With the race to submit Paycheck Protection Program (PPP) loan applications before the funds run out, some important questions remain unanswered. Single Audit Applicability: Will the loan proceeds under the PPP program be subject to a Single Audit? For those unfamiliar with a Single Audit, it is an organization-wide financial and compliance audit of a non-federal en [...]

On March 13, 2020, the President made an emergency declaration for the ongoing COVID-19 pandemic under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (the “Stafford Act”) for all states, tribes, territories and the District of Columbia. This declaration triggered the disaster loss provisions of IRC section 165(i), which allows a taxpayer to elect [...]

“Expo West is the Super Bowl of the natural food industry, and we have been preparing for it and investing in it since last summer,” said Jordann Windschauer, founder and chief executive officer of Base Culture, a Clearwater, Fla., baker of gluten-free foods. “Once all of the major retailers canceled, it no longer was a good place for us to spend more time or money. T [...]

In addition to the Paycheck Protection Program and other provisions of the CARES Act, many companies can potentially look to their commercial insurance policies for recovery from the damaging impacts of COVID-19. Business Interruption Insurance is often the first place a company looks to in times like these for recovery. However, as Business Interruption Coverage typi [...]

On Friday April 10, 2020, the Department of Health and Human Services (“HHS”) began funding the first $30 billion of its $100 billion Public Health and Social Services Emergency Fund, as authorized by the CARES Act. In terms of what entities will receive this initial funding, HHS has determined that all facilities and providers who received Medicare Fee-For-Service (“ [...]

On March 27 the CARES Act was signed into law, which brought about a number of tax law changes that benefit taxpayers even back to the 2018 tax year. As with most major law changes, questions abound as to how the law should be implemented and what procedures should be followed to claim the tax benefits. The IRS has begun issuing guidance that answers a number of ques [...]

The GHJ team had an opportunity on April 13 to speak with a Washington insider about issues of interest to the firm’s clients. Below are the latest insights: PPP Forgiveness Guidance: The Small Business Administration (SBA) has until 30 days past the March 27, 2020 enactment of the CARES Act to provide guidance and rulemaking on all matters relating to the PPP. GHJ e [...]

The Internal Revenue Service released Notice 2020-23 in which it expands the tax filing relief to tax exempt organizations. An automatic extension has been provided until July 15, 2020. In the body of the notice there are specific forms and payments that are listed out such as: Form 990-T: Exempt Organization Business Income Tax Return and paymentsForm 990-PF: Priva [...]

In a time of crisis it may be tempting to consider establishing a new nonprofit organization to accept and disburse charitable donations. Resist the urge! In general, working with and supporting existing charitable organizations is a more effective use of disaster relief resources. Community funds like the United Way and Feeding America have existing targeted disas [...]

This morning the Treasury began implementing the Main Street Lending Program for mid-sized companies. In another section of the CARES Act, the Main Street Lending Program, there will be $600 billion in new funds made available to borrowers. The original Act intended lending be made available to borrowers with employee sizes 500-10,000. Today’s information sheet elim [...]