2020 – 05/13 Thanks to affordable technology, more and more companies have been allowing employees to work remotely in recent years. It’s become feasible to procure laptops, set up security protocols, use cloud servers and rely on employees’ home Wi-Fi connections to create functional virtual workspaces. In turn, many of these businesses have lowered overhead…
2020- 05/18 The Small Business Administration (SBA) just released the Paycheck Protection Program (PPP) Loan Forgiveness Application. Included are instructions that provide welcome guidance on timing and expenses that can be included, calculation worksheets, and documentation requirements for forgiveness. The application also includes: Clarification of the Covered Period dates explaining the first day of the…
2020 – 05/18 The IRS has issued guidance clarifying that certain deductions aren’t allowed if a business has received a Paycheck Protection Program (PPP) loan. Specifically, an expense isn’t deductible if both: The payment of the expense results in forgiveness of a loan made under the PPP, and The income associated with the forgiveness is…
2020 – 05/13 Question 45: Is an employer that repays its PPP loan by the safe harbor deadline (May 14, 2020) eligible for the Employee Retention Credit? Answer: Yes. An employer that applied for a PPP loan, received payment, and repays the loan by the safe harbor deadline (May 14, 2020) will be treated as…
2020 – 05/13 Paycheck Protection Loan applications required the borrower to certify in good faith that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant”. A prior SBA FAQ #31 reminded borrowers to carefully review the required certification and provided for a Safe Harbor period until May 14th to allow borrowers to return…
2020 – 05/11 Can an employer that averaged 100 or less full-time employees in 2019 treat its health plan expenses as qualified wages for purposes of the Employee Retention Credit? The answer is “yes.” According to an updated version of the IRS FAQs about the credit, an eligible employer can count health plan expenses paid…
2020 – 05/08 The IRS is answering questions about the tax treatment of higher education grants under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The law allows universities to use supplemental educational opportunity grant funds to award emergency financial aid grants to students experiencing “unexpected expenses and unmet financial need” due to the…
2020 – 05/07 An offer in compromise (OIC) is an agreement between a taxpayer and the IRS to settle the taxpayer’s tax debt for less than the full amount owed. OICs must generally be accompanied by an application fee which was recently raised from $186 to $205. In a Guidance Memorandum, the IRS has announced…
2020 – 05/07 Taxpayer services at the IRS remain curtailed, due to staff cutbacks related to the novel coronavirus (COVID-19) crisis. But in Revenue Procedure 2020-1, the IRS has stated that taxpayers can seek IRS advice electronically by fax or email. Taxpayers can temporarily request letter rulings, closing agreements, determination letters and information letters from…
2020 – 05/06 The IRS has added FAQs on new retirement plan distribution and loan rule changes. The FAQs answer questions about withdrawals under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. In general, the law provides for expanded distribution options and favorable tax treatment for up to $100,000 of COVID-19-related distributions from eligible…
2020 -05/11 May 13 is the deadline to provide the IRS with information to get an Economic Impact Payment (EIP) via direct deposit. The IRS has stated that taxpayers who qualify for, but haven’t received their EIP, should provide the direct deposit bank information on the IRS’s “Get My Payment” website by noon on May…
2020 – 05/11 In light of the novel coronavirus (COVID-19) pandemic, many businesses are interested in donating to charity. In order to incentivize charitable giving, the Coronavirus Aid, Relief and Economic Security (CARES) Act made some liberalizations to the rules governing charitable deductions. Here are two changes that affect businesses: The limit on charitable deductions…
The BAM ALLIANCE, 5/4/2020 What programs in the government’s enormous coronavirus and economic relief package – the CARES Act, which went into effect at the end of March – apply to you, your financial goals this year, and your longer-term plan? How do you even begin to get a handle on everything in the law,…
2020 – 05/01 The IRS is advising employers to avoid mistakes when filing for advance payment of employer tax credits. Employers who are filing “Form 7200, Advance Payment of Employer Credits Due to COVID-19” should read the instructions carefully and take their time when completing this form, the tax agency urges. We can ensure your…
2020 – 05/01 Employers have many questions about the new Employee Retention tax credit. To answer them, the IRS has issued a series of FAQs about the credit, which is part of the Coronavirus Aid, Relief, and Economic Security Act. The refundable credit can be applied against payroll tax and is available to employers whose…
