Legislation introduced in the Senate on Tuesday would overrule an IRS notice and clarify that ordinary expenses funded by Paycheck Protection Program (PPP) loans are deductible by taxpayers. The bill, the Small Business Expenses Protection Act of 2020, S. 3612, is currently in the Senate Finance Committee and is supported by the AICPA. The PPP […]
AICPA challenging nondeductibility of PPP-related expenses
The IRS released guidance (Notice 2020-32) to explain that a taxpayer that receives a loan through the Paycheck Protection Program (PPP) is not permitted to deduct expenses that are normally deductible under the Code, to the extent the expenses were reimbursed by a PPP loan that was then forgiven. The PPP was created by Section […]
PLR and other requests for IRS guidance can now be sent electronically
To enable taxpayers to continue to submit requests for IRS guidance during the coronavirus pandemic, the IRS is temporarily allowing the electronic submission of requests for letter rulings, closing agreements, determination letters, and information letters under the jurisdiction of the IRS Office of Chief Counsel, and for determination letters issued by the IRS Large Business […]
CARES Act QIP change requires action
Before the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, prior law required qualified improvement property (QIP) placed in service subsequent to Dec. 31, 2017, to use a 39-year tax life, and the property was not eligible for bonus depreciation. The CARES Act retroactively changed this recovery period to 15 […]
Fed’s Neel Kashkari says coronavirus economic recovery ‘could be a long, hard road’
Neel Kashkari, president of the Minneapolis Federal Reserve, in an interview on February 17, 2016. David Orrell | CNBC Minneapolis Federal Reserve President Neel Kashkari said Sunday he expects the path to economic recovery from the coronavirus pandemic will be a “long, hard road,” pouring cold water on hopes for a “V-shaped” rebound. Kashkari, who […]
Thinking they won’t qualify for aid, small businesses could miss out on millions in stimulus
“When we got the order we were non-essential, that was the day we cleared house,” said Suzanna Cameron, 30, the owner of Stems, a flower shop in Brooklyn, New York. After her store was forced to close in response to the coronavirus pandemic, the single mom said she tried to pivot with virtual flower arranging […]
IRS launches tool for nonfilers to receive stimulus payments
The IRS has launched an online portal for taxpayers who are eligible to receive an economic impact payment but who are not normally required to file an income tax return because their income is too low ($12,200 for individuals or $24,400 for married couples filing jointly for 2019). The online portal allows people to enter […]
Guidance on NOL carryback and tentative carryback adjustments
The IRS provided guidance on how taxpayers who want to elect to waive or reduce the new provision requiring taxpayers with net operating losses (NOLs) arising in tax years beginning in 2018, 2019, and 2020 to carry them back five years (Rev. Proc. 2020-24). The IRS also extended the deadline for filing an application for […]
The IRS has a new website where you can get your stimulus relief check if you’re not required to pay taxes
US Treasury Secretary Steven Mnuchin arrives to testify during a House Ways and Means Committee hearing about the Fiscal Year 2021 budget request on Capitol Hill in Washington, DC, March 3, 2020. Saul Loeb | AFP | Getty Images The IRS and the U.S. Treasury on Friday launched a new IRS website where people who aren’t required […]
New York coronavirus daily death toll reaches third-straight record at 799, Gov. Cuomo says
New York Governor, Andrew Cuomo (D) speaking at a press Conference at the State Capitol. Michael Brochstein | Barcroft Media | Getty Images New York Gov. Andrew Cuomo said he is bringing in more funeral directors as coronavirus deaths across the state hit a third-straight daily record with 799 fatalities on Wednesday. New York state […]