Category: Federal Page 1 of 6

RMD Rollover Deadline

It seems that summer is flying by, even in uncertain times. You can count on only a few things in life and taxes is one of them. We are fast approaching the deadline to rollover any RMDs that were taken in 2020. Below is a brief explanation of what a RMD is and how the CARES Act plays into your RMD for 2020. If you are in a position where you currently do not need the money from your IRA or 401(k), the RMD Waiver, under the CARES Act, can give you an advantage in tax planning for 2020.

IRA and 401(k) plan owners are required to take a certain amount of money out of their accounts each year beginning in the year they turn 72 (or you are taking them from age 70 ½ before the new rules).… Read More

Senate passes extension of Paycheck Protection Program until August 8, bill heads to House & other PPP legislation

The Paycheck Protection Program (PPP), a provision in the CARES Act, provides forgivable loans for businesses impacted by the devastating financial impact of the epidemic.  Yesterday, on the statutory deadline for submission of PPP applications, the Senate voted unanimously to extend the program until August 8, 2020.  The bill, S4116 was sponsored by Senator Benjamin Cardin will now head to a vote in U.S House of Representatives.

 The Small Business Administration will stop accepting applications to the program unless / until the House passes passes the Senate version of the bill.

Other recent legislative action in Congress that could potentially impact the PPP loan program are below:

  • S.4117

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PPP Clarifications – borrowers may apply before the end of covered period and other information released in recent interim final rule

The Coronavirus Aid, Relief, and Economic Security Act (the CARES Act or) was signed into law March 27, 2020 to provide emergency assistance and health care response for individuals, families, and businesses affected by the coronavirus pandemic.  The Paycheck Protection Program, a provision in the CARES Act, provides forgivable loans for businesses impacted by the devastating financial impact of the epidemic.

The Paycheck Protection Program Flexibility Act of 2020 (PPPFA) was signed into law on June 5th to expand borrower flexibility and simplify the process to request forgiveness as a result of feedback from lenders and borrowers reporting that the rigidity and uncertainty of the program, as implemented, rendered the loan program an ineffective source of relief.Read More

EIDL Program Reopens for Eligible Small Business Companies – expands access for gig workers

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27th and intended to provide emergency assistance and health care response for individuals, families, and businesses affected by the coronavirus pandemic.  One provision of the CARES Act intended to deliver relief to small businesses included an expansion of the SBA’s existing 7(b) emergency loan program (Economic Injury Disaster Loans or EIDLs) to help eligible businesses and private nonprofits pay payroll and operating expenses that could have been paid had the COVID-19 public health emergency not occurred.

The program exhausted funding and the application portal closed on April 15, 2020 (reopened in May for agricultural businesses only). Read More

IRS issues Guidance on Waiver of 2020 Required Minimum Distributions

Generally, IRA and 401K plan owners are required to take a certain amount of money out of their accounts each year beginning in the year they turn 72.  These mandatory distributions are called required minimum distributions (RMDs).  The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27th and intended to provide emergency assistance and health care response for individuals, families, and businesses affected by the coronavirus pandemic.

The CARES Act enabled any taxpayer with an RMD due in 2020 from a defined contribution retirement plan, including a 401(k) plan, 403(b) plan, or an IRA, to skip those RMDs this year.Read More

SBA / Treasury release Interim Final Rule to address revisions to the program as a result of PPPFA; 60% is not a cliff!

The  Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, was enacted on March 27, 2020 to provide immediate assistance to individuals, families, and businesses affected by the COVID-19 pandemic.

One of the provisions of the CARES Act included a loan program authorizing the Small Business Administration to temporarily guarantee loans under a new 7(a)
loan program titled the Paycheck Protection Program (PPP).   Loans guaranteed under the Paycheck Protection Program (PPP) are  100 percent guaranteed by SBA, and the full principal amount of the loans may qualify for loan forgiveness. 

The forgiveness component is what attracted massive interest in the program as business owners across the country are faced with government shut down orders that have caused significant declines in economic activity.Read More

Federal Reserve expands Main Street Lending Program to include more small and medium-sized businesses

The Federal Reserve Board (the Board) announced changes to the Main Street Lending Program on June 8th that are designed to expand the program to more small and medium-sized businesses.  The Main Street Lending Program was established and funded with the passing of the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act.  The CARES Act was signed into law by President Trump on March 27th, 2020.

The changes were listed on a press release that the Federal Reserve’s MSLP homepage that tracks program updates and changes.  The Board indicated the changes are a result of feedback received since the initial announcement of the lending program.Read More

Paycheck Protection Program Flexibility Act passes Senate – Heads to President for Signature

Yesterday afternoon, the Senate unanimously approved H.R 7010, the Paycheck Protection Program Flexibility Act of 2020.  As we previously reported, the House of Representatives passed the bill last week in an attempt to address major issues with the Paycheck Protection Program (PPP).  The bill now heads to the President, he is expected to sign the bill into law.

The bill makes significant changes to the PPP and will provide immediate and critically important relief for borrowers who have endured weeks of uncertainty with regard to the rules, terms, and expectation of forgiveness often coupled with the financial devastation of partial or total mandated government shut down orders.Read More

What do I do? I shredded my stimulus debit card or it has the wrong name

Don’t throw away that debit card that just arrived in the mail — it could be your coronavirus stimulus payment.

In order to expedite the issuance of stimulus payments, the Treasury Department decided to send out to 4 million people debit cards instead of checks.  The problem is that most people were looking for a check and thought the debit card was junk mail.  The cards arrive in a plain envelope from “Money Network Cardholder Services,” according to the IRS, with the name of the issuing bank, MetaBank, N.A., on the back.  The card doesn’t show it is from the federal government but the envelope does state that it is being sent on behalf of the Treasury Department.

If you do throw the card away, you can get a replacement by calling customer service at 1-800-240-8100, according to EIPCard.com, which provides information on how to use the cards. While the cardholder agreement says it costs $0 to replace the card the first time, there is a $17 charge for priority shipping of the new card.

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Main Street Lending Program Information Released

The Federal Reserve Bank of Boston today released several borrower and lender documents and a revised FAQ for the Federal Reserve’s Main Street Lending Program.  The documents were released on the Federal Reserve of Bank of Boston website.  The lending program was established with the passing of the CARES Act and is expected to be operational by early June. 

The Program is meant to support small and medium-sized businesses that were in sound financial condition before the COVID19 pandemic.

Our team is working through all of the information and will include an overview during Monday’s webinar.

The revised FAQ document is 56 pages long and the list of documents released late last night are below:

Please reach out to cares@brinkersimpson.comRead More

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