Professional Accounting Blog

    Accounting For Your Prosperity

    PPP Loan Forgiveness - Updated Guidance for Rehires

    Posted by Carlin Culbertson on May 4, 2020 4:24:06 PM

    Topics: Tax Planning & Strategies, Small Business, Accounting & Auditing, Accounting and Tax Resource, COVID-19, Featured

    Treasury and the SBA updated their FAQ on May 3, 2020 with Q&A item 40.  This indicates that if you make an attempt to rehire an employee and they refuse to come back to work, you will not be penalized in your forgiveness calculation for them.  You do need to follow certain documentation guidelines as described below.  This thankfully offers some clarity on this situation as it has been a common occurrence with some employees for a variety of reason. 

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    SBA and Treasury Will Review/Audit PPP Loans

    Posted by Carlin Culbertson on May 1, 2020 3:45:08 PM

    Topics: Tax Planning & Strategies, Small Business, Accounting & Auditing, Accounting and Tax Resource, COVID-19

    The Treasury Secretary stated in an interview on Tuesday, April 28th, that Treasury would audit Paycheck Protection Program Loans over $2 million.  Then on Wednesday, April 29th, Treasury and the SBA updated their FAQ with Q&A number 39 stating that the SBA would review loans over $2 million (and any others they deem necessary, so being under $2 million isn’t a guarantee they won’t look at it) when the applications for forgiveness are submitted. 

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    IRS Rules on Tax Treatment of Expenses Resulting in PPP Loan Forgiveness

    Posted by Keith Hughes on May 1, 2020 1:19:29 PM

    Topics: Tax Planning & Strategies, Small Business, Accounting & Auditing, Accounting and Tax Resource, COVID-19

    The IRS has issued guidance regarding the tax treatment of expenses paid with funds received via the Paycheck Protection Program (PPP).  IRS Notice 2020-32 was issued on April 30, 2020 and specifically states that no tax deduction will be allowed for expenses that result in the forgiveness of a PPP loan. 

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    Congress Expands Small Business COVID-19 Relief

    Posted by Jonathan Ciccotelli on Apr 24, 2020 5:09:52 PM

    Topics: Tax Planning & Strategies, Small Business, Accounting & Auditing, Accounting and Tax Resource, COVID-19

    Congress and the Trump administration have struck a deal on another piece of legislation, the latest in a series of federal measures intended to provide relief in response to the novel coronavirus (COVID-19) pandemic. The $484 billion legislation, which is being referred to as the Interim Stimulus Plan, amends the Coronavirus Aid, Relief and Economic Security (CARES) Act enacted in late March. Among other things, it provides additional funding to two loan programs designed to help small businesses slammed by the economic shutdown.

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    Maximizing PPP Loan Forgiveness – So Many Questions

    Posted by Meaden & Moore on Apr 21, 2020 12:19:16 PM

    Topics: Tax Planning & Strategies, Small Business, Accounting & Auditing, Accounting and Tax Resource, COVID-19

    If you’re reading this, hopefully you were able to obtain a Paycheck Protection Program (“PPP”) loan and have either received the funds or will be receiving the funds soon.  If you couldn’t get funded, then there is hope that the program will be replenished soon so keep close to your banker and have your application ready to go.  Now that companies are getting funded the question on everyone’s mind is how to make sure most of this loan, if not all, gets forgiven under the forgiveness provisions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act and in the various guidance the Small Business Administration (“SBA”) has issued.  And that’s a great question that unfortunately currently has a lot of unknowns until final guidance is issued.

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    SBA Issues Updated Guidance for Self-Employed Individuals and Partnerships Applying for PPP Loans

    Posted by Keith Hughes on Apr 15, 2020 7:20:02 PM

    Topics: Tax Planning & Strategies, Small Business, Accounting & Auditing, Accounting and Tax Resource, COVID-19

    On April 14, 2020, the SBA issued an updated “interim final rule” and updated its FAQs relative to the Paycheck Protection Program.  The updated interim final rule provides detailed guidance primarily for self-employed individuals who file Schedule C with their 1040. The guidance provides the detailed steps necessary to calculate the maximum loan amount for those with self-employment income from Schedule C on Form 1040.

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    The IRS Announces New COVID-19-Related Assistance for Taxpayers

    Posted by Jonathan Ciccotelli on Apr 13, 2020 1:52:48 PM

    Topics: Tax Planning & Strategies, Small Business, Accounting & Auditing, Accounting and Tax Resource, COVID-19

    The IRS and the U.S. Department of Treasury have announced new relief for federal taxpayers affected by the coronavirus (COVID-19) pandemic. The IRS had already extended certain deadlines to file and pay federal income taxes and estimated tax payments due April 15, 2020, without incurring late filing penalties, late payment penalties or interest. The additional relief, outlined in Notice 2020-23, applies to a wider variety of tax filers. The IRS also has announced new tools for taxpayers expecting Economic Impact Payments (also known as “recovery rebates”).

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    Notice 2020-23 Clarifies Notice 2020-18 and Expands Applicability of Extensions of Tax Deadlines

    Posted by Allen Littman on Apr 10, 2020 4:11:37 PM

    Topics: Tax Planning & Strategies, Accounting & Auditing, Accounting and Tax Resource, COVID-19

    On April 9, 2020, the IRS issued Notice 2020-23 (the “Notice”), that clarifies and expands the relief that had previously been provided in Notices 2020-18 and 2020-20.  This blog summarizes and explains these extensions.  Please refer to my earlier blog dated April 1, 2020, for a discussion of Notice 2020-18 and 2020-20.  Many of the issues I discussed in that earlier blog have now been clarified by the Notice.

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    IRS Issues Various Guidance Pertaining to NOL Tax Provisions of the CARES Act

    Posted by Keith Hughes on Apr 9, 2020 10:00:00 PM

    Topics: Tax Planning & Strategies, Small Business, Accounting & Auditing, Accounting and Tax Resource, COVID-19

    On April 9, 2020, the IRS issued two key pieces of guidance pertaining to the net operating loss (NOL) provisions of the CARES Act.

    Revenue Procedure 2020-24

    This revenue procedure provides procedures to follow regarding net operating losses that are carried back under the CARES Act, specifically procedures for:

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    IRS Extends More Tax Deadlines to Cover Individuals, Trusts, Estates, Corporations and Others

    Posted by Keith Hughes on Apr 9, 2020 9:28:23 PM

    Topics: Tax Planning & Strategies, Small Business, Accounting & Auditing, Accounting and Tax Resource, COVID-19

    To help taxpayers, the Department of Treasury and the Internal Revenue Service announced today that Notice 2020-23 extends additional key tax deadlines for individuals and businesses. Last month, the IRS announced that taxpayers generally have until July 15, 2020, to file and pay federal income taxes originally due on April 15. No late-filing penalty, late-payment penalty or interest will be due.

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