The third round of coronavirus relief legislation is intended to offer economic aid to businesses and self-employed, but also includes additional direct payments to and other forms of tax relief and credits for individual taxpayers. Key tax provisions have been outlined in this detailed post from Shannon & Associates…
Type: Shannon Alert
Alert: Year-end Reminder – Winter 2020
Don’t lose valuable deductions or incur additional costs. Special Reporting Required: The IRS requires special reporting for fringe benefits for S- Corporation owners who own more than 2% of the business. Certain family members including spouse, child, parent and grandparent of the S-Corporation owner and who works for the S-Corporation are also…
Oregon Corporate Activity Tax – DOR Issuing Notices
The Oregon Department of Revenue (DOR) has recently begun issuing notices regarding the Oregon Corporate Activity Tax (CAT) to taxpayers with business activity within the state. The CAT is effective for tax years beginning on or after January 1, 2020, making 2020 the initial year of implementation.
Estate Tax Planning: It is Time To Do Some Work
If your estate as a married couple is worth more than $10 million dollars (or if you are single and your estate is worth more than $5 million), it is time to review your estate planning documents. Under current federal estate tax laws, a married couple can die with $23.18 million dollars and not pay any federal estate taxes. That may…
Employment Security Department Provides Opportunity to Offset Benefit Charges
In March 2020 the state of Washington passed a law allocating $25 million to the COVID-19 Unemployment Account. This is not a refund or reimbursement but an offset against benefit charges instead of charging them to your…
Alert! Anticipated Major Changes to PPP Finally Here
The Paycheck Protection Program created by CARES has been a key piece of relief for businesses impacted by Covid-19. However, the SBA and Treasury’s 8-week limitation to use the funds and 75% requirement to spend the funds only on “payroll costs” (as defined) has caused unnecessary hardship for businesses already hurting and which are greatly in need of funds. Learn more here.
SBA and Treasury Release PPP Loan Forgiveness Application and Instructions
Friday the U.S. Small Business Administration, in consultation with the U.S Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application. The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
NEW Safe-Harbor for Recipients of PPP Loans under $2 Million and Clarification for Those with over $2 Million in PPP Funds
Great news comes to us this week as the Treasury updated their FAQs on PPP regarding the Good Faith certification concerning the “need” for a PPP Loan. This FAQ provided much-needed clarity regarding those that accepted PPP funds and might now be second-guessing themselves with all the recent talk of audits of PPP loan requests, consideration of returning funds, etc.
Employee Retention Credit – An Alternative to the Paycheck Protection Program Loan
The Employee Retention Credit is an alternative to the Paycheck Protection Program Loan. The CARES Act includes a payroll tax credit called the Employee Retention Credit. Employers who did not obtain a PPP loan can take advantage of this credit. The following Shannon Alert provides details on the credit. What is it? Which employers Qualify? How does this credit work with other available relief? And more.
Shannon Alert – COVID-19 Economic Impact Payments
The impact of the 2019 Novel Coronavirus (COVID-19) pandemic has been significant, changing our daily lives at a rapid pace and presenting the economy with an unprecedented challenge. There has been a wave of relief efforts and legislation aiming to minimize the impact on business and individual taxpayers alike. Learn more in this detailed post from Shannon & Associates.