Often-Overlooked IRS Section 139 Provides Relief Can we deduct COVID-19-related expenses used to help our employees? This is an excellent question from some of our clients, and the answer is yes. It’s a small silver lining in this pandemic situation because not only is the expense deductible for the employer, Read more…
When we last wrote, Congress had just passed the final stimulus bill of 2020. After a short delay, the President signed it on December 27th. So, what should you do now? Take a deep breath. Be calm. Yes, 2020 was a year like no other. And 2021 looks to be Read more…
As we draft this alert, Congress is still in Washington. And as you will read, that is a very good thing. Congress is spreading holiday cheer and we admit it’s affecting our mood too. On Monday night, Congress passed and sent to the President the 5,593 page Consolidated Appropriations Act Read more…
As we begin the holiday season, we hope that you and yours are staying healthy and safe. Sorry, No Surprises Today We still do not have the next stimulus bill. And Washington is moving very slowly. In fact, Congress is taking a week by week approach to funding the government. Read more…
After nearly eight months, significant uncertainty about the Paycheck Protection Program Loans remains. The Bad News On November 18, Treasury and the Internal Revenue Service released Revenue Ruling 2020-27 and Revenue Procedure 2020-51. Both of these confirm their earlier position expressed in Notice 2020-32 that expenses paid with funds from Read more…
On Monday, Treasury and the SBA issued another Interim Final Rule. The Good News Owner-employees are treated less favorably than other employees when calculating potential loan forgiveness. For instance, in a 24-week covered period, a maximum of $20,833 in cash compensation may be included in payroll costs for an owner-employee. Read more…
Earlier this week, Treasury and the SBA issued a 10 page FAQ on loan forgiveness. Congress is also considering another stimulus act. The Good News In general, payroll costs paid or incurred during the covered period may be forgiven. Payroll costs are subject to two limitations: one based on a Read more…
Earlier this week, Treasury and the SBA issued their 20th Interim Final Rule. The Good News Treasury and the SBA have announced that a borrower may submit a loan forgiveness application before the end of the covered period. The Bad News This flexibility may have little practical effect. We believe Read more…
Back in March, the CARES Act suspended all 2020 required minimum distributions (RMDs) from eligible retirement accounts. For taxpayers who turned 70½ during 2019, this includes the initial 2019 RMDs due by 4/1/2020, if the RMD was taken after 12/31/2019. RMDs may be deposited back into a retirement account within Read more…
What You Need to Know Regarding Single Audit Compliance Related to COVID-19 Federal Funds Received OMB issues M 20-26, a memorandum regarding the extension of Administrative Relief for Recipients and Applicants of Federal Financial Assistance Directly Impacted by COVID-19, dated June 18, 2020, which provides some clarification on “Administrative Relief Read more…