PPP Loan Forgiveness Update – IRS Doubles Down on Unfavorable Taxpayer Treatment
Last May, we shared with you the release of IRS Notice 2020-32 which provided initial guidance that expenses paid from PPP proceeds allocable to a forgiven portion of the loan will not be deductible and its position being inconsistent with bipartisan publicly stated positions. Chairman Grassley (R) of the Senate Finance Committee and his counterpart […]
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Now is The Time to Prepare (for Critical Audit Matters)!
The year 2020 has been anything but typical and filled with change. So smaller public companies should be ready to embrace the first substantive changes to the standard auditors’ report in more than 70 years. For years ending after December 15, 2020, for the first time ever, the audit report of smaller public companies will […]
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Employers Have Questions And Concerns About Deferring Employees’ Social Security Taxes
The IRS has provided guidance to employers regarding the recent presidential action to allow employers to defer the withholding, deposit and payment of certain payroll tax obligations. The three-page guidance in Notice 2020-65 was issued to implement President Trump’s executive memorandum signed on August 8. Private employers still have questions and concerns about whether, and […]
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Rollover Relief Following CARES Act
The CARES Act, passed by Congress and signed into law by President Trump on March 27, 2020, waived required minimum distribution requirements for 2020, and further guidance released by the IRS has now provided additional taxpayer-friendly relief. Before the passage of the CARES Act, existing tax law under IRC §401(a)(9) required that retirement plan participants […]
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Simplified Accounting for Lease Concessions Due to COVID-19 Pandemic
Accounting departments across the country are facing multiple challenges, from daily cash management to complex accounting matters. In addition, most entities are navigating the available governmental relief programs related to the COVID-19 pandemic and are negotiating rent deferrals and concessions with their lessors. Accounting for rent deferrals and concessions raised a number of questions by […]
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PPP Forgiveness Gets Some Wiggle Room
The U.S. Senate passed the House version of Paycheck Protection Program (PPP) legislation Wednesday, June 4, 2020, tripling the time allotted for small businesses and allowing for more flexibility. The Senate approval was signed by President Trump, on Friday, June 5, 2020. Borrowers can choose to extend the eight-week period to 24 weeks, but […]
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To Pivot Successfully: Start with Why!
Business is hard! Even in a booming economy, companies that don’t constantly pivot and adapt to changes in their industry, the economy, and the needs of their consumer can often go out of business as a result. Throw in a global pandemic, stay-at-home orders, and more than 40 million jobless claims since the start […]
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Congrats, You Got Your PPP Money… Now What?
How should I be using this money? The proceeds from your Paycheck Protection Program (PPP) loan should be used only to cover the following items Salary / wages / commissions (capped at $100,000 on an annualized basis for each employee), including benefits Interest on mortgage obligations that is incurred before February 15, 2020 Rent under […]
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PPP Loan Amounts under $2 million Meet Good Faith Requirements
The Treasury Department continues to update a list of frequently asked questions regarding the CARES Act including the Payroll Protection Program (PPP). Recently we informed you of an update that instructed borrowers of the PPP loan to certify in good faith that their PPP loan request was needed under a new standard. What followed was […]
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Treasury Provides New Standard for PPP Loan “Good Faith” Certification
The Treasury Department continues to update a list of frequently asked questions regarding the CARES Act including the Payroll Protection Program (PPP). A recent update instructs borrowers of the PPP loan to certify in good faith that their PPP loan request was needed under a new standard: 31 & (37) Question: Do businesses owned by […]
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