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Category: Professional Services

May 3, 2022

How to Keep Your Business Strong Despite Inflationary Pressures

  Over the last year, consumer prices rose 7.9%, according to the latest data from the U.S. Bureau of Labor Statistics. The Consumer Price Index covers the prices of food, clothing, shelter, fuels, transportation, doctors’ and dentists’ services, drugs, and other goods and services that people buy for day-to-day living. This is the highest 12-month increase since 1982. Increases in the price of consumer goods will affect most businesses, sooner or later. For example, if you operate a restaurant, spikes… Read more ›

February 3, 2022

Partners Cannot Deduct Reimbursable Expenses

Partners in professional service firms must sometimes pay for certain firm-related business expenses out of their own pockets. For instance, a law firm partner may have to personally absorb the costs of entertaining prospective clients who are not on a designated firm-wide list of potential clients for which the firm will reimburse the costs of wining and dining. Also, a partner may incur personal auto expenses to drive to and from client meetings and to and from other locations where… Read more ›

October 20, 2021

Selling Real Estate on the Installment Basis

Do you own real estate that will produce a big capital gain when you sell it? Fortunately, you may be able to realize significant tax benefits by negotiating an installment sale of the property. However, there are several potential tax traps to avoid. How do you qualify for installment sale reporting? It’s relatively easy. All you have to do is arrange to receive payments over at least two tax years. For example, say you contract to sell real estate in December… Read more ›

October 20, 2021

Tax Court: Attorney’s Assistant-Spouse is Independent

Disputes concerning employee versus independent contractor have been going on for years. The last attempt by Congress at a fix was in 1978 (yes, that long ago!), and it only produced some penalty relief. Whether a worker is an employee or independent contractor can depend on IRS pronouncements, case law, etc., but it’s highly dependent on the facts and circumstances, as one U.S. Tax Court case illustrates. Facts of the Case Darryl Jones was an attorney and married to Tarri… Read more ›

August 13, 2021

Partners at Professional Services Firms Cannot Deduct Reimbursable Expenses

Partners in professional service firms must sometimes pay for certain firm-related business expenses out of their own pockets. For instance, a law firm partner may have to personally absorb the costs of entertaining prospective clients who are not on a designated firm-wide list of potential clients for which the firm will reimburse the costs of wining and dining. Also, a partner may incur personal auto expenses to drive to and from client meetings and to and from other locations where… Read more ›

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 ›

June 23, 2020

Small Business Administration to Publicly Release Names of PPP Loan Recipients

In response to increasing public pressure, the Small Business Administration announced on June 19 that it would release the names of Paycheck Protection Program (PPP) loan recipients awarded at least $150,000 in funds. No timeline for the disclosure has been announced, but the SBA said it would “disclose the business names, addresses, NAICS codes, zip codes, business type, demographic data, not-for-profit information, jobs supported, and loan amount ranges as follows:” $150,000-$350,000 $350,000-$1 million $1-2 million $2-5 million $5-10 million Participants… 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 ›