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 from September 1, 2020 through December 31, 2020.   Read More...

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 nonpayroll costs. Below are the key points.   Read More...

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 calculate loan forgiveness under the Payroll Protection Program (PPP). This guidance is to supplement the previously released PPP Interim Final Rules. The FAQs are divided into four areas: (1) General Loan Forgiveness; (2) Loan Forgiveness Payroll Costs; (3) Loan Forgiveness Nonpayroll Costs; and (4) Loan Forgiveness ...  Read More...

With little publicity, Illinois revised its unclaimed property laws. Although all profit and not-for-profit business entities that conduct business in Illinois have been required to report unclaimed property on an annual calendar basis, the revisions significantly expanded the list of assets comprising unclaimed property. Entities not holding unclaimed property are required to file a negative (no unclaimed property) report.   Read More...

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 RMDs from defined contribution retirement plans, including a 401(k) plan, 403(b) plan, or an IRA. This relief is also for taxpayers who turned 70½ in 2019 and were required to take their first RMD by April 1, 2020. However, the waiver does not ap...  Read More...

We hope that you and your loved ones are safe as you continue to manage with the current COVID-19 crisis. We know this has impacted both your business and personal lives. This most recent tax season was unlike any we’ve ever experienced, with the spring deadline postponed until July 15th.   Read More...

This past weekend, the SBA released the form and instructions for applying for loan forgiveness for companies that have received (or will receive) a PPP Loan.The instructions are relatively easy to follow and help to resolve issues long pondered by borrowers and their advisors. Many of these resolutions seem to fall in the borrower’s favor, or at least give borrowers some flexibility in accumulating expenditures that qualify towards loan forgiveness.   Read More...

May 6, 2020 - On May 5, 2020, the SBA stated that it will extend the PPP safe harbor repayment date from May 7th to May 14th. Thus, any PPP borrower who repays the loan by May 14th is deemed to have made the required certification in good faith. The SBA also indicated that it will provide guidance on how it will review the certification before the May 14th deadline.April 30, 2020 - On April 23, 2020, the Small Business Administration (SBA) provided new guidance on qualifications for Pa...  Read More...

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 proceeds in your bank accounts available for use. Once PPP loan proceeds have been received, your 8-week covered period begins.   Read More...

On April 14, 2020, the Small Business Administration (SBA) released another Interim Final Rule related to the Payroll Protection Program (PPP). This Rule provides guidance for individuals with self-employment income who file a Form 1040, Schedule C.Taxpayers who file a Form 1040, Schedule C are eligible for a PPP loan as long as the following criteria are met 1) In operation on February 15, 2020; 2) Have self-employment income (as an independent contractor or sole proprietor); 3) Principal place...  Read More...

$2 Trillion Rescue Package to Combat Coronavirus – Coronavirus Aid, Relief, and Economic Security (CARES) ActOn March 27, 2020, President Trump signed into law the CARES Act worth more than $2 Trillion to stimulate the economy from the effects of the Coronavirus. To provide tax relief to individuals and businesses, the Act:  Makes available checks for individuals of up to $1,200 per adult and $500 per child (subject to a phase out based on prior year tax returns). The credit starts to ...  Read More...

The IRS Extends the Tax Filing and Federal Tax Payment Deadline to July 15th, Relief Provided to Illinois BusinessesOn March 20, 2020, the Treasury Department and the Internal Revenue Service extended the federal income tax filing deadline from April 15th to July 15th. This coincides with the federal tax payment deadline that was extended to July 15th earlier in the week.This new guidance does not provide a limit on the amount of income tax that can be deferred until July 15th. Previously, there...  Read More...

President Trump signed into law H.R. 6201 the Families First Coronavirus Response Act (“the Act”) on March 18, 2020. The Act provides emergency paid sick leave, expands the Family and Medical Leave Act, and provides payroll tax credits to certain employers. Emergency Sick Leave - The new law requires employers with less than 500 employees to provide paid leave to employees dealing with the impact of COVID-19 in the following situations:   Read More...

The Internal Revenue Service formally provided more information yesterday on the deferred April 15th tax payments in Notice 2020-17. The 2019 tax return filing deadline of April 15th has NOT been extended.The Notice indicates that all taxpayers are affected by the Coronavirus pandemic and have been granted a 90-day deferral for their April 15th income tax payments that include not only the 2019 tax return balance due, but also the 2020 1st quarter estimated tax payment. This defers tax payments ...  Read More...

The world has not panicked yet, but the Corona Virus is bringing us close. The news media lets us know daily the number of Corona-related deaths and illnesses. The geographic spread changes by the hour.Newscasters report that many large companies around the world will see sales and profits completely eroded.   Read More...

In a press conference yesterday, Treasury Secretary, Steven Mnuchin, announced that the IRS is giving individuals and businesses an additional 90 days to pay taxes on their 2019 tax returns without being subject to interest and penalties. The payment deadline is extended from April 15th to July 15th. Individuals can defer taxes up to $1 million while corporations can defer up to $10 million.   Read More...

The SECURE Act was signed into law by President Trump on December 20, 2019. The bill was created to help Americans save for retirement. The following are key provisions related to retirement planning.Elimination of the Maximum Age for Contributions to Traditional IRAs – Previously, contributions were only allowed for taxpayers who were under age 70½ during the year.   Read More...

The IRS recently released a completely revamped 2020 Form W-4, Employee’s Withholding Certificate. The new format requires businesses to change the way they determine the amount to withhold for Federal income taxes from an employee’s pay. These changes may significantly impact the way businesses handle payroll, including calculating withholding taxes, reporting it correctly on employee paystubs and W-2 Forms, and maintaining a dual payroll system that integrates the new withholding format alongs...  Read More...

As another tax year comes to a close, it is time to consider your tax planning opportunities. The tax law passed at the end of 2017 continues to have a major impact on your business and personal income tax returns. Year-End Planning:Owners who operate their business as a pass-through entity such as partnerships and S Corporations are entitled to a deduction of up to 20% of their qualified business income (QBI). The deduction can be maximized through salary planning and entity aggregation.20...  Read More...

As the end of the year approaches, it is a good time to think of planning moves that could help lower your tax bill for this year and possibly the next. Year-end planning for 2019 takes place against the backdrop of major changes in the rules for individuals and businesses. For individuals, these changes include lower income tax rates, a boosted standard deduction, and severely limited itemized deductions.   Read More...