WorldWide Drilling Resource

27 MARCH 2021 WorldWide Drilling Resource® LGWA’s Annual Convention & Trade Show April 12-13, 2021 Paragon Casino j Marksville, LA Room Discount Code LGWA12G For more information, contact Joel Walton at (225) 744-4554 or e-mail Check Out Our New Website! Forms Available online at: Monday’s “Night Before Convention” Events include: Cocktail Hour 6 p.m. Dinner 7 p.m. Bingo 8 p.m. Tuesday: Convention & Trade Show THIS WILL T L BE THE ONLY E OPPORTUNITY TO EARN CREDIT HOURS THROUGH U T R LGWA IN 2021! Drilling Into Money Not Boring by Mark E. Battersby An Overview of the COVID-19 Emergency Relief Act The COVID-19 Emergency Relief Act and the Consolidated Appropriations Act of 2021 passed with it, contain a number of business-related provisions that will impact every business, including: .IRAs and other retirement plans can now be used for “disaster mitigation.” Residents in qualified disaster areas can make a distribution of up to $100,000 from an Individual Retirement Account (IRA) or other retirement plan without penalty. Amounts withdrawn may be recontributed to the plan without consequences or included as income over a three-year period. .The popular Work Opportunity Tax Credit, which has proven successful in helping employers add disadvantaged individuals, has also been extended for five years. .The new legislation extended Pandemic Unemployment Assistance (PUA) benefits, the federal program covering the self-employed and so-called “gig” workers, from December 31, 2020 until March 14, 2021. Eligible individuals can receive up to 50 weeks of PUA, with no one receiving any remaining benefits after April 5, 2021. .$284 billion has been provided to reopen and strengthen the Paycheck Protection Program (PPP) for both firsttime and second-time borrowers who have less than 300 employees and can show a 25% reduction in revenue in any 2020 quarter compared with the same quarter in 2019. (In general, borrowers are eligible for PPP loan forgiveness if they apply at least 60% of the proceeds to payroll. And, PPP loans which aren’t forgiven, are subject to an interest rate of 1%.) .Business expenses paid with PPP funding would be tax deductible, despite an earlier Internal Revenue Service ruling to the contrary. Unfortunately, the states may not go along with allowing these deductions in conjunction with tax-free loan forgiveness, which could result in an unforeseen state tax bill. . The Economic Injury Disaster Loan (EIDL) program designed to provide economic relief to businesses currently experiencing a temporary loss of revenue due to the Coronavirus Pandemic has received a second round of funding. The new law also replenished the EIDL Advance Fund, which allows businesses suffering a substantial economic injury to apply for an advance that does not need to be repaid, or up to $1000 per employee - limited to $10,000 total. The new bills will provide much-needed relief to small drilling operations and businesses affected by COVID-19. As has been the case with all COVID-19 stimulus acts, there will almost certainly be additional guidance, announcements, and interpretations to come. As always, the advice of a tax professional is strongly advised. Mark Mark E. Battersby may be contacted via e-mail to