Ideas & Insights

Expanded FAQs further clarify that institutions do not report grant funds paid to students, and students do not include amounts in income.

Despite receipt of PPP loans, hospitality businesses may be eligible for retroactive 2020 and new 2021 credits.

The Employee Retention Credit provides liquidity benefits for many businesses and was significantly expanded for 2020 and 2021.

Stimulus legislation extends through 2021 the 100% of AGI deduction for itemizers and availability of a deduction for non-itemizers.

Colorado enacts law restoring certain deductions related the to the CARES Act for both business and individual taxpayers.

Plan sponsor actions to incorporate the provisions of the SECURE and CARES Acts into their plan documents and plan administration.

States may not allow the gross income tax exclusion provided by the federal program, resulting in taxable discharge of indebtedness income.

Employers impacted by COVID-19 may be eligible for payroll tax credits and deferrals reportable on their quarterly payroll tax returns.

The Employee Retention Tax Credit was significantly expanded by the federal relief and stimulus package finalized Dec. 27, 2020.

A roundup of considerations for companies while preparing income tax provisions for the year-ended Dec. 31, 2020.

Year-end stimulus legislation extends Paycheck Protection Program and expands eligibility for exempt organizations.

The Act does not lengthen CARES Act COVID plan relief, but offers relief for non-COVID disasters, partial terminations and pension plans.

The 2021 Consolidated Appropriations Act passes Congress and includes many extended and improved tax credits and incentives.

Last minute negotiations pave way for Congress to pass second major COVID-19 stimulus package with tax law changes and tax extenders.

After negotiations go to the 11th hour, Congress passes tax fix for PPP, changes to loan forgiveness and establishes second-draw program.

Last push for stimulus funding before year-end provides PPP deductibility obviating need to plan around nondeductibility of PPP expenses.

Employers may wish to pay Social Security taxes deferred under the CARES Act before the due date and should consider certain items.

PPP borrowers cannot deduct business expenses funded by a forgiven loan, but additional legislative action could permit such deductions.

The IRS has updated six questions in their Employee Retention Credit FAQ document on Tribal Governments and PPP loans in acquisitions.

IRS Announcement 2020-12 clarifies that lenders need not issue form 1099-C reporting PPP loans eligible for forgiveness under the CARES Act.