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Edelstein’s COVID-19 Resources

Please use this as a resource for all the posts we’ve made on COVID-19 and its impact. We’ve provided brief summaries of the content we’ve shared thus far and encourage you to click the link to read the full piece. We will continue to update this page as new posts are made.

Accounting & Audit Alert- Are you ready for the new disclosure requirements for government assistance? (March 1, 2022) Starting in fiscal year 2022, all entities — except nonprofit organizations in the scope of Topic 958, Not-for-Profit Entities, and employee benefit plans — must provide detailed disclosures about government assistance. Here are the details of the new rules.

Accounting & Audit Alert- 10 financial statement areas to watch for COVID-related effects (October 11, 2021) The COVID-19 pandemic is still adversely affecting many businesses and not-for-profit organizations, but the effects vary, depending on the nature of operations and geographic location. Has your organization factored the effects of the pandemic into its financial statements? You might not have considered this question since last year if your organization prepares statements that comply with U.S. Generally Accepted Accounting Principles only at year end.

Emerging Tax Alert- SBA streamlines forgiveness for smaller PPP loans (August 4, 2021) The Small Business Administration (SBA) has released new guidance intended to expedite the forgiveness process for certain borrowers under the Paycheck Protection Program (PPP). The simplified process generally is available for loans of $150,000 or less, which the SBA reports account for 93% of outstanding PPP loans. The guidance comes at a time when many borrowers are nearing a critical deadline regarding their applications for forgiveness.

Accounting & Audit Alert- Liabilities for unused time off mount as pandemic lingers (May 3, 2021) During the pandemic, many employees have postponed using their allotted paid time off until COVID-related restrictions are lifted and safety concerns subside. This situation has caused an increase in accruals for certain employers. Here’s some guidance to help evaluate whether your company is required to report a liability for so-called “compensated absences” and, if so, how to estimate the proper amount.

Accounting & Audit Alert- Updated guidance for impairment testing: When to consider triggering events (April 5, 2021) On March 30, the Financial Accounting Standards Board (FASB) published an updated accounting standard on events that trigger an impairment test under U.S. Generally Accepted Accounting Principles (GAAP). This simplified alternative may provide relief to private companies and not-for-profit entities that have been adversely affected by the COVID-19 pandemic.

Emerging Tax Alert- Extended tax filing deadline provides relief to individual taxpayers and the IRS (March 18, 2021) The IRS has announced that the federal income tax filing deadline for individuals for the 2020 tax year is extended from April 15, 2021, until Monday, May 17, 2021. The IRS extended the deadline to provide relief to taxpayers facing challenges as a result of the pandemic and because it’s grappling with a rising backlog of 24 million unprocessed returns. As part of its announcement, the IRS stated it would soon be issuing additional guidance about the deadline extension.

Emerging Tax Alert- The American Rescue Plan Act provides sweeping relief measures for eligible families and businesses (March 17, 2021) On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA). The $1.9 trillion law is intended to provide far-reaching relief from the economic and other repercussions of the ongoing COVID-19 pandemic. In addition to funding for testing, contact tracing, vaccinations, education, and state and local governments, the ARPA includes extensive relief that could directly impact your finances.

Marc Bello To Be Panelist for COVID-19 Part 2: Lessons learned in Family Law and Our Path Forward (March 16, 2021) On Tuesday, April 6, 2021, Business Valuation & Forensic Accounting Partner, Marc Bello, will be a panelist on, ‘COVID-19 Part 2: Lessons learned in Family Law and Our Path Forward’, an event put on by the Social Law Library.

Emerging Tax Alert- The American Rescue Plan Act has passed: What’s in it for you? (March 11, 2021) Congress has passed the latest legislation aimed at providing economic and other relief from the COVID-19 pandemic that has haunted the country for the last year. President Biden is expected to sign the 628-page American Rescue Plan Act (ARPA), which includes $1.9 trillion in funding for individuals, businesses, and state and local governments.

Accounting & Audit Alert- New law provides option to delay implementing the updated CECL standard (January 11, 2021) The Consolidated Appropriations Act (CAA), signed into law on December 27, 2020, includes a variety of economic relief measures. One such measure allows certain banks and credit unions to temporarily postpone implementation of the controversial current expected credit loss (CECL) standard.

Emerging Tax Alert- How can your business benefit from the Consolidated Appropriations Act? (January 7, 2021) The Consolidated Appropriations Act of 2021 (CAA) was signed into law in late December. The sprawling legislation contains billions of dollars in additional stimulus funding in response to the COVID-19 pandemic, as well as numerous unrelated provisions.

Emerging Tax Alert- The Consolidated Appropriations Act brings COVID-19 relief (and more) to individuals (January 6, 2021) President Trump signed into law billions of dollars in long-awaited COVID-19 and economic relief. The relief package is part of the nearly 5,600-page Consolidated Appropriations Act (CAA), which also contains numerous other tax, payroll and retirement provisions. Here are some of the provisions most likely to affect individual taxpayers.

Emerging Tax Alert – Congress passes COVID-19 aid package (December 23, 2020) After months of negotiations in Washington, an agreement has been struck on a new aid package to address the ongoing fallout from the COVID-19 pandemic. The legislation has been passed by both the U.S. House of Representatives and the U.S. Senate, and President Trump is expected to sign it soon.

Tax Guide- Relaxed limit on business interest deductions (December 10, 2020) In previous posts, we have mentioned the implications that the Tax Cuts & Jobs Act have on business interest deductions, along with the impact the CARES Act has on them. In the following post, we provide additional details with respect to the limitation on the business interest deduction and the favorable changes to the limitation that were introduced by the CARES Act.

Accounting & Audit Alert- How COVID-19 could impact year-end inventory counts (November 30, 2020) Many businesses are closed or are limiting third-party access as COVID-19 surges across the United States. These restrictions could still be in place at year end — a time when external auditors traditionally observe physical inventory counts for calendar-year entities. Here’s how you can identify and overcome the challenges associated with inventory counts during the pandemic.

Accounting & Audit Alert- Preparing for the possibility of a remote audit (November 9, 2020) The coming audit season might be much different than seasons of yore. As many companies continue to operate remotely during the COVID-19 pandemic, audit procedures are being adjusted accordingly. Here’s what might change as auditors work on your company’s 2020 year-end financial statements.

Scott Kaplowitch Contributes to Bloomberg Tax Article (November 3, 2020) Managing Partner, Scott Kaplowitch, was an author in the Bloomberg Tax article, “2020 May Hold Unpleasant Tax Surprises for Telecommuters.”

Massachusetts Announces Grant Program for Small Businesses (October 27, 2020) On Thursday October 22, 2020, Massachusetts Governor Charlie Baker announced $50.8 million in grants for small businesses as part of the state’s COVID-19 recovery plan.

Emerging Tax Alert- Year-end tax planning strategies must take business turbulence into account (October 26, 2020) Election years often lead to uncertainty for businesses, but 2020 surely takes the cake when it comes to unpredictability. Amid the chaos of the COVID-19 pandemic, the resulting economic downturn and civil unrest, businesses are on their yearly search for ways to minimize their tax bills — and realizing that some of the typical approaches aren’t necessarily well-suited for this year.

2020-2021 Tax Planning Guide Released (October 22, 2020) Do your tax strategies need a refresh? With individuals and businesses coping with the impact of the COVID-19 pandemic and some new tax laws going into effect, you probably have questions about tax planning this year. To save the most on your 2020 taxes, you need to plan carefully and take advantage of all deductions, credits and other breaks that current tax law allows.

Accounting & Audit Alert – How to report COVID-19-related debt restructuring (September 23, 2020) Today, many banks are working with struggling borrowers on loan modifications. Recent guidance from the Financial Accounting Standards Board (FASB) confirms that short-term modifications due to the COVID-19 pandemic won’t be subject to the complex accounting rules for troubled debt restructurings (TDRs). Here are the details.

Tax Alert- Tax implications of working from home (September 18, 2020) COVID-19 has changed our lives in many ways, and some of the changes have tax implications. Here is basic information about one common situation.

Accounting & Audit Alert- Reporting discontinued operations today (September 8, 2020) Many businesses have undergone strategic shifts during the pandemic. Here’s how to determine whether that change is within the scope of the accounting rules for discontinued operations and, if so, how to comply.

Emerging Tax Alert- The IRS issues guidance on the executive action deferring payroll taxes (September 2, 2020) On August 28, the IRS issued guidance that provides some explanation of how employers can defer withholding and remitting an employee’s share of Social Security tax when wages are below a certain amount. The guidance in Notice 2020-65 was issued to implement President Trump’s executive action signed in early August.

Multi-state residency due to the pandemic (September 1, 2020) Under ordinary circumstances you may become a statutory resident of a state if you are physically present in that state for 183 days or more. Meanwhile, your state of permanent domicile may not change, thereby creating a situation where you may be treated as a resident in multiple states.

With Virtual Learning on the Horizon, Does Your Home Have Enough Bandwidth? (August 27, 2020) With colleges, universities, high schools, middle schools and elementary schools all either started or starting soon, virtual learning seems to be incorporated throughout the educational system in some form. That means technology at home, if you have students, will become more in demand.

Emerging Tax Alert- Executive action deferring payroll taxes (August 11, 2020) On August 8, 2020, President Trump signed an executive memorandum that defers an employee’s portion of Social Security and Medicare taxes from September 1 through December 31, 2020.

New FAQs address PPP loan forgiveness issues– (August 5, 2020) The U.S. Small Business Association and Treasury shared 23 FAQ’s regarding the forgiveness of loans under the Paycheck Protection Program (PPP).

Accounting & Audit Alert- Reporting CAMs in the COVID-19 era– (August 3, 2020) Regardless of where you are in the implementation process, anticipating the CAMs that will appear in your auditor’s report may be especially challenging given the uncertainty caused by the COVID-19 crisis.

COVID-19 Webinar Recording – (July 15, 2020) Last month, Sapers & Wallack hosted a third Town Hall webinar regarding COVID-19 related topics.  Managing Partner, Scott Kaplowitch, was an expert panelist discussing the Paycheck Protection Program (‘PPP’) Loan and forgiveness.

Jason Pierce to be panelist on Boston Bar Association webinar – (July 10, 2020) On Friday, July 17, 2020, Jason Pierce will be an expert panelist on the Boston Bar Association’s webinar, Sophisticated Financial Issues in Divorce Matters and the Impact of COVID-19.

5-week PPP extension signed – (July 6, 2020) Over the weekend, President Trump signed a bill extending the Paycheck Protection Program (‘PPP’) application window by 5 weeks. This extension will allow a source of funding for small businesses to remain open until August 8th while Congress continues t

Senate approval of PPP extension – (July 1, 2020) On Tuesday night, the U.S. Senate unanimously passed a five-week extension of the Paycheck Protection Program (PPP), hours before the application window was set to close. Before the extension can take effect, it will need to be passed by the House of Representatives and signed by President Trump.

Tax Alert- What qualifies as a “coronavirus-related distribution” from a retirement plan? – (June 26, 2020) As you may have heard, the Coronavirus Aid, Relief and Economic Security (CARES) Act allows “qualified” people to take certain “coronavirus-related distributions” from their retirement plans without paying tax.

Scott Kaplowitch to be a panelist on upcoming webinar – (June 25, 2020) On Tuesday, June 30, 2020, Sapers & Wallack will be hosting a third Town Hall webinar in which panelists will share their latest insights around the SBA Paycheck Protection Program (“PPP”) and office re-opening best practices. Edelstein’s Managing Partner, Scott Kaplowitch, will address questions around PPP loan forgiveness and more.  He’ll be joined by other experts to discuss matters pertinent to attendees.

Accounting & Audit Alert – Asset impairment is expected to hit 2020 financial statements – (June 22, 2020) Some companies are expected to report impairment losses in fiscal year 2020 because of the COVID-19 crisis. Depending on the nature of your operations and assets, the pandemic could be considered a “triggering event” that warrants interim impairment testing.

Accounting & Audit Alert – Is it time to outsource finance and accounting? – (June 15, 2020) Outsourcing may appeal to organizations that are currently struggling with mounting overhead costs during the COVID-19 crisis. By outsourcing, you convert certain fixed overhead costs associated with compensating and supporting employees into variable costs that can be scaled back in an economic downturn — or dialed up in times of growth and transition.

Jason Pierce to present Business Accounting and Risk Mitigation during COVID-19 – (June 12, 2020) On Tuesday, June 16, 2020, Partner Jason Pierce will be presenting Business Accounting and Risk Mitigation during COVID-19 for the Business Lawyers Network.

Emerging Tax Alert – PPP borrowers get concessions, additional guidance on forgiveness – (June 5, 2020) The U.S. Senate has passed the bipartisan Paycheck Protection Program Flexibility Act of 2020, which loosens several of the Paycheck Protection Program’s (PPP’s) more onerous restrictions regarding loan forgiveness. President Trump has signed the bill into law.

Accounting & Audit Alert – Revenue recognition and leases: FASB gives certain entities more time – (June 1, 2020) Private companies and most nonprofits were supposed to implement updated revenue recognition guidance in fiscal year 2019 and updated lease guidance in fiscal year 2021. In the midst of the novel coronavirus (COVID-19) crisis, the Financial Accounting Standards Board (FASB) has decided to give certain entities an extra year to make the changes, if they need it.

Accounting & Audit Alert – Overcoming the challenges of remote auditing during the COVID-19 crisis – (May 26, 2020) Many people are currently working from home to help prevent the spread of the novel coronavirus (COVID-19). Your external auditors are no exception. Fortunately, in recent years, most audit firms have been investing in technology and training to facilitate remote audit procedures.

Technologies for returning to the office – (May 21, 2020) As plans continue to come together for offices to reopen after the COVID-19 pandemic, our IT Consultants have compiled the following ideas to share with you. During these times, there are technologies available to make returning to work safer for everyone.

Retirement and RMD Refresh – (May 19, 2020) In times like these, it helps to refresh what we know on two important topics: retirement planning and Required Minimum Distributions (“RMDs”).  Recent legislative developments and the COVID-19 pandemic response have created opportunities with these two topics.

Paycheck Protection Program Loan Forgiveness Application Released – (May 18, 2020) On May 15, 2020, the Small Business Administration (SBA), in consultation with the Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application.

PPP Guidance Update – (May 14, 2020) The Small Business Administration (SBA), in consultation with the Department of the Treasury, continues to provide additional guidance with respect to the implementation of the Paycheck Protection Program (PPP).  A list of Frequently Asked Questions (FAQs) has been created and is regularly updated to provide this guidance. On May 13, 2020, FAQ #46 was issued to address the good-faith certification concerning the necessity of a borrower’s loan request.

Accounting & Audit Alert – COVID-19: A reminder of why cross-training your accounting staff is key – (May 11, 2020) Is your accounting department prepared for the unexpected? Find out why cross-training is invaluable in situations such as the COVID-19 crisis and how to implement it.

PPP & CARES Act Webinar Recording – (May 8, 2020) Last week, our friends at Sapers & Wallack hosted a Town Hall webinar about the SBA Paycheck Protection Program (PPP) and The CARES Act. Managing Partner, Scott Kaplowitch, joined as a panelist to answer questions around the PPP.

Emerging Tax Alert – SBA extends the PPP repayment deadline for self-certification – (May 7, 2020) The Small Business Administration (SBA) has extended the repayment deadline for Payroll Protection Program (PPP) borrowers that wish to take advantage of the “good faith” self-certification of eligibility option. The deadline is now automatically extended from May 7, 2020, to May 14, 2020.

Tax Alert- Tax questions related to COVID-19 – (May 6, 2020) The coronavirus (COVID-19) pandemic has affected many Americans’ finances. Here are some answers to questions you may have right now.

Accounting & Audit Alert – Benchmarking: Why normalizing adjustments are essential – (May 4, 2020) Financial statements aren’t particularly meaningful without a relevant basis of comparison. There are two types of “benchmarks” that a company’s financials can be compared to — its own historical performance and the performance of other comparable businesses.

IRS Clarifies Question of Deductibility of Expenses that Lead to PPP Loan Forgiveness – (May 1, 2020) In regards to the Paycheck Protection Program (PPP), a question still remained as to whether or not a deduction would be allowed for otherwise deductible expenses funded by the forgivable portion of these loans.

Accounting & Audit Alert – Going, going, gone: Going concern assessments in the midst of COVID-19 – (April 27, 2020) The novel coronavirus (COVID-19) pandemic has adversely affected the global economy. Companies of all sizes in all industries are faced with closures of specific locations or complete shutdowns; employee layoffs, furloughs or restrictions on work; liquidity issues; and disruptions to their supply chains and customers. These negative impacts have brought the “going concern” issue to the forefront.

Scott Kaplowitch on NBC 10 Boston – (April 23, 2020) Our Managing Partner, Scott Kaplowitch, was asked to share his expertise around stimulus checks by NBC 10 Boston.

Tax Alert – Answers to questions you may have about Economic Impact Payments – (April 22, 2020) Millions of eligible Americans have already received their Economic Impact Payments (EIPs) via direct deposit or paper checks, according to the IRS. Others are still waiting. The payments are part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Here are some answers to questions you may have about EIPs.

Marc Bello presents Impact of COVID-19 on Business Valuations for Divorce Webinar – (April 21, 2020) On Wednesday, April 29, 2020, Business Valuation partner, Marc Bello, will be presenting the Impact of COVID-19 on Business Valuations for Divorce. The Greater Newburyport Bar Association has put together this webinar opportunity to share these important insights with you.

Accounting & Audit Alert – Adjusting your financial statements for COVID-19 tax relief measures – (April 20, 2020) The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020, contains several tax-related provisions for businesses hit by the novel coronavirus (COVID-19) crisis. Those provisions will also have an impact on financial reporting.

Scott Kaplowitch on WHDH Channel 7 News – (April 16, 2020) Managing Partner, Scott Kaplowitch, shared some helpful insights about stimulus checks on WHDH Channel 7 News Boston.

Emerging Tax Alert – The IRS announces new COVID-19 related assistance for taxpayers – (April 15, 2020) The IRS and U.S. Department of Treasury have announced new relief for federal tax payers affected by the coronavirus (COVID-19) pandemic.

Accounting & Audit Alert – Questions to ask when making COVID-19 risk disclosures – (April 13, 2020) Efforts to contain the spread of the novel coronavirus (COVID-19) have led to suspension of many economic activities, putting unprecedented strain on businesses. The Securities and Exchange Commission (SEC) recently issued guidance to help public companies provide investors and other stakeholders with useful, accurate financial statement disclosures in today’s uncertain marketplace.

Tax Alert- CARES ACT changes retirement plan and charitable contribution rules – (April 10, 2020) The Coronavirus Aid, Relief, and Economic Security (CARES) Act contains a variety of relief, notably the “economic impact payments” that will be made to people under a certain income threshold. But the law also makes some changes to retirement plan rules and provides a new tax break for some people who contribute to charity.

COVID-19 Relief Comparison Chart – (April 6, 2020) The volume of news and articles on coronavirus relief options is overwhelming for many business owners. It is difficult to understand which options are best or applicable to your company. Our COVID-19 Relief Comparison Chart details the loan programs, credits and provisions enacted in recent coronavirus legislation. Additionally, it specifies which provisions are mutually exclusive and which may be cross utilized.

Emerging Tax Alert – CARES Act provides COVID-19 pandemic relief to businesses – (March 31, 2020) The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) represents the third phase of Congress’s legislative efforts to address the financial and health care crisis resulting from the coronavirus (COVID-19) pandemic. In addition to providing relief to individuals and mustering forces to shore up the medical response, the CARES Act includes numerous provisions intended to help affected businesses, including eligible self-employed individuals, weather the crisis.

BREAKING: Massachusetts Filing Deadline Extension – (March 27, 2020) Earlier today, it was announced by Massachusetts government leaders that the state income tax filing deadline has been officially extended to July 15, 2020 for filing federal individual income taxes.

COVID-19 Business Update– (March, 25, 2020) Check out our COVID-19 Business Update which includes a summary of pressing topics to consider as you make business operation decisions resulting from the COVID-19 economic impacts and mandates.

Emerging Tax Alert- The IRS announces that income tax payments due April 15 can be deferred to July 15, regardless of the amount– (March, 23, 2020) The IRS and the U.S. Treasury Department have been making a series of announcements to provide tax relief in the wake of the coronavirus (COVID-19) pandemic. After previously announcing that taxpayers could defer making federal income tax payments up to certain limits for three months, the IRS has now announced that taxpayers can postpone payments without penalties or interest “regardless of the amount.”

Emerging Tax Alert- What you need to know about the Families First Coronavirus Response Act– (March 23, 2020) President Trump has signed into law the Families First Coronavirus Response Act. Among other things, the new law temporarily requires certain employers to provide expanded paid sick and family leave for employees affected by the coronavirus (COVID-19) pandemic. Employers’ increased costs will be offset by new tax credits, which also may be available to self-employed individuals.

BREAKING: Tax Filing Deadline Extended– (March 20, 2020) U.S. Treasury Department Secretary Steven Mnuchin announced that the 2019 income tax filing deadline will be moved to July 15, 2020 from April 15, 2020, because of the coronavirus (COVID-19) outbreak.

Update: COVID-19’s Impact on April 15th Tax Deadline– (March 19, 2020) We are constantly monitoring the federal government’s response to the coronavirus with respect to April 15th tax filings and payments.

90-Day Tax Payment Deferral– (March 17, 2020) As the news continues to evolve regarding COVID-19, we wanted to connect with you in an effort to keep you abreast of the changes. Earlier today, Treasury Secretary Steven Mnuchin announced that taxpayers who owe a payment to the IRS may defer that payment for 90 days. He shared that up to $1 million can be deferred by individuals and up to $10 million can be deferred by corporations, without interest and penalties charged on these deferred payments.

Emerging Tax Alert- House passes bill to provide coronavirus relief; Senate expected to act this week- (March 17, 2020) Several arms of the federal government have taken, or are weighing, significant steps to help the country deal with the spread of the coronavirus (COVID-19) and the implications for individuals and businesses.

Our continued response to COVID-19– (March 16, 2020) In compliance with Governor Baker’s press conference on Sunday evening, we are mandating that all employees work remotely at home starting on Tuesday, March 17th as safety and health is our greatest concern. There will also be limited, if any, in-person meetings in or out of our office.

Accounting & Audit Alert- Beware: Coronavirus may affect financial reporting– (March 16, 2020) The coronavirus (COVID-19) outbreak — officially a pandemic as of March 11 — has prompted global health concerns. But you also may be worried about how it will affect your business and its financial statements for 2019 and beyond.

Keeping you informed– (March 13, 2020) As you’re aware, the spread of COVID-19, also known as the Coronavirus, has impacted the United States, New England, and Massachusetts specifically. We wanted to take this time to communicate with you, our valued clients and friends of our firm.

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