Tax Warrior Chronicles

At this point, our readers should be familiar with the Paycheck Protection Program (PPP), the intent behind it, and the guidance issued as of April 2, 2020.  Today we have summarized key changes included in the new guidance issued overnight between April 2 and April 3, including the Final Borrower Application and related regulations.

Spoiler Alert: The borrower application changed; payments to independent contractors are excluded from payroll costs for businesses with employees; and confusion continues where guidance is lacking. But fret not, the Tax Warriors will guide you through these most recent changes and will continue to keep you updated as more information and guidance becomes

To say things are moving quickly relative to the CARES Act Paycheck Protection Program would be an understatement.  Within hours of issuing our blog summarizing the law yesterday, both the Treasury Department and Small Business Administration issued additional guidance and a sample loan application.

Direct links:

• Fillable loan application;
• Paycheck Protection Program (PPP) Information Sheet; and
• Small Business Administration (SBA) information.

As expected, release of the additional guidance clarified certain aspects of the law, but questions remain.  Our focus here will be on the changes and new items not included as part of our original blog.

Has anything changed regarding who may

To assist small businesses through the coronavirus-related economic slowdown, the recently enacted Coronavirus Aid, Relief and Economic Security Act (CARES Act) provides emergency assistance through a significant expansion of the Small Business Administration Section 7(a) loan program.  The program is structured to incentivize employers to retain and pay their employees.  We will refer to these loans as Paycheck Protection Loans (PPL).  As you will see, by using the PPL as intended, it is more akin to a grant program given the forgivable feature to the loan.

Who is eligible for the PPL?

Generally, eligible borrowers are organizations that employ 500 or fewer employees.  Both for-profit

Taxpayers and practitioners nationwide have been waiting over 2 years for a technical correction to fix an error in the 2017 Tax Cuts & Jobs Act (TCJA) related to depreciation of Qualified Improvement Property (QIP).  The error was finally fixed in the recently enacted Coronavirus Aid, Relief and Economic Security Act (CARES Act), and the change has created significant tax-reduction opportunities for some taxpayers.

Background

Prior to the TCJA, non-residential improvements were classified as either Qualified Leasehold Improvements, Qualified Restaurant Property, or Qualified Retail Improvement Property.  The TCJA replaced these three types with one “Qualified Improvement Property”

The recently enacted Coronavirus Aid, Relief and Economic Security Act (CARES Act) created temporary provisions affecting two types of taxpayers: those who wish to preserve depressed retirement assets, and those who need emergency liquidity from their retirement assets.

Taxpayers Who Wish to Preserve Depressed Retirement Assets

The CARES Act temporarily waives the existing 2020 required minimum distribution (RMD) requirements for certain qualified plans, such as defined contribution plans under sections 401(k), 403(b) and Section 457(b) and for individual retirement accounts (IRA).  If a taxpayer’s initial RMD for calendar year 2019 was deferred to 2020 and not yet taken, the deadline

On March 25, 2020 the IRS released IR-2020-59 with information on the operational status of their compliance programs, including expanded relief for payment programs. The news release details IRS Commissioner Chuck Rettig’s thoughts on providing taxpayers additional avenues of temporary relief during the coronavirus pandemic and highlights various IRS compliance and payment programs and the steps taken to provide temporary relief.

The “People First Initiative” focuses on two areas and is in addition to other deadline relief previously granted.

Installment Agreement and Offers in Compromise Payments

The IRS granted expanded payment relief for existing Installment Agreements and accepted

President Trump signed into law today H.R. 748, the Coronavirus Aid, Relief and Economic Security Act (CARES Act).  This is the third major piece of legislation enacted in response to the COVID-19 pandemic since March 6, 2020.  The focus of the $2 trillion package is supporting American workers and businesses while providing resources to the health care community serving the public during this unprecedented time.

Some provisions in the CARES Act have refund opportunities for prior tax years, while others apply on a forward-looking basis.  Many provisions provide immediate liquidity during the pandemic crisis.

We will be writing about the CARES Act in detail in the coming days and

UPDATED April 1, 2020

As of April 1, 2020, many states have released guidance to extend their tax filing or payment deadlines to align with IRS Notice 2020-18 or to provide their own extended filing or payment dates, while others are still slow to take action.  Additionally, on March 24, 2020, the IRS has also released information addressing Frequently Asked Questions (FAQs) and on March 27, 2020 the IRS issued Notice 2020-20.  Today’s blog will update you on the most current information available regarding federal, state and select local tax filing and payment deadlines.

Note:  In future blog posts, we will begin dissecting the next Coronavirus relief bill that becomes law.   Whatever

Late in the evening on Friday, March 20, 2020, the Treasury Department and the IRS issued Notice 2020-18, restating and expanding relief provided in Notice 2020-17.  Read on for the details of the expanded relief.

Notice 2020-18 provides guidance on how Affected Taxpayers may defer tax filings and tax payments due to the coronavirus (COVID-19).

Any person (individual, trust, estate, partnership, association, company or corporation per IRC §7701(a)(1)), with a federal income tax payment or a federal income tax return due April 15, 2020 is considered affected by the COVID-19 pandemic, and is an Affected Taxpayer.

For an Affected Taxpayer, the due date for filing federal income tax

The Families First Coronavirus Response Act (Families First Act) was approved by the Senate on March 18, 2020, and swiftly signed by the President into law.

While the Families First Act contains tax provisions, the primary goal was to ensure affected individuals receive paid leave, food assistance and unemployment insurance during this unprecedented time.  The Families First Act is nuanced, and additional guidance is required.  For now, here is our high-level summary of the Families First Act for our readers.

Non-Business Matters

The Families First Act provides funding for Health and Human Services programs that aid elderly Americans, increases Medicaid funding to cover coronavirus