The tax impact of COVID-19 on the banking industry, including observations on the CARES Act
Banking customers are struggling to satisfy their financial obligations, and there is significant turmoil in the markets. Banks are also needing to face these headwinds with a remote workforce that is being pulled in multiple directions. The actions that banks are taking to handle these issues have tax consequences to the organizations and their customers. In addition, the government passed legislation in an effort to provide financial relief to both individuals and businesses. The “Coronavirus Aid, Relief, and Economic Security Act” (the CARES Act) includes a number of tax provisions that affect the financial services industry. Additional information on tax provisions in the CARES Act can be found in the March 30 KPMG Report: Tax Provisions in the CARES Act (COVID-19 “Phase 3” Response): Analysis and Observations.