New Developments – 10/13/20
FAQs on PPP Loan Forgiveness Updated October 13, 2020: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner, but this does not mean October 31, 2020 is the deadline for borrowers to apply for forgiveness. Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination. However, if a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred and the borrower must begin making payments on the loan. Note—these loan terms apply even if the original note signed by the borrower contain different terms that were applicable when the note was signed.
By Nick Sabbatini, CPA, Audit Manager
By now, we are all aware of the Coronavirus pandemic and the impact it is having on our lives, including the impact on businesses and the overall economy. Companies are working remotely, where possible. Disruptions to vendor and customer bases, market value declines and day-to-day changes in the global economy are also creating broad impacts to companies’ operations.
At this point, the general impacts on operations for most companies are known through media coverage and changes in our daily lives, but most of us may not be fully aware of the impact on financial reporting. We have summarized a few financial statement considerations: (more…)
By Laura Mays, Director of HR & Employee Development
Due to the recent COVID-19 pandemic, working from home has very quickly become the new normal for a lot of us. For some, it’s convenient to skip the commute and jump right into a day’s work, for others, it may be a little uncomfortable and challenging to juggle a work-life balance. Here are a few tips to help keep you productive while working from a home office: (more…)
New Developments – 11/6/20
The Treasury Department has indicated it will “shortly” be issuing guidance related to the deductibility of expenses paid with PPP funds. Guidance is expected to take the position that at year-end, if a borrower has a “reasonable expectation” of forgiveness, expenses would not be deductible. This guidance would apply even if the borrower did not apply for forgiveness until the following tax year.
- Congress may act to overrule the IRS’s position and allow the deduction of expenses.
- Precedent exists to take a position contrary to the expected Treasury guidance.
The IRS is warning taxpayers of a new text scam created by thieves that trick people into disclosing bank account information under the guise of receiving the $1,200 Economic Impact Payment.
New Developments – 11/20/20
The IRS issued new FAQs to address eligibility to claim the Employee Retention Credit when an entity acquires a target Company that has participated in the PPP Loan program. Under provisions of the CARES Act, a PPP borrower cannot claim the Employee Retention Credit but special rules will apply for M&A activity.
The IRS reviewed its collection activities to see how it could provide relief for taxpayers who owe taxes but are struggling financially because of the pandemic. The agency is expanding taxpayer options for making payments and other ways to resolve tax debt.