Blog2019-10-21T16:13:14-06:00

Expect Changes & Flexibility to the Paycheck Protection Program

Wednesday evening, June 3rd, the Senate passed the House’s version of Paycheck Protection Program Flexibility Act of 2020 and now awaits President Trump’s signature.   The bill passed unanimously Wednesday evening in the Senate and 471-1 last week in the House.  Designed to make it easier for borrowers to get full, or almost full, forgiveness, the bill allows for flexibility in time and how dollars can be spent and still qualify for forgiveness.  Key provisions are: Option to extend the 8-week [...]

By |June 4th, 2020|COVID-19, Tax|

Accounting in the Time of COVID-19

Amidst the chaos created by the COVID-19 pandemic, much of corporate America has been concentrating on how to obtain Paycheck Protection Program (PPP) funds, and then making sure they are adhering to the ever-changing rules on forgiveness. For these companies, a key question is now – how do we account for these funds?   Accounting for PPP Generally, the funds received through the PPP program are considered loans and should be accounted for as liabilities. No “below-market” interest should be [...]

By |June 3rd, 2020|COVID-19, Tax|

Congress Likely to Extend Time Period for PPP Eligible Expenses

On May 28, 2020, the House of Representatives passed the Paycheck Protection Program Flexibility Act, nearly unanimously (417-1). Most importantly this bill would extend the forgiveness period for PPP funds from 8 weeks to 24 weeks. Though the final time period is unknown, it appears very likely that the Senate will take up legislation that will agree with extending the time period for forgiveness. Indications from the AICPA support the belief that some extension will be given legislatively.   Though [...]

By |May 29th, 2020|COVID-19, Tax|

SBA issues PPP Loan Forgiveness Application

On May 15th the SBA issued the Paycheck Protection Program (PPP) Loan Forgiveness Application and instructions.  This provides the forms borrowers need to apply for forgiveness of their PPP loans as well as the documentation lenders are required to collect from borrowers.  Generally, a borrower can apply to have certain payroll and nonpayroll costs forgiven during the 8 week period following the receipt of the PPP loan. The PPP Loan Forgiveness Application and instructions include several measures to reduce the [...]

By |May 16th, 2020|COVID-19|

MWB recorded a sequel to the PPP webinar, available free on Missouri Bar Association

On May 11th, 2020, Julie Welch, Steve Browne, Cara Smith, and Preston Herman recorded a webinar titled “PPP Loan Forgiveness & Business Interruption Claims”, which is available for free to all members of the Missouri Bar Association via rebroadcast on May 26th, 2020 and immediately for self-study at the below link.  The webinar is a sequel to MWB’s “CARES Act Cash & Business Interruption” webinar recorded on April 14th, 2020.  Members of the Missouri Bar that viewed the first webinar [...]

By |May 15th, 2020|COVID-19, Tax|

Safe harbor date to repay PPP loans extended

The May 14th safe harbor deadline (extended from the original date of May 7th) to repay Paycheck Protection Program (PPP) loans was extended until May 18th (SBA FAQ #47 issued 5/13/20).  This extension is to give borrowers an opportunity to review and consider FAQ #46.  See our blog post Good Faith Certification for PPP Loans.   Click the link below to see a PDF of all FAQs issued by the SBA on the PPP loans. https://www.sba.gov/sites/default/files/2020-05/Paycheck-Protection-Program-Frequently-Asked-Questions_05%2013%2020_2.pdf   Reach out to [...]

By |May 14th, 2020|COVID-19, Tax|

Good Faith Certification for PPP Loans

With the upcoming May 14th safe harbor deadline (extended from the original date of May 7th) to repay Paycheck Protection Program (PPP) loans, borrowers have been toiling with the documentation necessary to establish good faith representations on loan applications and the certification that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”   On May 13th by way of FAQ, the SBA and the Treasury added clarification to PPP loan recipients receiving less than [...]

By |May 13th, 2020|COVID-19, General|

Current IRS Guidance says NO DEDUCTIONS for expenses related to forgiven PPP loans

On April 30th, the IRS issued Notice-2020-32, stating the position that expenses funded by forgiven loan proceeds under the Paycheck Protection Program (PPP) are not tax deductible.  The CARES Act did not specifically address whether generally allowable deductions would still be permitted if the loan was later forgiven, but the act and public officials’ comments did imply that the forgiveness would be “tax-free”.  This IRS position effectively decreases the previously implied net value of the PPP Loan program to businesses [...]

By |May 1st, 2020|COVID-19, Tax|

MWB recorded a webinar on PPP, available free on Missouri Bar Association

On April 14th, 2020, Julie Welch, Steve Browne, Cara Smith, and Preston Herman recorded a webinar titled “CARES Act Cash & Business Interruption” which is available for free to all members of the Missouri Bar Association via rebroadcast on April 27th, 2020 and immediately for self-study at the below link.  The video recording, PowerPoint presentation slides along with MWB’s detailed notes, and the Paycheck Protection Program (PPP) calculator template in Excel mentioned are included below for your convenience.  Please don’t [...]

By |April 22nd, 2020|COVID-19, Tax|

The CARES Act – Tax Highlights

Phase 3 of the COVID-19 stimulus package (the CARES Act) was just signed by President Trump.  The CARES Act includes several income tax provisions that attempt to lessen the impact and encourage individuals and businesses to keep putting money back into the economy.  See  https://mwbpc.com/the-cares-act-business-highlights/ for the business highlights of the CARES Act.   Business Tax Provisions Provides a refundable payroll tax credit (the Employee Retention Tax Credit) for 50% of wages, including health benefits, up to $10,000 paid to [...]

By |March 27th, 2020|COVID-19, General, Tax|

The CARES Act – Business Highlights

Phase 3 of the COVID-19 stimulus package (the CARES Act) was just signed by President Trump.  This legislation is unprecedented in both size and scope. It is clear that the Federal government is pulling every lever possible to mitigate the economic ramifications of the coronavirus pandemic. It appears Congress is opening every liquidity spigot at their disposal and even creating new ones on the fly. The stimulus bill totals approximately $2.2 trillion and has provisions that will affect everyone in [...]

By |March 27th, 2020|Audit, COVID-19, General|

Business Response in Times of Crisis

As the COVID-19 global pandemic continues to alter society in unprecedented ways, it has become evident that, while necessary, the steps being taken by government officials to minimize the human lives lost will result in a severe economic contraction. What is unclear is the scope of those costs. Federal, state and local governments have already and will continue to implement unprecedented policies to deal with the disease and economic fallout it has caused. Here, we will identify areas that private [...]

By |March 23rd, 2020|COVID-19, General|