During the COVID-19 pandemic many organizations received some form of federal relief funding. The CARES Act and the American Rescue Plan provided a wide range of programs to assist governments and organizations with much needed funding. In some instances, the increase in funding has created additional audit requirements. State and local governments and nonprofits who… [keep reading…]
Tag: PPP
Employee Retention Tax Credit
The employee retention tax credit is now available for employers who previously received, or will receive, a Paycheck Protection Program loan. This change in the law provides significant benefits to employers who have been negatively impacted in 2020 and 2021 due to the economic downturn related to Covid-19. We have detailed the specifics below. Feel… [keep reading…]
NYS PPP Deductibility
On January 13, 2021, New York State issued an update on tax conformity related to tax stimulus provisions passed by Congress throughout 2020. One significant change is related to the taxability of the Paycheck Protection Program (PPP) loan forgiveness income and the related deductibility of expenses paid with PPP funds. New York State has posted… [keep reading…]
Economic Aid Act – Expanded PPP Guidance
On January 6, 2021 the Small Business Administration (“SBA”) issued two interim final rules (“IFR”) related to the Paycheck Protection Program (“PPP”) and the changes to the program made under the Economic Aid Act (“the Act”). The Act makes an additional round of PPP funding available through March 31, 2021. Businesses and self-employed individuals who had not previously taken a PPP loan may… [keep reading…]
IRS Releases Updated PPP Guidance – No Deduction for Expenses in 2020 if Forgiveness is Expected
On November 18, 2020, the IRS issued Revenue Ruling 2020-27 and Revenue Procedure 2020-51. The revenue ruling denies a deduction for PPP qualified forgiveness expenses if the taxpayer reasonably expects to receive forgiveness of the PPP loan regardless of whether the taxpayer has submitted a forgiveness application by the end of 2020. This pertains to… [keep reading…]
PPP – Loan Forgiveness/Updates
In recent weeks, the SBA has issued various interim final rules and Frequently Asked Questions (FAQ) regarding the PPP loan program. Additionally, there have been discussions between the Treasury Department and various Congressional representatives regarding possible changes to the program. We are currently watching any developments closely. We are providing updates below regarding the PPP… [keep reading…]
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…]