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.
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.
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.
COVID-19 has impacted every industry and changed the way millions of businesses operate around the globe. While it’s safe to say we have not seen a disruptor of this magnitude in our lifetime, past pandemics have also forced industries to innovate and adapt.
One of the tax provisions in the CARES Act designed to give businesses immediate help with their cash flow allows them to defer payment of the employer’s Social Security tax of 6.2% (OASDI) of employee wages (up to an annual limit) incurred from March 27, 2020 through December 31, 2020. One half of the deferred amount will be due on December 31, 2021, and the other half will be due on December 31, 2022.
On April 9, 2020 the IRS issued Notice 2020-23 which significantly broadens its relief to taxpayers in response to the ongoing coronavirus pandemic. All taxpayers with a federal filing or payment deadline (original or pursuant to a valid extension) on or after April 1, 2020, and before July 15, 2020, have until July 15, 2020 to file the returns and make payments without penalties or interest.
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law on March 27, 2020. This $2.2 trillion legislation is the largest emergency relief bill ever passed in the U.S. It injects funds into the economy and provides direct relief to individuals, states, businesses and nonprofit organizations that are experiencing hardship due to the COVID-19 pandemic.
On Monday, April 6, the U.S. Department of the Treasury provided an update to its frequently asked questions on the Small Business Administration’s Paycheck Protection Program loans. The newly released FAQs address common questions and provide further guidance to borrowers and lenders concerning the implementation of the PPP.
Late Thursday, April 2, the Treasury Department released new guidelines from the Small Business Administration for the Paycheck Protection Program (PPP) to assist small businesses to submit their loan applications in a timely basis. We are continuing to monitor developments and updates that affect your business and will provide you with alerts on a regular basis to ensure you are informed on how to respond to tax and regulation changes as they occur.
With many COVID-19 legislative measures and related resources available, Bennett Thrasher is dedicated to providing you with the information your business needs. Our team of accounting and consulting professionals are continuously monitoring developments as they occur in real-time order, in order to provide you with important updates on legislation and relief efforts that affect you and your business.
As the coronavirus (COVID-19) pandemic rapidly spreads throughout the U.S. and the world, nonprofit organizations are facing unprecedented challenges to their operations, staffing and fundraising. Many nonprofits serve vulnerable clients such as the elderly, the ill and the homeless, and these organizations will be strained to continue to provide services during the crisis. Arts and cultural organizations have closed and canceled programs in response to directives to limit public gatherings.
On Friday, March 20, Treasury Secretary Steven Mnuchin tweeted that the April 15, 2020 tax filing deadline will be postponed until July 15. Later that evening the IRS issued Notice 2020-18, making Mnuchin’s announcement official. Notice 2020-18 supersedes Notice 2020-17 which was issued on March 18. The new notice affirms that the IRS will automatically treat July 15 as the new deadline for filing federal income tax returns and making federal income tax payments for all taxpayers, including individuals, corporations trusts and estates.