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.
The IRS released additional guidance that expands upon the guidance issued in Notice 2021-20. This notice increases the maximum ERC allowed, and expands upon the category of employees that are eligible to claim the credit. The notice also modifies the gross receipts test, and provides more clarity on the definition of qualified wages.
An individual taxpayer may have underpaid one or more installments of estimated income tax for the taxable year that began in 2019, if the individual taxpayer anticipated having a lower required annual payment after utilizing an NOL carryover attributable to a prior-year excess business loss that, before the enactment of the CARES Act, would have been available as an NOL carryover to reduce taxable income.
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.
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, WEBINARS, & PODCASTS
May 14, 2020 - Steve Rossman on a PIDC Webinar - What About My Taxes and CARES Act Credits
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.
April 8, 2020 - Steve Rossman on a PROXUS Perspectives & Business Insights Webinar - COVID-19: The Never-ending Tax Year
THIRD PARTY RESOURCES
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)