NCCPAP urges Congress to consider automatic forgiveness for smaller PPP loans

Marci RomneyBlog

The National Conference of CPA Practitioners (NCCPAP) is urging Congress to automatically forgive smaller loans under the Paycheck Protection Program, and to make business expenses paid for with forgiven PPP funds are deductible. In a letter written to Congress by the NCCPAP it states that businesses with loans under $150,000 were often those hit hardest by the pandemic, and at … Read More

Planning Beyond COVID-19: the Main Street Lending Program

Marci RomneyBlog, Uncategorized

Small-to-midsized companies in need of capital need to leave no stone unturned. Now that the Federal Reserve Bank is buying Main Street Loans, should you or your clients consider applying for loans through the Main Street Lending Program (MSLP)? With each interim financial statement release, accountants gain greater visibility into the COVID-19 impact on company balance sheets and the need … Read More

6 productivity hacks for remote CPAs

Marci RomneyBlog

As the brick-and-mortar economy flirts with reopening, working from home is becoming the new normal. CPAs have no need to return to crowded offices, especially not in states where COVID-19 is having a second wind. Even if CPAs could resume their usual office rituals, their clients (or colleagues), may not be eager to meet in person. It seems that accounting … Read More

Big Jumps seen in Tax Prep Fees

Marci RomneyBlog

The average fee nationwide to prepare a non-itemized 1040 and a state return jumped almost 26 percent in the last two years, according to a recent survey. That represents a rise of $45. Responses showed that the average cost to prepare an itemized 1040 and a state return rose almost 11 percent from 2018. The average nationwide price for doing … Read More

Many Firms Commit to Permanently Working from Home, Including Ferrone and Associates CPAs

Marci RomneyBlog

According to a new study, two-thirds of accounting firm leaders reported a drop in staff productivity during the coronavirus pandemic, but they’re still committed to allowing employees to work from home even after they reopen their offices. Accountants at firms of all sizes across the U.S., as well as leaders from a range of financial services and professional services companies,  … Read More

Tax-related COVID-19 News You May Not Have Heard

Marci RomneyBlog

Here’s a COVID -19 retirement-related easing that hasn’t got much attention: the 10% fine on pre-age-59 ½ payouts from retirement accounts is waived on up to 4100,000 of coronavirus-related distributions in 2020 from 401(k)s, 403(b)s and IRAs. A coronavirus-related distribution is defined as a payout to an individual who experiences financial difficulties from being diagnosed with COVID-19; who has a … Read More

Good News for Small Business Owners Regarding the PPP

Marci RomneyBlog

On Friday, June 5, the new Paycheck Protection Program Flexibility Act of 2020 was signed. This new legislation amends the Small Business Act and the CARES Act. The Paycheck Protection Program Flexibility provides PPP borrowers with more flexibility on PPP loan forgiveness. Here are some of the highlights: Gives borrowers the option to extend the “covered period” for loan forgiveness from … Read More

When to Expect your Paper Stimulus Check

Marci RomneyBlog

Some people expecting paper stimulus checks may have to wait months before seeing the payment in their mailbox. IRS is sending paper checks to individuals who qualify for the economic impact payment but didn’t get it directly deposited into their bank accounts. Some checks have already been mailed out to taxpayers. For the rest, the Service will send out approximately … Read More

Tax Rebates and Stimulus Checks

Marci RomneyBlog

Dead people are not eligible to receive an economic impact payment. The IRS says that if you got a stimulus payment for someone who died, you must return it. If the payment was made to joint filers and one spouse is still alive, you need to return only the decedent’s portion and can keep the remainder. See www.kiplinger.com/linke/deceased on how … Read More

Multiple Cash Flow Scenario That Helps Adjust for Uncertainty

Marci RomneyBlog

COVID-19 and the associated shelter-in-place orders around the country have impacted business leaders enormously. Everyone is waiting for the dust to settle to see how deeply the economic downturn may go. The crucible of the post-COVID marketplace will ramp up urgency; business owners need to understand and respond with increasingly accurate and effective strategies. COVID-19 has not changed the reality … Read More

Tax News that has been overlooked during COVID-19

Marci RomneyBlog

With COVID-19 dominating the news cycle, other issues are being overlooked. A prime example is the fate of Obamacare, which is before the Supreme Court. In late 2019, an appeals court ruled that the individual mandate is unconstitutional because the tax reform law eliminated the penalty tax for noncompliance. In March, the high court agreed to hear the case, including … Read More

Obligations for Gig Economy Workers

Marci RomneyBlog

Educating gig economy workers on their obligations is a goal of the IRS. Many individuals who take on freelance gigs from online sites or rent out their homes or rooms through a website or app do not receive a W -2 or 1099 for their work. Some are unaware that their income is taxable or, depending on the circumstances, that … Read More

Bad News for Small Businesses that take out PPP Loans

Marci RomneyBlog

The IRS has recently released some bad news for small business firms: the businesses can’t deduct expenses that result in forgiveness of the loan. The stimulus law says that loans forgiven under the Paycheck Protection Program are nontaxable. But the legislation is silent on whether expenses that are funded by the PPP loan proceeds, such as payroll costs, utilities, and … Read More

Just released: SBA “Paycheck Protection Program Loan Forgiveness Application” Form and Instructions

Marci RomneyBlog

It has become clear that the SBA requirements for loan forgiveness will require detailed records and supporting documents.  Navigating a lengthy and detailed application can be tricky, but the good news is that you will be rewarded for your hard work.  To make sure everything is done correctly you will want a qualified CPA in your corner to help you … Read More

SBA slashes disaster-loan limit from $2 million to $150,000, shuts out nearly all new applicants

Marci RomneyBlog

An emergency disaster lending program for small businesses has been so overwhelmed by demand that it has significantly limited the size of loans it issues, while blocking nearly all new applications from small businesses, according to people familiar with the situation. After initially telling businesses that individual disaster loans could be as high as $2 million, SBA has now imposed … Read More

What Now? Next Steps for Phase 4 Relief

Marci RomneyBlog

Among other tax changes, the CARES Act loosened rules governing net operating loss deductions (NOLs). These modifications provided much-needed relief for businesses, and there is an opportunity to build upon them in upcoming “Phase 4” economic relief legislation. Contrary to some of the rhetoric surrounding the changes to NOL deductions in the CARES Act, the provisions are a step forward … Read More

No PPP Loan? Then you may qualify for a Credit.

Marci RomneyBlog

If you weren’t able to get a PPP Loan… this one is you.The Internal Revenue Service is reminding employers who have been impacted by the Coronavirus pandemic that three new credits are available for them. The first of these, the Employee Retention Credit, is intended to encourage businesses to keep employees on the payroll. The ERC is a refundable tax … Read More

SBA provides a safe harbor for PPP loans under $2 million

Marci RomneyBlog

“Businesses that together with their affiliates accepted Paycheck Protection Program (PPP) funds of less than $2 million will be assumed to have performed the required certification concerning the necessity of their loan requests in good faith, according to guidance posted by the U.S. Small Business Administration (SBA) on Wednesday. According to the SBA, borrowers with loans below the $2 million … Read More

Are PPP Loans going to be Taxable Income?

Marci RomneyBlog

A bipartisan group of lawmakers introduced legislation on May 6 to enable small businesses to deduct their expenses even if they have received a loan from the federal government’s Paycheck Protection Protection Program that was later forgiven. On April 30, the IRS issued a notice that said small businesses couldn’t deduct these expenses and that no tax deduction is allowed … Read More

IRS UPDATE: 2nd QUARTERLY ESTIMATED TAX PAYMENT POSTPONED

Marci RomneyBlog

On March 21, the IRS officially announced that it was extending the deadline for filing 2019 tax returns and paying any required tax from April 15 to July 15, along with the due date for the first quarterly installment of estimated tax for 2020. But it didn’t say anything about the second quarter, until now.  The IRS is setting the … Read More

The big mistake newly remote businesses are making

Marci RomneyBlog

There is one all-too-common mistake that firms are making right now: trying to replicate their existing communication practices across their newly distributed team. A video conferencing solution such as Zoom is brilliant for replacing in-person meetings, and instant messaging tools like Slack or Microsoft Teams can be useful for hashing something out quickly or as a virtual ‘water-cooler’. However, these … Read More

Common Mistakes Taxpayers are making and how to avoid them

Marci RomneyBlog

It’s no surprise that many taxpayers are making mistakes including missing or inaccurate Social Security numbers, misspelled names, wrong filing statuses, math errors, and incorrect bank account numbers when giving their information to their preparer. Outside of Utah, clients still misunderstand that although they might not be able to itemize deductions for IRS purposes, they still might be able to … Read More

PPP Loans – How to Track Your Finances After Filing

Marci RomneyBlog

Now that you’ve wrapped up your Paycheck Protection Program (PPP) loan application, it’s time to move on to the next step. As you likely noticed, there is a precise list of approved uses for your government-granted funds, so you and your business must keep detailed records of your expenses to avoid needing to pay it all back.  Approved Uses for … Read More

IRS Introduces Get My Payment to Track Stimulus Payments

Marci RomneyBlog

The Internal Revenue Service, working with the Treasury Department, announced the new tool Get My Payment, enabling taxpayers to check on their Economic Impact Payment date and update direct deposit information. Get My Payment will help taxpayers track the Economic Impact Payments as they start to hit bank accounts, and will answer common questions. It will also show the projected … Read More

IRS not processing paper tax returns due to coronavirus

Marci RomneyBlog

The Internal Revenue Service has stopped processing paper tax returns, with much of its staff now working remotely because of the novel coronavirus pandemic, and is encouraging taxpayers to file their taxes electronically during the three-month extension period for this year’s tax season. The IRS said Friday that to protect the public and its own employees, and in compliance with … Read More