YHB is committed to responding as quickly as possible to developments regarding COVID-19 (Coronavirus) and keeping you informed. We will continue to share helpful resources related to tax changes and other key issues as they develop to ensure you are prepared to navigate these unprecedented issues.
PPP Loan Forgiveness Process Eased For Borrowers of $50,000 or Less
On October 8th, 2020 the U.S. Small Business Administration (SBA) released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. The SBA is hoping this simpler forgiveness process will help the countries smallest businesses who were impacted by COVID-19 by removing some of the red tape around forgiveness.
Should I wait to Apply for Forgiveness?
Many loan recipients are anxious to submit an application for forgiveness, especially if it seems apparent on the surface that 100% forgiveness will be obtained. However, the decision to apply for forgiveness is not one to be done in haste. The consequences could include an unexpected reduction in the forgiveness amount as well as an administrative burden with the application that may be avoidable.
An Update on PPP
As we head into the (possible) final days before the August 8th deadline to apply for the PPP, it’s important to remember a few key points and recent changes to the original law…
Paycheck Protection Program Flexibility Act of 2020
The new law follows the May 22, 2020, release of an interim final rule from the SBA on PPP loan forgiveness requirements. Among other areas, that guidance addresses the calculation of full-time employees and total salary or wages for purposes of loan forgiveness reductions.
Important Requirements on PPP Loans
It is important to remind borrowers it is their sole responsibility to determine & certify their eligibility to receive a PPP loan. The guidance sets a May 18 deadline for borrowers to repay funds…
PPP – What We Know & Don’t Know About Loan Forgiveness
While many applicants are still wondering if they made the cut to receive funds, questions surrounding how much qualifies for forgiveness are already bubbling to the surface.
Paycheck Protection Program Application
The Department of Treasury has released the Paycheck Protection Program application. Make sure you review all the documents before submitting along with the application.
PPP Loan Forgiveness Application
On Friday, May 15, 2020 the Small Business Administration (SBA) and the Department of the Treasury released the Paycheck Protection Program (PPP) Loan Forgiveness Application and instructions for the application.
SBA Clarifies Good-Faith Certification
The Treasury Department and the SBA have been slowly providing additional clarity to the massive PPP via their FAQ PDF. On May 13, 2020 a new FAQ was added to help bring some insight concerning the good-faith certification.
The IRS clarifies the deductibility of PPP-funded expenses
The IRS has issued new guidance addressing a question that has lingered since the launch of PPP — whether expenses paid for with forgiven, tax-free PPP loan proceeds are deductible.
SBA Guidance & Loan Resources
The SBA has released several resources to assist small businesses impacted by the COVID-19 including low-interest disaster loans, among other business friendly programs.
Financial Reporting Considerations
The AICPA’s Center for Plain English Accounting released a report addressing financial reporting matters that should be considered in light of the COVID-19 Pandemic. (External Link)
Business Decisions During an Epidemic
YHB’s Emergency Response Team has been working hard for the last several weeks to keep us running smoothly. Here are some tips from a member.
Changes to Unemployment Benefits
With many businesses forced to layoff employees as a result of the COVID-19 pandemic, states are quickly enacting changes to Unemployment Benefits.
- Does someone who has died qualify for an Economic Impact Payment?
- What are the key distinctions between layoffs and furloughs?
- Questions to ask when making COVID-19 Risk Disclosures
- Corona Virus May Affect Financial Reporting
- CARES Act Offers New Hope for Cash Strapped Nonprofits
- The CARES Act Employee Retention Tax Credit
- Senate Passes CARES Act
- Using Your Financial Statement During an Economic Crises
Federal & State Changes
Federal Tax Filing Delayed
Treasury Secretary Mnuchin announced the federal income tax filing deadline has been extended to July 15, 2020. For an Affected Taxpayer, there are no additional forms needed to extend filing a federal return.
Federal Tax Payment Delayed
On March 17th it was announced individual taxpayers can receive a deadline extension on paying federal taxes. The IRS later clarified “There is no limitation on the amount of the payment that may be postponed”…
Virginia Tax Update
Governor Northam & the General Assembly announced tax changes to assist VA residents and businesses impacted by COVID-19. VA has now extended the state income tax filing & payment deadline to June 1.
State Tax Filing Relief
U.S. states are providing tax filing and payment due date relief for individuals and businesses. The AICPA has compiled the latest developments.
Interim Stimulus Plan
The $484 billion legislation, which is being referred to as the Interim Stimulus Plan, amends the CARES Act. Among other things, it provides additional funding to PPP.
Gift Tax Filing & Payments Extended
The U.S. Treasury Department extended the April 15, 2020, federal gift tax filing and payment deadline to July 15, 2020. However, interest, penalties and additions to tax will begin to accrue on July 16, 2020.
IRS Extends More Tax Deadline
The Department of Treasury and the IRS announced an extension for individuals, trusts, estates, corporations and other non-corporate tax filers that have a filing or payment deadline falling on or after April 1, and before July 15. Find additional details in this article.
The Economic Impact Payment – Debit Card
If you have not yet received your Economic Stimulus Payment, you may want to open all envelopes right now, and be extra careful in deciding what to keep and what to toss. For those in this last wave of payments – be on the lookout for a very unassuming and unlabeled envelope arriving at your home.
Economic Impact Payment Resources
The payments, also referred to by some as stimulus payments, are automatic for most taxpayers. No further action is needed by taxpayers who filed tax returns in 2018 and 2019 and most seniors and retirees.
Industry Specific Resources
Our team works with community banks all over the region. We have compiled resources to help your financial institute during this time.
Whether your not-for-profit is newly deluged with demand for services or you’ve closed doors temporarily, it’s important to keep up with legislation responding to the COVID-19 crisis.
Committed to Community, Clients & Our Team Members
The safety and well-being of our clients and team members are always the highest priority at YHB. We have taken proactive steps to provide for the continuity of our services and care for our team members during this time. Our thoughts remain with everyone affected by the COVID-19 crisis as we navigate these unprecedented times. YHB is committed to walking alongside you and the communities we serve in the days ahead. It is a privilege to serve you during this time.