The Internal Revenue Service announced the tax year 2021 annual inflation adjustments for more than 60 tax provisions on October 26, 2020 in Revenue Procedure 2020-45, including the tax rate schedules and other tax changes. This article below talks about some highlights of changes about these annual adjustments. The tax year 2021 adjustments described below [...]
An independent valuation or appraisal may be needed to determine the fair market value (FMV) of a privately held company’s certain nonqualified deferred compensation plans such as stock appreciation rights (SARS) or stock options. Whether such plans are subject to section 409A depends on the rules and features designed in a compensation plan including the [...]
Simplify the PPP Application Process The new COVID -19 relief bill also simplified the application process - Simplified the forgiveness application process for loans of $150K or less. EIDL advance need not be deducted from the PPP forgiveness amount And here in below is a list of documents that SBA may require for PPP loan [...]
Expansion of Definition of Eligible Costs The new bill had widened the net of cost eligible for Paycheck Protection Program (PPP) loan forgiveness. In addition to payroll, rent, covered mortgage interest and utilities, the following costs are also potentially forgivable: Covered worker protection and facility modification expenditures, including personal protective equipment, to comply with COVID-19 [...]
Tax Deductibility of Expenses COVID-19 relief bill passed on December 27, 2020 provides the much-awaited pronouncement on treatment of expenses paid out of the forgiven portion of the Paycheck Protection Program (PPP) loan amount (Revenue ruling 2021-02 obsoletes Notice 2020-32 and Rev. Rul. 2020-27). The Act retroactively amends the CARES Act to provide that no [...]
What are the rules for partnerships to participate in the new round of PPP under the new COVID-19 relief bill passed on December 27th, 2020? That’s what we are going to address in this article. Under the CARES Act, income from partnership was not considered self-employment income for applying PPP loans. Partnerships could apply loans [...]
Generally, there are two types of qualified retirement plan: Defined contribution plans and Defined benefit plans. Defined contribution plans include profit sharing, stock bonus and money purchase plans in which a separate account is provided for each employee covered by the plan. The employee retirement’s benefit plans are based on the contribution to the account, [...]
The new FAQsreleased as of August 11, 2020 are divided into four sections addressing different aspects of the process and calculations PPP borrowers should use to determine how much of their loan is forgivable. Following is a brief description of each section and highlights from the guidance provided. General loan forgiveness:The first FAQ of this [...]
For business owners, getting business in the door is only part of the challenge, receiving payment for the work is another. It’s easy to focus on generating revenue and lose track of the fact that you haven’t been paid for the work - until you realize that there is a cash flow issue and wonder [...]
When engaged to investigate a fraud examination, a forensic accountant has to be aware of the multiple fraud schemes that may have been employed by a fraudster. One such coom scheme is a bust-out. Bust-out occurs when a company obtains goods from creditors and sells those goods for cash with the intention of never repaying [...]
