2020
Congress passes second Coronavirus relief bill, includes new funding and updates to PPP
The U.S. House of Representatives and U.S. Senate have passed the Coronavirus Response & Relief Supplemental Appropriations Act, and President Trump is expected to sign the bill immediately. The agreement comes…
Work-from-home tax implications: What employers and employees need to know
The pandemic created by the novel coronavirus has drastically changed the way we live and work. As more businesses are forced to send their employees home, work-from-home life has become…
IRS clarifies tax implications of PPP funds
On November 18, 2020, the Internal Revenue Service issued Revenue Ruling 2020-27 which provides needed clarity on a taxpayers’ ability to deduct eligible expenses for Paycheck Protection Program (PPP) loan forgiveness.
2020 tax planning considerations for businesses, individuals
This year has been unique and beyond comparison in many ways, and tax planning is just one of the implications of current events. Both individual and business taxes have the potential to be…
Tax planning considerations: Election results, sunset provisions
According to news outlets, as of this writing, Joe Biden will be the president-elect of the U.S. following the Electoral College vote on Dec. 14. Vote counting is still ongoing and election results have not yet…
Top 10 tips for businesses to prepare now for a great year-end
With all of the curveballs 2020 has thrown at the nation, the economy, and businesses, there’s never been a better time to get an early jump on year-end planning for your business….
Final rules on meals, entertainment deductions released by IRS
The Tax Cuts & Jobs Act (TCJA) of 2017 made many significant changes for business tax deductions including the disallowing of the business deductions for most entertainment expenses. After a period…
PPP loans of $50,000 or less get simplified rules from the SBA
The Small Business Administration (SBA) and Treasury announced on October 8 that a simplified application (Form 3508S) for Paycheck Protection Program (PPP) loan forgiveness is now available for borrowers whose loans fall in the $50,000 or…
5 tips for safe intrafamily loans
If a relative needs financial help, offering an intrafamily loan might seem like a good idea. But if not properly executed, such loans can carry negative tax consequences. This article…
Buying or selling a business with a PPP loan: What you need to know
With the M&A market in flux after all the unexpected challenges of 2020, buyers and sellers are likely wondering how their Paycheck Protection Program (PPP) loan comes into play in…
Top 11 benefits of cloud-based accounting and real-time data
If you haven’t converted to cloud-based accounting, it’s likely that COVID-19 may prompt you to make the switch. With more and more businesses and industries operating virtually, cloud access and…
Tax planning during historically low interest rates
The unprecedented global pandemic and record unemployment has resulted in a dramatic drop in interest rates. Many people focus on the Fed rate and mortgage rates, and rightfully so, but…
Understanding the electric vehicles tax credit program
As consumers become more conscious of their environmental footprint, and look for ways to save money, more and more electric vehicles can be seen on the roads today stretching from…
IRS issues guidance on payroll tax deferral from presidential executive order
Employers can now defer payroll tax withholding on employee compensation for the last four months of 2020 and then withhold the deferred amounts in the first four months of 2021, confirms…
Latest update to PPP provides guidance on owner-employee compensation, non-payroll costs
On Aug. 24, the Small Business Administration (SBA) and Treasury issued the latest interim final rule update to the Paycheck Protection Program (PPP) that seeks to clarify guidance related to…
How CFOs can create long-term financial stability
CFOs are playing more pivotal roles in modern corporations than ever before, and the impact of the COVID-19 pandemic is shedding light on how CFOs can impact short and long-term financial stability. While…
Final regulations now available for business interest expense deduction limitation
In an effort to help businesses cope with the impact of COVID-19, the CARES Act passed by Congress in March of this year eliminated some of the restrictions on the…
What you need to know about the executive orders signed by President Trump
On August 8, 2020, President Trump signed an executive order extending certain aspects of COVID-19 relief in the absence of a new bill from Congress. The executive order includes several…
Latest PPP FAQ document provides clarity on some aspects of forgiveness
The Small Business Administration (SBA) and Treasury released an updated Paycheck Protection Program (PPP) FAQ on Aug. 4 in an effort to address PPP loan forgiveness issues that have arisen as borrowers begin…
The role of CPAs during times of economic crisis
Economic downturns are an almost inevitable reality for nearly every business owner. Decisions made far away from your community, catastrophic and unpredictable weather events, and even global pandemics as we’ve…
House, Senate approve 5-week PPP extension
The U.S. Senate and House of Representatives have both unanimously agreed to extend the Paycheck Protection Program (PPP) by five weeks in an effort to continue providing relief for small…
Taxpayers may find pandemic relief in Section 165(i) deduction
In the midst of the uncertainty and instability that the COVID-19 pandemic has created for businesses and individuals, some relief is available for taxpayers in the form of deductible losses…
PPP Loan Forgiveness Application Update: Clarifications on Application Timeline and Owner Compensation
On June 22, 2020, the U.S. Small Business Administration (SBA) released the: Paycheck Protection Program (PPP) Revisions to Loan Forgiveness Interim Final Rule This guidance details two noteworthy changes impacting…
Coronavirus related retirement distributions expanded
The CARES Act includes provisions that allow individuals to take early retirement plan distributions within certain rules. These changes include provisions for people with COVID-19 or who have family members…
SBA Revises the Paycheck Protection Program Loan Forgiveness Application
On June 16, 2020, the U.S. Small Business Administration (SBA) released the updated Paycheck Protection Program (PPP) Loan Forgiveness Application (see link below) which supersedes the application previously released on…
GOODBYE CALIFORNIA, HELLO RESIDENCY AUDITS
With personal income tax representing 61% of California’s total general fund revenue sources, it is no surprise that the California Franchise Tax Board in the last few years has become…
SBA Update: First PPP Interim Final Rule for PPP Flexibility Act
On June 10, 2020, the Small Business Administration (SBA) issued an updated interim final rule for the Paycheck Protection Program (PPP) in response to the PPP Flexibility Act passed on…
Unemployment Insurance Benefits and the CARES Act
Nothing is more important than the health and safety of you and your loved ones as you deal with the COVID-19 pandemic. The coronavirus crisis has had a wide-reaching effect…
House passes bill to extend, expand provisions of PPP
On May 28, 2020, in a nearly unanimous vote, the U.S. House of Representatives voted to extend certain provisions of the Paycheck Protection Program (PPP) to provide small businesses with…
SBA issues interim final rule on PPP
On May 23, the Small Business Administration (SBA) issued an interim final rule for the Paycheck Protection Program (PPP) that included the loan forgiveness application guidance released May 15, as…
Managing cash flow during a crisis and beyond
Your cash flow is the financial story of your business. It tells the story of your high points and low points, where the money comes in and goes out, and…
RECEIVED YOUR HHS STIMULUS, NOW WHAT?
As part of the CARES Act, $100 billion was appropriated to the Department of Health and Human Services (HHS) to reimburse healthcare providers for expenses and lost revenue due to…
PPP forgiveness form released by SBA
The Small Business Administration (SBA) has released its long-awaited Paycheck Protection Program (PPP) forgiveness form for borrowers. The release on May 15 brought with it significant changes to the interpretation…
IRS Grants Midyear Changes to Health, Dependent Care and Flex Spending Accounts
The COVID-19 pandemic has thrown a wrench into many employer-sponsored health, flexible health, and dependent care plans as employees are seeing increased or decreased need, depending on the impact of…
SBA Grants Safe Harbor to Borrowers with PPP Loans Less than $2 Million
In an update to the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) FAQs, the SBA and Treasury have announced that borrowers with an original principal amount less than $2…
Received Your SBA PPP Loan. Now What?
For those of our clients who have received their PPP loan and endured the painful application process, we have just one word to share – Congratulations!!!! Now what? Now, you…
SBA Paycheck Protection Program Updates
Over the last several days, there have been some developments and clarifications related to the Paycheck Protection Program (PPP). The PPP program loan funds were increased by $310 billion to…
Option to Defer Payment of Payroll Taxes
The CARES Act allows employers to delay the payment of the employer’s share of Social Security payroll tax, which is 6.2% of wages up to the annual wage base ($137,700…
Main Street Lending Program
On Thursday, April 9, the Federal Reserve introduced the Main Street Lending Program that will permit small and medium-sized businesses to obtain bridge financing through eligible lenders. This is the…
COVID-19 Property Tax Penalty Relief
A reminder that your California property tax is due April 10, 2020. The penalty is a flat 10%. Most counties in California allow property owners to pay property taxes online. Please refer…
Tax Day Postponed from April 15 to July 15
On Friday March 20, it was announced by Treasury Secretary Steven Mnuchin that Tax Day has been postponed from April 15 to July 15 to coincide with the delayed tax…
Small businesses eligible for disaster assistance loans from SBA
Small businesses are now eligible for up to $2 million in Economic Injury Disaster Loans from the Small Business Administration (SBA) after President Trump called for an additional $50 billion…
Tax payment deadline postponed 90 days, filing remains April 15
The April 15 tax payment deadline for individuals and corporations has been extended 90 days in an effort to provide relief by the U.S. government in the wake of COVID-19…
Hamilton Tharp Celebrates 40th Anniversary!
Our firm was founded in 1980, and this year we are honored to celebrate 40 years of service! As we reflect on our journey, we remain focused on an equally…
Consider these incentives when setting your charitable contribution plan in 2020
When the Tax Cut and Jobs Act went into effect in January 2018, many taxpayers stopped itemizing their returns. The reality, however, is that unique tax situations require a unique…
How Will the 2020 Form W-4 Impact Income Tax Withholding?
The Internal Revenue Service (IRS) recently debuted a new Form W-4 to the public. The new design aims to simplify the withholding system, replacing complicated worksheets with questions designed for…
These Tax Mistakes Are Easy to Avoid and Costly to Make
Many small business owners approach tax season with a can-do attitude. This entrepreneurial spirit is admirable, but when it comes to compliance, it is usually best to leave tax preparation…
2020 Standard Mileage Rates
The Internal Revenue Service recently issued the 2020 optional standard mileage rates to be used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving…
