On June 5, 2020, the President signed into law the Paycheck Protection Program Flexibility Act of 2020, which makes additional changes to the loan forgiveness requirements under the original SBA Payroll Protection Program Loan.
Hot off the press, Treasury has issued the PPP Loan Forgiveness Application (SBA Form 3508).
You may be wondering about some of the recent tax changes meant to help everyone coping with the Coronavirus fallout. We know you have been inundated with information over the last two weeks, but it is important to have an understanding of how the tax-related provisions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, may impact you. In an effort to “keep it brief,” below we have summarized the individual tax provisions of the CARES Act.
Changes to the FMLA and Emergency Paid Sick Leave Become Effective April 2nd - is Your Business Prepared?
We hope that you and your families are well, and your business is weathering the COVID-19 storm. As part of our goal to help you and your business remain healthy, we want to draw your attention to the Families First Coronavirus Response Act which becomes effective April 2, 2020. To keep you and your employees adequately informed, we advise you to update your company Policy Manual to incorporate the new rules. And, for those that have not yet adopted a formal Policy Manual, now is the time to do so. As always, should you need any assistance, we stand by ready to help.
Many business owners, CFOs, and other persons with authority over payroll, are unaware that failing to properly withhold and deposit payroll taxes for their employees can result in the imposition of personal liability equal to 100% of the uncollected payroll tax deficiency known as the “trust fund recovery penalty.”
Victims of recent severe storms and flooding in numerous states have more time to make tax payments and file returns if they are affected taxpayers in counties that have been designated as federal disaster areas qualifying for individual assistance. Certain other time-sensitive acts also are postponed. The IRS has recently announced on its website that additional areas in Virginia have been designated as federal disaster areas qualifying for individual assistance.
When you owe money to the IRS, penalties and interest can add up, and eventually, the IRS can collect the money you owe with forced collection actions such as liens, levies, wage garnishments and asset seizures. If you owe back taxes, it’s best to pay the IRS as soon as possible or work out a suitable payment arrangement. Several different payment arrangements are available if you qualify (for example, the Offer in Compromise, Installment Agreement and Currently Non-Collectible Status), and by far the most common of these is the Installment Agreement.
When you owe money to the IRS, penalties and interest can add up, and eventually, the IRS can collect the money you owe with forced collection actions such as liens, levies, wage garnishments and asset seizures. It’s best to pay the IRS as soon as possible or work out a payment arrangement with the IRS. Several collection alternatives are available if you qualify.
Despite the current estate tax laws which have eliminated the estate tax for the vast majority of people, one of the most popular estate tax planning vehicles (the Irrevocable Life Insurance Trust “ILIT”) still remains a corner piece of many estate plans. Few people realize all the benefits of an ILIT, and assume that without an estate tax liability, the ILIT has become obsolete – untrue.
This is the unfortunate case of John Spottiswood and Nancy Miyasaki, a married couple seeking an abatement and refund of penalties they paid for late filing their return and late payment their 2012 income taxes. While this decision coming out of the U.S. District Court for the Northern District of California will make all taxpayers a little nervous, it should scare the bejeezus out of tax return preparers. It serves as an example of how liability for tax return preparation and filing in general, has subtly shifted from taxpayers to the preparers with the proliferation of electronic tax return filing.