Our team is working hard to keep our clients and our business affiliates updated on all things related to COVID-19. As a reminder, we have developed the Corrigan Krause Coronavirus Crisis Team (CKCCT) to help you receive the information and timely answers you need. Please reach out directly to our crisis team by sending an e-mail request to ckcrisisteam@corrigankrause.com. The team will be notified of your inquiry and will respond directly to you within 24 hours.
Visit our website to see all of our recent COVID-19 updates.
Office Closed
Because of recent heightened concern and the stay-at-home advisories for Cuyahoga and Medina County, we have made the decision to close our offices effective November 23rd through December 17th.

At this time, our employees will be working from home, and we will not be meeting with clients in person at any of our offices or attending meetings at client's offices. If clients need to drop off files at one of our offices, please call our office to make specific arrangements or use our secure client portal.

We have a variety of tools and resources available at our firm that allow us to continue to effectively interact with our clients remotely. We encourage our clients to take advantage of these technologies and avoid in-person meetings at this time.

Our employees can be reached by using their office direct dial number or by email.

We are monitoring the situation closely and taking necessary actions as we receive more information. The health and safety of our employees and clients remains a top priority and is extremely important to us.

Please let us know if you have any questions or concerns.

Thank you for your continued support, patience and understanding.
PPP Update
New IRS Ruling: Expenses & Deductibility
On Wednesday, the IRS issued a Revenue Ruling and a Revenue Procedure regarding the deductibility of expenses related to Paycheck Protection Program (PPP) loans. Ultimately, the rulings say that even if forgiveness hasn’t happened, borrowers can’t deduct expenses in the year paid or incurred, if they reasonably believe the loan will be forgiven. What should borrowers do as the year comes to a close and year-end tax planning remains top of mind?

When the CARES Act was signed into law in March, it was clear that the forgiveness of PPP loans would be excluded from taxable income; however, many questions remained regarding the deductibility of expenses paid with the loan proceeds.

In May, the IRS issued Notice 2020-32, which stated that a taxpayer who receives a loan through the PPP is not permitted to deduct expenses that are normally deductible to the extent the payment of those expenses results in loan forgiveness under the CARES Act.

The recent revenue ruling (Rev. Rul. 2020-27) restates the IRS’s official position on the issue of deductibility that expenses paid with PPP loan funds are not deductible. The revenue procedure (Rev. Proc. 2020-51) explains the procedures and statement that needs to be submitted in order for a safe harbor to apply in the situation that borrowers are denied forgiveness or decide not to apply for forgiveness.

We are still awaiting further guidance and clarification to new questions. At this time, our recommendation is to review your specific situation with your accountant and weigh the benefits and risks. As a reminder, all PPP borrowers have 10 months after their covered period ends to apply for forgiveness. As the year comes to a close, it’s critical that borrowers understand all of the available tax filing approaches. 

If you have questions, please reach out to our Coronavirus Crisis Team, who is happy to help. 
Phone 440.471.0800 | Fax 440.471.0801 | www.CorriganKrause.com