Industry Today: Financial Tips for Manufacturers During COVID-19

Industry Today recently published an article by David Kloess, a Partner in Bennett Thrasher’s Financial Reporting & Assurance practice. In the article, Kloess advises manufacturers on how to manage cash flow and create efficiencies in the wake of COVID-19.

The IRS Confirms No Tax Deduction for Expenses Resulting in PPP Loan Forgiveness, but Will Notice 2020-32 Be the Final Word?

On May 1, 2020, the IRS released Notice 2020-32 to explain that taxpayers receiving a loan through the Paycheck Protection Program (PPP) are not permitted to deduct business expenses normally deductible, to the extent the expenses are reimbursed by a PPP loan that is forgiven. The guidance follows weeks of debate within the tax community regarding whether the loan proceeds that are used to fund payroll costs, rent, utilities and mortgage interest could still be deducted, because under the CARES Act the loans are forgivable on a tax-free basis.

The Bureau of Economic Analysis U.S. Direct Investment Abroad: 2019 Forms BE-10 Surveys

The U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) under the U.S. Department of Commerce is conducting its 2019 benchmark survey, the BE-10 Survey of Direct Investment Abroad. The BE-10 survey occurs every five years pertaining to U.S. persons (individuals and entities) with large and small investments in one or more foreign affiliates.

Do You Need to File Gift Tax Returns? Avoid These Common Mistakes

For 2020, the lifetime gift and estate tax exemption has reached a whopping $11.58 million ($23.16 million for married couples). As a result, few people will be subject to federal gift taxes. If your wealth is well within the exemption amount, does that mean there’s no need to file gift tax returns? Not necessarily.

Applying an Old Statute During the COVID-19 Pandemic

Previous alerts and communications from Bennett Thrasher have been focused on the legislative measures currently being taken by the government to respond to the COVID-19 pandemic, but businesses may possibly turn to a preexisting tax provision to help support their employees facing health and financial challenges during this emergency. In general, an employer cannot make a “gift” to an employee because any payment made is treated as taxable compensation.

Employee Retention Credits Under the CARES Act

As a part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) enacted on March 27th, Congress created a new employee retention credit (ERC) for businesses adversely impacted by the ongoing COVID-19 pandemic. This provision was one of several measures included in the Act which are designed to help employers retain employees during the health crisis.

Smart Money Tips for Business Owners

Most smart business owners have a firm understanding of the importance of saving money. They know that one day, their savings could come in handy, especially during slower seasons.

Time to Consider Goodwill Impairment?

Even in normal economic times, it is crucial for financial managers of businesses that have goodwill and other intangible assets on their books to understand the requirements of ASC 350 Intangibles- Goodwill and Other. The standard includes guidance on the subsequent measurement of intangible assets and goodwill. The current coronavirus (COVID-19) pandemic could affect the subsequent measurement of goodwill and the fair value of an entity.

Planning for What’s Next

Here we are, a month after the world was upended due to the coronavirus. In the first few days, leaders had to respond to the urgency of the situation. For some, the workforce began to work remotely. Others adapted and some have temporarily closed their doors. We don’t know how long the current pandemic will last or how long it will take the economy to recover, but we do know that now is not the time to lose sight of your long-term plans.

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