Tax Monitor

COVID-19 Continues to Reshape Landlord and Tenant Relationships: CDC Halts Residential Evictions

September 2, 2020

The Department of Health and Human Services through the Centers for Disease Control and Prevention (CDC) issued an agency order (Order) halting evictions nationwide for many tenants of residential properties.¹ The Order is far reaching and comes with significant criminal sanctions for violation.  However, it is not a universal halt to residential evictions. Safely navigating the landlord and…

Proposed Regulations Provide Guidance on Entities That Can Use Small Business Accounting

August 31, 2020

Recent IRS proposed regulations outline new accounting method procedures for businesses who want to use the cash method for accounting and how they can qualify to do so under expanded statutory requirements.

The IRS recently issued proposed regulations to implement changes made to the permissible accounting method used by small businesses under the Tax Cuts and Jobs Act of 2017 (“TCJA”). While…

Refining Definitions of Owner-employees and Forgivable Occupancy Costs for PPP Loans

August 25, 2020

The Small Business Administration (SBA) continues to issue new rules defining forgivable costs under the Paycheck Protection Program (PPP). On August 24, 2020, the SBA issued interim final rule “Business Loan Program Temporary Changes; Paycheck Protection Program - Treatment of Owners and Forgiveness of Certain Nonpayroll Costs”¹ (IFR). The IFR answers three questions. The questions relate to the…

SBA updates FAQs to address agent fees and EIDL advances

August 13, 2020

On August 11, 2020 the Small Business Administration (SBA) updated two separate FAQs related to the Paycheck Protection Program (PPP). The updates address agent fees and Economic Injury Disaster Loans (EIDL).

The update to “Paycheck Protection Program Loans Frequently Asked Questions (FAQs)”¹  added two questions. First, the SBA stated that payment or nonpayment of fees to an agent or other third…

Borrowers now have an appeal process when adversely impacted by PPP loan reviews

August 13, 2020

The Small Business Administration (SBA) has issued a rule providing a limited appeal process under the Paycheck Protection Program (PPP) for borrowers adversely impacted by SBA reviews. The appeal process is available only after the SBA has engaged in a review of a PPP loan and only for a limited number of issues.

On August 11, 2020, the SBA issued an interim final rule titled “Appeals of SBA Loan…

SBA issues PPP Loan Forgiveness FAQs

August 6, 2020

As the August 10, 2020 date for the Small Business Administration (SBA) to begin processing forgiveness applications for loans made under the Paycheck Protection Program (PPP) approaches, the SBA has issued “Paycheck Protection Program Frequently Asked Questions (FAQs) on PPP Loan Forgiveness.” The FAQs address general forgiveness questions as well as questions related to payroll, non-payroll and…

SBA forgiveness portal to go live August 10

July 24, 2020

The Small Business Administration (SBA) announced its intention to launch a loan forgiveness portal for lenders on August 10, 2020. Loans made by lenders under the Paycheck Protection Program (PPP) to qualified borrowers may be forgiven in whole or in part if certain certifications as to the use of the loan proceeds are satisfied. While the SBA has issued forgiveness application forms and…

Reg. O exemption for PPP loans extended to August 8, 2020

July 16, 2020

The Federal Reserve has issued a final rule extending Regulation O exemptions for PPP loans made by a bank to its directors or other insiders to August 8, 2020.¹ The new rule continues the exemptions contained in a prior rule issued on April 17, 2020. The prior rule expired on June 30, 2020.

Regulation O generally limits the terms and amounts for credit extended to a bank’s insiders. These limits…

Paycheck Protection Program (PPP) loan deadline extended to August 8

July 6, 2020

On the fourth of July, the President signed Senate Bill 4116 into law. The new law extends the deadline for submitting an application for a Paycheck Protection Program (PPP) loan to August 8, 2020. The PPP loan application deadline had previously expired on June 30, 2020. The new law reopens the program established under the CARES Act and modified by the PPP Flexibility Act.

PPP FAQ 49 added to 6/25/2020 update

June 26, 2020

On June 25, 2020, the Small Business Administration in consultation with the Treasury updated its Frequently Asked Questions (FAQ) to add Question 49. It confirms that the previously issued rules regarding the maturity dates of PPP loans.

SBA’s Twenty-Second IFR Addresses PPP guidance for Commercial Fishing Boat Owners and Crewmembers

June 26, 2020

Last night the SBA issued its 22nd IFR addressing the treatment of PPP forgiveness for commercial fishing boat owners and crewmembers working on the boats that are considered independent contractors or self-employed for certain tax purposes under 26 U.S.C. 3121(b)(20) of the Internal Revenue Code. If the boat owner included payments to crewmembers in a PPP loan, the boat owner can treat the…

SBA Refines Ineligibility Standards for Felonies

June 25, 2020

The Small Business Administration (SBA) has continued to refine the nature of a business owner’s criminal history that will make the business ineligible for a loan under the Paycheck Protection Program (PPP). On June 24, 2020, the SBA issued its 21st Interim Final Rule related to the PPP program: Business Loan Program Temporary Changes; Paycheck Protection Program-Additional Eligibility Revisions…