Small Business Interruption Loan

These are SBA 7(a) loans that have been authorized for the SBA to lend to small businesses as part of the Coronavirus Aid, Relief and Economic Securities (CARES) Act. Any business with 500 or fewer employees can apply.  The business does not have to be completely or partially shutdown.  Any business that applies is presumed […]

Paycheck Protection Program (PPP)

This is an SBA loan that helps businesses keep their workforce employed during the COVID-19 crisis. Lenders may begin processing these loans as soon as April 3, 2020 but has a planned expiration date of June 30, 2020. See this website for further details: https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp#section-header-6  

Delay the Federal 2019 Tax Filing Deadline and Quarterly Estimated Payments

The economic downturn and public health crisis has hit as many firms and individuals are completing tax returns for the 2019 tax year. The IRS has extended the income tax filing and payment deadlines for all taxpayers who originally were required to file and pay their Federal income taxes on April 15, 2020.  The 2019 […]

Certain SBA loan debt forgiveness isn’t taxable.

Amounts of Small Business Administration Section 7(a)(36) guaranteed loans that are forgiven under the CARES Act aren’t taxable as discharge of indebtedness income if the forgiven amounts are used for one of several permitted purposes. The loans have to be made during the period beginning on February 15, 2020 and ending on June 30, 2020.

Delayed payment of employer payroll taxes. Business Provision.

Taxpayers (including self-employed individuals) will be able to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022. Taxes that can be deferred include the 6.2% employer portion […]

Employee retention credit for employers. Business Provision.

Eligible employers can qualify for a refundable credit against, generally, the employer’s 6.2% portion of the Social Security (OASDI) payroll tax (or against the Railroad Retirement tax) for 50% of certain wages (below) paid to employees during the COVID-19 crisis.  The credit is available to employers carrying on business during 2020, including non-profits (but not […]

Waiver of required distribution rules.

Required minimum distributions that otherwise would have to be made in 2020 from defined contribution plans and IRAs are waived. This includes distributions that would have been required by April 1, 2020, due to the account owner’s having turned age 70 1/2 in 2019.

Waiver of 10% early distribution penalty.

The additional 10% tax on early distributions from IRAs and defined contribution plans is waived for distributions made between January 1 and December 31, 2020 by a person who (or whose family) is infected with the Coronavirus or who is economically harmed by the Coronavirus. Penalty-free distributions are limited to $100,000, and may, subject to […]

Recovery rebates for individuals.

To help individuals stay afloat during this time of economic uncertainty, the government will send up to $1,200 payments to eligible taxpayers and $2,400 for married couples filing joints returns. An additional $500 additional payment will be sent to taxpayers for each qualifying child dependent under age 17. Rebates are gradually phased out, at a […]