Tax MonitorCoronavirus/COVID-19The Internal Revenue Service Issues New FAQs Regarding the Employee Retention CreditMay 15, 2020 The Internal Revenue Service (“IRS”) recently updated its frequently asked questions (“FAQs”) regarding the Employee Retention Credit (“ERC”) under the CARES Act. Here are some important highlights. What is a government order that completely or partially suspends an employer’s operations? Recall that the ERC allows an Eligible Employer to receive a tax credit in the amount of 50% of the qualified… Electric Cooperatives May Be Eligible For PPP LoansMay 15, 2020 Electric cooperatives that are tax exempt under 501(c)(12) of the Internal Revenue Code (Code) are considered business entities organized for profit and therefore eligible for loans under the Paycheck Protection Program (PPP) as long as other eligibility requirements are met. The Treasury Department published its Eleventh interim final rule: “Business Loan Program Temporary Changes; Paycheck… CARES ACT - QUICK REFERENCE GUIDEMay 14, 2020 With the flood of information, we wanted to provide financial advisors and plan sponsors with a summary FAQ quick reference guide for key topics. Here are the Most Commonly Asked Questions and Answers currently available. We will keep you apprised of any further developments. Certainly, feel free to reach out to us with any questions. Jackson Kelly PLLC is here, as we have been for 200 years, to… PPP FAQ 47 added to 5/13/2020 updateMay 14, 2020 The PPP safe harbor term for “necessary” certification is extended to May 18, 2020. Late on May 13, 2020, the Treasury updated its Frequently Asked Questions (FAQ) to add Question 47. It provides that the SBA will be revising the interim final rule providing for the safe harbor for repayment of PPP loans. The revision will extend the repayment deadline from May 14 to May 18 to provide borrowers… PPP Loan Increases Possible For Partnerships And Seasonal Employers If The Initial Loan Has Not Been Reported By The LenderMay 14, 2020 For Paycheck Protection Program (PPP) loans not yet reported by the lender on Small Business Administration (SBA) Form 1502, certain borrowers may apply to increase the amount of their initial loan. Partnerships that applied for a PPP loan under the rules applied prior to April 28, 2020 and seasonal employers that applied for a PPP loan under the rules applied prior to April 14, 2020 may be… Economic Necessity Safe HarborMay 13, 2020 The SBA provided a great deal of relief to PPP loan borrowers today concerning the economic necessity certification. In a new FAQ 46, the SBA provided a safe harbor concerning the economic necessity certification which required borrowers to certify in good faith that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” The SBA has… Internal Revenue Service Updates Cafeteria Plan And Health Flexible Spending Arrangement Rules In The Face Of COVID-19May 13, 2020 With the issuance of Notice 2020-29 and Notice 2020-33, the Internal Revenue Service (“IRS”) increased the carryover amount allowed for health flexible spending arrangements and expanded election rules for cafeteria plans. Employers wanting to offer these new options and provide additional flexibility to their employees must amend their plans. CARRYOVER AMOUNT INCREASED FOR HEALTH FLEXIBLE… PPP Safe Harbor Extended For All Applications But Still No Guidance On “Necessity” Certification.May 11, 2020 On May 8, 2020, the Treasury Department issued its Ninth Interim Final Rule (Ninth IFR) related to the Paycheck Protection Program. The Ninth IFR revises the language in Part III. 5. of the Fourth Interim Final Rule1 issued April 25, 2020 providing a “Limited Safe Harbor with Respect to Certification Concerning Need for PPP Loan Request.” Significantly, this revision to the Fourth Interim Final… Certifier Beware: Certifications & Liability Under the False Claims ActMay 8, 2020 Mark Twain once observed that while history does not repeat itself, “it rhymes.” The federal government’s response to COVID-19 is likely to follow a familiar pattern: (a) the federal government will continue to provide massive amounts of financial aid in an effort to stave off the worst economic effects of the crisis; (b) some of those funds will be allocated to entities that the public perceives… Safe Harbor Extended; Questions Still UnansweredMay 6, 2020 On May 5th, the Department of the Treasury updated the Paycheck Protection Program Frequently Asked Questions to add questions 43 and 44. In answer to question 43, the Treasury extends the “safe harbor” for repayment of PPP loans from May 7, 2020 to May 14, 2020. The “safe harbor” provides that the SBA will deem a borrower to have made in good faith the certification “current economic uncertainty… Eighth SBA Interim Final Rule Addresses PPP Eligibility Questions on Non-discrimination and Student WorkersMay 6, 2020 On May 5, 2020, the Treasury Department issued its eighth interim final rule (IFR) related to the Paycheck Protection Program, “Business Loan Program Temporary Changes; Paycheck Protection Program-Nondiscrimination and Additional Eligibility Criteria.” The IFR answers two questions related to eligibility; non-discrimination and student workers. Non-discrimination Recipients of PPP loans are… SBA Update To FAQs Begins To Address Forgiveness QuestionsMay 4, 2020 The Treasury issued an update to the Paycheck Protection Program Frequently Asked Questions on Sunday, May 3, 2020. The update added Question 40: “Will a borrower’s PPP loan forgiveness amount …be reduced if the borrower laid off an employee, offered to rehire the same employee, but the employee declined the offer?” The answer is no. Treasury promised that a forthcoming interim final rule will… |
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