10% early distribution penalty from Qualified Plans...Read More
A major part of the CARES Act, which was signed into law yesterday by President Trump, deals with an inflow of cash to small businesses, both directly (through new lending programs) and indirectly (through tax credits). Here are some of the main points, following the same FAQ format as my last post on stimulus payments...Read More
