The Treasury Department and the Small Business Administration have announced that they will revise the loan forgiveness form and other guidance for the Payroll Protection Program (“PPP”) to reflect new legislation that was enacted last week. The Payroll Protection Program Flexibility Act of 2020 was enacted on June 5, 2020. The law extends the covered period for the Payroll Protection Prog...
As discussed in our post on March 24, 2020, New York State had previously announced that certain businesses that missed the March 20, 2020 due date for filing sales tax returns covering the quarter (or year) ended on February 29, 2020 were eligible for relief from penalties and interest, if such businesses missed the due date due to the COVID-19 outbreak. Under the original provisions of the r...
On May 15, 2020, the Small Business Administration issued the form for requesting forgiveness of loans under the payroll protection program (“PPP.”) The form and it’s instructions is available at: https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf Update: The Treasury Department and the Small Business Administration have announced that they...
As discussed in our posts on April 14, 2020, April 9, 2020, and March 31, 2020, the federal law enacted on March 27, 2020 includes a provision to send recovery rebates to taxpayers. The IRS now refers to these payments as economic impact payments. The IRS has sent numerous economic impact payments to taxpayers who are deceased. On May 6, 2020, the IRS updated its frequently asked questions (...
The IRS recently issued Notice 2020-32, which disallows the deduction for wages or certain other expenses paid with proceeds from a loan from the Payroll Protection Program, to the extent that the loan is forgiven. (Such forgiveness is excluded from income.) Some members of Congress have indicated that they disagree with this interpretation and have introduced new legislation to change this tr...
As discussed in our post on March 31, 2020, the federal law enacted on March 27, 2020 retroactively fixed a drafting error related to qualified improvement property in the Tax Cuts and Jobs Act of 2017. Qualified improvement property is eligible for bonus depreciation retroactively effective to January 1, 2018. In addition, also retroactively effective to January 1, 2018, the depreciable life ...
On April 9, 2020, the IRS issued Notice 2020-23, which postpones many tax-related due dates that had not been addressed in previous guidance. As a result, tax return or payment due dates that originally fell between April 1 and July 15, 2020 are generally postponed until July 15, 2020. Second quarter estimated income tax payments for individuals for the 2020 tax year, which were originally due...
As is in our post on April 9, 2020, individuals who received Social Security benefits and who are not required to file a federal income tax return will generally receive a recovery rebate without having to take any action. For other individuals who are not required to file a federal income tax return, the IRS has set up a portal for such individuals to provide information needed to receive a rec...
As discussed in our post on March 31, 2020, the new law signed on March 27, 2020 establishes the paycheck protection loan program, which provides that loans made to certain employers will be forgiven if the employers retain their employees for at least eight weeks after the loan occurs and the employers provide the required documentation that payroll payments were made to the employees or for ce...
In Notice 2020-20, the IRS announced that the postponement of the income tax filing due date from April 15 to July 15, 2020 also applies for federal gift tax returns and any payments due for gift tax or generation-skipping tax.
