Be Prepared for COVID Unemployment Income Tax Liability

As unemployment hits record highs due to the widespread shutdowns prompted by the COVID-19 pandemic, more than 36 million Americans have filed unemployment compensation claims. What many people do not realize is that unemployment benefits – both those available through the state and the additional $600 per week available through July 31 from the federal…

Read More

Impending Conflicts Created by the Paycheck Protection Program

Clowns Congress to the Left, Jokers the SBA to the Right, Here Business Owners and Banks Are, Stuck in the Middle of Impending Conflicts Created by the Paycheck Protection Program In March 2020, Congressional leaders “got the feeling that something ain’t right.”  Mass hysteria was building and government-imposed quarantines were all but guaranteed.  Health officials expected millions to…

Read More

Paycheck Protection Program: Understanding Key Terms and Zealous Advocacy Likely to Lead to Additional Loan Forgiveness for Many Businesses

As participants in the Paycheck Protection Program (“PPP”) begin to organize information for their loan forgiveness applications, they are likely to be blindsided by a significant number of technical definitions and questions.  On top of that, many are starting to understand that significant amounts of these loans may not actually be forgiven – even if…

Read More

For Purposes of the Employee Retention Credit, when is a Business Considered “Fully or Partially Suspended Due to a Governmental Order”?

Article effective based on date written: May 12, 2020 For businesses struggling as a result of pandemic-related shutdowns, any form of stimulus may be vital to their continued existence.  When the CARES Act[1] became law, many businesses believed that the employer retention credits authorized by section 2301 would see widespread application.  Unfortunately, those impacted by…

Read More

Considering Returning Funds from the Paycheck Protection Program? Here’s What You Need to Know.

Article effective based on date written: May 11, 2020 For those seeking to return funds from the Paycheck Protection Program (“the PPP”) pursuant to the safe harbor, the deadline is fast approaching: May 14, 2020.  While this issue continues to generate publicity, the fear being generated is perhaps unfair to some returning funds for which…

Read More

IRS Notice 2020-32: Should Taxpayers Deduct Expenses Resulting in Loan Forgiveness under the Paycheck Protection Program Despite the Contrary Guidance of the Internal Revenue Service?

Article effective based on date written: May 5, 2020 Takeaway:  Although the Internal Revenue Service indicates that expenses resulting in loan forgiveness under the Paycheck Protection Program are not deductible, its interpretation is questionable.  Even if Congress does not legislatively address this issue, businesses may consider deducting these expenses based on the intent of the…

Read More

Reinforcing Compliance for the Paycheck Protection Program: What Recent Public and Political Developments Mean for Loan Recipients

Article effective based on date written: May 1, 2020 Takeaway:  Recently implemented rules, public statements of government officials, and the return of funds by some should not compel most businesses to change course; however, recipients of funds from the Paycheck Protection Program should collect and retain documentation to support certifications made with their loan applications,…

Read More

How the Internal Revenue Service’s People First Initiative and Existing Collection Procedures Offer Additional Tax Resolution Opportunities

Distressed Businesses, the Unemployed, and Others Experiencing Financial  Hardship May Greatly Benefit if Action is Taken Article effective based on date written: 4/27/2020 Although the pandemic and related financial downturns have put many individuals and businesses on the brink of financial disaster, this may present an opportunity for those with long-standing tax issues.  For those…

Read More

Did Funding for the Paycheck Protection Program Run Out on You?

Payroll Tax Incentives Offered by the CARES Act and FFCRA May Offer Substantial Relief  While many small business owners are already aware of at least some of the relief offered by the Coronavirus Aid, Relief and Economic Stability Act (“CARES Act”), less media attention has been focused on other benefits of emergency legislation that may…

Read More