this changes everything

https://www.congress.gov/bill/116th-con ... /7010/text



Drop those pencils - this just passed House 418 - 1. Senate and President signature will follow ( Senate may want to tweak - they had 16 weeks, not 24) . Regardless, forgiveness is a good thing.

Are you counting chickens before they hatch?
Until/if the Senate passes it and POTUS signs it I'm not changing anything.

Changes nothing. Senate and Prez have declared it DOA. Move along.
Shoot, wrong twice in two days....

So tell us what it says.

Do what you want. I am not spending another minute on any old forms/calcs. If you read what they have been publicly saying on both sides of the aisle, there will be a similar overwhelming vote in Senate and White House already announced they will sign.

Changes nothing. Senate and Prez have declared it DOA. Move along.

Sorry, but you are thinking of[s] CARES Act[/s Heroes act. This and a companion standalone bill in Senate are simple specific bills designed to fix PPP. Broad support ( as if 417-1 doesn't imply that) .

Edit - I will not move along

Greta Wall
@GretaLWall
#NEW The House approves legislation to loosen restrictions on PPP loans in a 417-1 vote, Rep. Massie lone no vote.

Bill now heads to the Senate where it is expected to pass.

White House has indicated the President will sign the legislation.

Changes nothing. Senate and Prez have declared it DOA. Move along.

This isn't the bill Donny declared DOA.

HEROES Act is the one that's DOA in the Senate and Executive.

Wish they had addressed/changed the IRS position that the forgivable portion may be deducted.

Wish they had addressed/changed the IRS position that the forgivable portion may be deducted.

See the Small Business Expense Protection Act, also expected to pass. Has support in both chambers and the AICPA.

https://www.congress.gov/bill/116th-con ... -bill/3612

Wow, I was just working up some figures for a client who might be getting a PPP loan for about $90,000. I was about to let her know that recent guidance will make her payroll costs relative to that non-deductible and therefore her potential tax liability a considerable amount higher. Looks like there is a possibility of that changing. I wish they'd get all this sorted out, signed and sealed. This client may just want to forego the PPP if her tax bill will be higher. This is just crazy making.

action- I do not understand this thinking. Give me 90k, let me pay tax on it at 33% and I am still much better off. What am i missing? (not trying to be disrespectful or argumentative)

The $90K isn't going to be taxable in any event. It's either a loan or it's forgiven. However, the payroll will either be deductible or not deductible. At roughly $50,000 that would increase her taxable income if she is unable to deduct that portion because the PPP loan was forgiven..

Understood, but the if the 50k is not deductible it is the same as being taxable income in my mind. You are still getting 50k and only paying back a percentage of that. Still seems like a win to me.

I'm not saying it's not, EZ, but if it's going to increase the tax bill, the employer/client should know that and by how much the tax will increase. I would want to have that information so I could weigh the pros and cons to me so I can make a better and more fully understood decision. I really hate it when I think something is going to work one way, and then a bunch of weird caveats change everything.

Understand and agree. It is very important to be able to give the client a clear idea of what to expect. I just did not understand why the client might not take the money if it creates a tax liability.

Regarding the PPP- it is like planning to build a castle in the sand with big waves crashing. All we can do is the best we can and be sure to let the client know that very little is certain. Best of luck!

It looks like just the "introduced" part is checked but not the "passed house" part. ??

The passed part was in the news today. The website Congress.gov is not updated
EDIT: Today 5/29/2020 Congress.gov shows it passed on 5/28/2020.

https://www.journalofaccountancy.com/ne ... ments.html

It helps if you provide a link to the latest news people.

Thanks for the article Steve. Where does this stand now?

I have a couple of clients for whom the eight week limitation is going to be a challenge. They have businesses that are totally driven by tourism and were the first to be told to close. They still have not been given a green light to re-open and there is a strong liklihood at least one of them won't be able to open until late summer or early fall. They've been closed since mid March. It would be so helpful if they had 16-24 weeks to get their ee's back and up and running so they can actually make payroll.

Senate is back in session June 1. They are expected to vote on something this coming week. We are at wait and see.