In addition to an ongoing series of virtual events to educate clients and the DC metropolitan region on the impacts of COVID-19 and related federal legislation, CBM posts the latest breaking news about the impact of the coronavirus (COVID-19) on businesses and individuals and shares additional resources. Scroll through the links below to access our offerings:
CBM is available to help businesses complete their Paycheck Protection Program loan forgiveness application. Use these links to download a draft engagement letter, a consent form to share your tax return with the Small Business Administration and a list of documents we may need to help you complete the application.
Contact CBM by filling out this form to let us know you would like our help with your loan forgiveness application.
CBM has developed a spreadsheet to help businesses calculate expenses derived from PPP loans and determine the forgivable amount. Disclaimer: These calculations are not SBA-approved but have been developed by the firm’s professionals to support clients.
Access the downloadable spreadsheet by clicking here.
CBM has published recordings of several webinars relating to the CARES Act and the Paycheck Protection Program. Click on the links below to be routed to the appropriate recording on the firm’s YouTube page. (And consider subscribing to our channel, so you don’t miss future recordings).
Sign up for our COVID-19 email alerts here to stay up to date on the latest developments.
Below is a series of links to our latest blog posts and announcements about the impact of COVID-19 on businesses, workers and other individuals.
|DATE||BLOG POST LINK||DESCRIPTION|
|10/12/21||Employers: Avoid Penalties for Failure to Deposit Taxes Deferred Under the CARES Act||An important payroll tax deadline is coming up for certain employers. To provide relief from the economic ravages of COVID-19, the CARES Act allowed employers to defer their share of Social Security tax from March 27 through Dec. 31, 2020. Those employers must now pay 50% of the deferred tax by Dec. 31, 2021, and the balance by Dec. 31, 2022.|
|7/30/21||Paycheck Protection Program Forgiveness and Repayment: What Businesses Need to Know Now||A critical deadline is approaching for many of the businesses that have received loans under the Paycheck Protection Program. If these businesses don’t take action before the deadline expires, their loans will become standard loans, and the borrowers could be responsible for repaying the full amount plus 1% interest before the maturity date.|
|5/24/21||Eligible Parents Will Begin Receiving Advance Child Tax Credits July 15||The 2021 advance child tax credit (CTC) payments, which were established under a recent law, will begin being made on July 15, 2021, the IRS announced. The tax agency also stated that “roughly 39 million households — covering 88% of children in the United States — are slated to begin receiving monthly payments without any further action required.”|
|5/7/21||The Biden Administration Proposes Far-Reaching Tax Overhaul||President Biden recently announced his $1.8 trillion American Families Plan (AFP), the third step in his Build Back Better policy initiative. The announcement followed the previous releases of the proposed $2.3 trillion American Jobs Plan and the Made in America Tax Plan. These plans propose major investments in various domestic initiatives, such as expanded tax credits for families, offset with tax increases on high-income individual taxpayers and corporations.|
|4/30/21||President Biden Details His Tax Proposals for Individuals in the American Families Plan||President Biden’s proposals for individual taxpayers were outlined in an April 28 address to Congress. The “American Families Plan” contains tax breaks for low- and middle-income taxpayers and tax increases on those “making over $400,000 per year.”|
|4/13/21||Some Business Meals 100% Deductible in 2021 and 2022||The new provision of the Consolidated Appropriations Act (CAA) creates a temporary but meaningful tax incentive to spend more on business-related food and beverage costs.|
|3/31/21||PPP Application Deadline Extended||President Biden has signed the PPP Extension Act of 2021. The new law extends the Paycheck Protection Program (PPP) application filing deadline from March 31, 2021, to May 31, 2021, thus providing potential PPP borrowers additional time to submit their applications.|
|3/25/21||Make the Most of the Employee Retention Credit||The Employee Retention Credit (ERC), which was created to encourage employers to keep their workforces intact during the COVID-19 pandemic, has been with us for a year. But questions about it remain for many employers.|
|3/18/21||IRS Extends Federal Tax Deadline to May 17||The IRS has announced that the federal tax filing deadline will be extended this year. New legislation that passed recently, which provides economic, tax and other relief from the pandemic, has created a complex tax filing season for individuals, businesses and tax preparers, leading to the extended deadline.|
|3/17/21||The American Rescue Plan Act (ARPA) Provides Sweeping Relief Measures for Eligible Families and Businesses||President Biden signed into law the American Rescue Plan Act (ARPA). It intended to provide far-reaching relief from the economic and other repercussions of the ongoing COVID-19 pandemic. In addition to funding for testing, contact tracing, vaccinations, education, and state and local governments, the ARPA includes extensive relief that could directly impact your finances.|
|3/11/21||Maryland State Income Tax Filing Deadline Extended to July 15||The extension applies to individual, pass-through, fiduciary and corporate income tax returns, and is the result of economic relief-related legislation expected to impact 2020 state and federal tax filings. Read more in this March 11 press release published by the State of Maryland Comptroller’s Office.|
|3/11/21||The American Rescue Plan Act Has Passed: What’s In It For You||Congress has passed and President Biden has signed into law the latest legislation aimed at providing economic and other relief from the COVID-19 pandemic that has haunted the country for the last year. The 628-page American Rescue Plan Act (ARPA) includes $1.9 trillion in funding for individuals, businesses, and state and local governments.|
|3/5/21||New IRS Notice Further Clarifies Eligibility for the Employee Retention Credit||On March 1, the IRS released Notice 2021-20, offering a further level of detail, which businesses should welcome to determine how to maximize the benefits offered by both programs – Paycheck Protection Program (PPP) and the employee retention credit (ERC).|
|2/26/21||Paycheck Protection Program Revisions Target Smallest Businesses||The Biden administration has announced several reforms to the popular Paycheck Protection Program (PPP) to bring greater relief to the smallest and most vulnerable businesses.|
|2/22/21||The RELIEF Act of 2021: Tax and Stimulus Relief for Maryland Individuals and Businesses||In late February, Maryland Governor Larry Hogan signed The RELIEF Act of 2021, legislation which will provide up to $1 billion for stimulus payments, unemployment insurance, and grants and loans to individuals and small businesses in Maryland.|
|1/11/21||How Can Your Business Benefit from the Consolidated Appropriations Act?||The Consolidated Appropriations Act of 2021 (CAA) was signed into law in late December. The sprawling legislation contains billions of dollars in additional stimulus funding in response to the COVID-19 pandemic, as well as numerous unrelated provisions. Let’s take a closer look at the provisions that are most likely to affect your company’s bottom line.|
|1/11/21||The Consolidated Appropriations Act Brings COVID-19 Relief (and More) to Individuals||President Trump signed into law billions of dollars in long-awaited COVID-19 and economic relief. The relief package is part of the nearly 5,600-page Consolidated Appropriations Act (CAA), which also contains numerous other tax, payroll and retirement provisions. Here are some of the provisions most likely to affect individual taxpayers.|
|12/22/20||Congress Passes COVID-19 Aid Package Containing Billions in Funding and Tax Breaks||After months of negotiations in Washington, an agreement has been struck on a new aid package to address the ongoing fallout from the COVID-19 pandemic. The legislation has been passed by both the U.S. House of Representatives and the U.S. Senate, and now goes to President Trump to sign the bill into law.|
|11/4/20||COVID-19 Related Paid Leave Requirements Get a Fine-Tuning||The Families First Coronavirus Relief Act (FFCRA) made substantial tax subsidies available to eligible employers, so they can provide paid sick leave and Family and Medical Leave Act (FMLA) leave for certain employees impacted by the COVID-19 pandemic.|
|11/2/20||Monitor These 3 Things as Your Not-for-Profit’s Priorities Change||Several months into the COVID-19 crisis, most not-for-profit organizations have formulated at least a temporary plan for sustaining operations. But short-term solutions should be complemented by long-term strategic planning that reprioritizes objectives. Specifically, your not-for-profit needs to focus on three areas: social impact, economic viability and capacity to deliver. Let’s take a look.|
|10/30/20||Forecasting Cash Flow in the COVID-19 Era||Business valuation is a prophecy of the future. That is, investors typically value a business based on its ability to generate future cash flow. However, with so many uncertainties in the current marketplace as a result of the pandemic, forecasting expected cash flow can be challenging.|
|9/24/20||Navigating a Divorce During COVID-19||COVID-19 is likely to be with us for many months to come. The pandemic has created new uncertainties and financial stressors. Couples who have contemplated a split up may be reluctant to add to the stress and uncertainty by commencing with a divorce, however continuing to live in limbo unhappily may be an option couples may not want to accept.|
|8/19/20||Why Maintaining Payroll Records Remains an Absolute Must||The COVID-19 pandemic has forced many small businesses to reduce their operations, furlough workers and even shut down for a period. But this doesn’t mean employers can allow payroll recordkeeping obligations to lapse.|
|8/12/20||What Does the Executive Action Deferring Payroll Taxes Mean for Employers and Employees?||On August 8, 2020, President Trump signed an executive memorandum that defers an employee’s portion of Social Security and Medicare taxes from September 1 through December 31, 2020. Whether an employee is eligible depends on the amount of wage compensation they receive.|
|8/4/20||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. Read more in this article about how the COVID-19 pandemic has effected it.|
|7/28/20||Tax Planning During Stock Market Volatility||Richard Morris, CBM’s Director of Tax Services, and Alex Seleznev, Senior Investment Advisor, 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|
|7/13/20||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. This article contains a summary of important federal income tax rules for such losses.|
|7/2/20||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.|
|6/23/20||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.|
|6/18/20||PPP Flexibility Act of 2020 Results in Additional Guidance, a Revised Loan Forgiveness Application and a New EZ Application for Qualifying Borrowers||The Small Business Administration has released several revised applications as a result of the Paycheck Protection Program Flexibility Act of 2020. Businesses that have not yet applied for PPP loans should reminder the application deadline is June 30.|
|6/5/20||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.|
|5/16/20||New SBA Guidance Addresses Safe Harbor Deadline Extension||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.|
|5/7/20||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.|
|4/26/20||Congress Expands Small Business COVID-19 Relief||Congress and the Trump administration have struck a deal on another piece of legislation. Among other things, it provides additional funding to two loan programs designed to help small businesses slammed by the economic shutdown.|
|4/22/20||Senate Approves $320 Billion in Additional Paycheck Protection Program Funding||The Senate has approved $320 billion in additional funding for the Paycheck Protection Program, the Small Business Administration’s business relief program that passed as part of the CARES Act on March 27, 2020.|
|4/15/20||Further Guidance on the Paycheck Protection Program (PPP) from the Small Business Administration||On April 14, the Small Business Administration (SBA) released additional guidance that provided more information about the implementation of the Paycheck Protection Program (PPP) for self-employed taxpayers.|
|4/13/20||IRS Extends Form 990 Series Filing Deadlines Until July 15, 2020||The IRS recently announced in Notice 2020-23, that the filing and payment deadlines for Form 990-series returns originally due between April 1, 2020 and July 15, 2020 will now be due on July 15, 2020.|
|4/8/20||The Impact of the CARES Act and the Paycheck Protection Program on Small Businesses and Independent Contractors||Small businesses and independent contractors should be aware of some special considerations under the CARES Act and the SBA’s Paycheck Protection Program.|
|4/6/20||The CARES Act and Virtual Accounting: Benefits of Outsourcing Your Accounting to CPAs||Many businesses already operate with a remote workforce but those that rely on paper-based office operations now wonder about the right technologies and virtual workflows to invest in. CBM has delivered outsourced accounting and consulting services to emerging and mid-sized organizations, using tools to accomplish such goals as digital and cloud-based solutions, project/task management, streamlined accounting functions and
maximizing Microsoft applications in a remote environment.
|4/3/20||The CARES Act and Not-for-Profit Organizations – What You Need to Know (And an April 9 Virtual Presentation)Paycheck Protection Program Application Available: Relief for Small Businesses and Not-for-Profits Impacted by COVID-19||Not-for-profits should be aware of certain parts of the CARES Act as it pertains to the impact of COVID-19 on their employees and business operations. The federal CARES Act guidelines list five options for not-for-profits in search of relief. Not-for-profits should assess the five options that could meet their needs.|
|4/1/20||Paycheck Protection Program Application Available: Relief for Small Businesses and Not-for-Profits Impacted by COVID-19||The Paycheck Protection Program application is now available for small businesses and not-for-profits that wish to apply for benefits under the Small Business Administration’s new disaster assistance loan program. The Paycheck Protection program, launched as part of last week’s Coronavirus Aid, Relief and Economic Security (CARES) Act, offers smaller employers financial relief which, when used for employee salaries, sick and medical leave, insurance, and mortgage and rent, will not need to be repaid.|
|4/1/20||An Overview of the Small Business Administration Disaster Assistance Loans – As Part of the Paycheck Protection Program of the CARES Act||As part of the CARES Act, the federal government has also provided for disaster assistance loans through the Small Business Administration. Below is CBM’s overview of the SBA loans. The CARES Act will provide $349 billion to support loans through a new paycheck protection program designed to keep employees on payroll and save small businesses. This is a new, but temporary, Small Business Administration (SBA) program related to the existing SBA Section (7a) loan program.|
|3/31/20||An Overview of the Tax Effects of the Coronavirus Aid, Relief and Economic Security (CARES) Act on Individuals and Businesses||In addition to direct cash payments and extended lending and emergency financing options, the CARES Act includes tax payment deferrals and tax breaks for individuals and businesses.|
|3/30/20||The CARES Act: An Overview of the Coronavirus Aid, Relief and Economic Security Act||On Friday, March 27, President Trump signed into legislation the Coronavirus Aid, Relief and Economic Security Act (CARES) Act. The $2.2 trillion legislation represents the largest stimulus package in U.S. history—dwarfing the $800 billion package signed during the 2008 financial crisis—and provides a variety of economic relief measures to mitigate the impact of the coronavirus pandemic on American society.|
|3/26/20||Maryland Department of Commerce Announces Grant Opportunities for Small Not-for-Profits Impacted by COVID-19||CBM would like to share some news that may be of interest to Maryland-based not-for-profit organizations. Some Maryland not-for-profit organizations are eligible to apply for funds from the newly created COVID-19 Emergency Relief $50M Grant Fund, which provides working capital intended to mitigate the disruptions of the coronavirus (COVID-19) on small not-for-profits and businesses.|
|3/25/20||CBM Encourages Clients to Submit Tax Organizers and Documents Despite Tax Day Extension||Despite the extension of the Tax Day deadline from April 15 to July 15, CBM still encourages clients to submit their completed tax organizers and documents as soon as possible so the firm’s professionals can continue preparing their taxes. Clients should consider transmitting them through CBM’s online portal, by email or via courier or the U.S. postal service.|
|3/24/20||Income Tax Payments Due April 15 Can Be Deferred to July 15, Regardless of Amount||The IRS and the U.S. Treasury Department have been making a series of announcements to provide tax relief in the wake of the coronavirus (COVID-19) pandemic. After previously announcing that taxpayers could defer making federal income tax payments up to certain limits for three months, the IRS has now announced that taxpayers can postpone payments without penalties or interest “regardless of the amount.”|
|3/20/20||What You Need to Know About the Families First Coronavirus Response Act||President Trump has signed into law the Families First Coronavirus Response Act. Among other things, the new law temporarily requires certain employers to provide expanded paid sick and family leave for employees affected by the coronavirus (COVID-19) pandemic. Employers’ increased costs will be offset by new tax credits, which also may be available to self-employed individuals.|
|3/20/20||Tax Day Extended from April 15 to July 15||Tax Day has been extended from April 15 to July 15, 2020 said U.S. Treasury Secretary Steve Mnuchin. In a tweet published this morning, Mnuchin explained that all taxpayers and businesses will have an additional three months to not only pay their tax liabilities, but also to file their taxes.|
|3/18/20||April 15 Tax Filing Deadline – 90-Day Payment Extension for Businesses and Individuals||While the particular details have not yet been finalized, the Treasury announced that the payment requirement for those who file by the April 15 tax filing deadline will be pushed back, giving certain individuals and many businesses 90 extra days to pay the taxes they owe. Taxpayers who file a return or extension by April 15 will receive an interest and penalty-free deferral of time to remit balances due. Individual filers can defer up to $1 million of tax liability and corporate filers get an extension on up to $10 million of tax liability, provided they file.|