SBA Issues Updated Economic Aid Act PPP Loan Forgiveness Guidance
On December 27, 2020, Congress enacted the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the “Economic Aid Act”) – part of the Consolidated Appropriations Act of 2021 – which included a number of changes to the Paycheck Protection Program (“PPP”). Most of these changes center around eligibility...
Next Wave of PPP Loan Applications BeginsBy Michael J. Greenwald MPPM, CPA, Business Tax Leader
The Treasury Department and the Small Business Administration (“SBA”) have announced that they will begin accepting applications for new Paycheck Protection Program (“PPP”) Loans from some borrowers beginning Monday, January 11th. The Second Draw Application can be found here. There is also a revised application for First Draw PPP Loans...
Additional Tax Related Provisions of the Consolidated Appropriations Act, 2021By Michael J. Greenwald, MPPM, CPA, Business Tax Leader
The initial attention generated by the Consolidated Appropriations Act, 2021 (“the Act”) focused on the economic relief provisions – enhancement and expansion of the Paycheck Protection Loan program, extension of unemployment benefits, a second round of stimulus checks, etc. – but the Act also addressed a number of tax and...
Congress Finally Passes the Emergency Coronavirus Relief Act of 2020By Author: Michael Greenwald, MPPM, CPA, Business Tax Leader
Like college students right before winter break, the 116th Congress closed its term with one last all-nighter. And, while the Consolidated Appropriations Act, 2021 does not include many relief provisions deemed vital by Democrat or Republican representatives and senators, there is still much that both sides agreed was necessary –...
Latest IRS Guidance Dashes Hopes of Deducting Expenses Paid with PPP LoansBy Michael Greenwald, MPPM, CPA, Business Tax Leader
The Paycheck Protection Program (“PPP”), passed as part of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), was a welcome relief for small businesses, providing a financial lifeline through the recession caused by COVID-19. The fact that forgiven loans wouldn’t be taxable income made PPP even more useful....
IRS Issues Guidance Confirming Deductibility of State Tax Payments by Pass-Through Entities Not Subject to SALT CAPBy By Christian J. Burgos, J.D., LL.M., Managing Principal and Tom Corrie, JD, LL.M., Principal
On November 9, 2020, the Internal Revenue Service (“IRS”) issued Notice 2020-75 (“Notice”), which announced that proposed regulations will be forthcoming, clarifying the deductibility of “state and local income taxes imposed on and paid by a partnership or an S corporation” (collectively, “Pass-Through Entities” or “PTEs”) on its non-separately stated...
SBA Creates New PPP Uncertainty with its Uncertainty Certification FormsBy Jeffrey Resnick, CPA, Partner and Michael J. Greenwald, MPPM, CPA, Business Tax Leader
Over the course of the Paycheck Protection Program (“PPP”), the Small Business Administration (“SBA”) has released guidance in the form of FAQs. In April and May, guidance was released on Borrowers’ good faith certification of their eligibility for PPP loans and explained how the SBA would review such good-faith certification.
How COVID-19 Relief Programs Impact Your Pension Plan Administration
Various forms of government relief have been issued in an effort to soften the economic impact of COVID-19. As the IRS and Treasury have released guidance governing the implementation of programs like the CARES Act and Paycheck Protection Program (“PPP”) have evolved, the impact on your business’ pension administration has...
The SBA Releases More PPP Loan Guidance Affecting Loan Forgiveness and Changes of Ownership
It has been six weeks since we last heard from the SBA and Treasury with regard to Paycheck Protection Loan forgiveness despite the fact that the guidance released to that point left many questions unanswered.
Well, in the past week the Administration released guidance dealing with changes of ownership of an...
Treasury Issues Guidance on Payroll Tax Withholding DeferralBy Michael J. Greenwald, MPPM, CPA, Partner, Business Entity Tax Practice Leader
With four days to spare before the effective date of Tuesday, September 1, Treasury finally released guidance implementing the President’s August 8 Executive Order allowing taxpayers to defer withholding of the employee’s portion of Social Security taxes. At two and a half pages, (double spaced with wide borders) the guidance...
The SBA’s Latest Guidance AnalyzedBy Michael J. Greenwald, MPPM, CPA, Partner, Business Entity Tax Practice Leader
Why Borrowers May Have to Rethink Their Approach to Loan Forgiveness
Sailing Through Uncharted Waters: Working Remotely During the Pandemic and New York’s “Convenience of the Employer Rule”
As taxpayers continue to wrestle with the challenges brought about by the COVID-19 pandemic, one important question remains, how will working from home affect them from a state and local tax perspective? Their concern generally centers around the possibility of being taxed on the same income by more than one...
IRS Publishes Final Regulations on SALT Cap Workarounds
Last week, the Treasury and IRS announced final regulations limiting the effectiveness of certain State and Local Tax (“SALT”) cap workarounds.
Following the December 2017 enactment of the Tax Cuts and Jobs Act (“TCJA”), which limited individuals’ itemized deductions for state and local taxes to $10,000 ($5,000 for married persons filing separately),...
SBA Issues Yet Another PPP Loan Forgiveness FAQ
As the Small Business Administration (SBA) gets ready to accept lenders’ Paycheck Protection Program (PPP) loan forgiveness applications on August 10, the Administration and Treasury issued guidance in the form of 10 pages of Frequently Asked Questions (“FAQ”) designed to further aid borrowers and lenders with the forgiveness process. Click here...
IRS Clears Up Some Confusion on Business Interest DeductionsBy Michael J. Greenwald, MPPM, CPA, Partner, Business Entity Tax Practice Leader
The Tax Cuts and Jobs Act (“TCJA”) was the most sweeping overhaul of the Internal Revenue Code since President Reagan’s Tax Reform Act of 1986. Given the fact that there were no hearings on TCJA and little advance legislative planning, many of the law’s provisions required regulatory clarification. However, the...
IRS Finally Releases Business Interest Expense Regulations
On July 28, the Internal Revenue Service finally released its guidance on the deductibility of business interest. We expected this release in March. However, the pandemic put the IRS on hold and then Congress made changes to the law in the Coronavirus Aid, Relief and Economic Security (“CARES”) Act.
The SBA Issues Yet Another PPP Loan Forgiveness Application UpdateBy By Michael J. Greenwald, MPPM, CPA, Partner, Business Entity Tax Practice Leader and Jeffrey Resnick, CPA, Partner
In a departure from its previous practice, the Small Business Administration (“SBA”) chose to release its latest update – clarifications to the Interim and Final Rules on forgiveness application timelines, owner compensation and other aspects of the forgiveness process – on a Monday night (June 22). The release provides revisions...
SBA Updates PPP Loan Forgiveness Process for PPPFA ChangesBy Michael J. Greenwald, MPPM, CPA, Partner, Business Entity Tax Practice Leader and Jeffrey Resnick, CPA, Partner
It’s been a busy week for those of us involved with the Paycheck Protection Program (“PPP”). Late Tuesday evening, the Small Business Administration (“SBA”) and Treasury released an updated PPP Loan Forgiveness Application, a simplified Application, and instructions for both to account for the changes to PPP in the new...
Do States CARES [Act]?
The COVID-19 pandemic has caused a monumental fiscal crisis not seen in the U.S. since the Great Depression. In response, the federal government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a tax and spending bill intended to provide much-needed economic relief. To date, the CARES Act is...
Taxing Nonresidents in the Time of a Pandemic: New York vs. New Jersey
Conceptually, state income taxes imposed on nonresidents is straightforward. Under the Due Process and Commerce Clauses of the U.S. Constitution, states may levy taxes on nonresidents’ income earned within the state boundaries. Said differently, if one works, carries on business, or engages in professional activities within a state, he is...
Congress Passes the Paycheck Protection Program Flexibility Act
The Paycheck Protection Program (“PPP”) enacted in late March was intended to be a lifeline for small businesses. Experience showed that in its rush to be helpful, Congress left some gaps and traps for the unwary. Treasury and the Small Business Administration (“SBA”), in efforts to fill the gaps, created...
Further SBA Guidance on PPP Loan Forgiveness as of May 22, 2020
Acknowledging that all gave some and some gave all, allow us to take a moment to thank those of you who served or had family members who made the ultimate sacrifice in service to our country – whether on the battlefield, or in the battle we now face.
On Memorial Day...
SBA and Treasury Release Paycheck Protection Program Loan Forgiveness Application
Fortunately, borrowers now have official guidance regarding Paycheck Protection Program (“PPP”) loan forgiveness in the form of an application with detailed instructions. The Small Business Administration (“SBA”) said they will also issue regulations and guidance to further assist borrowers as they complete their applications. Lenders will also receive further guidance on...
New PPP Guidance: Safe Harbor for Good Faith Certification
The Small Business Administration (“SBA”) has released additional guidance attempting to clarify how it will view the good faith certification required of the Paycheck Protection Program’s (“PPP”) loan borrowers. The Administration previously advised borrowers that if they did not have a good faith basis for their certification of need they...
SBA Publishes Interim Final Rule on PPP Loans and Partner Compensation
On May 13, the SBA released an Interim Final Rule (“IFR”) which will enable certain partnerships that applied for Paycheck Protection Program (“PPP”) loans but did not include partner income in their loan amount to go back to their lender and get an additional disbursement.
If a partnership received a PPP...
IRS Releases Guidance on Deductibility of PPP ExpensesBy Michael J. Greenwald, MPPM, CPA, Partner, Barry S. Sziklay, CPA, ABV, CFF, PFS, Partner and Alan Goldenberg, JD, MBA, LL.M., Principal
Since the CARES Act was passed, taxpayers and their advisors have wondered if expenses paid for with Paycheck Protection Program (“PPP”) loan funds that were ultimately forgiven will still be deductible for income tax purposes.
The IRS has just released guidance (Internal Revenue Notice 2020-32) which states that no deduction will...
Treasury and SBA Release Guidance on Calculating PPP LoansBy Michael J. Greenwald, MPPM, CPA, Partner, Business Entity Tax Practice Leader
On April 24, the Small Business Administration (“SBA”) and Department of the Treasury published a Q&A outlining how businesses of varying structures can calculate their payroll costs to determine the value of loans they are eligible to receive through the Paycheck Protection Program (“PPP”).
Notably, the guidance suggests that the U.S....
New Bill Allocates Additional Funding to PPPBy Michael J. Greenwald, MPPM, CPA, Partner, Business Entity Tax Practice Leader
The president signed a $484 billion coronavirus relief bill that will replenish the funds available to small businesses through the Paycheck Protection Program (“PPP”). The SBA announced that new loan applications will be accepted starting at 10:30 AM on Monday, April 27.
The bill appropriates $321 billion in new funds to...
Track Your PPP Loan Spending to Ensure You Qualify for ForgivenessBy Michael J. Greenwald, MPPM, CPA, Partner, Business Entity Tax Practice Leader and Denise McKnight, CPA, Partner
Following a frantic rush to become familiar with the CARES Act, and the Paycheck Protection Program (“PPP”) it introduced, businesses whose loans have been funded must now focus on carefully tracking how they spend their PPP loan.
While the process of calculating and applying for forgiveness of PPP debt is not...
COVID-19 and Real Estate: Resources, Legislation and Your BusinessBy Michael J. Greenwald, MPPM, CPA, Partner, Business Entity Tax Practice Leader and Thomas P. Terry, CPA, Partner
The real estate industry stands to be significantly affected by the economic impact of the COVID-19 pandemic. To help guide property developers, owners and managers, Friedman has compiled information on relief programs you may be able to take advantage of, CARES Act tax provisions that can be leveraged to maximize...
Small Business Relief Initiative
Small business owners across America are struggling to keep their workers employed and their businesses alive. In response, the U.S. Chamber of Commerce launched a new $5,000 grant program known as the “Save Small Business Initiative,” which you may be eligible for.
The initiative went live April 21 at noon and...
Summary of State Relief Activity
The chart below, a work in progress, provides a summary of state activity relating to extended tax due dates. States are continually updating their information and the dates listed are subject to change. In addition, we have prepared a summary of small business relief available through state and local programs.
IRS Clarifies Tax Deferral Option for PPP Borrowers
Michael Greenwald, MPPM, CPA, Partner, Business Entity Tax Practice Leader
Beyond PPP: Other Sources of Relief for NJ Businesses By Robert E. Fiorentino, CPA, Partner
The Paycheck Protection Program (PPP), introduced in the CARES Act, is the Small Business Administration’s (SBA) relief program designed to deliver loans eligible for forgiveness to many small businesses with employee headcounts lower than 500.
However, the PPP is not available to many businesses with fewer than 500 employees because entities...
Federal Reserve Publishes Terms for New Business Loan ProgramsBy Michael Greenwald, MPPM, CPA, Partner, Business Entity Tax Practice Leader
Two Federal Reserve programs, the Main Street New Loan Facility and Main Street Expanded Loan Facility, which together will make up to $600 billion available to small and medium-sized businesses, were the subject of term sheets published by the agency on April 9.
These terms sheets clarify the mechanisms by which...
IRS Issues New Guidance on COVID-19 ReliefBy Michael J. Greenwald MPPM, CPA, Partner
In a flurry of activity on Thursday, the IRS issued a News Release, two Notices and two Revenue Procedures providing guidance to taxpayers on how to apply for relief offered by the CARES Act — as well as administrative relief granted by the IRS under its existing authority.
The IRS previously...
[UPDATED] Paycheck Protection Program Update
Following the signing of the CARES Act, the Small Business Administration (SBA) and Treasury Department announced today that they have initiated a robust mobilization effort of banks and other lending institutions to provide small businesses with the capital they need.
Treasury Secretary Steve Mnunchin stated that he expects the Treasury and...
How the CARES Act Impacts Accounting for Income Taxes in Financial StatementsBy Brian Kearns, CPA, Partner
The CARES Act was designed to offer relief to business owners, keep businesses open and support their ability to meet payroll obligations. Even if your business doesn’t qualify for the loans offered under the act, it will have implications for your business from an income tax perspective. Here are highlights...
Interim Final Guidance For Implementing the Paycheck Protection Program
Last night (April 2nd), the Treasury Department issued Interim Final Guidance implementing the Paycheck Protection Program. While the rules do clarify some of the questions we had about the program, they contain some new inconsistencies. As we attempt to resolve these issues as best we can, recognize that these new...
[UPDATED] Key Aspects of the Coronavirus Aid, Relief and Economic Security (CARES) ActBy By Michael J. Greenwald MPPM, CPA, Partner
[NEW] Relief for Workers Affected By Coronavirus Act Flowchart
On March 27 the President signed the CARES Act, or coronavirus stimulus bill. The key aspects of the bill are summarized below.
Paycheck Protection Program
Small businesses with 500 or fewer employees during the “covered period” – February 15 through June 30, 2020 are eligible....
Friedman’s Remote Work Arrangement
While we are in the midst of a very uncertain time, Friedman’s commitment to the health and safety of our clients, colleagues and communities remains our utmost concern.
On March 17th, in compliance with nationwide guidelines, Friedman enacted a mandatory work from home arrangement. As the situation evolves, we will continue...
SEC Amendments and Updates Relating to COVID-19By By Sviatlana Tsiaptseyeva, CPA, Partner
This short summary provides a recap of some additional U.S. Securities and Exchange Commission (SEC) announcements during the month of March. Earlier in the month, the SEC announced:
Shareholder annual meetings should be postponed or held virtually
U.S. companies with filing deadlines have an additional 45 days to file reports (applies to...
Understanding The Paycheck Protection ProgramBy Michael Sacco, CPA, Partner
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocates $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses. The Small Business Administration (“SBA”) will be releasing more...
At a Glance: How COVID-19 is Affecting the Life Sciences IndustryBy By Robert E. Fiorentino, CPA, Partner
“Researchers at America’s biopharmaceutical companies are working around the clock to contain the spread of the novel coronavirus and deliver treatments to those impacted by this deadly disease. Today, we renew our commitment as an industry to help those in need, protect our workforce and ensure any treatments we develop...
IRS People First InitiativeBy David Shuster, JD, LL.M., Principal
To assist taxpayers facing issues related to COVID-19, the IRS yesterday announced its People First Initiative, which, beginning on or about April 1 and continuing through at least July 15, will temporarily adjust certain IRS compliance programs. During this period, the IRS will:
Allow taxpayers to suspend payments due under existing...
Be First in Line for Relief: Preparing Your Claims for RecoveryBy Randall M. Paulikens, CPA, ABV, CFF, CITP, Partner
While many companies hold Business Interruption insurance, most policies have endorsements that specifically exclude coverage for virus and bacteria issues and/or require physical damage to property. However, a few state legislatures are seeking to retroactively compel the insurance companies, who wrote business interruption policies in their respective states, to provide...
UPDATED: IRS Tax Filing Guidance on ExtensionsBy Michael J. Greenwald MPPM, CPA, Partner
On March 20, the IRS released a notice providing guidance for taxpayers with respect to the extension of time to file tax returns and to make certain tax payments. The details are as follows:
The due date for filing federal income tax returns and making federal income tax payments due April...
Families First Coronavirus Response Act Key TakeawaysBy Michael J. Greenwald MPPM, CPA, Partner
UPDATE: On March 20th, the U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor announced plans to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave. To learn more, click here.
On March 18th, the...
NYC Delays the Deadline to File Tax Appeal
On the evening of March 20th, New York City's Mayor, Bill de Blasio, signed an executive order delaying the deadline to file a tax appeal to no earlier than 30 days after the State of Emergency is lifted. Download the PDF above for the details.
NYC to Waive Excise Tax Penalties for Late FilersBy Alan Goldenberg, JD, LL.M., Principal
On March 19, the Commissioner of New York City’s Department of Finance, Jacques Jiha, announced that New York City will allow for a waiver of penalties for business and excise taxes due between March 16, 2020 and April 25, 2020. Taxpayers may request to have penalties waived on late filed...