Expenses Paid with Forgivable PPP Loans Not Deductible

The Internal Revenue Service (IRS) recently released guidance on the deductibility of expenses reimbursed by a Payment Protection Program (PPP) loan that is then forgiven. In Notice 2020-32, the IRS states that no deduction is permitted for expenses normally deductible to the extent the expenses were reimbursed by a PPP loan that was forgiven. The disallowance is to prevent a double benefit by preventing a deduction for excluded income.

Some lawmakers disagree with the IRS’ guidance. They believe the intent of the program was to provide small businesses with liquidity to retain their employees. The notice is contrary to that intent.

A spokesperson for House Ways and Means Committee Chairman Richard Neal stated, “We are planning to fix this in the next piece of response legislation.”

Our office is monitoring this situation closely and will provide you with updates as needed. Please call our office if you have any questions.

This communication should not be construed as tax or legal advice or tax or legal opinion on any specific facts or circumstances. This communication does not create any accountant/client or attorney/client privilege. The contents are intended for general informational purposes only, and you are urged to consult a tax advisor or lawyer concerning your own situation and legal questions.

MontcoStrong Small Business Grant Program

On April 6, 2020, Montgomery County Board of Commissioners announced the MontcoStrong Small Business Grant Program. Applicants must be a for-profit business with a physical location in Montgomery County, Pennsylvania, employing no more than 50 individuals and impacted by the COVID-19 pandemic. For full details visit www.montcopa.org/MontcoStrongSBGP. Applications will be accepted beginning on Wednesday, April 8, 2020 at 11 a.m.

This communication should not be construed as tax or legal advice or tax or legal opinion on any specific facts or circumstances. This communication does not create any accountant/client or attorney/client privilege. The contents are intended for general informational purposes only, and you are urged to consult a tax advisor or lawyer concerning your own situation and legal questions.

Some Banks Closing Window to Submit PPP Application

We have been informed that some banks have reached or are reaching their maximum lending limit for the SBA’s Paycheck Protection Program (PPP) and may not be able to accept additional requests for a loan through the PPP. Please contact your bank for more information. If your bank is one of the banks that have met its cap, we suggest that you contact another bank that you have worked with in the past, particularly large regional banks. The Economic Injury Disaster Loan (EIDL) remains another option for small businesses, and application for the EIDL can be made in addition to the PPP.

This communication should not be construed as tax or legal advice or tax or legal opinion on any specific facts or circumstances. This communication does not create any accountant/client or attorney/client privilege. The contents are intended for general informational purposes only, and you are urged to consult a tax advisor or lawyer concerning your own situation and legal questions.

PA Loan Program for Small Businesses: CWCA

CASI Payroll Plus continues to research the latest forms of assistance available to small businesses.

The COVID-19 Working Capital Access (CWCA) Program is administered by the Pennsylvania Industrial Development Authority (PIDA) and provides critical working capital financing to small businesses located within the Commonwealth that are adversely impacted by the COVID-19 outbreak. All CWCA loan applications must be submitted through your respective county economic development organization.
https://dced.pa.gov/programs/covid-19-working-capital-access-program-cwca/<https://linkprotect.cudasvc.com/url?a=https%3a%2f%2fdced.pa.gov%2fprograms%2fcovid-19-working-capital-access-program-cwca%2f&c=E,1,lHqC_Y2B_g-W8_es2qAhmQSztjgAs5_R9Dyjf8gbQUx2zAAQVkvmQbQB3FkJWM9MV3rXpUpr5TXmbG37MQe0GBkAGixCwYHJSYq_2KZfUx8,&typo=1>

Also, the COVID-19 Economic Rapid Response Loan Program is a one-time emergency grant-to-loan program administered by the Redevelopment Authority of the County of Bucks and targeting tourism and hospitality businesses (for select municipalities in lower Bucks).
http://www.bcrda.com/municipal-grant-program-for-covid-19-emergency-relief/<https://linkprotect.cudasvc.com/url?a=http%3a%2f%2fwww.bcrda.com%2fmunicipal-grant-program-for-covid-19-emergency-relief%2f&c=E,1,BFdeet36Hjz8vrk3TtsMtzEhe-XeBxNHXxDafGUwJCF_ZwpwKs-X-GTH-QcBURSX3wF8BDvxcA-nM-aYiWalG7u0avd6w4Qa4LISYSGO9g,,&typo=1>

Please call your accountant or call CASI Payroll at 215-716-2165 for more information.

This communication should not be construed as tax or legal advice or tax or legal opinion on any specific facts or circumstances. This communication does not create any accountant/client or attorney/client privilege. The contents are intended for general informational purposes only, and you are urged to consult a tax advisor or lawyer concerning your own situation and legal questions.

Families First Coronavirus Response Act

Information regarding COVID-19 support is coming fast and from many sources.  We felt our clients would benefit from a summary of the Families First Coronavirus Response Act.

This communication should not be construed as tax or legal advice or tax or legal opinion on any specific facts or circumstances. This communication does not create any accountant/client or attorney/client privilege. The contents are intended for general informational purposes only, and you are urged to consult a tax advisor or lawyer concerning your own situation and legal questions.

Local EIT Filing Deadline Extended to July 15

Keystone Collections Group and Berkheimer are Pennsylvania tax administrators collecting local Earned Income Tax (EIT) for our region. According to a statement on the Keystone Collections Group website, Keystone is extending the local EIT filing deadline to match the State and Federal date of July 15, 2020. Keystone will not apply penalty and interest on Tax Year 2019 Final Return payments until after July 15, 2020. Similarly, Berkheimer’s website announces that the new due date for 2019 returns and 1st quarter 2020 estimated payments is July 15, 2020.

This communication should not be construed as tax or legal advice or tax or legal opinion on any specific facts or circumstances. This communication does not create any accountant/client or attorney/client privilege. The contents are intended for general informational purposes only, and you are urged to consult a tax advisor or lawyer concerning your own situation and legal questions.

Support Available for Bucks County Businesses

Bucks County Economic Development Corporation (BCEDC) is willing to support Bucks County businesses in any way they can. Contact Bob Cormack of BCEDC at 215-348-9031.

This communication should not be construed as tax or legal advice or tax or legal opinion on any specific facts or circumstances. This communication does not create any accountant/client or attorney/client privilege. The contents are intended for general informational purposes only, and you are urged to consult a tax advisor or lawyer concerning your own situation and legal questions.

Waivers for Keeping Physical Locations Open

As you know, on March 19, 2020, Governor Tom Wolf ordered all non-life-sustaining businesses in Pennsylvania to close their physical locations to slow the spread of COVID-19. Businesses seeking waivers and exemptions to the closure order should submit this form https://expressforms.pa.gov/apps/pa/DCED/Waiver-process-keeping-physical-locations-open  to the Department of Community & Economic Development.

If your business needs help navigating the waiver process or identifying if you are eligible to keep your physical location open, your local economic development corporation may be able to help.

This communication should not be construed as tax or legal advice or tax or legal opinion on any specific facts or circumstances. This communication does not create any accountant/client or attorney/client privilege. The contents are intended for general informational purposes only, and you are urged to consult a tax advisor or lawyer concerning your own situation and legal questions.

Personal Income Tax Deadline Extended

The PA Department of Revenue announced the deadline for taxpayers to file their 2019 Pennsylvania personal income tax returns is extended to July 15, 2020. This PA extension applies to both final 2019 tax returns and payments, and estimated payments for the first and second quarters of 2020. On Friday, the Trump administration also announced that the federal tax filing deadline has been moved to July 15 from April 15 (to match the previously announced payment relief). If you would like information on any other states, please call our main number at 215-716-2165.

This communication should not be construed as tax or legal advice or tax or legal opinion on any specific facts or circumstances. This communication does not create any accountant/client or attorney/client privilege. The contents are intended for general informational purposes only, and you are urged to consult a tax advisor or lawyer concerning your own situation and legal questions.

CASI Updates on Social Media

A Message from CASI Payroll…

In response to the coronavirus economic impacts, updates are happening so fast regarding such things as what are life sustaining business, applications for exemptions, government loan programs, and tax extensions and credits.  CASI Payroll strives to provide our clients and friends with the most up-to-date information as soon as possible.  To do this the most effectively during this difficult time, we are asking you to follow us on Facebook and/or LinkedIn. 

Facebook:  https://www.facebook.com/casipayrollplus/  
LinkedIn: https://www.linkedin.com/company/casipayrollplus

Blog:  https://www.casipayrollplus.com/blog/

The same information is going to appear on Facebook, LinkedIn and on our blog.

We will always remain available by phone or email but believe that the best way to get information quickly disseminated is through social media.  Payroll companies are now considered a life-sustaining business and as such, CASI will reopen at our physical location on a limited basis.  We are not receiving visitors, but we are getting mail, receiving deliveries, still processing payroll and will be preparing quarterly payroll tax returns.  We have chosen to provide our employees the ability to work from home and many are choosing to do this to help reduce social contact.  The few that have voluntarily chosen to come in are utilizing social distancing as well as good hygiene and frequent cleaning of door handles and other surfaces.

We hope all of you and your families remain safe at this difficult time.  Thank you for your cooperation and we look forward to speaking with each of you soon.  We can all get through this crisis if we work together!

This communication should not be construed as tax or legal advice or tax or legal opinion on any specific facts or circumstances. This communication does not create any accountant/client or attorney/client privilege. The contents are intended for general informational purposes only, and you are urged to consult a tax advisor or lawyer concerning your own situation and legal questions.