In the last several weeks the SBA issued both instructions and forgiveness regulations along with regulations addressing the PPP audit process. The heart of this class will be the form itself and will show the attendees how to complete the form on a line-by-line basis.  

In a series of instructions only a math major could love, the SBA issued the new “PPP Forgiveness” form and related regulations which involves a myriad of computations and accounting precepts destined to challenge all of us. The “Incurred and paid” statutory guidance being the most perplexing. Largely, because the “incurred and paid” hybrid method of accounting will be nearly impossible to implement. 

While the new SBA instructions offer pragmatic guidance not addressed by the CARES Act, the new rules involve tax and computational items that pose traps for the unwary. The FTE rehiring and reestablishing of wages by June 30, 2020, will also allow borrowers to “cure” the impact of two of the three forgiveness tests. Finally, we will address the newly issued SBA audit and appeal regulations along with the PPP provisions in Congress.

Specifically, this course will focus on:

• How to complete the SBA forgiveness form


• Last-minute ideas to maximize forgiveness


• Building a file in-case of an SBA audit


• Tricky issues, such as related party rent and contributions to profit-sharing plans


• How to complete the new SBA forms


• Understanding the new SBA "PPP Forgiveness" regulations and instructions


• Impact of the new Rules under the cash and accrual basis of accounting including the Alternative Payroll Covered Period


• What does “incurred and paid” mean versus “incurred or paid”


• Forgiveness for rent, payroll and interest expense including related party rent


• How to account for pension and profit-sharing plans


• How to determine the amount of the PPP Loan available for forgiveness


• What are “covered expenses"?


• How does the "full-time equivalent" ("FTE") test work?


• Computing the "salary reduction" test


• Re-hiring employees to avoid the "salary reduction" test


• Understanding the SBA's "75% payroll" test and the proposed 60% payroll test in the House bill


• Understanding the PPP aspects of the proposed HEROES bill


• Understanding the income tax aspects of the proposed HEROES bill


• Preparing for possible changes from Congress in the bill that passed the House

NASBA Approved

CPAacademy.org (Sponsor Id#: 111889) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

CPAacademy.org 1685 S. Colorado Blvd, Suite #205, Denver, CO 80222

EA Approved

CPAacademy.org (Sponsor Id#: HURS9) has entered into an agreement with the Internal Revenue Service, to meet the requirements of 31 Code of Federal Regulations, section 10.6(g), covering maintenance of attendance records, retention of program outlines, qualifications of instructors, and length of class hours. This agreement does not constitute an endorsement by the IRS as to the quality of the program or its contribution to the professional competence of the enrolled individual. Credit earned by attendees with a PTIN will be reported directly to the IRS as required of all providers. To ensure your CPE hours are reported, update your profile in My Account to include your PTIN number. Please note: IRS CE is only mandatory for EAs and ERPAs. For all other tax return preparers, CE is voluntary.

CPAacademy.org 1685 S. Colorado Blvd, Suite #205, Denver, CO 80222