COVID-19 UPDATES

You’ve probably heard that the IRS will be making millions of ”economic impact payments” (also called ”recovery rebates”) in the near future to help people stay afloat during this time of economic uncertainty related to the COVID-19 crisis. These payments are in addition to the $1,200 payments ($2,400 for married couples) issued earlier in 2020. […]

RECOVERY REBATE/ECONOMIC IMPACT PAYMENT Direct-to-taxpayer recovery rebate. The Act provides for a refundable recovery rebate credit for 2020 that will paid in advance to eligible individuals, often automatically, early in 2021. (Code Sec. 6428A, as added by COVIDTRA Sec. 272) These payments are in addition to the direct payments/rebates provided for in earlier Federal legislation, the […]

In a Revenue Procedure, the IRS has provided a safe harbor allowing a taxpayer to claim a deduction in 2020 for certain otherwise deductible eligible expenses if the taxpayer received a Paycheck Protection Program (PPP) loan which (1) at the end of the taxpayer’s 2020 tax year the taxpayer expects to be forgiven in a […]

The IRS has issued a new draft of Form 941-X (Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund). The new draft adds 14 new lines that are based on lines that were added to the recently-issued Form 941 (Employer’s Quarterly Federal Tax Return), to reflect credits that were enacted earlier this year to […]

In an Information Release, the IRS has announced that the July 15 tax filing and payment deadline won’t be postponed. Individuals unable to meet the July 15 filing deadline can request an automatic extension, until October 15, to file. However, tax payments are due on July 15. Background. Due to the COVID-19 pandemic, the April […]

On Friday, May 15th, the SBA released the much anticipated PPP Loan Forgiveness Application. The application and related instructions do not provide as much guidance and detail as we expected, but there are still several key takeaways as outlined below: Alternative Payroll Covered Period: For administrative convenience, Borrowers with a biweekly (or more frequent) payroll […]

In a Notice, the IRS has clarified that no deduction is allowed for an expense that is otherwise deductible if both (1) the payment of the expense results in forgiveness of a loan made under the Paycheck Protection Program and (2) the income associated with the forgiveness is excluded from gross income pursuant to Coronavirus […]

The Ohio Senate unanimously passed the much-anticipated House Bill 197 to address several items during the COVID-19 health and economic crisis. Some of the key tax provisions include: The extension of the state and school districting income tax returns for individual filers from April 15th to July 15th to mirror the federal deadlines The extension […]

On March 25, 2020 the Senate passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which will inject roughly $2 trillion of economic stimulus into the economy designed to provide relief from the devastating toll of the COVID-19 pandemic. The final obstacles for the CARES Act are a vote by the House of Representatives, […]

On March 18, 2020, President Trump signed the FFCRA into law. In general the FFCRA requires employers with less than 500 employees to provide a certain amount of paid leave to employees impacted by the coronavirus (COVID 19) and provides a tax credit to employers to mitigate the costs of providing the mandated leave. The […]

The IRS has announced that a health plan will not fail to be a High Deductible Health Plan (HDHP) under IRC Sec. 223(c)(2)(A) merely because it provides health benefits associated with testing for, and treatment of, the COVID-19/Coronavirus without a deductible, or with a deductible below the minimum deductible (self only or family) for an […]