Month: September 2020

1099-C Not Required For PPP Loan Forgiveness

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On September 23, 2020

In Federal, Financial Resources

The Internal Revenue Service announced yesterday that lenders are not required to and should not file a 1099-C information return with the IRS or payee statement to the eligible recipient when all or a portion of a Paycheck Protection Program loan is forgiven under section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (CARES).

Generally, entities are required to file the 1099-C information return with the IRS when they discharge at least $600 of a borrower’s indebtedness and to furnish a payee statement to the borrower.

IRS Announcement 2020-12 is intended to prevent erroneous underreporting notices that may be triggered by the filing of the information returns and confusion caused by the furnishing of payee statements to eligible recipients.… Read More

Department of Labor issues new regulations implementing FFCRA paid leave after August court decision

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On September 22, 2020

In Financial Resources

We previously wrote about the August 3, 2020 U.S. District Court for the Southern District of New York (the “District Court”) struck down four provisions of the Department of Labor’s (“DOL”) regulations interpreting employee leave eligibility and entitlement under the Families First Coronavirus Response Act and other FFCRA paid leave updates.

On September 11, 2020 the DOL issued revised regulations as a result of that court decision.  The Revised Final Rule became effective September 16, 2020.

Important provisions in that Final Rule are below:

  1. DOL reaffirmed “work-availability” requirement that paid sick leave and expanded family medical leave are only available if an employer has work for the employee at the time of the leave.
… Read More

Indoor dining resumes in Philadelphia at 25% capacity

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On September 9, 2020

In Pennsylvania, State/Local

Beginning September 8,  indoor dining resumed in the city of Philadelphia under specific restrictions that are largely consistent with indoor dining restrictions statewide. The City’s new indoor dining restrictions include, but are not limited to:

  • Restaurants cannot be filled to more than 25 percent capacity.
  • No more than four diners per table.
  • Tables must be arranged so that diners at separate tables are at least six feet apart or have an impermeable barrier between them.
  • Servers must wear both masks and face shields for additional protection.
  • No bar service. Alcohol can be served only for on-premises consumption when in the same transaction as a meal.
… Read More

Governor Wolf Announces Restaurants May Increase Indoor Occupancy to 50 Percent Starting September 21

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On September 9, 2020

In Pennsylvania, State/Local

A press released from Governor Tom Wolf of Pennsylvania announced September 8th, 2020 that restaurants may increase their indoor occupancy to 50 percent of occupancy (based on fire code) beginning September 21, 2020.   The press release can be read in full HERE.

Also beginning September 21, 2020, restaurants that serve alcohol will be required to end alcohol sales at 10:00 PM.

The release also provided information about the establishment of a Pennsylvania government database (Open & Certified Pennsylvania) where restaurant owners planning to expand to 50% of occupancy must self-certify they are strictly complying with public health safety guidelines and orders.… Read More

Pennsylvania’s ​Lost Wages Assistance (LWA) – extra $300 unemployment benefit now available

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On September 8, 2020

In Financial Resources, Pennsylvania

The Pennsylvania Office of Unemployment Compensation provided information  for unemployed Pennsylvanians eligible for an extra $300 unemployment benefit made available from the federal government to support Americans who became unemployed as a result of the COVID-19 related virus mitigation measures.

The below information can also be accessed HERE.

​Lost Wages Assistance Program

The federal Lost Wages Assistance (LWA) Program gives Pennsylvania $1.5 billion to provide an extra $300 a week in additional funds to individuals that are unemployed (or partially unemployed) because of COVID-19.

LWA Program Eligibility

  • You must be fully or partially unemployed due to COVID-19, and
  • You must have a weekly benefit rate + dependent allowance totaling $100 or more, and
  • You must receive a payment each week from one of the qualifying programs:
    • Unemployment Compensation
    • Pandemic Emergency Unemployment Compensation
    • Pandemic Unemployment Assistance
    • State Extended Benefits
    • Shared-Work
    • Trade Readjustment Allowances
You will certify only ONCE for the LWA program.
… Read More

The New Charitable Deduction for Non-itemizers

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On September 3, 2020

In Federal

Many charitable organizations are now experiencing a decline in giving as the U.S. finds itself grappling with the COVID health crisis.  In response, Congress included a provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, intended to provide some relief for charitable organizations. Section 2204 of the CARES Act permits eligible individuals who do not itemize deductions to deduct $300 of qualified charitable contributions as an “above-the-line” deduction, i.e., as an adjustment in determining adjusted gross income (AGI), for tax years beginning in 2020.

QUALIFYING FOR THE DEDUCTION

For tax years beginning in 2020, eligible individuals may deduct up to $300 in qualified charitable contributions made to qualified charitable organizations.… Read More

IRS Addresses Temporary Deviation from Handwritten Signature Requirement for Limited List of Tax Forms

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On September 3, 2020

In Federal

On August 27, 2020, the Department of Treasury and Internal Revenue Service issued a memorandum addressing Temporary Deviation from Handwritten Signature Requirement for Limited List of Tax Forms.   Here is the memo content:

As part of our response to the COVID-19 situation, we have taken steps to protect employees, taxpayers and their representatives by minimizing the need for in-person contact. Taxpayer representatives have expressed concerns with securing handwritten signatures during these times for forms that are required to be filed or maintained on paper. To alleviate these concerns while promoting timely filing, we are implementing a temporary deviation with this memorandum that allows taxpayers and representatives to use electronic or digital signatures* when signing the following forms that currently require a handwritten signature:

• Form 3115, Application for Change in Accounting Method;

• Form 8832, Entity Classification Election;

• Form 8802, Application for U.S.… Read More

FFCRA paid leave updates including DOL guidance on eligibility for in a remote learning environment

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On September 3, 2020

In Federal, New York, State/Local

On March 18, the  Families First Coronavirus Response Act (FFCRA) was signed into law to respond to the economic impact of the COVID-19 pandemic.  Included in the legislation was a provision requiring employers (generally businesses with less than 500 employees with an exemption for public health employees)  to provide Emergency Paid Sick Leave and Emergency Paid Medical Leave when employees met certain criteria.  The paid leave would be funded by the federal government through payroll tax credits.

The effective date for the emergency paid leave provision was April 2, 2020 and the Department of Labor announced the regulations for implementation through a temporary rule issued April 1, 2020 that expires December 31, 2020.… Read More

PPP interim final rule adds provisions for owner-employee compensation exemptions and eligibility of certain non-payroll costs

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On September 3, 2020

In Federal, Financial Resources

The Small Business Administration issued an interim final rule (IFR) on August 24, 2020 to address applicability of owner compensation rules for minority interest owners and the eligibility of non payroll costs.

Certain owners exempt from PPP owner-employee compensation rule

The IFR provides guidance to borrowers relative to the applicability of owner-employee compensation rules.  Specifically, it exempts owners with less than a 5% ownership stake from applying the owner-employee compensation rule.  The exemption is intended to cover owner-employees who have no “meaningful” ability to influence decisions over how loan proceeds are allocated.  The exemption from the rule only applies to owner-employees of S or C corporations, not partnerships or limited liability companies.… Read More

Additional guidance released from IRS on President Trump’s payroll tax deferral executive order

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On September 2, 2020

In Federal, Financial Resources

President Trump signed four COVID-19 related executive orders on August 8, 2020 after Congress failed to pass economic relief legislation.  Included in the executive orders was a payroll tax deferral for American workers earning, generally, less than $100,000 on an annualized basis.  The order did not include details on implementation, repayment terms of the deferral, or other critical pieces of information needed to determine if businesses would participate.  On August 28th, the Treasury Department and IRS issued further official guidance on the payroll tax deferral.

According to IRS Notice 2020-65, employers can defer the withholding, deposit, and payment of certain payroll taxes on wages paid from Sept.… Read More

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