Music to Our Ears—A Resounding Victory for R&D Taxpayers

Written by John Bohannon. Updated Jun 22, 2020.

Taxpayers rejoice! A recent case decision signals good news for the R&D legal landscape—Audio Technica U.S., Inc. v. U.S. In this case, the taxpayer was a manufacturer of high-quality audio and microphone equipment. After being denied its claimed research credit during audit, the taxpayer sought to litigate the issue through the Northern District of Ohio in June of 2019 in an 8-person jury trial.

Read More

Paycheck Protection Program Flexibility Act

Written by Charlotte Ochs. Updated Jun 18, 2020.

During this time of unprecedented economic challenges faced by small businesses during COVID-19, rare glimpses of bipartisanship are encountered to assist small business with economic relief. Due to the economic challenges faced by small businesses the economic relief provided is in a constant state of fluidity. This has been the status quo for the Paycheck Protection Program (PPP). The President signed into law the Paycheck Protection Program Flexibility Act (PPPFA) to address the concerns voiced by the small businesses utilizing the program. The Congressional intent of the new law is to allow greater flexibility for business to use the PPP loans that was not provided by the initial short-term fix of the PPP set up under the CARES Act. This new law provides the following expansions and flexibility to address the issues created by the CARES Act – PPP, that was a band aid and not a comprehensive bandage when it was enacted.

Read More

Veterans Targeted for Hiring Incentives

Written by Annette Fago. Updated Jun 8, 2020.

Despite the size of the veteran workforce, tapping into the population has proved to be a challenge for many non-governmental employers. In 2012, to address the challenges faced by Gulf War-era II Veterans, Congress passed the Vow to Hire Hero’s Act, which expanded the Work Opportunity Tax Credit (“WOTC”) with the addition of four new, veteran-specific categories. The WOTC was created in 1996 to provide a federal tax credit to employers that hire individuals from specific target groups. People from these target groups have been identified by the U.S. government as having historically high unemployment rates. By many measures, the WOTC has been a success and continues to have bi-partisan support in Congress.

Read More

Key Changes to COVID-19 Incentives Paycheck Protection Loan and Employee Retention Credit

Written by Charlotte Ochs. Updated May 11, 2020.

Life is in a constant state of flux right now with the COVID-19 virus. It has affected daily life and the economy. Congress has worked to provide economic stimulus programs such as loans and credits. The intent of Congress was to stimulate the economy and help employers maintain business and retain employees to alleviate the economic hardship caused by COVID-19. However, as is typical when trying to quickly stop the negative impact of a disaster, details get omitted from the legislation and key areas need clarification as we have seen recently with the Paycheck Protection Program (PPP) and the Employee Retention Credit. More specifically, with the PPP concerning the deductibility of expenses when payments were made with debt forgiven funds and with the Employee Retention Credit in determining whether employers could claim the Employee Retention Credit when the only payments made to furloughed employees was for their health care benefits.

Read More

WOTC 28-Day Application Processing Time - EXTENDED

Written by Stephanie Cornejo Banuelos. Updated Apr 28, 2020.

The Department of Treasury and the Internal Revenue Service (IRS) released new guidelines and provisions under NOTICE 2020-23 in response to the COVID-19 pandemic.  These measures were intended to provide relief to taxpayers in the form of extensions to time-sensitive acts. Most notably under these provisions was the extension of the tax filing deadline to July 15, 2020.

Read More

IRS Expands Time Period to Claim R&D Tax Credits on Prior & Current Year Tax Returns

Written by Mitch Feldman. Updated Apr 17, 2020.

On April 9, 2020 the Treasury Department and the Internal Revenue Service announced another round of relief provisions in response to the COVID-19 pandemic. This new wave of relief measures is intended to provide further benefits to taxpayers in addition to the previous measures already implemented.

Read More

Report the Employee Retention Credit Under the CARES ACT on your 2nd Quarter 2020 Return

Written by Darren Labrie. Updated Apr 8, 2020.

The IRS has issued FAQs to provide guidance for taxpayers reporting the employee retention credit for certain employers subject to closure due to the COVID-19 crisis.  It provides that the credit with respect to wages paid in March should be reported on the 2nd quarter 2020 employment tax return.

Read More

Tax Incentives Play a Key Role in Assisting Businesses in the Coronavirus Stimulus Packages

Written by Darren Labrie. Updated Mar 31, 2020.

Nothing in recent history will affect the U.S. economy to the same magnitude as the global Coronavirus (COVID-19) pandemic crisis.  The effect will reach government agencies, nonprofit organization, businesses and individuals throughout the country.

Read More

WOTC Can Help Strengthen Senior Care Staff with Cross-Training

Written by Corporate Tax Incentives. Updated Nov 7, 2019.

Many of you have probably have heard of “cross-training.” The term usually conjures up images of gym clothes-clad men and women sweating through workouts.

With this exercise approach, a person alternates their workout activities. The intent is to affect a more comprehensive range of muscles and to increase both cardio tolerance and muscle growth, with less chance of injury.

Read More

Fight in the Dog: Small Life Science Startups Persist Despite Odds

Written by Corporate Tax Incentives. Updated Nov 3, 2019.

“It's not the size of the dog in the fight, it's the size of the fight in the dog.”

Mark Twain, the great American writer, humorist, entrepreneur, publisher, and lecturer, is credited with authoring this wise quote. The quote speaks to tenacity, perseverance, and resilience, and how these qualities are not a matter of size, but rather attitude.

Read More