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The recently passed American Rescue Plan Act (ARPA) includes 600 pages of new legislation- a $1.9 trillion COVID relief package. The Act contains retroactive and prospective tax breaks including exclusions from income, new tax-free grant programs, and credits.

On March 17, 2021 the IRS announced an extension of the tax deadline for Individual Income Tax Returns (Form 1040) to May 17, 2021 from April 15. This extension applies to both the filing of the Form 1040 or the filing of an extension form. This also extends the due date for tax payments for individuals only for payments related to 2020 to May 17. This change does not apply to states, though it is likely some/all states will extend the deadline as well.

Recently, President Trump signed the second COVID-19 stimulus bill, which includes some rather special benefits for small businesses (i.e., companies with 100 employees or less). The new bill allows for both retroactive and prospective changes to the Employee Retention Credit (ERC). It is now possible for businesses that received a Paycheck Protection Program (PPP) loan in 2020 to potentially also benefit from the ERC. You may recall, prior to these changes, a business could either get a PPP loan or take the ERC. They could not have both. In addition, the new bill extends the ERC period to cover the first two quarters of 2021. The extended period now covers wages from January 1, 2021 to June 30, 2021. The rules for the 2021 credit are significantly different and could provide opportunities for employers that did not previously qualify for the ERC.

On November 18^th, the IRS issued additional guidance regarding deductibility of the Paycheck Protection Program (PPP) loan related expenses and the news is not what we had hoped for. The guidance came in the form of Revenue Ruling 2020-27 and Revenue Procedure 2020-51.  

As post-COVID recovery efforts gain momentum, many businesses are taking a fresh look at some federal stimulus and tax relief programs they had not previously considered. One such program, the employee retention credit contained in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, could be especially useful in helping companies bring back furloughed or laid-off employees.

Domestic violence is often a silent issue. With the rise of COVID-19, survivors are struggling at an even greater rate. This week we caught up with Kelly Becker, Development Director of LifeWire, to learn more about their mission to end domestic violence, how COVID-19 has affected their efforts, and how the community can help.

While stimulus checks and forgivable loans have received a lot of attention during the COVID-19 shutdown, businesses should not overlook other available relief provisions that could help them reduce taxes and improve cash flow. Several of these measures could enable a business to file amended federal tax returns to recover taxes paid in previous years and request a refund.

The IRS recently announced expanded required minimum distribution (RMD) relief under the CARES (Coronavirus Aid, Relief, and Economic Security) Act.  Here is what has changed for investors:

The American Institute for Certified Public Accountants (AICPA) recently issued a Technical Question and Answer (TQ&A) that provides guidance on accounting for loans issued under the Paycheck Protection Program (PPP).

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The COVID-19 pandemic has forced the temporary closure, or a reduction of operating hours, of office buildings, shopping centers, restaurants, and other businesses. As a result, many lessors have, or will be, providing lease concessions to tenants who have faced economic disruption due to the COVID-19 pandemic. Lease concessions may vary in form, but payment forgiveness and deferral of payments are expected to be the most common types of concessions granted. As a result of lease agreements not containing provisions for rent concessions specific to COVID-19, in early April, the Financial Accounting Standards Board (FASB) issued a question-and-answer document (Q&A) addressing questions on the impact of the COVID-19 pandemic on lease concessions.