The U.S. House of Representatives Ways and Means Committee (Committee) released its tax proposal (the Proposal). The Proposal will be considered as a part of the budget reconciliation bill to be negotiated by Congress in the coming days and weeks. 1. Raise the top marginal individual income tax rate to 39.6%. This rate would apply […]
IRS Extends 2021 Federal Tax Deadline
The Internal Revenue Service (IRS) has extended the federal tax deadline for individuals from April 15, 2021, to May 17, 2021. Let’s break down how this impacts tax filing for 2020: Individual Taxes: Individual taxpayers are now granted a one-month extension (from April 15 until May 17) to file 2020 federal tax returns and pay outstanding […]
2nd Round PPP Loans
A new round of PPP loans became available on Monday, January 11, 2021, to select lenders and borrowers. These select lenders will only include community financial institutions and the businesses eligible to apply for a loan starting Monday are those seeking their first PPP loan. Congress passed an additional amount of $284 billion to be […]
1099-NEC and 1099-MISC Update
Recently, there have been some revisions to the reporting requirements for Form 1099’s. Beginning with the tax year 2020, the IRS will require taxpayers to report nonemployee compensation on Form 1099-NEC. In previous tax years, nonemployee compensation (NEC) was reported on Form 1099-MISC. In addition, the extension for all Form 1099’s was eliminated which means […]
PPP Loan Expenses Update
On Sunday, December 27, President Trump signed H.R. 133 (Consolidated Appropriations Act, 2021) into law. The bill overrides the IRS’s position on previously issued guidance (Rev. Rul. 2020-27) for taxpayers that received PPP loan proceeds and paid or incurred otherwise deductible expenses related to that loan. PPP Loan Related Business Expenses are Tax DeductibleThe bill […]
COVID-19 2.0 Income Tax Relief Provisions
On Sunday, December 27, President Trump signed H.R. 133 (Consolidated Appropriations Act, 2021) into law. Highlighted below are some of the new income tax provisions included in the bill that may impact you or your business. Economic Impact PaymentsAs part of the new COVID-19 relief bill, Congress will provide a second round of stimulus payments. […]
PPP Funds Expense Treatment
On Wednesday November 18, The IRS issued guidance (Rev. Rul. 2020-27) on how to treat expenses paid for by the PPP funds. Previously, it had been up in the air on whether the expenses paid for by PPP funds would be non-deductible in the year the expenses were incurred, 2020, or the year the PPP […]
Small Business Relief Grant and the Bar and Restaurant Assistance Fund programs
On Friday October 23, 2020, Ohio Governor DeWine announced the creation of the Small Business Relief Grant and the Bar and Restaurant Assistance Fund programs. The programs are designed to provide relief to Ohio businesses that have been negatively affected by COVID-19. Businesses can use the grants to pay for various expenses including mortgages, rent, […]
Payroll Deferral Follow-up
On Friday August 28, The IRS issued guidance (Notice 2020-65) on President Trump’s executive memorandum authorizing employers to defer the collection of the employee’s portion of Social Security and Medicare, collectively known as FICA taxes, from September 1 through December 31, 2020. The guidance provides employers with basic information on key items, including definitions of […]
Deferral of FICA Taxes
On Saturday, August 8, 2020, President Trump issued an executive memorandum to defer collection of the employee’s portion of Social Security and Medicare, collectively known as FICA taxes, from September 1 through December 31, 2020. The memo directs the Treasury Department to issue guidance on the deferral. Deferral of FICA taxes means they will eventually […]
Payroll Protection Plan Update – June 4 2020
On June 3rd the Senate unanimously approved a bill that provides much-needed clarity and makes it easier for borrowers to have their Payroll Protection (“PPP”) loans forgiven. A couple of highlights for the new bill: Longer Loan Term: The term for any portion of the PPP loan that is not forgiven has been extended from 2 […]
SBA and the Treasury Department released additional guidance creating a Safe Harbor
On May 13th the SBA and the Treasury Department released additional guidance creating a Safe Harbor for the good-faith certification concerning the necessity of the loan request. When submitting a PPP application, all borrowers had to certify in good faith that “current economic uncertainty makes this loan request necessary to support the ongoing operations of […]
PPP and Deductions
The IRS Released Notice 2020-32 which provides guidance on the deductibility of expenses paid with Paycheck Protection Program (PPP) loan proceeds that are partially or completely forgiven and excluded from a taxpayer’s income. Specifically, the IRS has determined that otherwise deductible expenses that are paid with PPP funds and forgiven may not be deducted for federal income […]
Latest PPP Update
Some banks and other PPP lenders are sending PPP applicants and recipients emails informing them of new guidance for the Economic Uncertainty Certification. What this new requirement means for PPP applicants and recipients is uncertain. We wanted to make you aware of this new requirement and will provide additional information as it becomes available. The […]
Tax Deadline for Second Quarter 2020 Estimated Tax Payments
On April 10th, the IRS announced the tax deadline for Second Quarter Estimated Tax Payments for individuals, trusts, estates, and corporations has been extended from June 15th to July 15th. July 15th is now the deadline to file 2019 income tax returns, and pay any remaining 2019 tax liability along with first and second quarter payments. […]
CARES ACT – Business Provisions
On Wednesday evening March 25, 2020, the Senate passed an updated version of the Coronavirus Aid, Relief and Economic Security (CARES) Act. The bill builds upon earlier versions of the CARES Act and is intended to be the third round of federal government support in the wake of the coronavirus public health crisis and associated economic […]
CARES ACT – Individual Provisions
On Wednesday evening March 25, 2020, the Senate passed an updated version of the Coronavirus Aid, Relief and Economic Security (CARES) Act. The bill builds upon earlier versions of the CARES Act and is intended to be the third round of federal government support in the wake of the coronavirus public health crisis and associated economic […]
Tax Day now July 15: Treasury, IRS extends filing deadline and federal tax payments regardless of amount owed
IR-2020-58, March 21, 2020 WASHINGTON – The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020. Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, […]
Small Business Administration (SBA) Loan Information
Please see the below letter regarding the Economic Injury Disaster Loan program. —— Governor Mike DeWine, Lt. Governor Jon Husted, and Ohio Development Services Agency Director Lydia Mihalik announced on Sunday, March 22nd, that the U.S. Small Business Administration (SBA) has qualified the State of Ohio for the Economic Injury Disaster Loan program. As a […]
Ohio has issued a Stay at Home order, but Burke & Schindler remains open as we are an essential business
On Sunday, March 22nd, the state of Ohio issued a Stay at Home Order effective 11:59 p.m. on March 23, 2020, until 11:59 p.m. on April 6, 2020. This order identifies businesses and operations deemed essential and therefore exempt. Burke & Schindler has been designated an essential business. You can view the full order here. […]
Families First Coronavirus Response Act
There have been a number of questions about the recently announced Families First Coronavirus Response Act. While the Act is yet to be finalized, please see below for a summary of the major provisions.Updated 3/23/2020 2:33pm ETEmergency Family and Medical Leave Expansion Act (EFMLEA) Becomes effective on April 2, 2020, and is set to expire […]
COVID-19 & 2019 Tax Filing
We at Burke & Schindler hope you and your families are safe and healthy in the midst of the COVID-19 Crisis. These are challenging and uncertain times. In the hopes of providing some clarity, we wanted to share with you the updated filing and payment deadlines for your 2019 Income Tax Return and 2020 1st […]