Updates to PPP Loans
At the end of 2020, Congress passed, and President Trump signed, a new law that provides for additional relief related to the coronavirus (COVID-19) pandemic. This law, the Consolidated Appropriations…
Business Income Tax Planning Subjects for 2020
Depreciation Deductions Among the many changes made by the CARES Act, the one which may have the most impact is the correction of a technical error made in the Tax Cuts…
Individual Income Tax Planning Subjects for 2020
Effect of CARES Act Rebate on Your 2020 Tax Return Under the CARES Act, individuals with income under a certain level are entitled to a recovery rebate tax credit. These are direct payments…
IRS Guidance on deferring withholding and payment of payroll taxes
The Department of Treasury and Internal Revenue Service issued guidance (August 28, 2020) implementing the Presidential Memorandum issued on August 8, 2020, allowing employers to defer withholding and payment of the employee's…
SBA Clarifies Loan Forgiveness Limits for Owner Compensation; Releases New EZ Loan Forgiveness Application
The Small Business Administration an interim final rule that clarifies the amount of compensation that self-employed individuals are eligible to have forgiven. The SBA also revised its Paycheck Protection Program…
Paycheck Protection Program Flexibility Act
As you may know, the initial rollout of the program was rocky and some provisions of the program were criticized by businesses as not doing enough to help. In an…
Summary of Small Business Administration (SBA) Relief Programs
As there is much information and law changes occurring lately, below is a brief summary of some relief programs for businesses effected by the COVID-19 pandemic. Paycheck Protection Program (PPP)…
Second Quarter Estimated Tax Payments for 2020
The IRS just announced that the second quarter estimated tax payment for individuals that was due on June 15, 2020 has been pushed back to July 15, 2020. Therefore, the…
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…
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…
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…
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…
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…
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…
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…
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…
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.…
IRS Provides Extension for Federal Income Tax Payments Due April 15
The IRS has provided tax payment relief for any person with a federal income tax payment due April 15. On March 13, 2020, the President issued an emergency declaration under…
Families First Coronavirus Response Act
The President has signed the Families First Coronavirus Act (HR 6201, the "Act") intended to ease the economic consequences stemming from the novel coronavirus disease (COVID-19) outbreak by providing family…
An Update from us on COVID-19
As COVID-19 continues to impact our communities, here at Newsom And Associates, we wanted to touch base with you and share what we are doing from our end. As information and…