Tax Warrior Chronicles

As guidance in this area is being released regularly, we recommend you read all of our blogs on this subject.  All the blogs in the Paycheck Protection Program series are here: Updates#1, #2, #3, #4, #5, #6, #7,#8,#9,#10, #11, #12,#13,#14, #15

What if I Can’t Hire My Employees Back?

Given the generous unemployment provisions of the CARES Act, many businesses that obtained PPP loans are having difficulty rehiring employees that may now be collecting more on unemployment than their normal wages.  This puts PPP loan recipients in a precarious position, as a business must maintain its workforce through the eight-week, post-loan period to receive full PPP forgiveness.

Fortunately, FAQ #40

As part of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), Congress provided temporary relief for individuals and businesses by adjusting interest expense limitations under Internal Revenue Code 163(j).  Today, we summarize those changes.

Background - The Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act (“TCJA”) added several complicated tax provisions in December 2017.  Arguably one of the most difficult areas for taxpayers to navigate was IRC §163(j).

Because of its complexity, we urge you to read about the details of 163(j) in our previous blogs, “Business Interest Limitation Under TCJA Part I, Part II, and Part III.

What Has Changed - CARES Act

For taxable years

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 Treasury Department and the IRS finally issued Notice 2020-17 late Wednesday afternoon, providing guidance on how Affected Taxpayers may defer 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 due on April 15, 2020, is considered an Affected Taxpayer.

The Applicable Postponed Payment Amount is the aggregate of all payments due on April 15, 2020.

Individuals and non-corporate Affected Taxpayers may defer the Applicable Postponed Payment Amount of income and self-employment tax of up to $1,000,000 to July 15, 2020, regardless of filing