10 Financial Statement Areas to Watch for COVID-Related Effects

The COVID-19 pandemic is still adversely affecting many businesses and not-for-profit organizations, but the effects vary, depending on the nature of operations and geographic location. Has your organization factored the impact of the pandemic into its financial statements? You might not have considered this question since last year if your organization prepares statements that comply […]

New Law Doubles Business Meal Deductions and Makes Favorable PPP Loan Changes

The COVID-19 relief bill, signed into law on December 27, 2020, provides a further response from the federal government to the pandemic. It also contains numerous tax breaks for businesses. Here are some highlights of the Consolidated Appropriations Act of 2021 (CAA), which also includes other laws within it. Business meal deduction increased The new […]

Business Tax Provisions Included in the CAA 2021 Legislation

The Consolidated Appropriations Act of 2021 (the CAA 2021) signed into law on December 27, 2020, is a further legislative response to the coronavirus (COVID-19) pandemic. The CAA 2021 include-along with spending and other non-tax provisions, and tax provisions primarily affecting individuals-the numerous business tax provisions briefly summarized below. The provisions are found in two […]

Individuals and the 2020 COVID Relief Bill

Here is an overview of key provisions in the COVID relief legislation (the Consolidated Appropriations Act of 2021, or “the Act,” signed into law on Dec. 27, 2020) that affect individuals. Recovery Rebate/Economic Impact Payment Direct-to-taxpayer recovery rebate The Act provides for a refundable recovery rebate credit for 2020 that will be paid in advance […]

2020 Charitable Giving and the CARES Act

Year-end charitable giving has the potential to be a life-saving donation to nonprofit organizations as individuals, businesses and nonprofit organizations are wrapping up the most challenging year in our recent history (which seems like an understatement). For those individuals who are charitably-inclined, who want to give back, who wish to do their part to ensure […]

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 […]

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 […]

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 […]

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 […]

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 […]