As the Covid-19 situation continues to change on a daily basis we are taking precautions at this time to keep our employees, families and clients healthy. Below is information covering tax updates and questions from our clients. We will closely monitor any new developments and as the landscape continues to evolve, we will keep you up-to-date. If you have any questions, pleas

New Act Provides Relief for Struggling Businesses

On December 27, 2020, the President signed the Consolidated Appropriation Act (Act), which includes legislation offering $900 Billion in COVID-19 Relief. Many of the Act’s provisions were designed to help business owners who are struggling with the effect of the pandemic on their businesses.

$900 Billion COVID-19 Relief Bill Passed by Congress

GREAT NEWS! As part of the federal stimulus act that was passed in Congress last night, eligible business expenses paid with forgiven PPP loans are tax-deductible. As we previously discussed, the Treasury guidance had indicated the opposite. This latest legislation reverses that and allows deductions for these business expenses.

Framework Summary of the Bipartisan COVID Relief Act of 2020

On December 9, 2020, legislators released a Framework Summary of the Bipartisan COVID Relief Act of 2020. The framework calls for an additional $300 billion to be released to the Small Business Administration, providing additional funding that would allow the hardest hit small businesses to receive a second forgivable Paycheck Protection Program (PPP) loan.

Latest IRS Guidance on Non-Deductibility of PPP-Related Expenses

On November 18, 2020, the Internal Revenue Service doubled down on its position that businesses receiving PPP loan forgiveness cannot deduct the PPP-related expenses. Revenue Ruling 2020-27 addresses the timing of the non-deductibility of PPP related expenses.

Deferral of Payroll Tax Withholding from The President’s Memorandum

By Harry A. Steindler, CPA - Partner September 4, 2020 On August 8th, the President issued a memorandum allowing, but not requiring, companies to defer the withholding and payment of the 6.2% employee share of social security taxes. The deferral payroll period runs...

Additional Guidance on PPP Loan Forgiveness

By Gina Brymer, CPA - Senior Manager and Laurie Kaplan, CPA - Partner  September 1, 2020 On August 24, 2020, the Small Business Administration (SBA) issued an interim final rule that provides additional guidance on treatment of owners and forgiveness of certain...

Frequently Asked Questions on PPP Loan Forgiveness

By Gina Brymer, CPA - Senior Manager and Laurie Kaplan, CPA - Partner August 12, 2020 On August 4, 2020, the Small Business Administration (SBA) in consultation with the Treasury Department released a ten-page Frequently Asked Questions (FAQ) document on guidance to...

The IRS Provides RMD Rollover Relief

June 26, 2020 On June 23, 2020, the Internal Revenue Service released Notice 2020-51 that provides relief to taxpayers who had already taken their required minimum distributions (RMD) prior to the CARES Act that suspended the requirement for 2020. The CARES Act waived...

Payroll Protection Program: Best Practices for Loan Forgiveness

By Janell Wilson, CPA - Partner April 21, 2020 A couple of weeks ago, many of our small business clients were anxiously waiting for banks to begin accepting Payroll Protection Program (PPP) loan applications. Fast forward two weeks, and many of you have the loan...