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June 4 Update

House Bill H.R. 7010 passed the Senate and is now on its way to the President to sign. In addition to amendments relating to the PPP loan program, the bill provides that the deferral of employment taxes is now available even for taxpayers who have PPP loans that re forgiven under the CARES Act. This will allow taxpayers who obtain PPP loans and intend to apply for loan forgiveness to also defer the applicable employment taxes.

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On May 13, 2020, the Small Business Administration (“SBA”) issued anxiously awaited guidance outlining the agency’s perspective on the good faith certifications made by Paycheck Protection Program (“PPP”) applicants. (See, PPP Frequently Asked Questions, #46).

PPP recipients of loans less than $2 million found relief in the SBA’s statement that it would deem those recipients to have made the certification in good faith.

For those with PPP loans at or above $2 million, the SBA will require the recipient to adequately support its certification. If the recipient fails to do so, the SBA indicated it will seek repayment of the loan in full, but the agency will not pursue administrative enforcement or refer the matter to other agencies.Continue Reading SBA Issues New Guidance Addressing PPP Loan “Good Faith” Certification

Two Fort Myers tax lawyers will once again host a complimentary webinar to help the Southwest Florida community understand the tax law changes in light of the COVID-19 crisis. On Friday, May 1, 2020, from 12:00 to 1:00 pm, Lindsay Sablan, a journalist and WINK News morning anchor, will serve as moderator, with speakers attorney Shanthy Bala, the Tax Clinic Director and Supervising Associate at Florida Rural Legal Services, Inc., and Sara Qureshi, a business and tax attorney at Henderson, Franklin, Starnes & Holt, P.A., will present “Tax Law Changes Amidst COVID-19: Further Guidance Providing Relief to Individuals and Small Businesses” in association with the Lee County Bar Association and its Pro Bono Committee.

This one-hour session will go over recent updates and frequently asked questions regarding federal tax relief available for individuals and businesses during COVID-19, including questions that were submitted to the clinic after the last webinar on April 3rd. Questions may be submitted in advance by email to Shanthy.Bala@FRLS.org.

Continuing EducationContinue Reading May 1 Webinar to Provide Guidance on COVID-19 Tax Relief for Individuals and Small Businesses

June 4 Update

House Bill H.R. 7010 passed the Senate and is now on its way to the President to sign. In addition to amendments relating to the PPP loan program, the bill provides that the deferral of employment taxes is now available even for taxpayers who have PPP loans that re forgiven under the CARES Act. This will allow taxpayers who obtain PPP loans and intend to apply for loan forgiveness to also defer the applicable employment taxes.

April 30, 2020 Update

The IRS has issued Notice 2020-32, which provides further guidance on some certain tax consequences associated with PPP loans. In particular, the IRS has confirmed that expenses paid with PPP loans will not be deductible to the extent attributable to the portion of the loan forgiven.

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Following up on my post earlier this week regarding the CARES Act Payroll Protection Program Update: SBA Issues Some Guidance and Sample Application, the Final Rule has been issued and may be found here.

A summary of the highlights include:
Continue Reading COVID-19: SBA Issues Payroll Protection Program Loan Interim Rule Effective April 2, 2020

June 4 Update

House Bill H.R. 7010 passed the Senate and is now on its way to the President to sign. In addition to amendments relating to the PPP loan program, the bill provides that the deferral of employment taxes is now available even for taxpayers who have PPP loans that re forgiven under the CARES Act. This will allow taxpayers who obtain PPP loans and intend to apply for loan forgiveness to also defer the applicable employment taxes.

April 30, 2020 Update

The IRS has issued Notice 2020-32, which provides further guidance on some certain tax consequences associated with PPP loans. In particular, the IRS has confirmed that expenses paid with PPP loans will not be deductible to the extent attributable to the portion of the loan forgiven.

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On March 27, 2020, the federal government enacted the CARES Act. The Act includes a $349 billion dollar stimulus package available to small businesses in the form of a Small Business Administration 7(a) loan, known as a Paycheck Protection Program Loan. The loan is forgivable, and amounts to grant, if certain conditions are met. Below is a summary of the Paycheck Protection Program Loan terms and conditions along with a summary of a few other loan related provisions in the Act.

1.      Paycheck Protection Program Loan under 7(a) (NOTE: use of this loan may preclude eligibility for tax credits and payroll tax deferral under CARES Act)

Continue Reading COVID-19: Understanding the SBA Paycheck Protection Program Loan under the CARES Act