Tax Alerts

Oct. 28, 2020 – Presidential Candidates Tax Plan Comparison

Federal income taxes are an important consideration for voters in the 2020 presidential election next week. This alert summarizes the federal income tax proposals included in the tax plans of President Donald Trump and former Vice President Joe Biden. Individual Income Tax RatesUnder current law, individual taxpayers pay ordinary income tax at graduated rates ranging from…

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Sept. 4, 2020 – IRS Confirms Employment Tax Deferral is Optional

On Thursday, September 3, the IRS stated in a payroll industry teleconference that the employee FICA tax deferral implemented by President Donald Trump through an executive order is optional (see below for the original Whitley Penn tax alert regarding the payroll tax deferral).  On the conference call, the IRS stated that the deferral is elective and…

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Aug. 29, 2020 – Update – IRS Issues Guidance on Payroll Tax Deferral

On August 8, President Trump issued an executive action directing the Treasury Department to defer the withholding and payment of the employee portion of FICA tax on wages paid from September 1, 2020 to December 31, 2020. The executive order required the Treasury to provide guidance regarding the detailed rules and practical application of the payroll…

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Aug. 6, 2020 – SBA Releases PPP Loan Forgiveness FAQs

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act established the Paycheck Protection Program (“PPP”) that provided loan funding for qualifying small businesses. Under the CARES Act, the proceeds received by a borrower from a PPP loan may be forgiven if the borrower uses the proceeds to pay specified expenses (including payroll costs, interest on qualified…

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July 2, 2020 – Paycheck Protection Program Extension and Updates

Congress Passes PPP ExtensionThe U.S. House of Representatives unanimously passed a five-week extension of the Paycheck Protection Program (“PPP”) on Wednesday, July 1. The House action follows the Senate’s approval of a five-week extension on Tuesday night.  The bill will now be sent to President Trump who is expected to sign it into law.The application period for the…

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June 4, 2020 – Congress Passes Favorable PPP Loan Legislation

Last week, the U.S. House of Representatives overwhelmingly passed the Paycheck Protection Program Flexibility Act of 2020 (“Act”). On Wednesday, the U.S. Senate approved the bill and it will now be sent to President Trump to sign into law. The Act modifies several provisions of the Paycheck Protection Program (“PPP”), the U.S. Small Business Administration (“SBA”) loan…

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May 18, 2020 – SBA Releases Application for PPP Loan Forgiveness

May 18, 2020 – The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act established the Paycheck Protection Program (“PPP”) that provides funding for small businesses financially impacted by the COVID-19 pandemic. Loans made under the PPP are eligible for forgiveness if the proceeds are used for qualifying expenses in the eight-week period beginning on the loan…

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May 14, 2020 – SBA Issues Additional Guidance Regarding PPP Loan Certifications

May 14, 2020 – The SBA previously issued guidance as part of its Paycheck Protection Program (“PPP”) FAQs clarifying the requirement that loan applicants provide a good-faith certification that the loan was necessary because they were adversely affected by the coronavirus pandemic. (See the Whitley Penn Tax Alert Additional Scrutiny for Certain PPP Loan Borrowers dated April 30, 2020).On…

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May 1, 2020 – Deductibility of Expenses Funded with PPP Loan Proceeds

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act established the Paycheck Protection Program (“PPP”) that provided loan funding for qualifying small businesses. Under the CARES Act, the proceeds received by a borrower from a PPP loan may be forgiven if the borrower uses the proceeds to pay specified expenses (including payroll costs, interest on qualified…

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