Blog

Important PPP Forgiveness Update

November 19, 2020 @ 4:15 pm

PPP Forgiveness Update On November 5th, BiggsKofford wrote an article providing an update on the PPP Loan Forgiveness rules. That article can be found HERE. In that article we recommended deferring your forgiveness application until 2021, thereby possibly allowing the deduction of qualified expenses or at least buying time for Congress or the IRS to clarify the issue. Well… The IRS has weighed-in on that concept. The IRS just released Revenue Ruling 2020-27 which essentially eliminates the possibility of deducting those expenses. Instead, this Ruling indicates taxpayers must reduce their deductions in 2020 even if they are still planning to obtain forgiveness in 2021. Anyone that claims those deductions and later obtains forgiveness would need to amend their 2020 tax return to remove those deductions. Absent any intervention by Congress or the Tax Court, taxpayers will now be required to file their returns following this Ruling, as taking a contrary position would not be compliant. That said, this subject is being argued by many taxpayer advocacy organizations who will continue to lobby Congress and/or take this issue through the Courts to test the IRS’ legal grounds.  We will keep a close eye on those efforts and inform you of any …

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Scaling Up Workshop Invite

@ 9:13 am

Scaling Up Workshop Invite We are happy to announce that BiggsKofford is sponsoring a fantastic and powerful planning workshop: Are You Ready to Scale Up Your Business? The program is Wednesday, December 2, 2020 Online/Virtual: Participate from your Computer. Many BiggsKofford clients have benefited from this program that provides an opportunity to “work on your business”. Our colleague, Chuck Kocher, local business coach and owner of The Transformation Company is hosting this workshop. Scaling Up Workshop Overview  – (Click here for a link to a PDF with more information) You will learn the essentials that make the Scaling Up system work quickly. Learn best practices through lectures, hands-on exercises, group discussions, and coaching demonstrations. The workshop will also focus on: The 4 Key Decisions that all growth companies must make in the areas of: People/Strategy/Execution/Cash Helping you gain an understanding and then to begin completing a draft of the One Page Strategic Plan. Sharing best practices/tools/models used by the best Scale Up companies in Colorado and all around the world. Getting you and your team aligned on the main priorities to achieve success in 2021 and beyond. You will benefit massively from this workshop if you are: Either a For-Profit Business or a Non-Profit Organization Committed to scalable and sustainable growth An investor in learning and building …

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PPP Loan Forgiveness Checklist

November 13, 2020 @ 8:20 am

PPP Loan Forgiveness Checklist BiggsKofford has created a PPP Loan Forgiveness Checklist that can be downloaded from our website HERE. PPP Borrowers may find this Checklist helpful to determine which Forgiveness Application form they should be completing, and what documentation they will need to gather. In a recent article that you can download HERE, we described the PPP Loan Forgiveness process, deadlines, tax consequences and more. In that article, we recommended that borrowers gather all the documentation and have the application forms completed in the next couple months. Then we suggest that you wait until next year to submit with your Lender, once we have clarity on taxation and application issues. As we also noted in the last article, BiggsKofford’s PPP Loan Specialists are now preparing Forgiveness Applications for clients. If you would like BiggsKofford to assist with your Forgiveness Application process, please call our PPP Loan Specialists and we are happy to assist.

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Deadline Approaching: Update Sick and Leave Time Policy

November 6, 2020 @ 4:19 pm

Deadline to Update Sick and Leave Time Policy is Approaching As we reported in an earlier eNews release, which can be found HERE, the Governor signed the Healthy Families and Workplaces Act on July 14, 2020. The Act goes into effect on January 1, 2021. Starting January 1, 2021, this new sick leave law applies to all employers in Colorado, except the Federal Government. The accrual of paid sick leave portion of the law goes into effect for employers with 16 or more employees on January 1, 2021. All employers are impacted starting on January 1, 2022 regardless of employee count. The law states that an employer can satisfy the requirements of this law if the employer already has a policy that meets or exceeds the requirements of this law. Since there is no state law requiring paid vacation, if a company has any existing PTO policy (including vacation) that exceeds the new minimum requirements, then they are in compliance with these new rules and do not need a separate sick policy.  However if you maintain separate sick and vacation banks for employees, the sick bank policy must comply with the 48 hour sick leave rule. Our interpretation of the policy …

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PPP Loan Forgiveness – What You Need to Know

November 5, 2020 @ 5:50 am

Forgiveness – The final chapter in the PPP Loan process. While most borrowers have completed their “Covered Period” to spend the money, and might be ready to apply, many lenders are still not accepting applications. This is causing a lot of confusion about the application deadline, when to apply, tax consequences, required documentation, etc. Below, we’ve tried to answer many of these questions – to the extent we have answers. Forgiveness Application Deadline – When Must You File? Originally, the SBA indicated there would be an October 31, 2020 deadline. Of course, that date came and went without an ability to even submit forgiveness applications with many lenders. The current deadline for forgiveness is now 10-months after the end of your “Covered Period”. Remember, your Covered Period was originally the 8-week window after you received your loan. But, this was extended to allow an optional 24-week period. Quick math: Most borrowers (including most of our clients) received their loans during the month of April 2020, with the earliest possible loans in the first week of April. Therefore, the earliest possible deadline for forgiveness application would be near the end of April 2021, assuming an 8-week Covered Period. Or, more likely borrowers …

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BiggsKofford Expands with a Denver Office!!!

November 4, 2020 @ 5:14 pm

BiggsKofford Expands with a Denver Office BiggsKofford has expanded to now include an office in the Denver Metro area. Our new offices are located in the Denver Tech Center: 8400 E Crescent Pkwy, 6th Floor Greenwood Village, CO 80111 (720) 797-9090 BiggsKofford is one of Colorado Springs’ premier CPA firms after being in business for over 35 years. During that time we have increasingly added clients and employees in the Denver market, making a Denver office expansion a logical step in our firm’s growth.  Many of the larger firms in Denver have recently merged with national groups, leaving a void for clients seeking a locally-owned CPA firm.  As a result, BiggsKofford is now one of the largest locally-owned CPA firms serving the Denver market. Our Colorado Springs office has also continued to grow and we will be announcing the addition of eight new employees who have recently accepted positions with our firm. The Colorado Springs office will remain our primary location and we continue to be committed to serving the Colorado Springs community as much as ever!

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SBA Streamlines PPP Forgiveness for Loans of Less Than $50,000!

October 9, 2020 @ 3:46 pm

SBA Streamlines PPP Forgiveness for Loans of Less Than $50,000! A new interim final rule (IFR) provides new guidance concerning forgiveness and loan review processes for PPP loans of $50,000 or less. On Thursday, the SBA released a streamlined application, Form 3508S, designed specifically for those who borrowed less than $50,000. The forgiveness is not automatic, but it does remove some of the more complicated and time consuming aspects of the application. A borrower of a PPP loan of less than $50,000 is no longer required to reduce the amount eligible for forgiveness if the borrower: Reduces the salary or hourly wage of an employee (who earned less than $100,000 in 2019) during the “covered period” following the borrowing relative to the first quarter of 2020, or Reduces full-time equivalent employees (FTEs) during the covered period relative to a base period. The two-page forgiveness application, Form 3508S, includes certifications from the borrower but does not require calculations to be submitted with the application. Applicants must submit documentation verifying forgivable payroll and non-payroll expenses. Borrowers are required to retain the documentation supporting their certifications for six years, but do not need to submit it. Once the application is received, the lender …

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New funding available: Provider Relief Fund Phase 3 General Distribution

October 6, 2020 @ 3:33 pm

New funding available: Provider Relief Fund Phase 3 General Distribution   Additional Funding Released Starting Oct. 5, you can apply to receive funds based on assessed revenue losses and expenses due to COVID-19. The opportunity to receive up to 2% of annual revenue from patient care remains active. As released from HHS: Healthcare providers, including your organization, may now apply for the recently announced Phase 3 General Distribution of the Provider Relief Fund (PRF). The U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), will be distributing up to $20 billion in Phase 3, as part of ongoing efforts to offer financial support to healthcare providers for expenses and lost revenues attributable to the coronavirus disease 2019 (COVID-19). You may be eligible for additional funding from the Phase 3 General Distribution. Applications for Phase 3 opened on Oct. 5, 2020 and will close on Nov. 6, 2020 at 11:59 p.m. ET. Who is eligible? You may be eligible regardless of whether you previously were eligible for, applied for, received, accepted, or rejected payment from prior PRF general distributions. You should apply for funding if you experienced expenses and/or lost revenues attributable to COVID-19 …

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HHS Provider Relief Fund Reporting Guidance

September 22, 2020 @ 11:25 am

HHS Provider Relief Fund Reporting Guidance On September 19, 2020 the US Department of Health and Human Services (HHS) issued Post Payment Notice Reporting Requirements.  All recipients of Provider Relief Fund (PRF) payments are required to comply with the reporting requirements described in the Terms and Conditions and specified in future directions issued by the Secretary.  Below is a link to a six-page directive on reporting requirements. Final Reporting Data Elements – PDF: This document provides the complete, detailed information on provider reporting guidelines, including intent, use of funds, and data elements requested. The purpose of this notice is to inform Provider Relief Fund (PRF) recipients that received one or more payments exceeding $10,000 in the aggregate of the data elements that they will be required to report as part of the post-payment reporting process. This is a supporting document to the July 20, 2020 Post-Payment Notice of Reporting Requirements (General and Targeted Distribution Post-Payment Notice of Reporting Requirement – PDF). The reporting system will now be available in early 2021. BiggsKofford Executive Summary: Reporting is available starting early 2021, but we recommend tracking qualified expenses, lost revenue and maintaining documentation before year end. Relief funds can be applied toward lost revenue up to …

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PPP Loan Update

September 21, 2020 @ 8:02 am

The U.S. Department of the Treasury recently announced rules required for business owners to make use of the Paycheck Protection Program’s (PPP) loan forgiveness feature. The updated guidance provides both challenges and opportunities for local business owners. In addition, the SBA opened its PPP Loan Forgiveness portal recently. However, there are still some important questions that need to be answered before submitting your forgiveness applications. As many of our clients received PPP and EIDL loans, we understand the desire to settle those debts as quickly as possible. Given all of these uncertainties though, we are advising our clients to hold off on the forgiveness process until further clarification is provided. Some of the more important aspects we are seeking additional information on are: There is potential for an “automatic” forgiveness for PPP loans under $150,000. Small businesses who received a Paycheck Protection Program (PPP) loan of $150,000 or less may be able to obtain automatic forgiveness after submitting a one-page attestation form. The attestation form would be limited to one-page, and the small business would simply attest that the loan is eligible for forgiveness and that the business complied with the requirements of the Paycheck Protection Program found in the CARES …

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HHS Extends Deadline for Phase 2 General Distribution Funding

September 14, 2020 @ 2:45 pm

Applications are now due by Sunday, September 13, 2020. Follow the link HERE to apply now.  The Phase 2 distribution is intended for Medicaid, CHIP, and dental providers, who didn’t receive funding in the first round of distributions. The HHS allocated $15 billion from the CARES Act Provider Relief Fund for these providers, and applicants can receive up to 2% of their reported revenue from patient care. The extension also brings good news for Medicare providers who missed out on the first phase of Medicare general distributions. Providers who experienced a change in ownership in 2019 or 2020 and were previously ineligible to apply, may also now be eligible for Phase 2 distributions. Contact the experts at BiggsKofford for additional information or guidance.

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IRS Issues Guidance on Payroll Tax Deferral

August 31, 2020 @ 11:19 am

The IRS issued guidance on the payroll tax deferral that was ordered by the President in a presidential memorandum on Aug. 8 (Notice 2020-65). The notice allows employers to defer withholding on affected employees’ compensation during the last four months of 2020 and then withhold those deferred amounts during the first four months of 2021. Implementing this deferral is optional for each employer. Some employers have expressed concerns due to unknown impacts, such as the impact on affected employees when the “catch-up” withholding is implemented in January of 2021. Or, the process for collecting these taxes from employees that no longer work for the organization. Under the guidance, employers can defer the withholding, deposit, and payment of the employee portion of social security taxes on wages paid from Sept. 1 through Dec. 31, 2020. The deferral applies to of the old-age, survivors, and disability insurance (OASDI) tax under Sec. 3101(a). The due date for withholding and payment of these taxes is postponed until the period beginning Jan. 1, 2021, and ending April 30, 2021. The deferral applies to any employee whose pretax wages or compensation during any biweekly pay period generally is less than $4,000. Under the notice, the determination …

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El Paso County CARES Act Grants Available

August 12, 2020 @ 3:08 pm

El Paso County Allocates Additional CARES Act Funds to Small Business and Nonprofit Grants El Paso County continues its commitment to local small businesses and nonprofits with a new multi-million-dollar Regional Business Relief Fund program, launching this week. This Fund will act as a competitive grant application process to assist our small businesses and nonprofits with business-related costs incurred due to the COVID-19 economic disruption. The county will be allocating CARES Act funds to the Regional Business Relief Fund program, which will be facilitated by the county’s Department of Economic Development, in partnership with Colorado Enterprise Fund (CEF), a nonprofit lender certified by the SBA. This newest grant program is intended to provide tangible assistance to local businesses and nonprofits adversely affected by the pandemic, as El Paso County continues to focus on its COVID-19 response, recovery, and resiliency efforts. The funds under the El Paso County Regional Business Relief Fund program will be awarded as a grant rather than a loan and will not have to be repaid by recipients. El Paso County businesses and nonprofits with fewer than 500 employees can apply to receive a grant of up to $20,000, which can be used to pay for expenses and …

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HHS Provider Relief Fund – General and Targeted Fund Update

July 24, 2020 @ 2:31 pm

HHS Provider Relief Fund – General and Targeted Fund Update HHS issued a limited update Monday July 20th.  The update suggests that providers who received more than $10,000 in PRFs (i.e., any payment under the $50 billion General Distribution, Medicaid/CHIP distribution, or various targeted distributions) will be subject to “future reporting requirements” and that detailed instructions regarding these requirements will be released “by August 17, 2020.” While the announcement leaves many details vague, it does state that recipients must report within 45 days of the end of calendar year 2020 on their expenditures through the period ending 12/31/20.  The overview released on July 20 does not indicate whether providers who received $10,000 or less will be subject to any reporting obligations and does not provide detail as to the form or content of reports.  However, the following timeline is provided: August 17, 2020: Detailed instructions will be available by this date October 1, 2020: Reporting system comes available February 15, 2021: Report due for calendar year 2020 expenditures July 31, 2021: Second report due (only for those who expended funds in CY 2021) Please click HERE for the full announcement and don’t hesitate to contact your BiggsKofford advisor with any questions.

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Governor Signs the Healthy Families and Workplaces Act

@ 2:30 pm

The Governor signed the Healthy Families and Workplaces Act on July 14, 2020. 2020: For the remainder of this year, the Act will require all employers to comply with the emergency paid sick leave requirements of the Families First Coronavirus Response Act (FFCRA). The paid sick leave provision of the FFCRA mandates that an employer provide to each employee paid sick leave to the extent that the employee is unable to work or telework due to a need for leave because: (1) The employee is subject to a Federal, State, or local quarantine or isolation order related to COVID-19. (2) The employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19. (3) The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis. (4) The employee is caring for an individual who is subject to an order as described in subparagraph (1) or has been advised as described in paragraph (2). (5) The employee is caring for a son or daughter of such employee if the school or place of care of the son or daughter has been closed, or the child care provider of such son or daughter is unavailable, due …

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COVID-19 RESOURCES