When Congress enacted the CARES Act (the Act) that created the Paycheck Protection Program (PPP), it provided a means for small businesses to maintain their work forces and keep people employed. The intention was monies received would potentially be forgiven and not result in taxable income. The Internal Revenue Service however ruled that expenses for the items funded by forgiven loans are not deductible
Several of the amendments to the interim final rule are retroactive to enactment of the CARES Act on March 27, 2020. Small businesses that have yet to apply for and receive a PPP loan need to be informed of the terms of PPP loans as soon as possible because the last day for a lender to obtain an SBA loan number for a PPP loan is June 30, 2020.
Across the U.S., states, including Minnesota, have reported increased levels of fraudulent unemployment filings related to COVID-19. If you are a victim, reporting the crime can avoid future tax implications.
New provisions in the Paycheck Protection Program Flexibility Act extend the coverage period and time to repay unforgiven portions of the loan, among other modifications.
U.S. Treasury and the SBA issued additional clarity around good faith certification of PPP loan necessity and also finalized rules on increasing PPP loan amounts to partnerships and seasonal employers.
If you have operating expenses covered under a PPP loan in 2020, take care in considering your deductions for 2020 tax planning. The IRS has issued guidance to avoid deducting any expenses paid for with potentially tax-exempt (forgivable) income.
Based on concerns that some banks prioritized large Paycheck Protection Program loans over small loans and that some businesses should not have received funds, the Treasury Department has issued early warnings about returning funds and forgiveness scrutiny.
Under the CARES Act, individuals who are adversely affected by COVID-19 can now take a penalty-free “hardship distribution” from their IRA, regardless of age.
Here are five ways to position your business for better days ahead.
The Interim Stimulus Plan was just passed. What will the $484 billion in funds go towards? We've outlined what we know about the Paycheck Protection Program and other relief programs below.
The FASB recently issued guidance on accounting for lease concessions related to the COVID-19 pandemic. See their answers to frequently asked questions for lessors and lessees.
Some homeowners, homesteads and small businesses (non-escrowed) will receive an extension to July 15, 2020, in Hennepin and Ramsey counties to pay their property taxes without penalty.
The CARES Act includes retirement plan provisions that allow plan administrators to provide penalty-free distributions, increased loan amounts to provide greater relief for those affected by COVID-19, as well as provisions employers can take if they have been impacted during this crisis. Some of these provisions are outlined below.
The IRS recently issued Notice 2020-23. What impact does this have on your employee benefit plans? We've outlined a few important highlights of Notice 2020-23 below.
With multiple relief options available for businesses, navigating them can be confusing. We’ve provided a summary PPP, EIDL and MSLP and some considerations you should keep in mind when applying for these relief measures.
Due to the economic impact of COVID-19, many business owners are facing challenging decisions, especially regarding their employees. Making the decision to layoff vs. furlough is not easy. We've outlined the key distinctions below to help you understand what is best for you and your employees.
The IRS no longer requires eligible senior citizens to file a tax return to receive federal stimulus payments. Here are answers to some common questions.
The recently enacted CARES Act loosens rules surrounding retirement plans, IRAs, and high-deductible health plans. Here’s what you should know.
The Paycheck Protection Program has just been launched. What is this program? What does it mean for you, as a business owner? We've summarized what you need to know here.
If you are a business owner, you are well aware that the COVID-19 pandemic has forced you to make difficult decisions. To make sure you have all the information you need to make rational business moves, it's suggested you look to your financial statements. We've outlined what you need to know here.
The Paycheck Protection Program loans of the CARES Act provide cash flow assistance to businesses impacted by the coronavirus. The program grants 100% federally guaranteed loans to employers who maintain payroll during this peacetime emergency.
Read an overview of major provisions in the Coronavirus, Aid, Relief, and Economic Security Act (CARES Act), signed into law on March 27, 2020.
About $367 billion in the U.S. Stimulus package is set aside for small businesses. Here is a brief comparison of CARE Act loans compared to SBA Economic Injury Disaster Loan assistance.
This week, the Senate and House passed the CARES Act which will provide billions of dollars of relief to individuals, businesses, state and local governments, and the health care system – including rebate checks.
CARES Act will provide billions of dollars of relief to individuals, businesses, state and local governments, and the health care system. While this is still pending approval in the House, it is expected to pass and the President has indicated he will sign the legislation.
The IRS answers 24 common tax filing and payment questions.
Minnesota taxpayers have until July 15, 2020 to file and pay their individual income tax returns for tax year 2019. During this grace period, no penalties or interest will be incurred.
The IRS and the U.S. Treasury Department have removed the limits previously placed on deferred tax payments. Taxpayers and corporations can postpone payment until July 15, 2020 regardless of the amount.
Minnesota small businesses and private non-profits affected by the coronavirus pandemic can apply for low interest loans through the U.S. Small Business Administration (SBA) to assist with payroll and expenses.
U.S. Treasury Department Secretary Steven Mnuchin announced that the 2019 income tax filing deadline will be moved to July 15, 2020 from April 15, 2020, because of the coronavirus (COVID-19) outbreak. At President Trump’s direction, Mnuchin announced on Twitter, “we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will … Continued
Employers with 500 or fewer employees are impacted beginning in April 2020 through December 31, 2020.
Eligible businesses in Minnesota may extend their sales tax payments due on March 20, 2020 by 30 days without incurring penalties or interest.
The IRS has created a new website focused on steps to help taxpayers, businesses and others affected by COVID-19.
Tax payment deadline deferment allows individuals and corporations to delay tax payments for up to 90 days without incurring interest or penalties.