As additional relief for U.S. taxpayers that are affected by COVID-19, the IRS and Treasury provided guidance for tax issues as a result of the travel disruptions for both 2019 and 2020. Rev. Proc. 2020-20: Provides that eligible nonresident aliens, who were not able to depart the U.S. because of COVID-19 emergency, can exclude up to 60 consecutive calendar days for [...]

The Coronavirus Aid, Relief and Economic Security (CARES) Act provides employers with the opportunity to defer the employer portion of social security taxes (6.2 percent) on wages paid between March 27, 2020 and Dec. 31, 2020. The Act also provides that employers that have a Paycheck Protection Program (PPP) loan forgiven are not eligible for the deferral. Until recen [...]

COVID-19 has created uncertainty and resulted in major economic changes, which has had a chilling effect on the economy, M&A deals and capital market transactions. Deals and financings (including IPOs) that were in process at the beginning of this year are now paused. Companies and investors are looking for answers about how to prepare for the future. Before COVID-19 [...]

Last evening, the Small Business Administration (SBA) released an Interim Final Rulemaking Guide for individuals that file Paycheck Protection Program (PPP) applications. The guidance clarifies several aspects of the PPP loan application amount that were previously uncertain and provides taxpayer-friendly guidance on the use of PPP funds. Background Guidance for [...]

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 [...]

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 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 [...]

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 [...]

Last night, the Treasury Department released a series of frequently asked questions to clarify certain provisions of the Paycheck Protection Program (“PPP”) to applicants. These are: For the purposes of calculating payroll costs and headcount, there was ambiguity about the correct time period that should be used. The clarification allows an applicant to use either t [...]