May 2020 Newsletter
In This Issue:
- Due to COVID-19, Manufacturing Will Experience Five Years of Innovation in the Next 18 Months
- COVID Tax Tip 2020-59
- What To Do With Your Stimulus Check
- Telemedicine Company Doctor on Demand Bets on Coronavirus Changes With Big Medicare Push
- Staff News
- Leadership Spotlight: Ashley Bolick
SBA and Treasury Release Paycheck Protection Program Loan Forgiveness Application
Washington — Friday, May 15, 2020, the Small Business Administration (SBA), in consultation with the Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application. The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). SBA will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.
SBA Announces Safe Harbor for PPP Borrowers with Loans for Less Than $2M
Today, the SBA published Frequently Asked Question ("FAQ") 46, which provides some answers for PPP borrowers who are concerned about the good faith certification. Following the recent announcement that the Small Business Administration would review any Paycheck Protection Program loans made in amounts exceeding $2 million, the agency today issued guidance extending an automatic safe harbor to borrowers receiving PPP loans with an original principal amount of less than $2 million. These borrowers “will be deemed to have made the required certification concerning the necessity of the loan request in good faith,” SBA said in updates to its PPP FAQ today.
Borrowers that received PPP loans for amounts over $2 million will be subject to review by the SBA for compliance with program requirements, including the certification of economic need. “If SBA determines in the course of its review that a borrower lacked an adequate basis for the required certification concerning the necessity of the loan request, SBA will seek repayment of the outstanding PPP loan balance and will inform the lender that the borrower is not eligible for loan forgiveness,” SBA said.
Service Disallows Tax Deductions For Eligible PPP Expenditures
On April 30, the IRS issued Notice 2020-32 providing guidance regarding the deductibility for federal income tax purposes of certain otherwise deductible expenses incurred in a taxpayer’s trade or business when the taxpayer receives a loan (covered loan) pursuant to the Paycheck Protection Program (PPP).
Federal Reserve Announces Main Street Business Lending Program as Part of Additional Actions to Provide Economic Aid
On April 9, the Federal Reserve announced additional actions it will take to provide up to $2.3 trillion in loans to support the U.S. economy. The Federal Reserve believes this funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic.
COVID-19’s Impact on U.S. Retirement Plans
Business leaders face an array of questions they need to answer and information they must analyze during the rapidly evolving response to the COVID-19 pandemic.
Paycheck Protection Program Loans Frequently Asked Questions (FAQs)
Courtesy of the US Department of the Treasury
As of April 7, 2020, the Small Business Administration (SBA), in consultation with the Department of the Treasury, intends to provide timely additional guidance to address borrower and lender questions concerning the implementation of the Paycheck Protection Program (PPP), established by section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or the Act). This document will be updated on a regular basis.
How does the CARES Act Help Nonprofits and Higher Education Institutions?
Nonprofit organizations and higher education institutions have been hard at work trying to help the world navigate the novel coronavirus (COVID-19) pandemic. While trying to maintain focus on their missions, these organizations and institutions face massive uncertainty in the face of COVID-19, including financial turmoil, layoffs, remote work, quarantines, shelter-in-place orders and other measures.
April 2020 Newsletter
In This Issue:
- New Retirement Account Rules in Response to Coronavirus
- Electronic Payments Look More Appealing as People Fear Cash Could Spread Coronavirus
- What to Do With Your 401(k) When You Retire
- Parents Who Adopt Can Benefit From This Valuable Tax Credit
- Meet Our Wilmington Office Staff
- Leadership Spotlight: Michael H. Womble, CPA
North Carolina Leaders Announce Shared Support for Deferring Interest on Income Tax Until July 15
Raleigh, N.C. – North Carolina leaders announced shared bipartisan support for deferring the accrual of interest on state income taxes filed before July 15, 2020, in a joint statement released by General Assembly lawmakers and Governor Cooper on Tuesday, March 31, 2020.
CARES Act: Employee Retention Credit
After days of furious negotiations, Congress has passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The $2.2 trillion price tag for tax relief and incentives for individuals and businesses makes it the most expensive piece of legislation ever passed. It includes a provision for a refundable payroll tax credit for 50 percent of wages paid by employers to employees during the COVID-19 crisis.
Coronavirus Emergency Loans Small Business Guide and Checklist
COURTESY US CHAMBER OF COMMERCE
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $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 who maintain their payroll during this emergency.
President Trump Signs Into Law Cares Act
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security (CARES) Act, which provides relief to taxpayers affected by the novel coronavirus (COVID-19). The CARES Act is the third round of federal government aid related to COVID-19. We have summarized the top provisions in the new legislation below, with more detailed alerts on individual provisions to follow.
Important Notice: Department of Revenue Extends the Time to File Income and Franchise Tax Returns to July 15, 2020
The N.C. Department of Revenue (NCDOR) recently announced that they will extend the April 15 tax filing deadline to July 15 for individual, corporate, and franchise taxes to mirror the announced deadline change from the Internal Revenue Service.
Tax Day Now July 15: Treasury, IRS Extend Filing Deadline and Federal Tax Payments Regardless of Amount Owed
The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.
IRS Releases COVID-19 Payment Relief
On March 18, 2020, the Internal Revenue Service released Notice 2020-17, formal guidance describing relief provided to taxpayers for federal income tax payments due April 15, 2020. Notice 2020-17 is available here.
Federal Aid Package Helps Individuals Affected By COVID-19
The Families First Coronavirus Response Act (H.R. 6201), became law on March 18, 2020. The Act guarantees free testing for the novel coronavirus (COVID-19), establishes emergency paid sick leave, expands family and medical leave, enhances unemployment insurance, expands food security initiatives, and increases federal Medicaid funding.
Spring 2020 Nonprofit Newsletter
In This Issue:
- Coronavirus Strikes Nonprofits in More Ways than One
Now present on every continent except Antarctica, COVID-19 has infected more than 125,000 people, and is responsible for more than 4,600 deaths. With the number of cases in the U.S. continuing to climb, individuals and companies alike are taking steps to prepare for a pandemic. From a shortage of masks and hand sanitizer, to CDC-imposed travel restrictions and the cancellation of conferences and other large events across the globe, this public health emergency is rapidly evolving and all sectors are having to navigate its impact and uncertainty around what the future holds.
The nonprofit industry is no exception—in fact, they face more challenges than most.
February 2020 Newsletter
In This Issue:
- New Rules for Deducting Meals and Entertainment
- Final Section 263A Regulations
- IRS Proposes Rules to Update Income Tax Withholding, Revises Form W-4
- Are you interested in joining an energetic, growth-oriented firm?
- Staff News
- Leadership Spotlight: MaryEllen Prance, CPA
Final Section 263A Regulations: What Companies Need to Know
What is Section 263A? Section 263A, often referred to as the Uniform Capitalization rules or UNICAP, requires taxpayers to capitalize direct and indirect costs properly allocable to real or tangible personal property produced or acquired for resale by the taxpayer. For example, manufacturers, resellers and distributors of inventory generally must undertake an analysis every tax year to determine which costs must be capitalized, rather than currently expensed, under Section 263A. The costs that must be capitalized for tax purposes typically exceed the amounts capitalized for financial accounting purposes. Accordingly, many taxpayers must capitalize “additional Section 263A” costs to property acquired or produced as an unfavorable temporary book/tax adjustment (i.e., an addback to taxable income).
January 2020 Newsletter
In This Issue:
- Williams Overman Pierce, LLP + Barker Jones & Co.
- Williams Overman Pierce Is Pleased to Announce That Dan Lavelle Has Been Admitted as Its Newest Partner
- Williams Overman Pierce Staff Promotions