When the COVID-19 crisis exploded in March, among the many concerns was the state of the nation’s supply chains. Business owners are no strangers to such worry. It’s long been known that, if too much of a company’s supply chain is concentrated (that is, dependent) on one thing, that business is in danger. The pandemic […]
In response to the COVID-19 crisis, the IRS recently issued Notice 2020-52. It offers sponsors of safe harbor 401(k) plans with temporary relief from certain requirements applicable to midyear reductions or suspensions of contributions. The guidance also clarifies the requirements for midyear contribution reductions (during or after the pandemic) that affect only highly compensated employees (HCEs) […]
In Notice 2020-54, the IRS recently provided guidance to employers on Form W-2 reporting of qualified sick leave wages and qualified family leave wages. These are the wages paid to employees under the Families First Coronavirus Response Act. The guidance requires employers to report the amount of qualified sick leave wages and qualified family leave wages paid […]
Unlike some legitimate businesses, organized crime enterprises can be expected to weather the current COVID-19 crisis. In fact, with millions of Americans now working from home, organized crime-related cyber fraud — including phishing schemes and ransomware attacks — has grown exponentially. If you haven’t done so recently, it’s important to review and possibly upgrade your […]
Recently, the Federal Reserve announced that not-for-profit organizations may also apply for loans under the $600 billion Main Street Lending Program. Previously open only to for-profit businesses with more than 100 employees, the program offers low-interest loans with relatively relaxed repayment terms. If your organization needs funding to keep operating during this difficult period, a […]
In Notice 2020-50, the IRS recently provided guidance on “coronavirus-related distributions” from retirement plans under Section 2202 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Here are some pertinent details for employers. Pension plans The Notice points out that Sec. 2202 doesn’t change the rules for when plan distributions are permitted to be made from employer […]
By Kaveh Imandoust, J.D., M.B.T., CPA; and Nicholas Sanchez, J.D., LL.M. Taxation Small and medium-sized businesses (SMBs) are integral to the U.S. economy and create jobs for a large share of the U.S. workforce; however, the spread of COVID-19 has substantially disrupted economic activity in many sectors of the economy – especially for SMBs. […]
Some companies are expected to report impairment losses in fiscal year 2020 because of the COVID-19 crisis. Depending on the nature of your operations and assets, the pandemic could be considered a “triggering event” that warrants interim impairment testing. Examples of assets that may become impaired include long-lived assets (such as equipment and real estate), […]
The IRS recently issued another notice extending tax deadlines because of the COVID-19 pandemic. Notice 2020-35 supplements IRS Notice 2020-23 and earlier guidance by extending the deadlines for certain additional time-sensitive actions relating to employment taxes; exempt organizations; employee benefit plans, including 401(k)s; Health Savings Accounts (HSAs); IRAs; and other specified accounts. With some exceptions, the extensions […]
By Nicholas Sanchez, J.D., LL.M. Taxation; and Kaveh Imandoust, J.D., M.B.T., CPA Earlier this month the Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010, PPPFA) was signed into law. If you’re not already familiar, the Paycheck Protection Program (PPP) is a provision included in the CARES Act that provides forgivable loans to small businesses to […]
By Nicholas Sanchez, J.D., LL.M. Taxation; and Kaveh Imandoust, J.D., M.B.T., CPA As agencies continue to release guidance on the relief provisions contained in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), we are beginning to find answers to questions for which we previously could only speculate. In the last two weeks, […]
The novel coronavirus (COVID-19) pandemic has opened the floodgates to scam artists attempting to profit from sick, anxious and financially vulnerable Americans. On the frontlines fighting fraud are the Federal Trade Commission (FTC), U.S. Justice Department (DOJ) and other government agencies. Here are some of the fraud schemes they’re actively investigating — and the perpetrators […]