Important Information About IRS Tax Notices

Over the past few months, taxpayers who have sent payments to the IRS have still been receiving balance due notices. This is due to an IRS backlog in processing mail because of COVID-19 related closures. In response to a letter from the chairman of the House Ways & Means Committee, the IRS is working to…

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IRS Delivers Temporary Midyear Relief to 401(K) and 403(B) Safe Harbor Plans

Plan sponsors that have already or are considering reducing or suspending contributions to their safe harbor 401(k) or 403(b) plans as a result of the coronavirus pandemic now have helpful relief thanks to new guidance from the Internal Revenue Service (IRS). In Notice 2020-52, the IRS recognized that many employers are facing unprecedented financial challenges as…

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President Enacts Option to Defer Certain Payroll Taxes Until the End Of 2020

On August 8, 2020, President Trump issued an executive order which will allow deferral of certain payroll tax payments. This action only applies to employees who generally earn less than $4,000 per biweekly pay period (approximately $2,000 per week or $104,000 annually). Such an employee may temporarily defer their portion of Social Security tax (6.2%).…

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Upcoming Sales Tax Holidays

Maryland and Virginia are holding sales tax holidays in the month of August. The “Shop Maryland Tax-Free Week” for 2020 is Sunday, August 9 – Saturday, August 15. Virginia is holding its annual sales tax holiday on August 7-9, 2020. See below for more details. Maryland: Dates: August 9-15 Items Included: Qualifying apparel and footwear…

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Borrower Accounting for PPP Loans

Although the legal form of the PPP loan is debt, some believe the loan is, in substance, a government grant. This has caused confusion on how borrowers should account for the loans under Generally Accepted Accounting Principles (GAAP). There is no guidance in existing GAAP that specifically addresses the accounting for forgivable loans obtained from,…

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Notice: Paycheck Protection Program has reopened.

The Paycheck Protection Program began accepting new applications July 6, 2020, at 9:00 AM EDT in response to the Paycheck Protection Program Extension Act. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020. https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program  

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IRS Confirms July 15th Deadline Won’t be Pushed Back Again

On June 29, 2020 the IRS confirmed that the July 15th tax deadline will not be pushed off again.  Taxpayers who will not be able to file their returns by this date should file automatic extensions.  However, taxpayers that will owe taxes will still need to pay by July 15th, or face penalties and interest.…

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New PPP Loan Forgiveness Applications

This article was published on June 18, 2020. The SBA has finally released updated Paycheck Protection Program (PPP) Loan Forgiveness Applications and instructions. You read that right, two forgiveness applications were released. The initially released PPP Loan Forgiveness Application (Form 3508) combined the instructions and the various parts of the application into a single 11…

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