As we had anticipated in our previous posts, the IRS has changed its position in 2020-32 guidance. On January 6, 2021, the IRS released Revenue Ruling 2021-02 which confirms the deductibility of eligible PPP expenses. As mentioned by the IRS, the new ruling "...reflects changes to law contained in the COVID-related Tax Relief Act of
NJ Tax Relief – Business Alternative Income Tax (BAIT) New NJ Law Permits State Income Tax Deduction Under Certain Circumstances Using Pass-through Entities. If you have NJ income, and a partnership, LLC or S-Corp, we recommend discussing with your accountant how to take advantage of this new law. New Jersey recently enacted the Pass-Through Business
As part of the GPHCC's technical assistance on demand, Victor Garrido, CPA, EA, made a video presentation on "Preparing for year end taxes" in November 2020. The New Jersey Small Business Development Center (NJ SBDC) recently shared our webinar focusing on small business taxes and updates related to Beneficial Ownership Interest (BOI). This webinar is
A few months back, several media organizations requested the disclosure of PPP information and filed a lawsuit under the Freedom of Information Act. There were concerns over a lack of transparency on this SBA program. In July 2020, the SBA had released the borrowers information for all loans over $150,000. On November 5, 2020, the
We want to share one of our experiences dealing with the USDA as there is not enough information publicly available. Also, we noted that small business can be extremely impacted from USDA accusations and in certain cases, there is no opportunity to defend himself or herself without professional assistance, specialized legal team. We continue to
We are one of the companies supporting NJEDA through the SHCCNJ (Statewide Hispanic Chamber of Commerce of New Jersey) providing consulting services in their COVID-19 Recovery Program. Extracted from the article: "The New Jersey Economic Development Authority announced on Monday it has launched a free consulting program to help small businesses that have been impacted by
Another Interim Final Rule (IFR) was released yesterday, the PPP loans will have a special form (S form) for amounts under $50,000 that exempts from any reduction in forgiveness based on a) reduction in full time equivalent (FTE) and/or b) reduction in employee salary or wages. Keep in mind that even the short version, if
The Small Business Majority https://smallbusinessmajority.org/, through their Policy Agenda, support "Pass legislation that would ensure business insurance companies cover COVID-19 revenue losses." Note that the business interruption insurance (BII) does not cover COVID-related expenses. The Small Business Majority endorsed two pieces of legislation nationally that would allow insurance companies to cover those expenses that small businesses have
As you might be aware some banks and financial institutions are opening their PPP forgiveness application intake. Note that after the PPP period of 24 weeks, there is a 10 month period of no interest so we recommend filing the forgiveness during the period. Currently, there are still some moving pieces and there is the
In the last weeks, we noted a significant increase in the notices received by our clients as there seem to be a backlog in the tax authorities. In some cases, the system automatically sends out a notice even if the documents and support was already provided to the tax authorities almost a year ago. Address
