Taxpayers who have already taken their required minimum distribution, RMD, for 2020, have the option for an RMD Rollback under the CARES Act if taken by August 31, 2020. The intention of this option is to provide tax relief for those who took their required RMD prior to the Coronavirus Aid, Relief, and Economic Security (CARES) Act becoming law on March 27, 2020 and wish to ‘undo’ their action.
A provision of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Paycheck Protection Program, PPP, has been a difference-maker for many U.S. companies. As of June 30, 2020, nearly 5 million small and medium-sized businesses received a much-needed cash infusion to help them make payroll during the height of the COVID-19 pandemic. But where there is loan money available on payback forgiveness terms, there will inevitably be fraudsters attempting to game the system.
On June 19, 2020, the Internal Revenue Service (IRS) updated and clarified issues of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) guidance for plan sponsors and plan participants. Issued as Notice 2020-50 (“Guidance for Coronavirus-Related Distributions and Loans from Retirement Plans Under the CARES Act,”) the publication explains the new provisions which allow enhanced access to plan loans and plan distributions.
If your business obtained a PPP loan, whether you plan to repay the loan or to seek PPP loan forgiveness, you need to be fully aware of the revised terms and conditions established under the Paycheck Protection Program (PPP) Flexibility Act of 2020 (PPPFA). The PPP Flexibility Act (HR 7010) was signed into effect by President Donald Trump on June 5, 2020. This action changes and replaces the terms of PPP Act loans and adds flexibility that will be valued by many borrowers.
Previously, we’ve shared updates to help companies and their key executives with regard to executive comp limits for organizations that receive certain types of COVID-19 loans, loan forgiveness, or stimulus aid. See: CESA Act Loans: Further Information* and Insights and Executive Compensation Restrictions and the CARES Act
The Paycheck Protection Program Flexibility Act of 2020 (PPPFA) (i.e., the PPP loan extension) has been signed into law. After receiving U.S. Senate approval on June 3, 2020, the amendment to the Small Business Act and the CARES Act was finalized on June 5, with the signature of President Donald Trump. Updating the Paycheck Protection Program of the Small Business Administration, the PPPFA adds much needed flexibility to the timing and forgiveness options than was allowed by the original PPP Act.
We are sharing the second in a two-part report, “Portfolio Companies’ COVID-19 Economic Stimulus Relief Incentives”. This report looks at the Coronavirus Aid, Relief and Economic Security Act (CARES) including here in Part 2, the Economic Stabilization Loan Program; Main Street Business Lending Program for midsized and larger businesses, Payroll Tax Incentives; and insights for navigating the crisis.
This report was prepared by leading tax and business advisory professionals at BDO USA, LLP and is republished here with their permission.
Fulcrum Partners is sharing with you the following in-depth report, “Portfolio Companies’ COVID-19 Economic Stimulus Relief Incentives”. Presented in two parts, the report covers aspects of the Coronavirus Aid, Relief and Economic Security Act (CARES) including here in Part 1, the Paycheck Protection Program for Small Businesses; the Economic Stabilization Loan Program and Main Street Business Lending Program for midsized and larger businesses.
The Coronavirus Economic Stabilization Act (CESA) was established to provide loans and loan guarantees for businesses to improve business liquidity resultant from the COVID-19 pandemic. Unlike the widely publicized Payment Protection Program (PPP), CESA Act loans do not include loan forgiveness. They do include substantial penalties, however, if terms of the loan agreement are breeched.
This slideshow from Fulcrum Partners LLC details key issues regarding executive compensation and the CARES Act.
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