McGuire Sponsel Hires Tax Consultant

McGuire Sponsel, a specialty tax and consulting firm with clients throughout the United States, has hired Conner Mullin—as a Tax Consultant.

On Friday, June 5th, President Trump signed into law the Paycheck Protection Program Flexibility Act of 2020. This law updated some of the key structural elements of the Paycheck Protection Program (PPP) to allow more businesses to receive full forgiveness of the funds received from the program.

A drive to entice multinationals to move overseas manufacturing operations to the U.S. has gained traction with both parties on Capitol Hill as they frame competing plans for new tax incentives to include in possible virus relief legislation.

Many aspects of business changed over the last three months. Between shelter in place orders, a slowing economy, and regulatory changes under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), we will feel the effects for months.

Treasury issued a significant amount of new information on Wednesday, May 13th. In addition to updating their FAQs over the Paycheck Protection Program (PPP) they also issued a new Interim Final Rule dealing with potential Loan increases.

In recent weeks, Treasury and the SBA have been requesting that companies receiving funds under the Paycheck Protection Program (PPP) review their certification that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” Treasury then gave borrowers until May 14, 2020 to return funds, if they believe that the certification was not made in “good faith”.

In response to the shortage of Personal Protective Equipment (PPE) and other hygiene products such as hand sanitizer caused by the coronavirus pandemic, many companies are pivoting resources toward the manufacture of these much needed products.

The most publicized part of the Coronavirus Aid Relief and Economic Security Act (CARES act), was the Paycheck Protection Program (PPP). This program was designed to help small businesses survive the shutdown and economic uncertainty generated by the Coronavirus. However, the program has been saddled with bad press and implementation issues from the beginning.

Under the CARES Act, Congress appropriated $349 billion in loans to small businesses under the Payment Protection Program (PPP). There are additional programs and tax provisions that companies should be aware of to use instead of or in conjunction with PPP loans.

Should you repay your Paycheck Protection Program Loan in the next few weeks? With notable companies such as Shake Shack and Ruth’s Chris receiving these loans, Dave answers this question and more in COVID-19 Edition #6 of McGuire on the Wire.

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