New Guidance on the Employee Retention Credit Benefits Many Companies

In the recently issued Notice 2021-49 (August 4, 2021), the IRS provides guidance for employers claiming the Employee Retention Credit (ERC). Included in the IRS notice is guidance on the definition of related parties’ wages for purposes of claiming the ERC and whether the wages paid to shareholders and their spouses qualify for the credit. [...]

By |2021-08-11T09:06:06-06:00August 11th, 2021|COVID-19, Tax|Comments Off on New Guidance on the Employee Retention Credit Benefits Many Companies

SBA drops PPP Loan Necessity Review

The SBA just informed lenders that the loan necessity review requirement for Paycheck Protection Program (PPP) loans of $2 million or more has been eliminated for both for-profit and not-for-profit borrowers.  Additionally, borrowers are no longer required to submit a loan necessity questionnaire that had been previously requested by the SBA.  Leading up to this, [...]

By |2021-07-15T08:32:23-06:00July 15th, 2021|COVID-19|Comments Off on SBA drops PPP Loan Necessity Review

PPP Deadline Extended through May 31, 2021

On the eve of the deadline, President Biden signed the Paycheck Protection Program (PPP) Extension Act of 2021.  The deadline for loan applications for forgivable loans under the Paycheck Protection Program was initially set to expire on March 31, 2021.  The extension provides an additional two months for borrowers to apply for first and second [...]

By |2021-03-31T15:40:24-06:00March 31st, 2021|COVID-19, Tax|Comments Off on PPP Deadline Extended through May 31, 2021

Masks, hand sanitizer, wipes, and other personal protective equipment now count as medical expenses

The IRS just announced that personal protective equipment will be treated as medical expenses if they were purchased primarily for the purpose of preventing the spread of COVID-19.  Thus, masks, hand sanitizer, and sanitizing wipes used to help stop the spread of the Coronavirus can be deducted as medical expenses as long as the taxpayer’s [...]

By |2021-03-28T18:12:10-06:00March 28th, 2021|COVID-19, Tax|Comments Off on Masks, hand sanitizer, wipes, and other personal protective equipment now count as medical expenses

Congress Passes American Rescue Plan Act of 2021

This afternoon, Wednesday, March 10th, Congress passed legislation designed as another stimulus to help those in need as a result of the COVID-19 pandemic.  The American Rescue Plan Act of 2021 is a $1.9 trillion economic stimulus package designed to provide additional relief to address the continued impact of COVID-19 on the economy, public health, [...]

By |2021-03-10T15:21:50-06:00March 10th, 2021|COVID-19, Tax|Comments Off on Congress Passes American Rescue Plan Act of 2021

Employers note – Kansas Governor Laura Kelley Issues Executive Order for Withholding on Telecommuters

States have been struggling with how to deal with telecommuters as a result of the COVID-19 pandemic.  This is especially interesting for employers in one state when the employee works from home in a different state. For 2020, Kansas had a temporary rule that applied from March 13, 2020 through December 31, 2020 that allowed [...]

By |2021-02-13T17:51:38-06:00February 13th, 2021|COVID-19, Tax|Comments Off on Employers note – Kansas Governor Laura Kelley Issues Executive Order for Withholding on Telecommuters

PPP Round 2

The second round of Paycheck Protection Program (PPP) funding is ready to be released.  The Consolidated Appropriations Act of 2021 allocated $284 billion to the PPP program allowing second draws for hardest hit businesses.  It is expected the SBA will begin taking application next week (January 11-15).  Qualifications for a second draw include borrowers that: [...]

By |2021-01-08T15:51:32-06:00January 8th, 2021|COVID-19, Tax|Comments Off on PPP Round 2

Congress passes Consolidated Appropriations Act of 2021 – including PPP Modifications and COVID-Related Tax Relief

Happy Holidays!  2020 has been an extremely challenging year for many, but overnight (Monday night, December 21st) Congress passed legislation designed as one more stimulus to help those in need as a result of the COVID-19 pandemic.  The Consolidated Appropriations Act, which includes the Paycheck Protection Program (PPP) timeframe modification and extensions and other COVID-related [...]

By |2021-01-08T12:47:12-06:00December 23rd, 2020|COVID-19, Tax|Comments Off on Congress passes Consolidated Appropriations Act of 2021 – including PPP Modifications and COVID-Related Tax Relief

BEWARE – COVID-related text message scam

If you receive a text letting you know you “received a direct deposit of $1,200 from COVID-19 TREAS FUND. Further action is required to accept this payment… Continue here to accept this payment …” – BEWARE - a fraudster is attempting to get your bank account information.  Do no click on the link, and do [...]

By |2020-12-08T14:05:50-06:00December 8th, 2020|COVID-19, General|Comments Off on BEWARE – COVID-related text message scam

IRS Disallows 2020 Expenses for PPP Loans Forgiven in 2021

As with much of what has been issued regarding PPP loans and ever-changing guidance, the following analysis of deductibility is subject to legislative change.  At the end of April, the IRS issued guidance precluding deductions for expenses paid with PPP funds.  The Small Business Expense Protection Act would reverse that and allow the expenses to [...]

By |2020-11-23T12:19:00-06:00November 23rd, 2020|COVID-19, Tax|Comments Off on IRS Disallows 2020 Expenses for PPP Loans Forgiven in 2021
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