In their new guidance, the U.S. Treasury Department and the Internal Revenue Service (IRS) clarified the tax treatment of a Paycheck Protection Program (PPP) loan which was not forgiven by the end of the year the loan was received. Expenses of a forgiven PPP loan are not tax deductible. For business not taxed on the…
According to a recent IRS publication from May 8, the last chance for taxpayers to obtain a direct deposit for their Economic Impact Payments is noon Wednesday, May 13. To get a direct deposit eligible taxpayers must provide their information on the Get My Payment page of the IRS website by the deadline. “After noon…
The Small Business Administration (SBA) has extended the period for returning loans received by businesses through the Paycheck Protection Program in order to be eligible for the Employee Retention Credit. As stated in an update on May 6, 2020, from the Paycheck Protection Program Loans FAQs in Question 45 “An employer that applied for a…
U.S. Treasury Secretary Mnuchin and Small Business Administration Jovita Carranza in a joint statement today announced a special measure to ensure access to the PPP loans for small lenders and their clients. “In order to ensure special access to the PPP loan program for the smallest lenders and their small business customers, the SBA is…
On Friday, April 24, 2020 President Donald Trump signed into law a $484 billion Paycheck Protection Program and Health Care Enhancement Act previously approved by the Senate. The bill provides an additional $310 billion for the Paycheck Protection Program (PPP), $60 billion for the Small Business Administration’s Economic Injury Disaster Loan program, $75 billion for hospitals, and an additional $25 billion for corona virus testing.…
The IRS has provided break down per state of the Economic Impact Payments for the first three weeks. As the IRS stated in their publication, “Payments are automatic for people who filed a tax return in 2018 or 2019, receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, as well as Supplemental…
The IRS has published its latest update on Economic Impact Payments. This payment is automatic for most taxpayers who filed a 2018 or 2019 tax return eligible for an Economic Impact Payment. The IRS publication, Economic Impact Payment Information Center, provides the following guidelines for eligibility for a stimulus payment: $2,400 for married filing jointly…
The IRS has announced additional key tax deadlines to help individuals and businesses struggling with economic turmoil caused by the Coronavirus pandemic. In the link below from April 9, 2020, the IRS elaborates on the latest extension of tax deadlines. IRS extends more tax deadlines to cover individuals, trusts, estates corporations and others IR-2020-66, April…
In a recently published Q&A session, the IRS has important provided updates on relief for taxpayers affected by the ongoing coronavirus pandemic, including information on workplace-based employment plans and IRAs. To align with the extended due date for 2019 tax returns, the IRS has also extended the deadline for making IRA contributions during the…
The IRS recently announced special Federal income tax return filing and payment relief in Notice 2020-18, which expands on the relief provided in Notice 2020-17. Specifically, the due date for filing Federal income tax returns and payments has been postponed from April 15, 2020 to July 15, 2020. There is no limit to the…