The knowledge you need

The Consolidated Appropriations Act (CAA), which was passed on December 27, 2020, provided a much-needed boost to millions of U.S. taxpayers and contained billions of dollars in new federal funding designed to support the construction industry. In addition to reviving the Paycheck Protection Program, the CAA contained several tax extenders and made other tax incentives permanent. This included a renewal of the Employee Retention Tax Credit, Section 179d, and several renewable energy-related credits. When combined these relief measures can help Atlanta construction companies and contractors manage through the persistent COVID-19 pandemic.

Rural hospitals face a number of challenges to delivering comprehensive patient care. The combination of demographic, economic, and industry issues has left facilities facing financial difficulties. The COVID-19 pandemic has intensified the problem because there are now far more individuals needing care than capacity permits. This has left many searching for additional income to deliver desperately needed healthcare.

From time-to-time issues arise in the administration of an employee benefit plan. It is bound to happen given the sheer number of rules and regulations plan sponsors must adhere to. To facilitate resolution the IRS has established the Employee Plans Compliance Resolution System where plan sponsors can go to resolve open issues including prohibited transactions. This happens when a transaction occurs between a plan and a disqualified person. Such transactions can arise from plan loans to certain participants and even fiduciary self-dealing.

To the relief of many Atlanta area businesses and nonprofits another round of COVID-19 financial relief is coming, but final details on what and who will be covered and to what extent still linger. Congress is debating the specifics of what will be included in this latest round of relief; although after the Senate Democratic majority’s use of a budget resolution to pass muster, it is not a question of if the legislation will get passed, but when. Given the length and complexity of what is being called, the American Rescue Plan, many are wondering what type of relief is expected to be included when it is passed by Congress and signed into law.

Extended as part of the Consolidated Appropriations Act, 2021, the Small Business Administration (SBA) now offers an additional dimension of support to those that previously received a PPP loan. While many of the broad program details have been covered in previous blogs, the Small Business Administration (SBA) recently released additional guidance that provides further insight. The Second Draw PPP Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts, offers new details potential applicants need to consider.

Many Atlanta businesses offer retirement plans as a benefit to employees to encourage savings and as a vehicle for the tax-free investment of contributions. These plans are one of the most effective means of encouraging participation and helping employees build a solid financial foundation for retirement. In fact, they are so effective that the Setting Every Community Up for Retirement (SECURE) Act implemented several changes to incentivize businesses to offer retirement plans. While offering a plan is essential to saving, plan sponsors should also maintain communications with participants to meet compliance requirements and to disburse important information on benefits.

The Consolidated Appropriations Act, 2021, passed in late December provided many Atlanta businesses and nonprofit organizations with much needed financial and tax relief. While helpful, the new Biden Administration believes more is needed and is proposing a new $1.9 Trillion package to broaden the scope of assistance. The continued focus on economic relief makes it clear just how devastating the pandemic has been on the economy. While Congress and the White House work out the details of another rescue package, the IRS has also been making changes to provide relief to taxpayers. On January 19th, the IRS issued Notice 2021-10 which extends several deadlines originally outlined in IRS Notice 2020-39 governing Qualified Opportunity Zone (QOZ) investments.

Over the past few weeks, the Paycheck Protection Program (PPP) has undergone significant changes as outlined in the Consolidated Appropriations Act, 2021. The Small Business Administration (SBA) has made several updates including the introduction of SBA Form 3508S, forgiveness application for loans less than $150,000, and updated both SBA Form 3508 and Form 3508EZ. In addition, Procedural Guidance was also issued outlining how PPP borrowers can apply for loan increases. For Atlanta businesses considering a first time PPP loan, the SBA released guidance on how to calculate loan maximums and required documentation. The guidance provides important information to review prior to applying because the calculation formula and documentation requirements vary based on the entity type.

When the Consolidated Appropriations Act, 2021, (CAA) was signed into law on December 27, 2020, it provided a second round of desperately needed stimulus to American businesses and families. The combination of individual, government, and business provisions mean help is on the way to combat the persistent pandemic. The opportunity for Atlanta construction companies arises from changes to various tax and federal loan programs, but also in the funding in areas such as transportation, energy, and schools, which is sure to create new demand. This is especially welcome news given the high rate of project delays and cancellations over the past year.

The persistence of the COVID-19 pandemic has created financial challenges for businesses and organizations in a variety of industries. The restrictive government orders designed to minimize virus transmission have been difficult for some to navigate. It has been somewhat easier for those who can shift to a remote work format, but for live theatres, musical productions, concerts, zoos, cinemas, and others, the impact has been devastating. Ticket sales flat-lined overnight and while some have turned to modified programs to captivate the audience, the financial stress is overwhelming. The good news is that Congress delivered desperately needed relief through the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act in the form of a new $15B grant program. The Shuttered Venue Operators Grant (SVO) program provides immediate assistance to the hardest-hit venues.