Month: May 2021

IRS issues guidance on taxability of dependent care assistance programs for 2021, 2022

The Internal Revenue Service issued guidance on Monday regarding the taxability of dependent care assistance programs for 2021 and 2022, clarifying that amounts attributable to carryovers or an extended period for incurring claims generally are not taxable. The guidance also illustrates the interaction of this standard with the one-year increase in the exclusion for employer-provided dependent care benefits from $5,000 to $10,500 for the 2021 taxable year under the American Rescue Plan Act.

Because of the pandemic, many people were unable to use the money they set aside in their dependent care assistance programs in 2020 and 2021. Generally, under these plans, an employer allows its employees to set aside a certain amount of pre-tax wages to pay for dependent care expenses.… Read More

The SBA Funds 16,000 Restaurant Revitalization Fund Awards

Today, the U.S. Small Business Administration will begin delivering economic relief from the Restaurant Revitalization Fund, established by the American Rescue Plan and signed into law by President Joe Biden, to more than 16,000 approved applicants. This first round of funding represents over $2 billion of relief awarded since last Monday’s successful program launch. Restaurants and other food and beverage businesses across the nation will begin to see funds in bank accounts as early as Tuesday, May 11.

“Just one week after launching the $28.6 billion Restaurant Revitalization Fund, the SBA has begun to fund applications and that more than 16,000 restaurants and other food and beverage business owners will get much-needed relief in their hands,” said SBA Administrator Isabella Casillas Guzman.… Read More

Restaurant Revitalization Fund: What to Expect Next

Regardless of where you are in the application process, please review the following reminders and helpful hints about moving forward.

What to expect next:

  1. As outlined by Congress, the SBA will focus their reviews on the priority applications that have been submitted. Applicants who have submitted a non-priority application will find their applications remain in a Review status while the priority applications are processed during the first 21 days. Applicants in this status should not anticipate any outreach from the SBA during this period.
  2. Following successful application submission, all applications will first enter a stage called “IRS verification”. This process may take up to seven days and allows the SBA to validate your application submission.
Read More

Shuttered Venue Operators Grant Program: What’s Next?

Regardless of where you are in the application process, please review the following information as you proceed.

Here are some tech tips as you go through your application:

  1. If you have only one bank account in your SAM.gov registration, your Electronic Funds Transfer Indicator is 0000 (FAQ #53 under Application).
  2. If you want to remove an uploaded file, try uploading a new file to replace the file you wish to delete.
  3. If you’re seeing a zero-grant amount in the calculator, that could be because of an invalid start date, an offsetting PPP loan amount, or an insufficient revenue loss.
  4. If you email the SVOG Support Center, you may receive an email back from a zendesk.com
Read More

The Paycheck Protection Program is Out of Money and Closed to Most New Applications.

Four weeks before its scheduled end, the federal government’s signature aid effort for small businesses ravaged by the pandemic — the Paycheck Protection Program — ran out of funding Wednesday afternoon and stopped accepting most new applications.

Congress allocated $292 billion to fund the program’s most recent round of loans. Nearly all of that money has now been exhausted, the Small Business Administration, which runs the program, told lenders and their trade groups Wednesday.

While many had predicted that the program would run out of funds before its May 31 application deadline, the exact timing came as a surprise to many lenders.… Read More

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