Skip Navigation

COVID-19

Blog

  • How COVID-19 Could Impact Year-End Inventory Counts

    How COVID-19 Could Impact Year-End Inventory Counts

    Many businesses are closed or are limiting third-party access as COVID-19 surges across the United States. These restrictions could still be in place at year end — a time when external auditors traditionally observe physical inventory counts for calendar-year entities.... Read More
  • Preparing for the Possibility of a Remote Audit

    Preparing for the Possibility of a Remote Audit

    The coming audit season might be much different than seasons of yore. As many companies continue to operate remotely during the COVID-19 pandemic, audit procedures are being adjusted accordingly. Here’s what might change as auditors work on your company’s 2020... Read More
  • Full-Time Equivalent Employee (FTE) Calculation

    Full-Time Equivalent Employee (FTE) Calculation

    Before beginning your full-time equivalent (FTE) calculation, you must determine the headcount or number of FTEs you had during your reference period. The actual loan forgiveness amount you receive may be less depending on whether your average weekly number of... Read More
  • FTE Reduction Exemptions for PPP Loan Forgiveness

    FTE Reduction Exemptions for PPP Loan Forgiveness

    There are a few situations where borrowers are exempt from reductions in loan forgiveness based on reductions in full-time equivalent (FTE) employees. The first of these FTE reduction exemptions can be found at the bottom of page 3 of Form... Read More
  • Completing Your PPP Loan Forgiveness Application

    Completing Your PPP Loan Forgiveness Application

    The process of completing the Paycheck Protection Program (PPP) loan forgiveness application can seem intimidating, but it doesn’t have to be. You have three application form options: Form 3508S, Form 3508EZ, and Form 3508. Here’s a brief overview of the... Read More
  • SBA Issues Loan Necessity Questionnaires for PPP Borrowers With Loans of $2 Million or More

    SBA Issues Loan Necessity Questionnaires for PPP Borrowers With Loans of $2 Million or More

    The Small Business Association (SBA) released two loan necessity questionnaires (one for nonprofit businesses and one for for-profit companies) to go to Paycheck Protection Program (PPP) borrowers who, together with their affiliates, received PPP loans totaling $2 million or more.... Read More
  • Maryland Strong Economic Recovery Initiative

    Maryland Strong Economic Recovery Initiative

    On Friday, October 23, Governor Larry Hogan announced the $250 million “Maryland Strong: Economic Recovery initiative,” which provides funding from the state’s Rainy Day Fund to assist small businesses, restaurants, arts organizations, entertainment venues, and Main Streets struggling amid the... Read More
  • Beware of Vishing (Voice Phishing) Scams

    Beware of Vishing (Voice Phishing) Scams

    Individuals and businesses have been worrying about phishing scams for years, and now there’s a new twist aimed largely at small businesses: voice phishing scams, a.k.a. vishing. A recent alert from the Cybersecurity Infrastructure Security Agency (CISA), acting in conjunction... Read More
  • FASB Delays Long-Term Insurance Standard (Again)

    FASB Delays Long-Term Insurance Standard (Again)

    On September 30, the Financial Accounting Standards Board (FASB) finalized a rule to defer the effective date of the updated long-term insurance standard for a second time. The deferral will give insurers more time to properly implement the changes amid the... Read More
  • Offer FSAs to Employees? You May Need to Act Before Year End

    Offer FSAs to Employees? You May Need to Act Before Year End

    During this pandemic year, many employees have relied on flexible spending accounts (FSAs) to pay for health care and dependent care costs. This includes expenses related to COVID-19. Employers that offer employees FSAs also reap several benefits. But if you... Read More
  • Take Aim at Tax Credit for Hiring Target Workers: WOTC

    Take Aim at Tax Credit for Hiring Target Workers: WOTC

    From February to August, U.S. manufacturing employment declined by 720,000 due to adverse conditions caused by the COVID-19 pandemic. But the industry has been slowly recovering. The U.S. Bureau of Labor Statistics estimates that the sector’s employment grew by roughly... Read More
  • Home Office Deductions Amid the COVID-19 Pandemic

    Home Office Deductions Amid the COVID-19 Pandemic

    Have you been working from home during the COVID-19 crisis? Join the club. Approximately 42% of the American workforce is currently working from home full-time, according to a recent study by the Stanford Institute for Economic Policy Research. Only 26%... Read More
  • How to Report COVID-19-Related Debt Restructuring

    How to Report COVID-19-Related Debt Restructuring

    Today, many banks are working with struggling borrowers on loan modifications. Recent guidance from the Financial Accounting Standards Board (FASB) confirms that short-term modifications due to the COVID-19 pandemic won’t be subject to the complex accounting rules for troubled debt... Read More
  • Tax Implications When Lenders Cancel Debts

    Tax Implications When Lenders Cancel Debts

    In the COVID-19-ravaged economy, debts can pile up beyond a borrower’s ability to repay. Lenders sometimes may be willing to forgive (or cancel) debts that are owed by certain borrowers. While debt forgiveness can help struggling borrowers survive financially, it... Read More
  • Reporting Discontinued Operations

    Reporting Discontinued Operations

    Marketplace changes during the COVID-19 crisis have caused many companies to make major strategic shifts in their operations — and some changes are expected to be permanent. In certain cases, these pivot strategies may need to be reported under the... Read More
  • Avoid Personal Liability for Unpaid Federal Payroll Taxes

    Avoid Personal Liability for Unpaid Federal Payroll Taxes

    During the COVID-19 pandemic, some cash-strapped employers may fail to pay over federal income and employment taxes that were withheld from employee paychecks to the U.S. Treasury. In the eyes of the IRS, this is a major tax faux pas... Read More
  • Election 2020: Where Do the Candidates Stand on Business Tax Issues?

    Election 2020: Where Do the Candidates Stand on Business Tax Issues?

    With both major political party conventions behind us, it’s time to focus on the upcoming national election. Among their many differences, the Republicans and Democrats have widely divergent tax platforms. Do you know where the candidates stand on major business... Read More
  • Employers Have Questions and Concerns About Deferring Employees’ Social Security Taxes

    Employers Have Questions and Concerns About Deferring Employees’ Social Security Taxes

    The IRS has provided guidance to employers regarding the recent presidential action to allow employers to defer the withholding, deposit and payment of certain payroll tax obligations. The three-page guidance in Notice 2020-65 was issued to implement President Trump’s executive... Read More
  • CARES Act Made Changes to Excess Business Losses

    CARES Act Made Changes to Excess Business Losses

    The Coronavirus Aid, Relief and Economic Security (CARES) Act made changes to excess business losses. This includes some changes that are retroactive and there may be opportunities for some businesses to file amended tax returns. If you hold an interest... Read More
  • Taxes on Roth IRA Withdrawals Today

    Taxes on Roth IRA Withdrawals Today

    If you’re experiencing financial distress during the COVID-19 crisis, you might be thinking about tapping into your Roth IRA to improve your cash situation. But before withdrawing money from a Roth account, it’s important to understand the federal income tax... Read More
  • Beware: Retirement Plan Loan Defaults Can Be Costly

    Beware: Retirement Plan Loan Defaults Can Be Costly

    Economic fallout from the COVID-19 crisis may cause some cash-strapped individuals to default on loans they’ve taken out from company qualified retirement plans, including 401(k) and profit-sharing plans. Defaulting on a plan loan will cause adverse tax and retirement-saving consequences.... Read More
  • The President’s Action to Defer Payroll Taxes: What Does It Mean for Your Business?

    The President’s Action to Defer Payroll Taxes: What Does It Mean for Your Business?

    On August 8, President Trump signed four executive actions, including a Presidential Memorandum to defer the employee’s portion of Social Security taxes for some people. These actions were taken in an effort to offer more relief due to the COVID-19 pandemic.... Read More
  • The Possible Tax Consequences of PPP Loans

    The Possible Tax Consequences of PPP Loans

    If your business was fortunate enough to get a Paycheck Protection Program (PPP) loan taken out in connection with the COVID-19 crisis, you should be aware of the potential tax implications. PPP basics The Coronavirus Aid, Relief and Economic Security... Read More
  • Paid Family and Medical Leave Under the Families First Act

    Paid Family and Medical Leave Under the Families First Act

    The Families First Coronavirus Response Act (a.k.a. Families First Act) requires that small to medium-sized businesses provide paid leave to employees affected by COVID-19 through two provisions: the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave... Read More
  • Managing Supply Chain Disruptions Post COVD-19

    Managing Supply Chain Disruptions Post COVD-19

    The COVID-19 pandemic has shaken the global economy and drastically altered the way we conduct business. Supply chains worldwide are experiencing considerable disruptions as the U.S. and other countries continue to shut down in an effort to contain the coronavirus.... Read More
  • Cares Act Provisions May Boost Cash Flow

    Cares Act Provisions May Boost Cash Flow

    The Coronavirus Aid, Relief, and Economic Security (CARES) Act may be best known for its provisions designed to shore up the economy as the nation copes with the COVID-19 pandemic. These include distributing Economic Impact Payments to individuals and offering... Read More
  • Applying for PPP Loan Forgiveness Early

    Applying for PPP Loan Forgiveness Early

    Guidance released from the Treasury and Small Business Association (SBA) Monday, June 22 declares that Paycheck Protection Program (PPP) recipients can apply for loan forgiveness before the end of their Covered Period.   The 34-page interim rule addresses a few... Read More
  • COVID-19 Crisis May Affect Tax Angles for Rental Property Losses

    COVID-19 Crisis May Affect Tax Angles for Rental Property Losses

    Economic fallout from the COVID-19 crisis will cause many rental real estate properties to run up tax losses in 2020 — and possibly beyond. Here’s a summary of important federal income tax rules for such losses.   What You Can... Read More
  • Paycheck Protection Program Flexibility Act (PPPFA)

    Paycheck Protection Program Flexibility Act (PPPFA)

    The Paycheck Protection Program Flexibility Act (PPPFA) was passed on June 5th with the goal of making it easier for Paycheck Protection Program (PPP) loan recipients to qualify for forgiveness. Here are some of the major changes brought by the... Read More
  • How to Plan for a PPP Audit

    How to Plan for a PPP Audit

    The Small Business Administrator Jovita Carranza and U.S. Treasury Secretary Steven Mnuchin recently announced that recipients of Paycheck Protection Program (PPP) loans of $2 million or more should expect an audit if they apply for loan forgiveness. Here are some... Read More
  • Overcoming the Challenges of Remote Auditing During the COVID-19 Crisis

    Overcoming the Challenges of Remote Auditing During the COVID-19 Crisis

    Many people are currently working from home to help prevent the spread of the novel coronavirus (COVID-19). Your external auditors are no exception. Fortunately, in recent years, most audit firms have been investing in technology and training to facilitate remote... Read More
  • Fortunate Enough to Get a PPP Loan? Forgiven Expenses Aren’t Deductible

    Fortunate Enough to Get a PPP Loan? Forgiven Expenses Aren’t Deductible

    The IRS has issued guidance clarifying that certain deductions aren’t allowed if a business has received a Paycheck Protection Program (PPP) loan. Specifically, an expense isn’t deductible if both: The payment of the expense results in forgiveness of a loan... Read More
  • Safe Harbor for PPP Loans of Less Than $2 Million

    Safe Harbor for PPP Loans of Less Than $2 Million

    On May 13, the Small Business Administration (SBA) updated its Paycheck Protection Program Frequently Asked Questions page to clarify how they will determine if a borrower applied in good faith out of monetary necessity. It states: “Any borrower that, together... Read More
  • CARES Act Provides 4 Possible Reasons to File an Amended Return

    CARES Act Provides 4 Possible Reasons to File an Amended Return

    The $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act delivers good news to individuals and businesses, including valuable tax-relief measures. Some of that tax relief is retroactive. These provisions can affect 2018 and 2019 returns that have already... Read More
  • Business Charitable Contribution Rules Have Changed Under the Cares Act

    Business Charitable Contribution Rules Have Changed Under the Cares Act

    In light of the novel coronavirus (COVID-19) pandemic, many businesses are interested in donating to charity. In order to incentivize charitable giving, the Coronavirus Aid, Relief and Economic Security (CARES) Act made some liberalizations to the rules governing charitable deductions.... Read More
  • Maryland Small Business COVID-19 Emergency Relief Grant Fund

    Maryland Small Business COVID-19 Emergency Relief Grant Fund

    This $50 million Grant Fund offers working capital to provide interim relief for Maryland small businesses and nonprofits whose operations were disrupted due to COVID-19. Terms and conditions Grants of up to $10,000, which cannot exceed 3 months of operating... Read More
  • Managing Cash Flow Amid a Crisis

    Managing Cash Flow Amid a Crisis

    The COVID-19 pandemic is wreaking havoc on the world economy, and businesses in all industries are feeling the effects. In these uncertain times, it’s imperative that business leaders have a strategy in place for managing cash flow. Here are a... Read More
  • Increase the Chances of Having Your PPP Loan Forgiven

    Increase the Chances of Having Your PPP Loan Forgiven

    Part of the CARES Act, the Paycheck Protection Program (PPP) offers loans to small businesses impacted by the COVID-19 pandemic. A business owner can borrow up to 2.5 times their monthly payroll costs or $10 million, whichever is greater. The... Read More
  • New COVID-19 Law Makes Favorable Changes to “Qualified Improvement Property”

    New COVID-19 Law Makes Favorable Changes to “Qualified Improvement Property”

    The law providing relief due to the coronavirus (COVID-19) pandemic contains a beneficial change in the tax rules for many improvements to interior parts of nonresidential buildings. This is referred to as qualified improvement property (QIP). You may recall that... Read More
  • COVID-19 Tax Relief: TCJA Loss Limitation Rules Are Eased

    COVID-19 Tax Relief: TCJA Loss Limitation Rules Are Eased

    The Coronavirus Aid, Relief, and Economic Security (CARES) Act unwinds some of the tax-revenue-generating provisions included in a previous tax law. Here’s a look at how the rules for claiming certain tax losses have been modified to provide businesses and... Read More
  • Should You File a Business Interruption Claim for COVID-19 Losses?

    Should You File a Business Interruption Claim for COVID-19 Losses?

    With much of the country currently on lockdown due to the novel coronavirus (COVID-19) crisis, many nonessential businesses have been shuttered. As a result, millions of small business owners find themselves on the brink of financial disaster. For those with... Read More
  • Adjusting Your Financial Statements for COVID-19 Tax Relief Measures

    Adjusting Your Financial Statements for COVID-19 Tax Relief Measures

    The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020, contains several tax-related provisions for businesses hit by the novel coronavirus (COVID-19) crisis. Those provisions will also have an impact on financial reporting. Companies that... Read More
  • Relief From Not Making Employment Tax Deposits Due to COVID-19 Tax Credits

    Relief From Not Making Employment Tax Deposits Due to COVID-19 Tax Credits

    The IRS has issued guidance providing relief from failure to make employment tax deposits for employers that are entitled to the refundable tax credits provided under two laws passed in response to the coronavirus (COVID-19) pandemic. The two laws are... Read More
  • COVID-19 Relief for Employers: New Employee Retention Tax Credit

    COVID-19 Relief for Employers: New Employee Retention Tax Credit

    The coronavirus (COVID-19) pandemic has shut down many sectors of the U.S. economy, causing widespread job losses. Over 10 million Americans applied for unemployment benefits in March, according to the U.S. Department of Labor. And far more claims are expected... Read More
  • New Law Retroactively Fixes QIP Drafting Mistake

    New Law Retroactively Fixes QIP Drafting Mistake

    At long last, Congress passed legislation to correct a drafting error related to real estate qualified improvement property (QIP). The correction is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March... Read More
  • Questions to Ask When Making COVID-19 Risk Disclosures

    Questions to Ask When Making COVID-19 Risk Disclosures

    Efforts to contain the spread of the novel coronavirus (COVID-19) have led to suspension of many economic activities, putting unprecedented strain on businesses. The Securities and Exchange Commission (SEC) recently issued guidance to help public companies provide investors and other... Read More
  • Coronavirus Related Tax Scams to Watch Out For

    Coronavirus Related Tax Scams to Watch Out For

    The IRS is warning taxpayers to beware of new coronavirus related tax scams concerning the forthcoming economic impact payments, also referred to as stimulus payments or rebates. Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act signed into law... Read More
  • Report the Employee Retention Credit on Return for 2nd Quarter of 2020

    Report the Employee Retention Credit on Return for 2nd Quarter of 2020

    The IRS has provided guidance for taxpayers reporting the employee retention credit for certain employers subject to closure due to the COVID-19 crisis, including that the credit with respect to wages paid in March should be reported on the 2nd... Read More
  • Answers to Questions About the Cares Act Employee Retention Tax Credit

    Answers to Questions About the Cares Act Employee Retention Tax Credit

    The recently enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act provides a refundable payroll tax credit for 50% of wages paid by eligible employers to certain employees during the COVID-19 pandemic. The employee retention credit is available to employers,... Read More
  • Tax-Favored Coronavirus-Related Distributions

    Tax-Favored Coronavirus-Related Distributions

    The coronavirus (COVID-19) pandemic is causing economic hardship for many people and businesses in the United States. On March 27, the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law by President Trump. A key... Read More