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Category: Coronavirus / COVID-19

August 4, 2020

How to Avoid Penalties on Early Retirement Account Withdrawals

Economic fallout from the COVID-19 crisis may cause some cash-strapped individuals to default on loans they’ve taken out from company qualified retirement plans, including 401(k) and profit-sharing plans. Defaulting on a plan loan will cause adverse tax and retirement-saving consequences. Further details on how the COVID-19 pandemic has effected it are below. Retirement Plan Basics A participant in an employer-sponsored qualified retirement plan can borrow money from the plan if it allows loans. Under the normal rules, the loan amount… Read more ›

July 28, 2020

Investing in a Volatile Stock Market

On July 23, Richard Morris, Director of Tax Services, and Senior Investment Advisor, Alex Seleznev collaborated on an article for Harness Wealth on the topic of tax planning during a time of stock market volatility. Among the topics covered are what to avoid with regards to investments and how to handle Roth IRAs. Click here to read the full article.

July 20, 2020

FASB Delays Effective Dates of Revenue Recognition and Lease Accounting Standards for 2020

In an effort to alleviate stress for private companies during the unprecedented challenges of the COVID-19 pandemic, the Financial Accounting Standards Board (FASB) has voted to delay the effective dates of the revenue recognition and lease accounting standards. FASB board members are expected to vote in favor of an Accounting Standards Update (ASU) reflecting this change on a final, written ballot. Nonpublic entities who have yet to issue financial statements will have a one-year extension for revenue recognition. The effective… Read more ›

July 13, 2020

COVID-19 Crisis May Affect Tax Angles for Rental Property Losses

Economic fallout from the COVID-19 crisis will cause many rental real estate properties to run up tax losses in 2020 — and possibly beyond. Here’s a summary of important federal income tax rules for such losses. What You Can Write Off Rental property owners can deduct mortgage interest and real estate taxes. They can also write off all standard operating expenses that go along with owning rental property. Examples include: Utilities, Insurance, Repairs and maintenance, and Care and maintenance of… Read more ›

July 2, 2020

IRS Guidance Provides RMD Rollover Relief

The CARES Act was enacted in an attempt to mitigate the economic effects of the COVID-19 pandemic. Among other things, it extends favorable tax treatment to qualified individuals who take so-called “coronavirus-related distributions” (CRDs) from IRAs, 401(k) plans and certain other retirement plans. RMD Relief Specifically, the CARES Act waives the 10% early distribution penalty for CRDs taken between January 1, 2020, and December 31, 2020. Under the law, the waiver applies to CRDs made to an individual: • Who’s… Read more ›

June 18, 2020

PPP Flexibility Act of 2020 Results in Additional Guidance, a Revised Loan Forgiveness Application and a New EZ Application for Qualifying Borrowers

Since passage of the Paycheck Protection Program Flexibility Act of 2020 on June 5, 2020, the Small Business Administration has continued to bring current and prospective borrowers up to speed through a series of interim rules for the program, as well as the release of a revised loan forgiveness application, a revised loan borrower application, and a new EZ form of the loan forgiveness application. Updated PPP Loan Forgiveness Application (and a new EZ Version) On June 17, the Small… Read more ›

June 5, 2020

PPP Borrowers Get Concessions, Additional Guidance on Forgiveness

The U.S. Senate has passed the bipartisan Paycheck Protection Program Flexibility Act of 2020, which loosens several of the Paycheck Protection Program’s (PPP’s) more onerous restrictions regarding loan forgiveness. President Trump has signed the bill into law. The new law follows the May 22, 2020, release of an interim final rule from the U.S. Department of Treasury and the Small Business Administration (SBA) on PPP loan forgiveness requirements. Among other areas, that guidance addresses the calculation of full-time employees and… Read more ›

May 16, 2020

New SBA Guidance Addresses Safe Harbor Deadline Extension, Audits of Businesses That Receive PPP Loans; Employer Requirements When Employees Refuse Recall to Work

Last week, the Small Business Administration clarified which businesses can expect to be audited once they certify in good faith that they received Paycheck Protection Program loans based on economic need. The SBA also delivered requirements for Maryland employers whose furloughed workers refuse to accept a recall to work. Read more below. Good Faith Certification and the Safe Harbor Deadline Extension The goal of the Paycheck Protection Program since it was established in late March under the CARES Act has… Read more ›

May 8, 2020

The IRS Clarifies the Deductibility of Paycheck Protection Program-Funded Expenses

The IRS has issued new guidance addressing a question that has lingered since the launch of the Paycheck Protection Program (PPP) — whether expenses paid for with forgiven, tax-free PPP loan proceeds are deductible business expenses under Section 162 of the Internal Revenue Code (IRC). The guidance in IRS Notice 2020-32 doesn’t provide the answer borrowers hoped for, but that may yet come. The root of the question The Coronavirus Aid, Relief and Economic Security (CARES) Act created the widely… Read more ›

May 7, 2020

SBA Extends the Paycheck Protection Program Repayment Deadline for Self-Certification

The Small Business Administration (SBA) has extended the repayment deadline for Payroll Protection Program (PPP) borrowers that wish to take advantage of the “good faith” self-certification of eligibility option. The deadline is now May 14, 2020. Companies that repay their loans by that date preempt the possibility of criminal liability if they’re subsequently found ineligible for PPP loans. The loans are intended to help small businesses with fewer than 500 employees weather the novel coronavirus (COVID-19) pandemic, but some large… Read more ›