The CARES Act allows for the deferral of the employer’s social security tax deposits from 3/27/20 through the end of 2020. The deferred amounts must be deposited over the next two years, half of the deferred amount by 12/31/21, and the other half by 12/31/22. Originally, the CARES Act prohibited PPP recipients from exercising this [...]
Do you pick up riders in your car, rent out a spare room in your summer home or perform various other services for customers? If so, you are likely participating in the “gig economy” that is rapidly growing in popularity around the country. For many people, this is a good way to earn extra money [...]
Thanks to recently released guidance after the PPP Flexibility Act was passed, PPP loans are now eligible to be forgiven based on the amount of eligible costs paid or incurred during the 24-week period following PPP loan disbursement (the Covered Period). Alternatively, borrowers who received PPP funding prior to June 5, 2020 may elect to [...]
This past Friday, June 5th, the Paycheck Protection Program Flexibility Act (PPPFA) was signed into law. This Act modifies the Paycheck Protection Program in several ways and is summarized below: Borrowers now have a 24-week covered period to use the PPP funds. However, borrowers may elect to keep the original 8-week covered period. Borrowers [...]
For taxpayers choosing to not carryback an Net Operating Loss or "NOL" arising in 2018, 2019 or 2020, the IRS issued guidance in Rev Proc 2020-24 that says that you must make an election to not carry the loss back on the 2020 return. You may recall under the old rules you were deemed to [...]
Last Friday, May 15th, the SBA and Treasury released the PPP Loan Forgiveness Application. This application provides new elections and exemptions available to borrowers, as well as clarifies certain questions regarding PPP loan forgiveness. These elections/exemptions/clarifications include: Payroll Costs – Provides borrowers with a weekly or biweekly payroll schedule the option to elect to use [...]
Earlier today, May 13, the SBA and Treasury updated the Paycheck Protection Program (PPP) Frequently Asked Questions (again!) to add question #46. This update provides a safe harbor with respect to the borrower’s good faith certification concerning the necessity of the PPP loan. The answer states “Any borrower that, together with its affiliates, received PPP loans [...]
In our Monday blog post, we mentioned the Treasury guidance on the Paycheck Protection Program (PPP) loans regarding borrower eligibility and that any borrower that applied for a PPP loan prior to the issuance of such guidance may repay the loan in full by May 7, 2020 and be deemed by the SBA to have [...]
In the latest PPP FAQs as of May 3, 2020, questions 31, 37, and 39 emphasize that all borrowers must certify in good faith that their PPP loan is necessary to support ongoing operations, and that any borrower that applied for a PPP loan prior to the issuance of such guidance (originally published April [...]
The recent IRS Notice 2020-32 clarifies that no tax deduction is allowed for payments for eligible PPP loan expenses to the extent these expenses result in PPP loan forgiveness because the PPP loan forgiveness will not be taxable income. This means that the PPP loan forgiveness will result in a net-zero tax effect for the [...]