Congress Passes Year End Funding and Pandemic Aid Package
The bill includes tax deductibility of PPP expenses and new round of PPP loans
IRS Clarifies the Calculation of UBTI for Tax-Exempt Organizations
On November 19, Treasury and the IRS released final regulations, T.D. 9933, providing guidance on Internal Revenue Code section 512(a)(6). The guidance clarifies how a tax-exempt organization determines if it has more than one unrelated trade or business, and if so, how to calculate its unrelated business taxable income (UBTI). Section 512(a)(6), added by the…
Maryland Changes the Taxation of Pass-through Entities
On May 8, 2020, the State of Maryland enacted SB 0523, Income Tax – Pass-Through Entities and Corporations, which authorizes pass-through entities (PTEs) such as partnerships and S-corporations the option to elect to pay Maryland state income tax on an entity level rather than “passing it through” to the entity owner. Many other states have…
IRS Clarifies Tax Treatment of Expenses Paid with PPP Loans
As thousands of businesses and nonprofit organizations prepare and submit their Paycheck Protection Program (PPP) loan forgiveness applications, they may not be aware of recent IRS guidance regarding the tax treatment of expenses paid with PPP loans. PPP borrowers with pending forgiveness applications (filed or unfiled) should understand the recent guidance and factor nondeductible expenses…
Simplified PPP Loan Forgiveness for Loans of $50,000 or Less
In an effort to support small businesses and nonprofits significantly impacted by COVID-19 and the resulting economic crisis, the Small Business Administration (SBA) and Treasury announced a simple Paycheck Protection Program (PPP) loan forgiveness application for loans of $50,000 or less. Read the Interim Final Rule on the simpler forgiveness process for loans of $50,000…
Should You Take Advantage of the Payroll Tax Deferral?
While Congress and the Administration continue debating the next round of economic relief in response to the continuing COVID-19 pandemic, President Trump issued a memorandum in early August directing the Treasury Secretary to defer the withholding, deposit and payment of employees’ payroll taxes. In lieu of another stimulus check, employees have the option to defer…
Single Audit Reporting Deadline Rescinded and Other Updates from OMB
By Tricia Katebini, CPA, MBA, Audit Senior Manager In a previous industry alert, OMB Offers Relief for Recipients of Federal Financial Assistance Directly Impacted by COVID-19, GRF reported that OMB was granting flexibility related to the use of Federal funding for the allowability of salaries and other project activities, along with extensions of Single Audit…
SBA Releases Revised Loan Forgiveness Application for the PPP
Reflecting changes made to the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) with enactment of The Paycheck Protection Program Flexibility Act of 2020 earlier this month, SBA has released a revised loan forgiveness application and instructions. This follows the issuance of a new interim final rule for guidance on calculating employee and owner compensation…
Accounting Standards Update 2020-05 Delays ASC Topic 606 (Revenue From Contracts With Customers) and Topic 842 (Leases) Effective Date for Certain Entities
As noted in a previous GRF industry alert, on April 8, 2020, the Financial Accounting Standards Board (FASB), added a project to its technical agenda to propose delaying the effective dates of its standards on revenue recognition and lease accounting for certain entities due to challenges related to the COVID-19 pandemic. The particular Accounting Standards…
President Trump Signs Bill Making Significant Changes to the PPP
Today, President Trump signed a bipartisan bill that makes significant changes to the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) established as part of the CARES Act on March 27, 2020. The Paycheck Protection Program Flexibility Act of 2020 provides important fixes sought after by business groups and extends the timeframe for PPP loan…