New Developments – 7/6/20
The Paycheck Protection Program has reopened after President Trump signed legislation extending the program. The new deadline to apply for a loan is August 8, 2020. There is approximately $129 billion in funding remaining.
Proposed Delays to Accounting and Auditing Standards in Response to COVID-19
By Deepa Bhat, CPA, Audit Principal
In response to the widespread disruption caused by COVID-19, the Financial Accounting Standards Board (FASB) announced in their Board meeting on April 8, 2020, a proposal for delays in the following accounting standards for certain entities: (more…)
Business Valuation and COVID-19: What Are Business Owners Thinking?
By Jeff Faust, CVA, Director of Valuation Services
ASL Business Valuation Services
There is quite a bit of uncertainty with businesses given the global coronavirus pandemic. This uncertainly also means that a company’s value has been impacted since uncertainly creates risk and increased risk lowers value. What is this doing to a business owner? What are they thinking and how are they navigating through all of this? (more…)
The Coronavirus Pandemic and Fraud
By Nick Sabbatini, CPA, Audit Manager
Please be aware of potential fraud schemes related to economic stimulus programs offered by the U.S. Small Business Administration (SBA): https://www.sba.gov/document/report–sba-programs-scams-fraud-alerts
Links in emails and texts. Those few words, in the context of fraud, likely lead you to think of a range of potential threats to your business. If you’ve addressed the risk appropriately, you’ve trained your employees that such communications may even appear to come from management, others within your organization, or from known vendors and customers. However, these types of attacks are likely to increase in times of crisis, when curiosity, empathy, philanthropy, and fear push people to seek new information, help others in need, and find ways to protect themselves. (more…)
CARES Act - Individual Provisions
The CARES Act contains several provisions to get cash directly into the hands of taxpayers who are either currently employed or not working. These sources of cash include:
CARES Act - Business Provisions
While businesses are carefully watching their cash flow, The CARES Act contains several provisions to provide cash for immediate operating needs:
SBA Relief Program Comparison Chart
For additional information and daily updates, see:
- The Paycheck Protection Program Flexibility Act Eases PPP Forgiveness Rules
- SBA Releases Paycheck Protection Program Loan Forgiveness Application and Limited Guidance
- SBA Releases Additional Guidance Regarding Certification of “Need” for PPP Loan
- SBA Announces Retro-Active Change to Paycheck Protection Loan Program
- Paycheck Protection Program Loans for Taxpayers with Self-Employment Income
- Paycheck Protection Program and Forgivable Loans Summary
- COVID-19 and Tax Changes
Families First Coronavirus Response Act (FFCRA)
On April 3, 2020, the IRS has released Form 7200 to claim advance payment of tax credits discussed below.
The Families First Coronavirus Response Act (FFCRA), enacted on March 18, 2020, requires private employers with fewer than 500 employees to provide employees with paid sick leave or extended family and medical leave for specific reasons related to COVID-19.
Effective Date: April 1, 2020, and applies to leave taken between April 1, 2020 – December 31, 2020 (more…)