IRS Releases More Guidance on Employee Retention Credit
August 11, 2021 The IRS released Revenue Procedure 2021-33, which provides additional guidance on employers claiming the employee retention credit (ERC) under the Coronavirus Aid, Relief, and Economic Security Act (P.L. 116-136) (CARES Act). Of note in this guidance is the inclusion of a safe harbor for determining gross receipts for purposes of qualifying for…
Kaseya Ransomware Attack Emphasizes Importance of Cybersecurity and
Third-Party Risk
Experts warn Managed Service Providers (MSPs) and Outsourced IT Providers across the globe to take immediate action July 9, 2021 While most Americans were celebrating the July 4th holiday, cyber criminals were at it again. In the largest ransomware attack to-date, REvil (aka Sodinokibi) targeted Kaseya and their Virtual System/Server Administrator (VSA) product. Used by…
Update on Government Assistance: PPP, SVOG and ERC
Economic conditions continue to challenge businesses and nonprofits alike in 2021. Fortunately, there are still opportunities for organizations to take advantage of federal government programs for assistance. SBA and Treasury continue to issue new rules regarding eligibility and deadlines, but organizations should be vigilant if they plan to take advantage of these programs. Paycheck Protection…
Consolidated Appropriations Act Extends and Expands the Employee Retention Tax Credit
In an effort to provide more COVID-19 relief, the Consolidated Appropriations Act (the Act) signed into law in late 2020 extends the employee retention tax credit (ERC) under the CARES Act through June 30, 2021 and expands potential benefits under the ERC. As part of weighing federal stimulus options to support their organization through the…
SBA and Treasury Issue Further PPP Guidance
The guidance clarifies PPP rules for first- and second-time borrowers As a follow up to the $2.3 trillion Consolidated Appropriations Act, 2021 (CAA), the U.S. Small Business Administration (SBA) and Treasury issued guidance Wednesday night for the relaunched Paycheck Protection Program (PPP). An Interim Final Rule (IFR) entitled “Business Loan Program Temporary Changes; Paycheck Protection…
New Guidance and Additional Relief Issued by Office of Management and Budget (OMB)
On December 22, 2020 the Management and Budget Office issued an addendum to the 2020 Compliance supplement that includes new guidance and additional relief for certain auditees with Uniform Guidance requirements. This addendum is to be used in conjunction with the 2020 Compliance Supplement by auditors. This supplement, which originally was anticipated to be issued…
Congress Passes Year End Funding and Pandemic Aid Package
The bill includes tax deductibility of PPP expenses and new round of PPP loans
IRS Clarifies the Calculation of UBTI for Tax-Exempt Organizations
On November 19, Treasury and the IRS released final regulations, T.D. 9933, providing guidance on Internal Revenue Code section 512(a)(6). The guidance clarifies how a tax-exempt organization determines if it has more than one unrelated trade or business, and if so, how to calculate its unrelated business taxable income (UBTI). Section 512(a)(6), added by the…
Maryland Changes the Taxation of Pass-through Entities
On May 8, 2020, the State of Maryland enacted SB 0523, Income Tax – Pass-Through Entities and Corporations, which authorizes pass-through entities (PTEs) such as partnerships and S-corporations the option to elect to pay Maryland state income tax on an entity level rather than “passing it through” to the entity owner. Many other states have…
IRS Clarifies Tax Treatment of Expenses Paid with PPP Loans
As thousands of businesses and nonprofit organizations prepare and submit their Paycheck Protection Program (PPP) loan forgiveness applications, they may not be aware of recent IRS guidance regarding the tax treatment of expenses paid with PPP loans. PPP borrowers with pending forgiveness applications (filed or unfiled) should understand the recent guidance and factor nondeductible expenses…