PPP and COVID-19 Tax Updates and Information

Blog

Open Mon-Fri, 9am-5pm
Office: (212) 279-9800
info@robertprussocpa.com

Client Portal

$100 bill with Benjamin Franklin wearing a medical mask.

Answers to Questions about Economic Impact Payments

Posted on April 22nd, 2020

COVID Tax Tip 2020-44, April 22, 2020

The IRS is issuing Economic Impact Payments. These payments are being issued automatically for most individuals. However, some people who don’t usually file a tax return will need to submit basic information to the IRS to receive their payment.
Read More…

Tags: , ,

« »

IRS Opens Portal for Non-Filers’ Virus Relief Direct Deposit Info

Posted on April 13th, 2020

Taxpayers who aren’t required to file annual returns can now use an IRS.gov web portal to submit basic personal and financial information necessary to receive coronavirus economic impact statements. Read More…

Tags: , ,

« »

Relief for Other Coronavirus-related Tax Issues

Posted on April 5th, 2020

Relief for taxpayers facing the challenges of COVID-19-related tax issues is now available through the IRS People First initiative. The projected start date will be April 1 and the effort will initially run through July 15, 2020. During this period, to the maximum extent possible, in-person contact will be avoided; however, the IRS will continue to take steps where necessary to protect all applicable statutes of limitations.

Some of the highlights affecting taxpayers include: Read More…

Tags: , ,

« »

The Tax-Smart Way to Loan Money to Friends & Family

Posted on April 4th, 2020

Offering to lend money to cash-strapped friends or family members during tough economic times is a kind and generous offer, but before you hand over the cash, you need to plan ahead to avoid tax complications for yourself down the road.

Take a look at this example: Let’s say you decide to loan $5,000 to your daughter who’s been out of work for over a year and is having difficulty keeping up with the mortgage payments on her condo. While you may be tempted to charge an interest rate of zero percent, you should resist the temptation.

Here’s why: Read More…

Tags: , ,

« »

Tax-exempt Organizations e-filing requirements & Forms

Posted on April 4th, 2020

The Taxpayer First Act enacted July 1, 2019, requires tax-exempt organizations to electronically file information returns and related forms. Those that previously filed paper forms will receive a letter from the IRS informing them of the change.

The new law affects tax-exempt organizations in tax years beginning after July 1, 2019, and applies to the following IRS forms (filing deadlines vary by form type):

  • Form 990, Return of Organization Exempt from Income Tax.
  • Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation.
  • Form 8872, Political Organization Report of Contributions and Expenditures.
  • Form 1065, U.S. Return of Partnership Income (if filed by a Section 501(d) apostolic organization).

Read More…

Tags: , ,

« »

Tax Breaks Help Small and Medium-sized Employers

Posted on April 3rd, 2020

Small and medium-sized employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act), signed into law on March 18, 2020.

Subsequent legislation, the CARES Act, includes a provision that delays payment of employer payroll taxes due in 2020 with half due December 31, 2021 and the rest due December 31, 2022.These same dates and amounts apply to tax owed by self-employed individuals as well with 50 percent due December 31, 2021 and the remaining amount not due until December 31, 2022.

Read More…

Tags: , ,

« »

Five Tips to Protect Against Identity Theft

Posted on April 3rd, 2020

Tax-related ID theft occurs when someone uses a taxpayer’s stolen personal information to file a tax return claiming a fraudulent refund. Thieves then use personal information like a stolen Social Security number. While the accounting profession and IRS work hard to prevent identity theft, taxpayers also play an important role. Read More…

Tags: , ,

« »

sba-covid-loand-grants

SBA COVID-19 Loans and Grant Application Information

Posted on April 2nd, 2020

Paycheck Protection program

The SBA has just released the application for the Paycheck Protection program. This program is for a forgivable loan to help small businesses and self-employed to help pay for payroll, health insurance, rent, and utilities. I have attached a link to the application and an information sheet.

Here is the link for the application: Paycheck Protection Program application

PLEASE READ THIS INFORMATION SHEET BEFORE YOU FILL OUT THE FORM OR CONTACT US: accompanying borrower guide

The application will be submitted to your bank. So you will need to contact them. The banks are supposed to start taking applications ON 4/3.

THIS PROGRAM WILL BE IN HEAVY DEMAND SO YOU SHOULD APPLY ASAP

 

SBA Loans and Grants Programs

As COVID-19 continues to progress in the United States, we know that this situation can be especially hard on small businesses. On behalf of everyone at Robert P Russo CPA PC, we’re here for you during this tough time.

With the passage of the CARES ACT, signed into law on March 27, 2020, the SBA has launched a new program to allow faster access to funds with less documentation. The application process is entirely online and it’s now quicker and easier to get the assistance your business needs. Go to https://covid19relief.sba.gov to apply now.

It allows you to apply for a $10,000 tax-free grant and loan. It is fairly simple to fill out with little documentation. Also, small business owners can access up to $2 million through an Economic Injury Disaster Loan (EIDL) with an interest rate no higher than 4%. There are no upfront fees or early payment penalties. Repayment terms are determined by a small business’ ability to repay the loan, with terms up to 30 years.

By Friday 4/3 the SBA will be rolling out another Relief program call the Payroll Protection Program. This will offer forgivable loans up to $2 million dollars. We will have more information on this as it becomes available.

As always, please feel free to contact us if you need assistance or sign up for our free email newsletter.

Read all our Coronavirus updates as information becomes available.

Tags: ,

« »

What You Need to Know About the Paid Sick and Family Leave Tax Credits

Posted on April 2nd, 2020

The Families First Coronavirus Response Act (FFCRA) signed on March 18, 2020, made unprecedented expansions to paid sick and family (childcare) leave provisions in light of the challenges for the American workforce due to COVID-19. The expansions to paid sick and family leave cover employers with up to 500 employees, and tax credits are available for up to 100% of qualifying wages paid. Eligible employers are granted a grace period by the DOL to come into compliance with the Act as long as employers act reasonably and in good faith during the grace period. Read More…

Tags: ,

« »

Employer Resource Guide: FAQ – Adjustments to FMLA and Paid Sick Leave in Response to COVID-19

Posted on April 2nd, 2020

*Disclaimer: Robert P. Russo CPA, PC has put together this guide from various resources that are publicly available to help address the many questions we are getting from our business owners. This is not a substitute for professional advice from an employment attorney. We recommend you seek out advice from your employment attorney.

The COVID-19 virus has made fast, drastic changes to how we live and work. State-mandated business closures are creating challenges and generating many questions on how to preserve business continuity during this period. On March 18, 2020, President Trump signed the Families First Coronavirus Response Act (FFCRA) which takes effect on April 2. The bill expanded paid sick leave and unemployment benefits, impacting employees and employers, among other provisions.

In an effort to help consolidate the various pieces of legislation and important information from the Department of Labor (DOL), we’ve created a list of the most frequently asked questions regarding unemployment insurance benefits, the Family and Medical Leave Act (FMLA), and the changes made by the FFCRA and the Fair Labor Standards Act (FLSA). Frequently asked questions included in this document are: Read More…

Tags: ,

« »

Families First Coronavirus Response Act — Benefits and Tax Relief

Posted on April 2nd, 2020

The Families First Coronavirus Response Act (FFCRA), passed by Congress and signed by President Trump on March 18, 2020, will become law 15 days after the signing. FFCRA provides benefits such as paid sick leave, free coronavirus testing, expanded food assistance and unemployment benefits, and requires that employers provide additional safeguards for health care workers. For many, it provides welcome support as employers and employees deal with the extraordinary effects of COVID-19 on the workforce and economy. Read More…

Tags: ,

« »

CARES Act: Information for Individual Taxpayers

Posted on April 2nd, 2020

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, the stimulus bill that was signed into law on March 27, 2020, contains legislation to stabilize the economy during the coronavirus pandemic. These measures include economic recovery checks for taxpayers, as well as several other tax provisions affecting individuals.

Let’s take a look at a few of the highlights: Read More…

Tags: , , ,

« »

High-deductible Plans Cover Costs for Coronavirus

Posted on April 2nd, 2020

You can use high-deductible health plans (HDHPs) to pay for 2019 Novel Coronavirus (COVID-19)-related testing and treatment, without jeopardizing their status and you may continue to contribute to a health savings account (HSA). Read More…

Tags: , ,

« »

Tax Refunds: Just the Facts | Factors Affecting Refund Timing

Posted on April 1st, 2020

As tax-filing season gets underway, taxpayers may be anticipating receiving their refund by a certain date, especially if they plan on making major purchases or paying bills. While some tax returns are processed quickly, others may require additional review. As such, those refunds may take longer.

Just as each tax return is unique and individual, so is each taxpayer’s refund. Here is what taxpayers should keep in mind as they are waiting for their refund – especially if they hear about or see that other taxpayers on social media have already received theirs. Read More…

Tags: , ,

« »