MRPR Blog

On May 21, 2020, Governor Whitmer announced Executive Order 2020-97 (amending Executive Order 2020-91) which indicates that all businesses or operations that are permitted to require their employees to leave the homes or residences for work under Executive Order 2020-92 (since amended to Executive Order 2020-96 and extended through June 12, 2020 under EO 2020-100) and any order that follows it, must, at a minimum:

The COVID-19 pandemic has had far-reaching consequences across the entire business world and one of the most hard-hitting effects has been the reduction of cash flow throughout nearly all business lines. Invoices are not getting paid on time, monthly bills are accumulating, and for some businesses, (like restaurants and theaters) activity and cash inflow may be completely stopped. To provide some relief to businesses affected by the coronavirus, Congress recently passed the CARES Act which offers the possibility of a one-time infusion of cash in the form of tax refunds.

We have gathered the notable updates, guidance, and reminders from the Department of Labor (DOL) and Internal Revenue Service (IRS) regarding the Families First Coronavirus Response Act (FFCRA) and Unemployment Insurance Agency (UIA).  

The Tax Cuts and Jobs Act of 2017 (TCJA) was one of the most consequential tax law changes of the last three decades. However, when it was passed, it expanded and reworked the definition of “qualified improvement property". The new definition contained a critical error, which we will explore below. That error has just been corrected with the passage of the CARES Act of 2020. Since the correction is retroactive, the IRS has released new information and new guidance for taxpayers to address these new changes. Here's what you need to know.

An important provision of the CARES Act, the Paycheck Protection Program (PPP) received an additional $310 billion in funding from Congress on April 24, 2020, after running out of the $349 billion in funds in the initial tranche. With a massive $659 billion in total funding, the program offers loans that have the possibility of being completely forgivable, if spent in the way the government has mandated.

If you are a small business owner, we are sending a (virtual) high-five your way for enduring the last few weeks of the COVID-19 crisis. You are navigating financial and emotional stress as well as a mountain of information to apply for financial aid packages from the government. At MRPR we are aiming to update information and help you sift through the important details as you create a disaster mitigation strategy for your business.

As the nation battles the COVID-19 pandemic, the Treasury Department and the Internal Revenue Service (IRS) have risen to the task of assisting taxpayers suffering from economic hardship and who have seen their lives upended by national social-distancing measures.

In a previous article; Internal Revenue Service Notice 2020-18 we outlined the details of the sweeping relief to taxpayers as the nation battles the ongoing COVID-19 pandemic. Under the Notice, most income tax filing deadlines have been extended from April 15, 2020, to July 15, 2020, with no interest or penalty to taxpayers.

The IRS has now released Notice 2020-20, which clarifies and amplifies the relief granted under the previous notice.

On March 27, 2020, Governor Gretchen Whitmer signed Executive Order 2020-26, granting Michigan taxpayers much-needed relief as Michigan and the nation at large, battle the COVID-19 pandemic.

The U.S. Department of Treasury and SBA released the application and guidelines for the Paycheck Protection Program (PPP loan) in the evening of March 31, 2020. As we mentioned in an earlier blog, the Paycheck Protection Program is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and is designed for small businesses with 500 or fewer employees. The program has set aside $350 billion to fund federally guaranteed loans with the unique feature of being partially or fully forgiven, provided certain parameters are met.