Employees May Have Little Say in Trump’s Payroll Tax Deferral
BPM’s Specialized Tax Services leader Andre Shevchuck provides a tax professionals perspective on the 2020 payroll tax deferral in a recent Bloomberg law article.
What Employers and Employees Need To Know About Trump’s Payroll Tax Holiday
BPM Partner Andre Shevchuck discusses the possible consequences to deferring the payroll taxes in a recent Fortune article. Read now.
What the Payroll Tax Deferral Really Means for Your Paycheck
BPM Partner Andre Shevchuck discusses President Trump's issued an executive order to defer the 6.2% tax employees pay toward Social Security from Sept. 1 until Dec. 31 in a recent CNBC article.
What Deferred Payroll Taxes May Mean for Businesses
On Saturday, August 8th, President Trump signed four executive orders directed at extending economic relief after elected officials were unable to reach an agreement on continued COVID-19 stimulus, including a deferral of payroll taxes starting September 1st through December 31st. Learn more about what this potentially means for businesses in a recent article by BPM Partner Andre Shevchuck.
PPP Application Deadline Extended to August 8, 2020
Small businesses that have not applied for Paycheck Protection Program loans now have until Saturday, August 8, 2020 to file an application. Read more about the new Paycheck Protection Program Extension Act.
State Tax Issues Arise with COVID-19 Surcharges
BPM's John Hayashi explains in a CPA Practice Advisor article what should small business owners know about the tax implications behind COVID-19 surcharges. Read now.
Michelle Ausburn Provides Top COVID-19 Accounting Tips for Wineries
As an accountant firming serving clients in the wine and craft beverage industries, most of our recently received winery client questions are about one thing: What can I do to COVID-proof my business? Learn more in a recent Spirited Magazine article.
Why It May Be Advantageous to Gift Shares in the COVID-19 Economy
With lower valuations currently prevailing given the risk of COVID19, now may be an opportune time to transfer/gift interests in your business to children, grandchildren or trusts. Learn more in a recent article by BPM's Kemp Moyer and Mike Ruane.
Top 3 State & Local Tax Issues Created by Remote Workers
Business leaders and accountants should understand these three significant SALT issues, if they're expecting an increase of remote employees working in new state or local tax jurisdictions this year.
Reporting, Forecasting, and Risk Mitigation During COVID-19
Taking advantage of federal lending programs and generally managing the financial crisis brought about the by COVID-19 shutdowns requires both careful attention to reporting and cash flow forecasting. Read the Bloomberg Tax article by BPM's Edward Webb, Jill Pappenheimer, and Brett Hazlett and walk through considerations for both managing and forecasting cash flow.
How Accountants Can Help Clients Simplify an Overly-Complicated PPP Process
BPM Director Brett Hazlett talks about three ways accountants can help their clients now to simplify the PPP loan forgiveness process in a recent AccountingWeb article. Read now.
Relief for Qualified Opportunity Funds Due to COVID-19
Real estate investors and developers now have more time to take advantage of Qualified Opportunity Fund tax opportunities, as a result of COVID-19. Read the latest Qualified Opportunity Funds article from BPM’s Real Estate tax team.
Borrower Accounting for a Forgivable Loan Received Under the Small Business Administration Paycheck Protection Program
On June 10th, 2020, the AICPA issued a Q&A on two options for accounting loans under the PPP federal program. Read the latest information from the AICPA.
AICPA Offers Additional Loan Forgiveness Guidance
Access the AICPA’s PPP loan forgiveness services matrix and read the additional guidance on accounting for forgivable PPP loans.
Response Funds Available to Nonprofits
As nonprofits look for additional funding, Philanthropy California’s disaster resilience team is coordinating with state agencies and partners to respond to the threat and potential impacts of COVID-19. Click on the Response Funds tab here to view a list of resources available to qualified applicants in need.
How to Handle Business Taxes on Coronavirus Relief Payments
BPM corporate and specialty tax team offers tax tips ahead of the July 15 deadline in the North Bay Business Journal.
What You Need to Know about the Paycheck Protection Program Flexibility Act
On June 5, 2020 the Paycheck Protection Program Flexibility Act (PPPFA) was signed into law. The Act addresses many of the concerns expressed by small businesses and their advocates and provides much needed relief for those borrowers who had received PPP loans.
Estate Planning Strategies During COVID-19
Current low interest rates, low asset values and current tax rules related grantor trusts create a favorable estate planning environment. BPM's Private Client Services tax team explains the benefits of estate planning during the COVID-19 pandemic.
CARES Act Adjusts Eligibility of Qualified Improvement Property
Among the numerous provisions contained in the CARES Act legislation, an area of interest to the real estate industry pertains to a correction of an inadvertent exclusion of Qualified Improvement Property (QIP) from the list of assets eligible for bonus depreciation. BPM's Real Estate team explains the QIP tax benefits.
FASB Expected to Delay ASC 842 Due to COVID-19
The Financial Accounting Standards Board (FASB) issued an exposure draft to postpone the adoption deadline of the lease accounting standard for private entities and certain nonprofit entities.
Stock Option Compensation: Strategies for Employee Payment and Retention
As organizations continue to navigate the many uncertainties that the COVID-19 pandemic has thrusted upon them, one near-universal goal is cash conservation. Given the need for short term cash conservation, countered by the long run impacts of potential salary reductions, business executives may find it a compelling time to consider stock option compensation, or other equity-based compensation, as a viable action to conserve cash while retaining key talent and aligning incentives for the longer term. Learn more from BPM's Valuation and HR Consulting specialists.
Federal Loans Help Bay Area Small Businesses Survive, for Now
BPM Partner Edward Webb talks about clients benefitting from the second round of Paycheck Protection Program loans in a recent San Francisco Chronicle article.
Planning a NOL Carryback: What Is Allowed Under the CARES Act
Multinational taxpayers have an additional layer of tax rules to consider before planning a net operating loss carryback on future taxes, due to their global footprint. Learn more in a recent article from BPM international tax services specialists.
Stafford Act Offers Tax Relief Payments for Certain Expenses
Due to COVID-19, President Trump recently declared a national emergency under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (the Stafford Act), thereby opening up the opportunity for employers to provide tax-free assistance to employees under Section 139 of the Internal Revenue Code. Here is a short summary.
IRS Provides Relief for Foreign Residents and Businesses Impacted by COVID-19 Travel Disruptions
In light of COVID-19, the IRS recently published Revenue Procedure 2020-20, Revenue Procedure 2020-27, and an FAQ on the IRS website, which restore some of the inadvertent U.S. tax consequences caused by the recent travel restrictions. The measures provide much needed guidance in relation to U.S. tax residency questions. Here is a quick overview.
When It Comes to PPP Loan Forgiveness, Track Every Penny Spent
BPM partners Edward Webb and Jeffrey Mock discuss the importance of PPP loan tracking for business leaders who hope to have the loan forgiven following the COVID-19 crisis. Read the Puget Sound Business Journal article, which published May 6, 2020.
SBA Provides Clarity Around PPP Loan and Single Audit Requirements for Nonprofits
On May 5th, the AICPA’s Governmental Audit Quality Center (GAQC) issued an announcement to address common questions regarding the applicability of single audit requirements to Payment Protection Program (PPP) loans and Economic Injury Disaster loans (EIDL) obtained by not-for-profit entities (NFPs). Its update concluded that PPP loans issued to NFPs do not represent federal financial assistance as contemplated by Uniform Guidance (UG) and therefore will not be subject to single audit requirements. However, SBA loans issued under the EIDL program are considered federal financial assistance and are subject to the Uniform Guidance single audit requirements.
Treasury Extends Safe Harbor Period to May 14, 2020 and Clarifies How to Count Employees of US and Foreign Affiliates
On Tuesday, May 5, the U.S. Treasury updated their Paycheck Protection Program Loans Frequently Asked Questions document with Questions 43 and 44. Question 43 extends the safe harbor period for repaying a PPP loan from Thursday, May 7 until Thursday, May 14. They also indicate in the answer to Question 43 that further guidance on how the SBA will review the certification will be issued prior to May 14. Here are more details.
IRS Disallows Deductions for Expenses Tied to PPP Loan Forgiveness
In Notice 2020-32, the IRS answered the question of whether the expenses tied to the loan forgiveness are deductible. Read the BPM tax team's brief summary of the IRS update and reach out to your BPM tax advisor for more information.
Treasury Department Updates on PPP Loan Eligibility, Audits, and Penalties
On Tuesday, April 28th, US Treasury Secretary Steven Mnuchin stated in an interview on CNBC that any Paycheck Protection Program (PPP) loan in excess of $2 million will be subject to “full review” before it could be forgiven. It is expected this audit would confirm borrower eligibility and need in addition to compliance with forgiveness requirements. Additionally, in a separate interview with Fox Business, Mnuchin warned of potential criminal liability if the SBA determines that the borrower improperly applied for and received funding for a PPP loan. Here is a quick summary.
Treasury Releases Updates to Paycheck Protection Program FAQ
In a posting to their Paycheck Protection Program (PPP) FAQ document on April 23rd, the Treasury Department added Question 31 which addresses whether large companies with adequate sources of liquidity to support the business’s ongoing operations qualify for PPP loans. Here is more information.
Senate Approves Additional SBA Loan Funding
Business owners who missed out on initial SBA loans and relief funding now have a second chance to apply, as the Senate approved an additional $484 billion of funding on Tuesday.
CARES Act Guidance for Religious Organizations
After the release of the initial SBA guidance around Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) eligibility, many religious organizations had more questions than answers. Here is what BPM's Nonprofit team knows about the current SBA guidance for faith-based organizations.
Save Small Business Fund Offers $5,000 Grants
The Save Small Business Fund is providing $5,000 in short-term relief to employers across the United States effective April 20, 2020. These one-time supplemental cash grants are for businesses that have between 3 and 20 employees and operate in an economically vulnerable community. See if your business qualifies here.
Navigating Coronavirus Tax Credits
Although the SBA loan program received additional funding, it's unclear how quickly those funds will last, so taxpayers are looking at other options available to help with their financial situation. Read BPM's breakdown of the available tax credits aimed at alleviating financial pressure in today’s turbulent economy.
City of Santa Clara Small Business Assistance Grant Program
To mitigate the impact of COVID-19 on Santa Clara small businesses and their employees, the City of Santa Clara has committed up to $500,000 in one-time funds to create a Small Business Assistance Grant Program. Here are more details about the application process, requirements and deadlines.
CARES Act Relief for Nonprofits
The objective of the CARES Act is to provide liquidity to organizations faced with funding shortfalls during the COVID-19 crisis. In addition, the IRS recently extended its tax filing and payment postponement relief to nonprofits. Read the BPM tax team's CARES Act for Nonprofit Organizations summary to learn some key features of the recent legislation and guidance.
Avoid Scams related to COVID-19 Tax Relief and Stimulus Payments
The IRS is warning taxpayers to be on the lookout for scammers contacting them with fraudulent emails, phone calls, texts, and via social media with offers of assistance in obtaining tax relief. The objective of the scammers is to obtain personal information to commit tax-related fraud and identity theft. Learn more here.
Independent Contractors and the Paycheck Protection Program
The Paycheck Protection Program, or PPP, as a component of the COVID-19 stimulus bill has put billions of dollars of relief money for small businesses on the table. Learn what organizations that employ independent contractors need to know about the program.
Bay Area Impact: COVID-19, SBA Loans Edition (Video)
BPM Partner Edward Webb discussed how two primary programs - the SBA Paycheck Protection Program and the SBA Economic Injury Disaster Loan Program - can help small businesses through the COVID-19 crisis. Watch the Bay Area Council's webinar now.
International Tax Activity Related to COVID-19
Just as the Treasury Department and the IRS are providing special tax filing and payment relief to individuals and businesses in response to the COVID-19 pandemic, tax administrations of foreign jurisdictions are providing relief for local tax filings and payments. Here is a summary from Bloomberg Tax of the direct tax implications and indirect tax implications you may consult to determine the availability of any tax breaks, rate changes, and filing and payment extensions, in response to the COVID-19 pandemic, in jurisdictions where you may operate either directly or through affiliated business entities in your ownership structures.
COVID-19: Loan Resources Available to Businesses Under the CARES Act
President Trump signed the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act (the “Act”) on March 27, 2020. The Act provides for extensive aid programs, grants and other economic incentives in an unprecedented $2 trillion dollar piece of legislation. Here is a breakdown of the loan programs available to small businesses and mid-size companies. Click here for an overview.
CARES Act Offers Significant Tax Relief for Individuals and Businesses
The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, passed by Congress last week and signed into law by the President offers a number of significant tax relief provisions as well as cash payments to some individuals. The goal of the legislation is to provide individuals, businesses owners, and businesses with access to cash and reduced taxes in response to financial disruptions caused by the ongoing coronavirus pandemic. Click here for an overview.
SEC Modifies Filing Deadline
On March 25, the Securities and Exchange Commission (SEC) issued an order providing a 45 day filing extension for public companies impacted by COVID-19. This announcement supersedes and extends the March 4 order that relaxed deadlines for reporting requirements between March 1 and April 30. Here is the official press release from the SEC with additional details.
Federal Tax Return Filing Deadline Moved to July 15, 2020
On March 20, Treasury Secretary Steven Mnuchin wrote “all taxpayers and businesses will have additional time to file and make payments without interest or penalties.” It is expected the IRS will follow up on Mnuchin’s statement by providing detailed guidance regarding the deadline extension. Here are additional details as of March 20, 2020.
SBA Disaster Assistance in Response to the Coronavirus
The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of COVID-19. As of March 20, eligible states and districts include: Arizona, California, Colorado, Connecticut, Delaware, District of Columbia and Florida. Learn more details about the application process on the SBA website.
IRS Extends Tax Payment Deadline by 90 Days Due to Coronavirus
On March 17, Treasury Secretary Steven Mnuchin said the IRS will allow taxpayers to defer some tax payments for 90 days, which would otherwise be due on April 15, 2020. The following day, the IRS issued Notice 2020-17 to provide official guidance regarding postponing federal income tax payments due April 15, 2020. Here is an update, as of March 19, 2020.
Tax Filing Deadline Updates – Current IRS and California FTB Guidance
Federal and state tax authorities have responded to COVID-19 by announcing extensions of some tax filing deadlines for most taxpayers. Here is an update, as of March 16, 2020.