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COVID-19 Updates

Posted on June 10th, 2020

Dear Clients and Friends,

We hope this message finds you safe and healthy. We have begun the process of reopening our office.

The health and well-being of our team and clients is our top priority. We have carefully monitored our community health trends as stay-at-home orders have eased. To reopen our office in a safe and responsible manner, our team developed a plan based on guidelines set by the Centers for Disease Control and Prevention (CDC), Governor Greg Abbot, and federal, state and local health authorities. Below are some of the precautions Lauterbach is taking to ensure the safety and security of our clients and employees.

Office Hours/Remote Work

Our office will be open during regular office hours: Monday – Friday, 8:30 am – 5:30 pm beginning Monday, June 8, 2020. However, we have split our staff into groups which will alternate working remotely on a weekly basis. Staff members working remotely will be available via email and telephone. Phone calls to employees working remotely will be directed to their cell phones. We will continue to rotate this way until further notice.

Client Meetings

Whenever possible, we encourage all client meetings to be held over the phone or video conference. Please note, if an in-person meeting is necessary, we are taking extra precautions to ensure our office is clean and thoroughly sanitized. All guests will be asked to sanitize their hands upon entering the building and a mask covering the nose and mouth will be required. We will gladly provide a disposable mask if needed.

Lauterbach teams who are working onsite at your office have been advised to consult with you on whether your offices are open or if there are any special guidelines they need to follow. lf you are expecting one of our teams and there is any reason why they should not come to your site, please notify your engagement leader. We will tailor our approach to meet your specific needs, and we will adjust and communicate with you as circumstances change.

Client Deliverables

Lauterbach has long encouraged electronic delivery for your convenience and storage. For tax clients who have not yet delivered their information to us, we encourage you to scan and upload it through our Client Portal. However, as stated above, our office will remain open during normal business hours if you need to drop off or mail hard copies. All deliverables will be available through the Client Portal or email if you prefer. Click here to learn how to log in to your Client Portal and upload or download documents.

As we move forward, we will continue to monitor developments and follow the guidance of the CDC along with federal, state and local health authorities. Thank you in advance for your patience. We hope you and yours remain safe and healthy.

Thank you,
Lauterbach, Borschow & Co.




Posted on May 1, 2020

Governor Abbott issued an executive order allowing Texas businesses to reopen. This order supersedes El Paso’s joint City and County stay home order. While we are all eager to get back to normal and miss seeing our clients and staff, we have made the decision to keep our office closed for the time being. Our team will continue to work remotely during regular office hours: Monday – Friday, 8:30 am – 5:30 pm and we are all available via email, telephone and video conferencing.

We understand many businesses need to reopen and we recognize how fortunate we are to have the resources to continue working remotely. We are developing a plan to reopen our office as soon as we can do so in a safe and responsible manner. As your dedicated team of advisors, Lauterbach, Borschow & Co. will continue to monitor new developments and keep you informed.

In the meantime, we encourage you to visit our website, follow us on LinkedIn, Facebook and Twitter and please reach out if you have any questions. We’re here to help.

We hope you and yours stay safe and healthy.

Thank you,
Lauterbach, Borschow & Co.




Posted on April 2, 2020


Quick Links

Paycheck Protection Program Loan
Economic Injury Disaster Loan (EIDL)
Employee Retention Credit
Texas Workforce Commission Resources
Paid Leave Resources
Tax Deadline Changes and Information

Small Business Loans

Paycheck Protection Program Loan (PPP) – This loan is designed to help small businesses maintain payroll and avoid layoffs. A small business, including non-profits, sole proprietors, independent contractors, and other self-employed individuals, may borrow up to 2.5 times their average monthly payroll costs which include wages or compensation (capped at $100,000 per employee on an annualized basis), vacation/sick pay, group health, & state unemployment tax. The maximum available loan under the program is $10 million. The loan will be eligible for forgiveness to the extent the proceeds are used to pay for payroll costs as defined above, mortgage interest, rent, & utilities during the eight week period following funding.  However, the SBA recently announced that they anticipate that at least 75% of the proceeds must go toward payroll costs alone to receive full forgiveness based on projected demand for the program. Additionally, the amount eligible for forgiveness is reduced proportionately to any reduction in employees as compared to the periods February 15, 2019-June 30, 2019 or January 1, 2020-February 29, 2020 or a reduction of greater than 25% of wages paid to individual employees over the wages paid in the most recent full quarter. Any amount not forgiven may be repaid over 2 years at an interest rate of 0.50%.  PPP loans can be obtained by applying through an SBA-approved lending institution. 

For more information about the PPP click here.

Economic Injury Disaster Loan (EIDL) – This loan is for small businesses and non-profits suffering substantial economic injury as a result of COVID-19. The total loan amount is determined by the Small Business Administration and cannot exceed $2,000,000.  The term of the loan can be up to 30 years at an interest rate not to exceed 2.00%.  Businesses may request a $10,000 advance to be paid within three days of applying which may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.  The $10,000 advance is eligible for 100% forgiveness even if the loan application is ultimately not accepted by the SBA. 

To apply for a COVID-19 Economic Injury Disaster Loan, click here.

Business Tax Relief

Employee Retention Credit – This provision provides a refundable payroll tax credit for 50% of eligible wages paid to employees from March 12, 2020 – December 31, 2020.  Eligible employers are those who have had fully or partially suspended operations or have experienced at least a 50% reduction in quarterly receipts (as compared to the same prior year calendar quarter) during the COVID-19 pandemic. Eligible wages include amounts paid for a group health plan but are capped at the first $10,000 in wages paid per eligible employee. Eligible wages are also reduced by wages taken into account under the payroll tax credit provisions of the Families First Coronavirus Response Act.  For employers who had an average number of full-time employees in 2019 of 100 or fewer, all employees are eligible.  For employers with more than 100 full-time employees in 2019, only the wages paid to employees who are furloughed or experience reduced hours due to the COVID-19 pandemic are eligible. The credit is not available to businesses that participate in the Paycheck Protection Program.

For more information about the Employee Retention Credit under the CARES Act click here.

Payroll Tax Payment Deferral – This provision allows for employers and self-employed individuals to defer payment of the employer portion of Social Security tax normally due between March 12, 2020 and Jan. 1, 2021. Fifty percent of the payment due is deferred until December 31, 2021 with the remainder due December 31, 2022.  The deferral is not available for businesses who receive loan forgiveness under the Paycheck Protection Program.

Net Operating Losses (NOLs) – This provision allows businesses organized as C-corporations a five-year carryback of NOLs arising in 2018, 2019 or 2020. It also eliminates the taxable income limitation which will now allow an NOL to fully offset income. Businesses can amend or modify tax returns for tax years dating back to 2013 in order to take advantage of the carryback.

Excess Business Loss Limitation Suspended – This provision modifies the excess business loss limitation for noncorporate taxpayers so that excess business losses can be deducted in full if arising in 2018, 2019, or 2020.

Minimum Tax Credits (MTCs) – This provision advances the year that fully refundable MTCs can be claimed by corporations from 2021 to 2019. It also allows corporations to elect to claim fully refundable MTCs in 2018. To claim an MTC an application must be filed before December 31, 2020.

Business Interest Expense Limitation – This provision increases the limitation on deductible business interest expense from 30% of the taxpayer’s adjusted taxable income to 50%. It applies to tax years 2019 and 2020. Special rules apply for partnerships.

Qualified Improvement Property – This provision makes a technical correction to the 2017 Tax Cuts & Jobs Act that retroactively treats Qualified Improvement Property as eligible for a 15-year life and 100% bonus depreciation (in other words, a 100% write-off in the year placed in service).  Qualified improvement property includes any improvement to the interior portion of a commercial building that is completed after the building was first placed in service.




Posted on March 26, 2020

Stay-at-Home Order

The City and County of El Paso issued a Stay-at-Home order effective March 24, 2020 at 11:59 p.m. To abide by the orders and until further notice, our office will be closed to clients. However, our staff will continue to work remotely during regular office hours: Monday – Friday, 8:30 am – 5:30 pm. Staff members will be available via email and telephone. For the time being, tax return hard copies will not be available until after we are back on a normal work schedule. All deliverables will be available through the Client Portal or email if you prefer.

  • Documents can be securely uploaded and downloaded through our Client Portal here.
  • Request access to your portal here.
  • Learn how to log in to your Client Portal and upload/download documents here.
  • Electronic payments may be made securely here.

Emergency Declaration

On March 13, 2020, an emergency declaration was issued in response to the ongoing Coronavirus Disease 2019 (COVID-19). The Emergency Declaration instructed the Secretary of the Treasury “to provide relief from tax deadlines to Americans who have been adversely affected by the COVID-19 emergency.” Affected taxpayers include individuals, trusts, estates, partnerships, associations, companies or corporations. The due date for filing Federal income tax returns and making Federal income tax payments due April 15, 2020, is automatically postponed to July 15, 2020. Affected taxpayers do not have to file Forms 4868 or 7004 and there is no limitation on the amount of the payment that may be postponed.

For clients who have provided their complete tax documentations, we will continue working to complete your returns by April 15th. Those who wish to extend their tax filings and/or payment, please contact your assigned tax preparer or the tax partner responsible for your account.

Texas Workforce Commission Resources

The Texas Workforce Commission (TWC) has developed a webpage with resources and information on actions taken by the commission in response to COVID-19. The page will be continuously updated with answers to questions about operating your business during this time.

  • Click here to visit the TWC’s COVID-19 page.
  • To receive updates from the TWC regarding COVID-19 updates, click here.
  • For information about managing multiple layoffs, click here.
  • For information on cutting employee hours or furloughing workers, click here.
  • To hire new employees, post your positions here



Posted on March 20, 2020

SBA Disaster Loan Assistance

The SBA is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the pandemic. There are some qualifying factors including living in an eligible disaster area (Texas and New Mexico counties are eligible) and funds should be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere and 2.75% for non-profits and repayment terms up to 30 years.

  • Visit the Disaster Loan Assistance website here
  • Check eligible disaster areas here
  • Apply for a Disaster Loan here

Paid Leave

The Families First Coronavirus Response Act requires employers with fewer than 500 employees to provide paid sick leave to employer who are forced to stay home due to quarantining or to care for a family member.

Sick Leave

The bill compensates employers and the self-employed for this paid leave in the form of a tax credit towards a portion of the payroll tax. The credit is limited to $200 per employee per day for up to 10 days of paid leave. In limited cases, the credit may increase to $511 per employee per day. 

Family Leave

The bill compensates employers and the self-employed for this paid leave in the form of a tax credit towards a portion of the payroll tax. The credit is limited to $200 per employee per day for up to 10 days of paid leave. In limited cases, the credit may increase to $511 per employee per day.

Leave for Self-employed

For self-employed persons, the credit is allowed against regular income taxes. The limit is calculated using the lesser of 67% of the taxpayer’s average daily self-employment income, or $200. The limits are increased to 100% and $511, respectively, in case of the three scenarios that also apply to the employer payroll tax credit.

The new law provides numerous requirements, limitations and definitions relating to the application of the mandate, as well as the credit. Contact us to schedule an appointment to discuss how this credit may be applied to your business.

The new law provides numerous requirements, limitations and definitions relating to the application of the mandate, as well as the credit. Contact us to schedule an appointment to discuss how this credit may be applied to your business.




Posted on March 18, 2020

Important Tax Deadline Changes and Information

Treasury Secretary Steven Mnuchin announced on Tuesday that the payment deadline for 2019 federal income taxes has been extended to July 15, 2020 for taxpayers and small businesses owing up to $1,000,000 on their 2019 federal income tax returns. However, the tax filing deadline remains April 15th. 

Additionally, there was no announcement concerning 1st quarter 2020 estimated tax payments. We are reviewing the announcement and will closely monitor developments to keep you informed. Equally important is the timely delivery of our services to you. Our team continues to work diligently to meet the April 15 filing deadline in these unprecedented times.


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