COVID-19: CARES ACT

CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT

In the midst of the virtual economic halt due to the spread of coronavirus, our nation's two-party government came together, and after a very short time of negotiating, passed the $2 trillion coronavirus economic stimulus bill--the CARES Act. President Donald Trump signed it immediately on Friday, March 27, 2020. A copy of the full bill can be found here.

This legislation is aimed at providing relief for individuals and businesses that have been negatively impacted by the coronavirus outbreak.

The popular Payroll Protection Program (PPP) was created as part of the CARES Act. For all things PPP, click here to be taken to our PPP page.


IRS GUIDANCE AND RESOURCES

Notice 2020-42- on June 3, 2020, the IRS released guidance providing temporary relief from the physical presence requirement in the Regulations for participant elections required to be witnessed by a plan representative or notary public, including a spousal consent intended to facilitate the payment of coronavirus-related distributions and plan loans to qualified individuals, as permitted by the CARES Act.

IR-2020-93- on May 12, 2020, the IRS issued information about why economic impact payments anticipated may differ from amounts received by taxpayers.

IR-2020-91- on May 8, 2020, the IRS released the latest state-by -state Economic Impact Payment Figures.

IR-2020-89- on May 7, 2020, the IRS provided information about three new credits available to many businesses hit by COVID-19.

Revenue Procedure 2020-28 - on April 20, 2020, the IRS issued guidance for eligible individuals who are not otherwise required to file Federal income tax returns for taxable year 2019 to receive economic impact payments under the CARES Act.

Revenue Procedure 2020-25- on April 17, 2020, the IRS issued guidance regarding CARES Act changes affecting Qualified Improvement Property (QIP).

Revenue Procedure 2020-26 - on April 13, 2020, the IRS issued guidance about modifications to certain mortgage loans in connection with a forbearance programs created by the CARES Act.

Revenue Procedure 2020-22- on April 10, 2020, the IRS issued guidance regarding Section 163(j) business interest limitations changes related to the CARES Act.

Revenue Procedure 2020-24 - on April 9, 2020, the IRS issued guidance regarding certain Net Operating Loss (NOL) elections relevant to the CARES Act.

Notice 2020-26 – on April 9, 2020, the IRS issued guidance about extended deadlines for filing tentative carryback claims with respect to the carryback of an NOL that arose in any taxable year that began during calendar year 2018 and that ended on or before June 30, 2019.

IR-2020-67 - On April 9, 2020 the IRS provided guidance under the CARES Act to taxpayers with Net Operating Losses (NOLs).

Rev. Proc. 2020-23 – on April 8, 2020 the IRS issued a Revenue Procedure allowing eligible partnerships to file amended partnership returns for issues relating to CARES Act provisions for taxable years beginning in 2018 and 2019 using a Form 1065, U.S. Return of Partnership Income (Form 1065), with the “Amended Return” box checked, and issue an amended Schedule K-1, Partner’s Share of Income, Deductions, Credits, etc. (Schedule K-1), to each of its partners.

Notice 2020-22 - On March 31, 2020 the IRS issued a notice providing guidance on penalty relief related to employer’s deposits of federal employment taxes and income taxes that are expected to be reduced by the amount of refundable tax credits granted in the Families First Coronavirus Response Act and the CARES Act.


IRS FORMS

IRS Form 7200 - Advance Payment of Employer Credits Due to COVID-19 and related instructions.

DRAFT IRS Form 941 for 2020: Employer’s QUARTERLY Federal Tax Return (Rev. April 2020)

 


STIMULUS CHECK INFORMATION


TAX WARRIOR BLOGS AND ALERTS

June 4, 2020 -  Estate Planning During the COVID-19 Pandemic

April 22, 2020 -  Opportunities to Increase Cash Flow from 2018-2020 - Business Losses

April 15, 2020 - Employee Retention Credits - Alternative Relief to PPP Loans

April 14, 2020 - Delay of Payment of 2020 Employer Payroll Taxes

April 9, 2020 CARES Act Offers Relief for TCJA Interest Expense Limitations

April 9, 2020 -Economic Impact Payment Update and Scam Alert

April 7, 2020 - Charitable Giving Changes Related to COVID-19

March 31, 2020 - CARES Act Depreciation Changes - Qualified Improvement Property 

March 30, 2020 - CARES Act Creates Special Rules for Retirement Funds in 2020

March 27, 2020 - COVID-19 Relief CARES Act Becomes Law


TAX WARRIORS IN THE NEWS

April 27, 2020 - Listen to D&S Partner Diane DeCesare on WKYW News Radio discussing the taxability of the COVID-19 stimulus checks and unemployment insurance payments.


THIRD PARTY RESOURCES

U.S. Senate Committee on Finance - CARES Act: Employee Retention Credit FAQ

March 31, 2020 - Part I: What I Worry About When I Think About the IRS and the CARES Act (Procedurally Taxing – Guest Blogger, Nina Olsen)

March 26, 2020 - Calculate how much you’ll get from the $1,200 (or more) coronavirus checks (The Washington Post)