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…]
Tag: CARES Act
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…]
Small Business Administration Releases FAQs on Paycheck Protection Program Loans
The US Treasury and the Small Business Administration (SBA) released FAQs addressing certain questions regarding the Paycheck Protection Program (PPP). The 29-point FAQs can be found here: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf Notable highlights of the FAQs include: Payroll costs are calculated on a gross basis without regard to federal taxes imposed or withheld, such as the employee’s and… [keep reading…]
CARES Act – Paycheck Protection Program Interim Final Rule Issued
Last night the US Treasury released interim final guidance on the recently enacted CARES Act Paycheck Protection Program (PPP) loan provisions. TBC wanted to share our latest takeaways from this final guidance. The loan application is on a first come first serve basis, we recommend applying with your bank as soon as possible. Banks will… [keep reading…]
CARES Act – Unemployment Insurance Coverage
The CARES Act generally provides assistance to individuals who are unemployed, partially unemployed, or unable to work due to COVID-19. The CARES ACT provides for the following unemployment benefit programs: Pandemic Unemployment Assistance (PUA) – this program will extend benefits to those individuals who are not otherwise eligible for unemployment benefits (i.e. independent contractors, self-… [keep reading…]
CARES Act – Business Provisions
The Congress recently passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in response to the COVID-19 pandemic. The CARES Act is designed to stimulate the economy with over $2 trillion in relief and provide support for taxpayers. Below are certain CARES Act highlights, tax law changes, and Frequently Asked Questions with respect to… [keep reading…]