More Guidance Released From Government Regarding Second-Draw PPP Funding and Forgiveness Process.
As of January 20, 2021, the SBA and Treasury released an updated and simplified version of the PPP Forgiveness application. The form is called PPP Loan Forgiveness Application Form 3508S. It can be used by borrowers that received a PPP loan of $150,000 or less. Borrowers are not required to submit any supporting documentation with the application but are mandated to maintain payroll, nonpayroll, and other documents that could be requested during an SBA loan review or audit. T
Tips for Professionals Regarding Second-Draw PPP Funding
Business owners, CPAs, loan officers, and if applicable, business brokers, should all use a variety of tactics all at once as businesses pursue economic support in the form of the second draw of PPP funding. Per advice from the AICPA, the American Institute of Public Accountants, borrowers may need to act quickly and diligently to fill out their forms for the second round of PPP funding. Some lenders are requiring PPP borrowers to apply for forgiveness on their first-draw PPP
President Biden Signs Executive Order Extending Student Loan Payment Freeze
The latest statistics suggest that 45 million people in the United States owe approximately $1.6 trillion in student loan debt. In one of his first actions as president, Joe Biden directed the Department of Education to extend the nearly yearlong pause on student loan payments through September 30. Since March, all federal student loan payments have been suspended as part of the federal government's COVID-19 response. An extension of the grace period was included in early dra
National Taxpayer Advocate (NTA) Releases 2021 Annual Report
Would you believe me if I told you that some people still haven’t received their tax refunds from the previous year? Unfortunately, it is true according to the most recent annual report from the National Taxpayer Advocate (NTA), a watchdog of the Internal Revenue Service. While some of these problems may only affect a small portion of taxpayers, some of us (especially tax professionals) feel their pain. One of the largest complaints was for the delay in receiving refunds for
Some Business Meals May Be 100% Deductible Under Second COVID-19 Stimulus
Though corporate meal expenses are currently 50% deductible, the Trump administration reportedly inserted language in the relief bill bargaining process to make corporate meal expenses 100% deductible in an attempt to make the faltering restaurant industry that much more attractive to businesses eyeing power lunches and catered events. The bill temporarily allows a 100% business expense deduction for meals (rather than the current 50%) as long as the expense is for food or be
Deductibility of PPP-Funded Expenses Under Consolidated Appropriations Act 2021.
The Consolidated Appropriations Act explains that gross income does not include any amount that would otherwise arise from the forgiveness of a Paycheck Protection Program (PPP) loan. This provision also explains that deductions are allowed for otherwise deductible expenses paid with the proceeds of a PPP loan that is forgiven; the tax basis and other attributes of the borrower’s assets will not be reduced as a result of the loan forgiveness. The provision is effective as of
Will I Get Both Stimulus Checks?
Similar to the first stimulus package, the new stimulus bill will include a $600 direct payment to individuals who qualify. Again, a vast amount of adult dependents has been left out for some type of aid. At first glance, it seems that those 15 million omitted dependents who are 17 years or older, such as college students and disabled adult dependents won’t receive any payments, but that is not the case. One thing this bill does address that we are all similar to this year is
Second Round of PPP Funding: Will Your Business Qualify?
On December 27, 2020, late Sunday night, President Trump signed into law the $900 billion COVID-19 relief bill that was passed approximately a week before by Congress. The legislation, the Consolidated Appropriations Act of 2021, calls for direct payments to individuals and funding to other various communities and sectors that have been hit hardest directly by COVID-19. This blog will specifically examine the second round of Paycheck Protection Program (also known as PPP2) fu