Although the coronavirus has caused uncertainty in nearly all aspects of everyday life, it is inspiring to witness our community navigate this new normal and support local businesses and nonprofits. The BT Foundation and BT Associates are committed to giving back to our community and are proud to have rallied behind the hospitality industry by donating over $10,000 to the Giving Kitchen.
Businesses who have borrowed through the Paycheck Protection Program (PPP), enacted by the CARES Act, are still anxiously waiting for the Small Business Administration (SBA) to provide further guidance explaining how the loan forgiveness amount will be calculated. On May 13, 2020, the SBA did issue additional guidance that will benefit certain employers.
Bennett Thrasher is pleased to announce the hiring of Brett Dixon as a Director in the firm’s Disputes, Valuation & Forensics practice. In his role, Brett will focus on performing valuations of business entities and intangible assets to assist clients with mergers, acquisitions and dispositions; taxation planning and compliance; financial reporting; and strategic planning.
The Atlanta Business Chronicle recently published an article that dives into the Paycheck Protection Program (PPP) requirements and whether businesses will be able to meet the obligation of using 75% of the loan proceeds on payroll costs. The publication turned to Stephen Klein, Managing Director of Bennett Thrasher’s Bankruptcy & Restructuring practice, for his insight on whether companies that offer bonuses to employees will see greater forgiveness from the Small Business Administration (SBA).
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.
Bennett Thrasher, one of the largest full-service public accounting and consulting firms in the country, announces the addition of Stephen Klein as managing director of the firm’s bankruptcy and restructuring practice.
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.
Entrepreneurs are no strangers to the challenges of getting a business off the ground. Still, the coronavirus (COVID-19) pandemic presents an extreme – even, existential – challenge. As the situation continues to evolve, many startup companies face a very uncertain future.
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.
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.
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.
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.