Forgiveness of PPP Loans May Reduce R&D Credit

Background

The forgivable loan program known as the Paycheck Protection Program (PPP) was established by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to provide financial resources to small and mid-size businesses to enable them to maintain payroll and cover certain expenses during the coronavirus pandemic. PPP loans may...

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PPP Expense Deductibility and Timing Clarified in New Guidance

Written by Tax Manager Dan Chodan, CPA

The Treasury Department and Internal Revenue Service have released guidance clarifying the tax treatment of expenses where a Paycheck Protection Program (PPP) loan has not been forgiven by the end of the year the loan was received. If a business reasonably expects that a PPP loan will be forgiven, expenses...

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Guidance on Reporting Qualified Sick & Family Leave Wages Paid Pursuant to the FFCRA

Notice 2020-54

I. PURPOSEThis notice provides guidance to employers on the requirement to report the amount of qualified sick leave wages and qualified family leave wages paid to employees under the Families First Coronavirus Response Act (Families First Act), Pub. L. No. 116-127, 134 Stat. 178 (March 18, 2020). Employers will be required to...

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How to Document Late 401(K) Plan Deposits Due To COVID-19

Plan sponsors have a fiduciary obligation to ensure that participant 401(k) contributions (including participant loan repayments) are deposited into participant accounts as soon as reasonably possible. The COVID-19 pandemic, however, has caused many issues for plan sponsors trying to remit those deposits on time. The Department of Labor (DOL)...

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2021 Cost-Of-Living Adjustments for Qualified Retirement Plans

The government’s annual cost-of-living adjustments (COLA) for 2021 have been announced by the Internal Revenue Service (IRS) and the Social Security Administration (SSA).

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Navigating State and Local Taxes in COVID-19

Understanding obligations and available state tax relief will help businesses navigate the pandemic.

As businesses continue to assess the myriad implications of the COVID-19 pandemic, one area of focus should be on the impact of legislation, regulations, and guidance issued at the state and local levels. This becomes increasingly more complex for...

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Coping with the Restrictive Insurance Market

For the first time in decades, skyrocketing insurance costs are threatening businesses' ability to follow through on their growth and expansion plans—and sometimes even to meet their basic obligations. Even before the global pandemic, businesses were facing steep increases in premiums coupled with dramatic reductions in coverage. This situation...

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OECD Releases Blueprints Of Digital Tax Plan

On October 12, 2020, the OECD released over 900 pages of documents related to its years-long effort to address the challenges of taxing the digital economy. The impetus for this effort was the recognition that existing tax systems do not adequately address the digital world in which economic activity is independent of physical presence. The...

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Should I Consider Selling My Business Before Year-End?

While relatively few details have been released about either presidential candidate’s tax plan, former Vice President and current Democratic Party nominee Joe Biden has made it clear that he would aim to eliminate tax breaks for long-term capital gains and qualified dividends for taxpayers with income exceeding $1 million, instead taxing them at...

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IRS Makes Changes To Tax Capital Reporting Requirements

In a welcome development, the IRS has changed course with regard to partnership capital account reporting requirements, after its early release of draft instructions to Form 1065, U.S. Return of Partnership Income, for tax year 2020 on October 22, 2020. The draft includes revised guidance for partnerships required to report capital accounts to...

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