TBC Information Network

Teal, Becker & Chiaramonte offering valuable insights, impressions and commentary on today’s financial and business world.

PPP – Loan Updates

The US Treasury and Small Business Administration (SBA) have posted various updates to the PPP loan program over this week.  These updates integrate the new Paycheck Protection Program Flexibility Act of 2020 (PPPFA) with previously issued guidance.  You can find more information about this act HERE.  Highlights of the new provisions are noted below.  As… [keep reading…]

Payroll Protection Program Flexibility Act of 2020

On Wednesday, June 3, 2020, the Senate passed the Paycheck Protection Program Flexibility Act of 2020.  This Bill was previously passed by the House and it is on the President’s desk for signature.  This Act makes some significant, taxpayer friendly, changes to the CARES Act and the Payroll Protection Program (PPP).  We expect the President… [keep reading…]

PPP – Forgiveness Application and FAQs

PPP Forgiveness Application On Friday, May 15th, 2020 the Small Business Administration (SBA) published the Paycheck Protection Program (PPP) Loan Forgiveness Application for borrowers to calculate and report the amount of loan forgiveness requested from their lender. The SBA press release accompanying the application stated that additional regulations and instructions would be released at a… [keep reading…]

PPP – Updated Guidance on Borrowers’ Required Good-Faith Certification

On May 13, 2020, the US Treasury released additional guidance which highlights FAQ #46 related to a borrower’s required good-faith certification on the Payroll Protection Program application.  Any borrower with loan proceeds under $2M will be deemed to have met the economic uncertainty requirement. The borrowers who received PPP loans in excess of $2M, and… [keep reading…]

PPP – What Happens if an Employee Declines an Offer to Come Back to Work?

On May 3, 2020, the US Treasury released further guidance surrounding the implications of rehiring previously laid off employees for purposes of maximizing loan forgiveness under the Paycheck Protection Program. The Treasury’s updated FAQ document can be interpreted to address the following questions: Q: What if I offer to rehire an employee but they don’t… [keep reading…]

PPP – Tax Treatment of Wages and Other Qualified Expenses Paid

On April 30th 2020, the IRS released Notice 2020-32 to address the tax treatment of wages and other qualified expenses paid for using PPP loan proceeds.  According to the Notice, expenses for which PPP proceeds have been used will NOT be tax deductible to the extent those proceeds have been forgiven.  Under the CARES Act,… [keep reading…]

CARES Act – Recovery Rebate

Under the recently enacted CARES Act, eligible taxpayers will receive a rebate check of up to $1,200 ($2,400 for joint taxpayers) with an additional $500 for each eligible child under the age of 17. To qualify you must have a work eligible social security number and not be a dependent of another taxpayer. The full… [keep reading…]

SBA Releases Guidance on Self-Employed Individuals and the Paycheck Protection Program

On April 14th, the US Treasury released interim final rules regarding the eligibility and requirements for self-employed individuals to participate in the Paycheck Protection Program (PPP). Here are certain key highlights and considerations: To be eligible for the PPP you must satisfy four requirements: You were in operation on February 15, 2020, You must be… [keep reading…]

IRS expands returns eligible for extension to July 15, 2020

On April 9, 2020, the IRS issued Notice 2020-23 expanding the list of returns that are eligible for automatic extension to July 15, 2020.  In general, this notice provides that all forms with original due dates on or after April 1 and before July 15, 2020 are now due on July 15, 2020. Additionally, the… [keep reading…]

Qualified Disaster Relief Payments – Taxability of employer provided benefits in a Federally Declared Disaster

IRC Section 139 provides that a “qualified disaster relief payment” is not included in taxable gross income for the recipient. This section covers various types of qualified disaster relief payments, but this write-up focuses solely on those payments made by employers to employees.  Under this code section,  payments paid by an employer to an employee… [keep reading…]

Teal, Becker & Chiaramonte Certified Public Accountants