This weekend many businesses and their tax advisers are still trying to sort out the complexities of Small Business Administration Paycheck Protection Program.
It's part of the $2 trillion federal coronavirus relief package, officially known as the CARES Act, that became law on March 27. The Paycheck Protection Program, or PPP, was created to get cash relatively quickly to small business owners whose operations have taken hits due to the pandemic and efforts to stem it, such as forced closures.
It's supposed to have less red tape than the existing SBA loan programs and offers loan forgiveness to encourage businesses to keep employees on payroll. But like most things involving any government, there are lots of snafus, at least in the early stages.
The PPP is just the latest of the myriad CARES' components getting attention. Taxpayers also are dealing with the individual COVID-19 relief checks, changed tax deadlines and tweaks to student loans, charitable contributions and retirement accounts.
BREAKING: US Treasury has extended number of hours in the day to 100 to help accountants deal with all PPP, EIDL and Stimulus requests by clients#CARESAct #PPPloan #SBA
— Matt Wheeler (@mattowheeler) April 3, 2020
Coronavirus tax resources: As Matt Wheeler noted on Twitter, that's a whole lot to keep track of, so I created a special blog page to act as a clearinghouse for COVID-19 information.
First, a caveat. It's a work in progress. But please check it out and, since I know I missed some and, as I said, it's an evolving page, let me know what other resources I should I add.
That shameless plug aside, I have another item that deserves this week's Saturday Shout Out. It's a reminder from a tax attorney that while we do need to be aware of coronavirus tax changes, we can't ignore existing tax laws.
Pre-COVID-19 tax laws crucial, too: Robert W. Wood, managing partner at Wood LLP in San Francisco and a long-time Forbes columnist, discusses a dozen such areas in his 12 IRS (Non-Stimulus) Tax Rules You’ll Need This Year.
Wood cites things like 1099 income, cryptocurrency considerations and audit implications. Yep, all those pesky things that we face in normal tax seasons are still important in this decidedly abnormal 2020.
So check out Wood's column, along with the coronavirus tax matters. And be thankful that we at least have until July 15 to sort out all these tax matters.
| Coronavirus Caveat & More Information In 2020, we're all dealing with extraordinary circumstances, both in our daily lives and when it comes to our taxes. The COVID-19 pandemic and efforts to reduce its transmission and protect ourselves and our families means that, for the most part, we're focusing on just getting through these trying days. But life as we knew it before the coronavirus will return, along with our mundane tax matters. Here's hoping that happens soon! In the meantime, you can find more on the virus and its effects on our taxes by clicking Coronavirus (COVID-19) and Taxes. |
Advertisements
