Economic Injury Disaster Advance Loan

Small businesses can apply for an advance of up to $10,000 related to the Economic Injury Disaster Loan.  This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue related to COVID-19.  The following apply to this program. Small business with less than 500 employees (including sole proprietorship, independent […]

Economic Injury Disaster Loan Program

The Small Business Administration has low-interest federal disaster loans for working capital available for businesses suffering substantial economic injury as a result of COVID-19.  The following is a summary of the Economic Injury Disaster Loan Program. The Economic Injury Disaster Loans are up to $2 million in assistance. The loans can provide vital economic support […]

SBA Loan Programs

Three Small Business Administration emergency capital programs are available. Low interest, long term Economic Injury Disaster Loans – These loans are up to $2 million.  The first payment is deferred for 12 months.  The application is a simple online application through the web portral at www.sba.gov/disaster.  For additional information related to the Economic Injury Disaster […]

Relaxation of Business Interest Deduction Limit

The 2017 Tax Custs and Jobs Act (TCJA) generally limited the amount of business interest allowed as a deduction to 30% of adjusted taxable income (ATI).  The CARES Act generally allows businesses, unless they elect otherwise, to increase the interest limitation to 50% of ATI for 2019 and 2020, and to elect to use 2019 […]

Net Operating Loss Liberalizations

The 2017 Tax Cuts and Jobs Act limited NOLs arising after 2017 to 80% of taxable income and eliminated the ability to carry NOLs back to prior tax years.  For NOLs arising in tax years beginning before 2021, the CARES Act allows taxpayers to carryback 100% of NOLs to the prior five tax years, effectively […]

Delayed Payment of Employer Payroll Taxes

Taxpayers (including self-employed taxpayers) will be able to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022.  The deferral applies to the applicable employment taxes for the […]

HSA Relief and Non-prescription Medical Products

Health Savings Accounts (HSAs) have both advantages and disadvantages relative to Flexible Spending Accounts when paying for health expenses with untaxed dollars.  One disadvantage is that a qualifying HSA may not reimburse an account beneficiary for medical expenses until those expenses exceed the required deductible levels.  The IRS has announced that payments from an HSA […]

Exclusion for Employer Payments of Student Loans

An employee currently may exclude $5,250 from income for benefits from an employer-sponsored education assistance program.  The CARES Act expands the definition of expenses qualifying for the exclusion to include employer payments of student loan debt made before January 1, 2021.

Tax Credits and Tax Exemption to Lessen Burden of COVID-19 Business Mandate

On March 18, 2020 President Trump signed into law the Families First Coronavirus Response Act (FFCRA), which eased the compliance burden on businesses.  The FFCRA include the four tax credits and one tax exemption discussed below. Payroll Tax Credit for Required Paid Sick Leave (the payroll sick leave credit) The Emergency Paid Sick Leave Act […]

Filing and Payment Deadlines Deferred

After briefly offering more limited relief, the IRS almost immediately pivoted to a policy that provides the following to all taxpayers including individuals, trusts, estates, partnerships, associations, companies and corporations regardless of whether or how much they are affected by COVID-19: For a taxpayer with a Federal income tax return or a Federal income tax […]