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Treatment of Expenses Used in the Application for PPP Loan Forgiveness

The Internal Revenue Service has issued guidance on the tax treatment of expenses used in the application for forgiveness of Paycheck Protection Program (PPP) loans. The IRS had previously issued a statement that any expenses that were used in qualifying for PPP forgiveness would not be deductible, leaving several questions as to how this ruling would be applied. On November 18, 2020, Revenue Rule... Read More

Loan Necessity Questionnaires

In an effort to obtain the required supporting documentation for Paycheck Protection Program Loans exceeding $2 million, the SBA has published a notice seeking to release two questionnaires, one for for-profit borrowers and one for non-profit borrowers. The questionnaires will be administered through PPP lenders and are intended to support the borrower's good-faith certification regarding the economic... Read More

SBA Updates for PPP Borrowers

New Streamlined PPP Loan Forgiveness Application The SBA has approved a simplified one-page PPP loan forgiveness application for loans of $50,000 or less. The new streamlined form makes the application process much easier for borrowers who obtained less than $50,000. The new form 3508S does not require calculations or reporting of employee hours and salaries. Rather,... Read More

SBA Guidance on PPP Loans and Change of Ownership

On October 2, 2020 the SBA issued a procedural notice regarding Paycheck Protection Program Loans and changes of ownership. The notice clarifies the required procedures for changes of ownership of an entity that received PPP funds.Definition of Change of Ownership: At least 20 percent of the common stock or other ownership interest of a PPP borrower is sold or otherwise transferred The borrower sells or... Read More

HLB Named Network of the Year

HLB is proud to announce that it has been named 'Network of the Year' at the 2020 Digital Accountancy Awards. The award was presented at the virtual ceremony which took place on 30 September. Team HLB were also celebrating with Dr Frances Ellington of HLB USA who was awarded 'Young Accountant of the Year'. Widely regarded as the industry's premier awards program, the Digital Accountancy Awards celebrate... Read More

Payroll Tax Deferral Effective Sept. 1

The IRS has issued new guidance on the payroll tax deferral that was ordered by President Trump's Executive Order on August 8. This guidance requires the immediate attention of employers, as the payroll tax relief is applicable to wages paid from September 1, 2020, through December 31, 2020.Employers can defer the withholding, deposit, and payment of the employee portion of the Old Age, Survivors, and Disability... Read More

SBA Issues Interim Final Rule for PPP

The SBA has released new guidance on PPP loan forgiveness. This guidance provides the following clarifications on prior PPP-related legislation:Owner exemption from the PPP owner-employee compensation rule - Owner-employees with less than a 5 percent ownership stake in a C or S Corporation are not subject to the owner-employee compensation rule. This exemption is intended to cover owner-employees who have no... Read More

Suspension of Required Minimum Distributions

An important provision within the CARES Act is the suspension of Required Minimum Distributions ("RMDs") from qualified retirement plans and IRAs for 2020. 2019 RMDs that were not taken before January 1, 2020 and that were required to be taken by April 1, 2020 are also waived. There are no coronavirus eligibility requirements associated with this suspension. Taxpayers who have already taken some of their 2020... Read More

Trump Issues Executive Orders for Economic Relief

While lawmakers have been unable to agree on the next phase of relief, President Trump has signed four executive orders to provide immediate economic relief. The executive orders address the following:Unemployment payments: While the $600 per week additional unemployment payment instated in the CARES Act has lapsed, the executive orders reinstate an additional unemployment benefit of $400 per week through... Read More