My Business Is In Bankruptcy: Can It Get A PPP Loan Or Not?
In response to the COVID-19 pandemic, Congress enacted a Paycheck Protection Program (“PPP”) under which businesses adversely impacted by the pandemic may obtain loans from the Small Business Administration (“SBA”) and use the proceeds to pay payroll and certain other operating expenses. If the businesses use the loan proceeds for approved purposes and satisfy certain other criteria for retaining employees, the loans are forgiven. If the loans are not forgiven, they must be repaid, albeit at a favorable interest rate.
Read MoreIRS Notice 2020-32: Should Taxpayers Deduct Expenses Resulting in Loan Forgiveness under the Paycheck Protection Program Despite the Contrary Guidance of the Internal Revenue Service?
Article effective based on date written: May 5, 2020 Takeaway: Although the Internal Revenue Service indicates that expenses resulting in loan forgiveness under the Paycheck Protection Program are not deductible, its interpretation is questionable. Even if Congress does not legislatively address this issue, businesses may consider deducting these expenses based on the intent of the…
Read MoreHave Your Employees Been Misclassified as Independent Contractors?
Now May Be the Perfect Time to Address Compliance in Order to Maximize the
Benefits of the Paycheck Protection Program and the Employee Retention Credit
Whether mandated by the government or as a result of economic factors, many businesses have been forced to either shut down or significantly limit operations as a result of COVID-19. Businesses everywhere are looking for financial assistance in order to survive and many are concerned about retaining their most valuable asset, their employees
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