OMB Revisions to Single Audit Submission Extensions and Other Updates
In a memorandum dated June 18, 2020, the U.S. Office of Management and Budget (OMB) revised and reversed their flexibility on Single Audit submission extensions.
IRS Expands Availability of Coronavirus-Related Distributions
The IRS issued Notice 2020-50 (Notice) on June 19, 2020, which mainly provides additional guidance on and expansion of Coronavirus-Related Distributions (CRDs) created under the Coronavirus, Aid, Relief, and Economic Security (CARES) Act.
Paycheck Protection Program New Guidance Clarifies When to Apply for Forgiveness and Owner-Employee Limits
Borrowers that received PPP funds prior to June 5, 2020 have the option to use either a 24-week forgiveness period or an 8-week forgiveness period. On June 22, 2020, the SBA issued updated guidance that provides an additional option allowing a borrower to apply for forgiveness before the 24-week period ends.
Paycheck Protection Program Revised Forgiveness Applications
On June 17, 2020, the Small Business Administration (SBA) issued updated guidance to reflect the Payroll Protection Flexibility Act. The SBA also provided a revised PPP loan forgiveness application, Form 3508 and instructions, along with a simplified Form 3508 EZ and instructions for qualified borrowers.
FASB Defers the Effective Dates of ASC 606 and ASC 842
In response to the challenges of the COVID-19 pandemic, FASB issued Accounting Standards Update (ASU) 2020-05, which provides a one-year deferral of the effective dates of ASC 606, Revenue from Contracts with Customers, and ASC 842, Leases.
Message from Managing Director Mark Thomson
Over the past two weeks, I have watched the many peaceful protests across the City of Chicago, our local communities and across the nation. People of all backgrounds are speaking out against the continuing injustice against people of color, specifically Black people.
Paycheck Protection Program Flexibility Act of 2020
On the evening of June 3, 2020, the Senate passed the Paycheck Protection Program Flexibility Act of 2020. President Trump is expected to sign it into law soon. As its name implies, the Act provides PPP loan recipients with significantly more flexibility to use the funds and receive forgiveness.
Paycheck Protection Program: Loan Forgiveness Application Released
SBA Form 3508, Paycheck Protection Program Loan Forgiveness Application, was released on Friday, May 15, 2020. The form provides some answers for borrowers on qualifying expenses and documentation requirements.
Refund of Educational Costs Originally Paid from a 529 Plan is a Taxable Distribution
One of the many unfortunate outcomes of the COVID-19 pandemic was the closure of educational institutions across the nation. Consequently, many students (or their parents) have received or will receive partial refunds of money that was previously paid to the schools for their last semester’s tuition, room and board.
SBA Issues New Guidance on “Need” for PPP Loan
On the morning of May 13, 2020, the Small Business Administration (SBA) clarified how it will review a borrower’s good faith certification concerning the necessity of their Paycheck Protection Program (PPP) loan request.