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Changes to 2020 Employee Retention Credit Benefits Under the New Stimulus Bill

Posted by Chris LeRoux, CPA on Jan 21, 2021 3:13:55 PM

Recently, President Trump signed the second COVID-19 stimulus bill, which includes some rather special benefits for small businesses (i.e., companies with 100 employees or less). The new bill allows for both retroactive and prospective changes to the Employee Retention Credit (ERC). It is now possible for businesses that received a Paycheck Protection Program (PPP) loan in 2020 to potentially also benefit from the ERC. You may recall, prior to these changes, a business could either get a PPP loan or take the ERC. They could not have both. In addition, the new bill extends the ERC period to cover the first two quarters of 2021. The extended period now covers wages from January 1, 2021 to June 30, 2021. The rules for the 2021 credit are significantly different and could provide opportunities for employers that did not previously qualify for the ERC.

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Topics: Tax, COVID-19

New Guidance on Paycheck Protection Program Deductions

Posted by Shauna Hovancsek and Jessica Simons on Nov 19, 2020 11:40:36 PM

On November 18th, the IRS issued additional guidance regarding deductibility of the Paycheck Protection Program (PPP) loan related expenses and the news is not what we had hoped for. The guidance came in the form of Revenue Ruling 2020-27 and Revenue Procedure 2020-51.  

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Topics: Sweeney Conrad News, COVID-19

COVID-19 Recovery: How the Employee Retention Credit Could Improve Cash Flow

Posted by Sweeney Conrad, PS on Jul 30, 2020 3:16:49 PM

As post-COVID recovery efforts gain momentum, many businesses are taking a fresh look at some federal stimulus and tax relief programs they had not previously considered. One such program, the employee retention credit contained in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, could be especially useful in helping companies bring back furloughed or laid-off employees.

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Topics: Tax, News, COVID-19

Interview: LifeWire's Mission to Put a Stop to Domestic Violence

Posted by Sweeney Conrad, PS on Jul 23, 2020 6:12:26 PM

Domestic violence is often a silent issue. With the rise of COVID-19, survivors are struggling at an even greater rate. This week we caught up with Kelly Becker, Development Director of LifeWire, to learn more about their mission to end domestic violence, how COVID-19 has affected their efforts, and how the community can help.

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Topics: Nonprofit Organizations & Private Foundations, Sweeney Conrad Passion, COVID-19

Retroactive Tax Relief for COVID-19 Losses

Posted by Sweeney Conrad, PS on Jul 9, 2020 7:27:32 PM

While stimulus checks and forgivable loans have received a lot of attention during the COVID-19 shutdown, businesses should not overlook other available relief provisions that could help them reduce taxes and improve cash flow. Several of these measures could enable a business to file amended federal tax returns to recover taxes paid in previous years and request a refund.

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Topics: COVID-19

More Investors Qualify For Relief Under CARES Act Expansion

Posted by Sweeney Conrad, PS on Jul 1, 2020 11:05:04 PM

The IRS recently announced expanded required minimum distribution (RMD) relief under the CARES (Coronavirus Aid, Relief, and Economic Security) Act.  Here is what has changed for investors:

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Topics: Tax, COVID-19

Accounting for Paycheck Protection Program Loans and Forgiveness

Posted by Stacey Monson on Jun 30, 2020 1:53:11 PM

The American Institute for Certified Public Accountants (AICPA) recently issued a Technical Question and Answer (TQ&A) that provides guidance on accounting for loans issued under the Paycheck Protection Program (PPP).

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Topics: Audit & Assurance, News, COVID-19

Accounting for Lease Concessions Amidst COVID-19

Posted by Stacey Monson on Jun 16, 2020 6:36:47 PM

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The COVID-19 pandemic has forced the temporary closure, or a reduction of operating hours, of office buildings, shopping centers, restaurants, and other businesses. As a result, many lessors have, or will be, providing lease concessions to tenants who have faced economic disruption due to the COVID-19 pandemic. Lease concessions may vary in form, but payment forgiveness and deferral of payments are expected to be the most common types of concessions granted. As a result of lease agreements not containing provisions for rent concessions specific to COVID-19, in early April, the Financial Accounting Standards Board (FASB) issued a question-and-answer document (Q&A) addressing questions on the impact of the COVID-19 pandemic on lease concessions.

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Topics: Audit & Assurance, News, COVID-19

The Paycheck Protection Program Flexibility Act: What You Need to Know

Posted by Sweeney Conrad, PS on Jun 4, 2020 8:15:43 PM

President Trump is expected to sign the Paycheck Protection Program Flexibility Act which has been approved by congress. The Act will provide relief to business owners by allowing for more flexibility and extended deadlines for Paycheck Protection Program (PPP) loan money.

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Topics: Sweeney Conrad News, Tax, COVID-19

Economic Uncertainty Safe Harbor Announced For PPP Loans Under $2 Million

Posted by Sweeney Conrad, PS on May 13, 2020 6:50:47 PM

Today, May 13th, the Treasury released FAQ #46, which provides that any borrower where they, together with affiliates, received Paycheck Protection Program (PPP) loans of less than $2 million are deemed to have met the economic uncertainty test. This decision comes on the heels of extensive discussion regarding how businesses that received PPP loans could verify that, due to economic uncertainty, they needed the funds to support their ongoing operations.

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Topics: Tax, News, COVID-19

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