The U.S. Small Business Administration (SBA) released guidance last week confirming that Paycheck Protection Program (PPP) loan forgiveness applications are not due on October 31, 2020. In the SBA’s latest loan forgiveness FAQ document, the SBA explains that borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from the loan’s origination, depending on the borrower’s agreement.

Fears of an October 31, 2020 PPP deadline came to the SBA’s attention because the program’s loan forgiveness application forms (3508, 3508EZ, and 3508S) show an expiration date of “10/31/2020” in the upper-right corner. This prompted the SBA to calm PPP borrowers’ fears of a surprise deadline by issuing a new entry in its loan forgiveness frequently asked questions document answering “Is October 31, 2020, the deadline for borrowers to apply for forgiveness?”

What is the Paycheck Protection Program (PPP)? The PPP is a part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This act authorizes the Treasury to use the SBA’s 7(a) small business lending program to fund loans of up to $10 million per borrower that qualifying businesses can spend to cover payroll, mortgage eligible costs.

Talley’s professionals have spent literally hundreds of hours reviewing the law, regulations and FAQs issued on an almost daily basis and we are happy to assist you in the process. We are available to simply answer a quick question or assist in the application and/or forgiveness process.

As 2020 is coming to a close, employees of both large companies and small businesses are finding themselves in a rut as they continue to work from home. A survey conducted by FlexJobs and Mental Health America found that 75% of people have experienced work burnout and 40% said they felt it during the pandemic. Between job-less worries, work-from-home challenges and feeling overwhelmed, it’s easy to understand why both businesses and employees are experiencing work burnout as well as other mental health issues.

  • Acknowledge the problem. The first step in managing burnout is to acknowledge that you’re dealing with it. The symptoms of work burnout, as defined by the World Health Organization (WHO), include feeling: emotionally and/or physically drained; mentally checked out at work; excessive pressure to succeed and the need to hide personal concerns while at work. If you’re concerned about your mental health, you can take a free confidential and anonymous online screening at the Mental Health America website here.
  • Look into employer-provided mental heath benefits. These include telemedicine screenings, employee assistance programs and stress reduction programs. If your employer doesn’t provide assistance, look into services offered through local nonprofit agencies, veterans organizations or your state office of mental health.

  • Establish firm work/life boundaries. When you work from home, it’s critical to set healthy boundaries to keep the stress and demands of work from interfering with home life and vice versa. While not everyone has the option to dedicate a room in their home as their personal office, try to create a dedicated workspace that limits as many distractions as possible. Focus on work tasks before personal tasks, especially in the morning; later in the day, when you need a break, you can squeeze in personal tasks, exercise, or a fun activity to unwind.

Talley shares the same entrepreneurial spirit that has helped propel our clients to their current levels of success. With over 25 years of experience assisting high net worth individuals and business owners, Talley has the expertise necessary to help entrepreneurs throughout their entire journey, from formation to succession.

The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, earlier this week released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. This action streamlines the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses while also offering additional guidance on lender responsibilities.

Simplifying Forgiveness for Many. Under the new Interim Final Rules (IFR), Businesses that borrowed $50,000 or less won’t have the amount of their PPP loan forgiveness reduced based on reductions in full-time-equivalent employees or reductions in employee salary or wages. The newly simplified forgiveness application, Form 3508S, can be used by borrowers with a total loan amount of $50,000 or less, unless they and their affiliates received loans totaling $2 million or more.

For PPP loans of all sizes, the IFR also contains guidance on lender responsibilities with respect to the review of borrower documentation of eligible costs for forgiveness in excess of a borrower’s PPP loan amount.

Congress created the PPP as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March 27. The legislation authorized Treasury to use the SBA’s 7(a) small business lending program to fund loans of up to $10 million per borrower that qualifying businesses could spend to cover payroll, mortgage interest, rent, and utilities.

PPP borrowers can qualify to have the loans forgiven if the proceeds are used to pay certain eligible costs. The program stopped accepting applications on Aug. 8 with almost $134 billion of congressionally approved funds remaining unspent.

Talley’s professionals have spent literally hundreds of hours reviewing the law, regulations and FAQs issued on an almost daily basis and we are happy to assist you in the process. We are available to simply answer a quick question or assist in the application and/or forgiveness process.

Have any questions about the PPP? Contact Us.

From Olympic medals to national championships, the world of elite sports is full of inspiring stories of hard work and determination. Similar to the career of an entrepreneur, success in this profession doesn’t come easy. Being a star player often requires long hours, creative thinking, and commitment to the team. Although physical talent is key to an athlete’s success, their mindset is even more critical and can teach entrepreneurs a few lessons on how to be equally victorious in the board room.

Continue to set goals and improve. Plateauing is both an athlete’s and an entrepreneur’s worst enemy. An athlete must set performance goals and create a plan to achieve new career milestones. Consistent practice and self-evaluation allow them to perform their best as a competitor. Likewise, entrepreneurs should set overall goals to keep their businesses moving in the right direction. They should focus on making a game plan that will help them improve as they continue to grow. Breaking their overall goals down into micro-goals is one way they can make tracking their progress more manageable.

Don’t be afraid to take risks. Most successful athletes did not get where they are by playing it safe. Risk and reward often go hand in hand, so pushing that extra mile or taking that final shot are what differentiate elite athletes from the average player. Finding a balance between risk and recklessness is also critical for entrepreneurs. Being too scared of change will inhibit growth, and changing too much at once will cause failure. Calculated risks are the solution to keeping a business ahead of competitors while taking potential concerns into account.

Keep your head in the game. The greatest athletes in the world are also recognized as leaders. Their hard work, ambition, and drive are qualities any director, CEO, or business influencer can aspire to possess. If an athlete makes a mistake, being able to separate their failures from their present performance allows them to continue reaching for success. Entrepreneurship may be one of the most challenging business environments, but business owners must maintain a level head throughout the ups and downs. Entrepreneurs need to stay confident in themselves even when the odds are stacked against them.

Talley shares the same entrepreneurial spirit that has helped propel our clients to their current levels of success. With over 25 years of experience assisting high net worth individuals and business owners, Talley has the expertise necessary to help entrepreneurs throughout their entire journey, from formation to succession.

Bipartisan Problem Solvers Caucus Unveils COVID-19 Stimulus Framework

Earlier this week, the bipartisan Problem Solvers Caucus (PSC), comprised of 25 Democrats and 25 Republicans from the House, unveiled its “March To Common Ground” framework to help break the gridlock on the latest COVID-19 relief package and encourage negotiators to get back to the table.

The package addresses key areas of need, including COVID-19 testing, unemployment insurance, direct stimulus, worker and liability protection, small business and non-profit support, food security, schools and child care, housing, election support, and state and local aid.

In light of the urgent needs facing millions of Americans, families, and small businesses, the framework is designed for a six month horizon and through the next inauguration, except for state and local funding which extends for a full year.

Depending on the severity of the pandemic and if a successful vaccination program is adopted by March, 2021, a system of automatic “boosters” are designed to incrementally increase the amount of relief to individuals and families. Conversely, a system of “reducers” will decrease the total cost of the package.

A Summary of the Proposed Framework

  • $280 billion in funding for $1,200 stimulus checks plus $500 per child plus dependent adults.
  • The PSC’s framework includes $100 billion of additional health care spending – testing and contact tracing, healthcare provider support, and forgiveness of Medicare loans to providers.
  • $11 billion would go to enhance WIC and SNAP through March and July 2o21 respectively. (WIC is a nutrition program for Women, Infants and Children. SNAP is commonly called “food stamps”).
  • There is $25 billion for rental assistance, rent stabilization and an eviction moratorium through January 2021 and student loan forbearance through December 31, 2020.
  • The unemployment provision is $450 per week for an eight-week transition period. That is followed up by up to $600 per week but not to exceed 100% of previous wage for thirteen weeks through January 2021.
  • Reappropriating $145 billion of PPP money and adding $95 billion in new money with simplified forgiveness and $50 billion for the Employee Retention Credit.
  • $145 billion for schools and child care.
  • Half a trillion in aid to state, local, territorial and tribal governments and
  • $400 million for election security.

The proposed framework would include automatic reducers and boosters depending on how things go based on Covid-19 hospitalization metrics and vaccine progress. If things get better more quickly PPP, state and local aid and renters assistance could be carved back by as much as $200 billion.
Alternatively, if things get worse, the framework’s “boosters” include a 3-month extension on the unemployment benefits starting in February 2021 and another $280 billion for automatic stimulus checks in March 2021.

Meanwhile, Congress is expected to focus in the coming weeks on passing legislation funding the government beyond Sept. 30, the end of the current fiscal year.

Talley LLP shares the same entrepreneurial spirit that has helped propel our clients to their current levels of success. With over 30 years of experience assisting high net worth individuals and business owners, Talley has the expertise necessary to help entrepreneurs throughout their entire journey, from formation to succession.

Nearly two weeks after President Trump’s payroll tax deferral program came into effect, no major private employers have stepped forward with plans to forgo withholding the levy from workers’ paychecks. Costco Wholesale Corp., United Parcel Service Inc. and FedEx Corp are among those not participating.

Part of the challenge for the White House is it can’t unilaterally cut taxes and can only defer the due date. Internal Revenue Service guidelines left employers on the hook to pay back the payroll levy early next year, effectively doubling withholding from employees’ paychecks.

Among the challenges, is how companies can get the money owed from people who opt into the payroll tax deferral but leave prior to repaying their portion of the payroll tax being deferred. Other challenges include calculating the precise amount of payroll tax to pay back by the time taxes are due next year in April. If there are under-payments, discrepancies or reconciliation problems, the IRS can assess interest, penalties and additions to tax beginning May 2021, for which employers would be liable.

Trump’s August directive delayed the payroll tax due date for the 6.2 percent Social Security taxes for those making less than $4,000 bi-weekly, which amounts to about $104,000 a year. It was his latest attempt to achieve a second tax reduction after criticism that the 2017 Republican tax overhaul didn’t do enough to help middle-class workers.

Lawmakers did endorse a deferral of the portion of payroll taxes that is paid by companies and it was part of the last stimulus package, approved in March. That measure was easier for employers to administer and acted as a temporary liquidity aid.

Talley’s experienced team of tax professionals provides comprehensive tax compliance and consulting services so you can preserve, enhance and pass on to the next generation the assets and wealth that you’ve worked hard to build. We welcome the opportunity to discuss with you the current opportunities available to you. For more information, contact us today.

At the beginning of the pandemic, many workers were sent home armed with a laptop and other remote equipment so they could work remotely until it was safe to reopen public spaces again. But if you’re doing your job in a state different from your usual one, beware: You may need to file returns and perhaps pay taxes there.

Each state tax system is a unique combination of rules that consider how long a worker is there, what income is earned, and where the worker’s true home, known as domicile, is. But nearly all states that have income taxes impose them on workers who are passing through. In two dozen states, that can be for just one day.

So far, 13 states and the District of Columbia have agreed not to enforce their tax rules for remote workers who are present due to the coronavirus, according to American Institute of CPAs spokeswoman Eileen Sherr. Some states don’t have an income tax, but more than two dozen others, including New York and California, which are famously aggressive, are still set to levy taxes on these remote workers for 2020.

Most states offer tax credits to offset income earned in other states avoid double taxation. But these credits might not make the worker whole if the remote work is in a state with higher taxes than the home state. For example, a Seattle employee who works remotely from Oregon during the pandemic and owes Oregon income tax won’t get a credit from Washington, because it doesn’t have an income tax.

Businesses with employees or owners working remotely face further tax headaches. Simply having a worker present in a state can trigger so-called nexus rules that raise state taxes on business as well as personal income.

Out of state or telecommuting employees should talk to their employers about where state taxes are being withheld while they’re working remotely. As arrangements that at first seemed provisional take root, taxpayers should also track days spent working in different states, because auditors often use cell-phone or credit-card records to track movement.

Congress has come up with several possible solutions to this issue, however they seem to have limited traction at the moment. The proposed Multi-State Worker Tax Fairness Act, which has been introduced repeatedly since 2016, limits the ability of states to tax nonresident telecommuters. Alternatively, Senate Republicans’ HEALS Act includes a temporary provision which partially restricts such double taxation through 2024.

With these complex issues in play, we urge you to act soon to see how you may be affected when filing your taxes for 2020.

Talley’s experienced team of tax professionals provides comprehensive tax compliance and consulting services so you can preserve, enhance and pass on to the next generation the assets and wealth that you’ve worked hard to build. We welcome the opportunity to discuss with you the current opportunities available to you. For more information, contact us today.

The gravity of the COVID-19 pandemic has forced a multitude of Americans to confront many issues they had previously put off because the topics are uncomfortable. Mortality has become a central concern due to the rise of the Coronavirus, so estate planning has become a priority for many individuals who currently have no plan in place and face the outlook of their probate estate distributed by the court rather than their own wishes. There are a few important documents you should have in place to handle unexpected situations such as illness, incapacitation, or death that make up a solid, basic estate plan.

One of the most obvious issues is the improper distribution of assets after a loved one’s death. It is not easy to talk or think about, but as they get older, a plan needs to be in place. If not, there is no guarantee that their assets will be handled properly after they die. More importantly, planning ahead can help protect accounts in special circumstances. For example, for those who fall ill and need expensive care and facilities, naming a legal beneficiary in advance can make sure that they can access money to help pay for the necessary treatment. Beneficiaries can also create a barrier from scammers, as with the right documents set up, there is a second source of control over accounts to prevent them from being drained without approval.

While the topic may not be easy to approach, there are a few tips to make starting a conversation easier. The first and most important tip is to be honest and respectful when bringing it up. It seems self-explanatory, but this is often the hardest part of the whole process. Just keep in mind that things will be a lot better when a plan has been created rather than leaving it until it is too late. In cases with multiple beneficiaries, tensions can run especially high. A good way to mediate these tensions while also ensuring things are handled correctly, is to hire a fiduciary. Fiduciaries, unlike other financial advisors, are legally obligated to conduct all business with their clients’ best interest above everything else. The most important tip is to stay dedicated to the process of getting an estate handled and taking the proper steps to make sure it is done correctly.

Even though COVID-19 has created a sense of uncertainty in many areas of our lives, creating or updating an estate plan is a huge step in taking back control and gaining some peace of mind. Though your options are virtually limitless, proper estate planning, deciding on the “who, what, when, and how”, and executing this with the least amount paid in taxes, legal fees and court costs possible can be a challenging and emotional affair to wrestle with alone. For more information, contact Talley LLP today.

As companies pursue success, avoiding fatigue should be a priority for employers and employees alike. According to the National Safety Council, sleep deprivation effects over 43% of workers, which ultimately deteriorates workplace productivity and safety. They estimate per year the loss per employee to be between $1,200 and $3,100, a large sum considering the size of a workforce. To combat this problem, here are three tips that can help you and your business battle fatigue.

Evaluate your lifestyle.  Lack of sleep is the most significant contributor to fatigue, and a few updates to your routine can make a world of difference. Temperature, bedding, nearby electronics, and lighting are all factors that can influence the way you sleep. Making gradual adjustments can help you determine which changes improve your quality of sleep and will leave you better rested. In addition to sleep, factors like diet and exercise have a considerable influence on your energy levels. To establish a baseline, keep a lifestyle log over a few weeks to determine which foods or activities make you feel better and worse. You may find that your most tired days are directly linked to certain foods or workouts that drain you.

Go see your doctors. Sometimes fatigue can be rooted in a deeper cause that no amount of sleep or habit tracking can help. It is essential to maintain your yearly checkups at the doctor to assess your health, but if your fatigue is affecting you long term, seeing your doctor again can only help you. Simple blood work or allergy tests can point to common biological and environmental causes preventing sleep. If the problem is more serious, a doctor can best help you find out why. Either way, a checkup can help you get treatment and get back on your feet.

Listen to your body. If your body needs something, do not feel bad about giving it that. Personal health is something many overworked business professionals may be ignoring, risking long term consequences. Taking a day or two off when you are too stressed or tired will allow your system to reset and recharge. Whether you are a boss or an employee, fatigue can affect you, so being mindful of your well-being will help you not only be more effective but improve your overall happiness.

Talley shares the same entrepreneurial spirit that has helped propel our clients to their current levels of success. With over 25 years of experience assisting high net worth individuals and business owners, Talley has the expertise necessary to help entrepreneurs throughout their entire journey, from formation to succession.

The Internal Revenue Service will start examinations of several hundred high-net-worth (HNW) taxpayers beginning July 15. These audits will address partnerships, private foundations (PFs), trusts and other matters for sophisticated individual taxpayers. With a coordinated IRS campaign, HNW taxpayers can expect aggressive IRS audits.

Partnerships and Other Passthroughs. The IRS will likely target HNW taxpayers with partnerships and other pass-through entities. Exams will address taxpayers with pass-through structures, such as partnerships, S corporations and disregarded entities. The Bipartisan Budget Act of 2015 overhauled the partnership audit rules to make it easier for the IRS to audit partnerships and collect tax from those audits.

Private Foundations. IRS examinations are expected to include individuals with PFs. HNW individuals and families utilize PFs to facilitate charitable giving and charitable activities. The tax rules governing PFs are complex. PFs are subject to several excise taxes and compliance requirements to ensure that PF assets are devoted to charitable purposes and to ensure that disqualified individuals don’t obtain certain prohibited personal benefits.

Multi-jurisdictional Families. Individuals with non-U.S. assets and income are subject to special tax and reporting requirements for offshore accounts and assets. The IRS has focused enforcement efforts on taxpayers with offshore bank accounts, assets and structures for several years. Reporting and compliance for these assets can be a trap for the unwary, especially for taxpayers living outside the United States, globally mobile individuals and multi-jurisdictional families. The IRS maintains a voluntary disclosure practice for individuals to regularize non-compliance with US international tax and reporting obligations.

TCJA Examinations for Individuals. The 2017 Tax Cuts and Jobs Act (TCJA) made major changes to the taxation of HNW individuals with international assets and activities. Many of the changes had a disproportionate impact on HNW individuals, including the rate structure of the Internal Revenue Code Section 965 transition tax, global intangible low taxed income and limits on available deductions. In May, the IRS announced a TCJA campaign and stated that “[t]he goal of this campaign is to identify transactions, restructuring and technical issues and better understand taxpayer behavior under the new law.” HNW individuals should be prepared to address TCJA tax issues and related planning during the coming cycle of examinations.

How Can Taxpayers Prepare? HNW individuals should be prepared to address issues relating to their sources of income, estate planning, foreign financial accounts, gifts to family members, assets transferred to PFs or charitable organizations and to identify assets they own both within and outside the United States. Increased scrutiny of IRS audits of HNW individuals make it extremely likely that the IRS will consider increasing enforcement measures.

Talley’s experienced team of tax professionals provide comprehensive tax compliance and consulting services so you can preserve, enhance and pass on to the next generation the assets and wealth that you’ve worked hard to build. We welcome the opportunity to discuss with you the current opportunities available to you. For more information, contact us today.


1 2 3 4 20
Archives