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
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
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
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
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
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
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
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
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
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