MPL General Counsel Corner – If you stare at it long enough, you will see a sailboat or maybe get an interest free loan.
Like most relief programs to date, there is always more questions than answers once an update is released. Last week, the Department of Treasury provided an update on PPP Forgiveness as it relates to Owners Compensation and Certain Non-Payroll Costs. While helpful, especially if you own 5% or less of the company, most businesses that I have talked to are taking a wait and see approach for the next round of stimulus. It is expected that PPP loans that are less than $150k will be automatically forgiven. I presume November 3rd (hopefully) will have something to do with that decision and many others.
This week, the Department of Treasury and the IRS issued guidance on the payroll tax deferral. While I am no expert in these areas, I know enough to be dangerous. However, I think the experts are better equipped to provide insight. Check out what I thought were some of the better insights on this recent update: However, I thought the following updates provided some great insights.
- CPA Practice Advisor – IRS Issues Guidance on Payroll Tax Deferral
- Stambaugh Ness (Chad Bumbaugh, CPA) – Payroll Tax Deferral Kick-Off
- Trout CPA (Dan Chodan, CPA & Michael Carr, CPA) – Lack of Guidance leaves Employers Uncertain About Payroll Tax Deferral
- EisnerAmper (Richard Shapiro, CPA) – IRS Issues Guidance on Payroll Tax Deferral
Clearly, there is more confusion on these programs than clarity. It reminds me of an oft-quoted scene in Mallrats – If you stare at it long enough, you will see a sailboat….or maybe get an interest free loan.
A few other items we thought were of interest:
· NFIB Webinar (9/2/2020 @ 12pm) – Ready for PPP Loan Forgiveness?
· Bankruptcy Updates from Rob Bovarnick (firstname.lastname@example.org)– It’s an unfortunate reality, but the following “Behind the Curtain – Chapter 11 From Inside” updates published at Forbes.com are very helpful (note that Chapter 5 and 6 are additions from my last update).
- Chapter 1 – Overview
- Chapter 2 – The Initial Meeting
- Chapter 3 – Pre-filing
- Chapter 4 – First Day Motions
- Chapter 5 – The Automatic Stay
- Chapter 6 – Financial Information