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COVID-19 continues to have wide-ranging economic, business, and social impacts. Updates on related tax and trade developments and insights from KPMG related to impact of COVID-19 on business can be found below.
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Global Developments Summary
Tax developments summarized and sorted by jurisdiction as of September 1, 2021
Tax developments summarized and sorted by jurisdiction as of September 1, 2021
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TaxNewsFlash – COVID-19 Developments
Tax updates on the response to the coronavirus from around the world
Tax updates on the response to the coronavirus from around the world
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Flash Alerts – COVID-19 Global Mobility Updates
Developments affecting international assignees and their employers
Developments affecting international assignees and their employers
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Latest U.S. federal developments related to COVID-19
TaxNewsFlash–United States
October 2021
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October 22, 2021 | IRS guidance (FAQs) for employers seeking to rehire retirees or retain employees after retirement age (COVID-19)
The IRS today issued a release in an effort to help address labor shortages related to COVID-19. The IRS release—IR-2021-208 (October 22, 2021)—advises employers that they generally will not jeopardize the tax status of their pension plans if they rehire retirees or permit distributions of retirement benefits to current employees who have reached age 59½ years (or the plan's normal retirement age). This release is intended to help certain employers look for ways to encourage retirees to return to the workforce and also to encourage experienced employees to stay on the job.
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October 12, 2021 | Notice 2021-57: Funding relief for multi-employer defined benefit pension plans
The IRS today released an advance version of Notice 2021-57 providing guidance on funding relief for multi-employer defined benefit pension plans as made available under the American Rescue Plan Act of 2021.
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October 6, 2021 | Notice 2021-58: Application of certain extensions under COBRA (COVID-19)
The IRS today released an advance version of Notice 2021-58 that clarifies the application of the extension of timeframes by an IRS and Employee Benefits Security Administration (U.S. Labor Department) final rule and subsequent emergency relief notices to elections and payments of COBRA premiums during the coronavirus (COVID-19) national emergency.
September 2021
TaxNewsFlash – United States
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September 28, 2021 | U.S. product exclusion extensions, medical-care products imported from China (COVID-19)
The Office of the U.S. Trade Representative today released for publication in the Federal Register a notice concerning the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.
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September 10, 2021 | IRS reminder: Cost of home testing is eligible medical expense; reimbursable under FSAs, HSAs (COVID-19)
The IRS today issued a release as a reminder that the cost of home testing for COVID-19 is an eligible medical expense that can be paid or reimbursed under health flexible spending arrangements, health savings accounts, health reimbursement arrangements, or Archer medical savings accounts because the cost to diagnose COVID-19 is an eligible medical expense for tax purposes. In addition, according to today’s IRS release, the costs of personal protective equipment (such as masks, hand sanitizer and sanitizing wipes) for the primary purpose of preventing the spread of COVID-19 are eligible medical expenses that can be paid or reimbursed under health FSAs, HSAs, HRAs, or Archer MSAs.
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September 8, 2021 | Recapture of excess employment tax credits under the “American Rescue Plan Act” (COVID-19)
The U.S. Treasury Department and IRS this afternoon released for publication in the Federal Register temporary regulations and, by cross-reference, proposed regulations under sections 3131, 3132, and 3134 of the Code, added by sections 9641 and 9651 of the American Rescue Plan Act of 2021.
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September 7, 2021 | Notice 2021-53: Reporting qualified sick leave, qualified family leave wages (COVID-19)
The IRS today released an advance version of Notice 2021-53 as guidance for employers regarding the requirement to report amounts of qualified sick leave wages and qualified family leave wages paid to employees for sick leave taken in 2021. Notice 2021-53 provides guidance under the Families First Coronavirus Response Act.
August 2021
TaxNewsFlash – United States
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August 31, 2021 | Rev. Proc. 2021-39: Further extension of relief regarding tax-exempt bonds (COVID-19)
The IRS today released an advance version of Rev. Proc. 2021-39 that extends temporary relief measures regarding the public approval requirement under section 147(f) for tax-exempt bonds—relief originally provided in response to the coronavirus (COVID-19) pandemic.
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August 26, 2021 | U.S. request for comments, extension of exclusions of medical product imported from China (COVID-19)
The Office of the U.S. Trade Representative (USTR) today released for publication in the Federal Register a notice and request for comments concerning the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.
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August 10, 2021 | Rev. Proc. 2021-33: Safe harbor for employers to exclude amounts for determining employee retention credit eligibility
The IRS today released an advance version of Rev. Proc. 2021-33 providing a safe harbor allowing employers to exclude certain items from their gross receipts solely for determining eligibility for the employee retention credit.
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August 4, 2021 | Notice 2021-49: Guidance for employers claiming employee retention credit, for third and fourth quarters 2021
The IRS today released an advance version of Notice 2021-49 providing additional guidance regarding the employee retention credit.
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August 3, 2021 | Updated FAQs concerning PPP loans, SBA discontinues “loan necessity questionnaire”
The U.S. Treasury Department posted an updated version of a set of frequently asked questions (FAQs) concerning the Paycheck Protection Program (PPP) as administered by the Small Business Administration (SBA). The new FAQ addresses why the SBA discontinued use of the loan necessity questionnaire.
July 2021
TaxNewsFlash – United States
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July 29, 2021 | IRS updates FAQs on paid leave credits available for employers; leave provided to employees with regard to vaccinations
The IRS today updated a set of frequently asked questions (FAQs) concerning the paid sick and family leave tax credits under the American Rescue Plan Act of 2021. Eligible employers can claim credits for providing leave to employees recovering from immunization.
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July 28, 2021 | Interim final rule: PPP loan forgiveness process, appeals deferment (COVID-19)
The Small Business Administration (SBA) this afternoon released for publication in the Federal Register an interim final rule to implement measures related to the forgiveness of loans made under the Paycheck Protection Program (PPP). This interim final rule is intended to streamline the forgiveness process for PPP loans of $150,000 or less.
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July 6, 2021 | IRS provides FAQs on tax treatment of Treasury grants for transportation service companies (COVID-19)
The IRS today issued a set of frequently asked questions (FAQs) regarding certain questions that transportation companies may have about Treasury grants and taxes, related to the Coronavirus Economic Relief for Transportation Services (CERTS) Act, enacted as a division of the Consolidated Appropriations Act, 2021.
June 2021
TaxNewsFlash – United States
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June 30, 2021 | Notice 2021-42: Employer leave-based donation programs, extended for 2021 (COVID-19)
The IRS today released an advance version of Notice 2021-42 that extends the federal income and employment tax treatment previously provided in Notice 2020-46 with regard to cash payments made to charitable organizations described in section 170(c) after December 31, 2020, and before January 1, 2022. The notice extends the relief offered in response to the coronavirus (COVID-19) pandemic through December 31, 2021.
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June 29, 2021 | IRS memorandum on TE/GE exam activities (COVID-19)
The IRS today released a memorandum as guidance for employees of the Tax Exempt and Government Entities (TE/GE) division regarding TE/GE examination activities that have been affected by the coronavirus (COVID-19) pandemic.
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June 29, 2021 | Notice 2021-41: Continuity safe harbor is extended, renewable energy projects
The IRS today released an advance version of Notice 2021-41 to clarify and modify prior guidance concerning the “beginning of construction” requirement for the production tax credit for qualified facilities under section 45 and the investment tax credit for energy property under section 48. This notice is intended to offer relief in response to the coronavirus (COVID-19) pandemic.
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June 24, 2021 | CDC extends temporary eviction moratorium through July 2021 (COVID-19)
The Centers for Disease Control and Prevention (CDC) of the U.S. Department of Health and Human Services today released for publication in the Federal Register an agency order that extends through July 31, 2021, a temporary moratorium halting residential evictions. The CDC order is intended to prevent the further spread of the coronavirus (COVID-19) disease. Today’s order halting residential evictions is effective July 1, 2021, through July 31, 2021.
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June 24, 2021 | Notice 2021-40: One-year extension allowing retirement plan elections and spousal consents to be signed remotely (COVID-19)
The IRS today released an advance version of Notice 2021-40 that extends for an additional year—through June 30, 2022—temporary relief from the rule that retirement plan elections requiring the signature of an individual participant (including spousal consents under section 417) must be witnessed in the physical presence of a plan representative or notary public. The relief from the physical-presence witnessing requirement was offered in response to the coronavirus (COVID-19) pandemic in 2020.
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June 23, 2021 | TTB guidance: Extended tax-free withdrawal of distilled spirits for hand sanitizers (COVID-19)
The U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) today announced it was extending through September 30, 2021, authorizations for the tax-free withdrawal of distilled spirits and products containing distilled spirits for hand sanitizer purposes—a response to the coronavirus (COVID-19) pandemic.
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June 14, 2021 | Updated FAQs concerning PPP loans, nonprofits in Puerto Rico
The U.S. Treasury Department posted an updated version of a set of frequently asked questions (FAQs) concerning the Paycheck Protection Program (PPP) as administered by the Small Business Administration. The new FAQ addresses PPP eligibility rules for certain nonprofit organizations in Puerto Rico.
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June 11, 2021 | IRS provides FAQs provide guidance for individuals, SMEs under “American Rescue Plan” (COVID-19)
The IRS today posted two new sets of frequently asked questions (FAQs) with information for individual taxpayers and small and medium-size employers (SMEs) that claim credits under the American Rescue Plan Act of 2021 (enacted March 11, 2021).
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June 11, 2021 | Rev. Rul. 2021-11: Fringe benefit aircraft valuations, first half of 2021
IRS guidance—Rev. Rul. 2021-11—provides information for use in determining the value of noncommercial flights on employer-provided aircraft for the first half of 2021.
May 2021
TaxNewsFlash – United States
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May 18, 2021 | Notice 2021-31: Premium assistance and tax credit for COBRA continuation of health coverage (Q&As)
The IRS today released an advance version of Notice 2021-31 as guidance regarding tax relief provided by the American Rescue Plan Act of 2021 for COBRA-related continuation of health coverage. Notice 2021-31 provides guidance in a question-and-answer format for employers, plan administrators, and health insurers regarding the new credit available to them for providing continuation health coverage to certain individuals under COBRA.
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May 17, 2021 | Regulations implementing funding to support state and local governments (COVID-19)
Regulations from the U.S. Treasury Department and published as an interim final rule in today’s edition of the Federal Register implement funding provisions to support state and local governments as they manage the public health and economic consequences of COVID-19.
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May 10, 2021 | Treasury launches emergency funding relief for state and local governments (COVID-19)
The U.S. Treasury Department today announced the launch of a program for $350 billion in emergency funding for state, local, territorial, and tribal governments—funding established by the American Rescue Plan Act of 2021 to provide relief to eligible state and local governments from the economic effects of COVID-19.
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May 10, 2021 | Notice 2021-26: Treatment of dependent care assistance programs clarified for 2021 and 2022 (COVID-19)
The IRS today released an advance version of Notice 2021-26 as guidance on the tax treatment of dependent care benefits available in tax years ending in 2021 and 2022.
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May 6, 2021 | IRS updates FAQs on relief for retirement plans, IRAs (COVID-19)
The IRS today issued a release noting that a set of frequently asked questions (FAQs) concerning coronavirus-related relief for retirement plans and IRAs has been updated. The new FAQs address partial terminations under provisions of the Taxpayer Certainty and Disaster Tax Relief Act of 2020.
April 2021
TaxNewsFlash – United States
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April 22, 2021 | Rev. Proc. 2021-20: Safe harbor, expense deductions for taxpayers that received first-round PPP loans
The IRS today released an advance version of Rev. Proc. 2021-20 that provides a safe harbor for certain taxpayers that received first-round Paycheck Protection Program (PPP) loans but did not deduct any of the original eligible expenses because they relied on prior IRS guidance that disallowed such deductions and that was issued before legislative changes enacted in December 2020.
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April 21, 2021 | Tax credits for certain employers providing paid leave to employees receiving COVID-19 vaccines
The IRS today issued a fact sheet with information about tax credits available for “small employers” that provide paid leave for employees receiving COVID-19 vaccinations.
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April 19, 2021 | IRS allows temporary relief from handwritten signature requirement for more tax forms (COVID-19)
The IRS Deputy Commissioner for Services and Enforcement released a memorandum to all Services and Enforcement employees, announcing temporary relief from the requirement for a handwritten signature for more tax returns and forms by allowing the identified returns and forms to be signed electronically.
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April 13, 2021 | Notice 2021-24: Penalty relief, reduced federal employment tax deposits in anticipation of tax credits
The IRS today released an advance version of Notice 2022-24 to amplify prior penalty relief provided by the IRS with regard to employers’ deposits of federal employment taxes—including deposits of withheld income taxes and employment taxes—that are reduced in anticipation of tax credits under legislation enacted to address the coronavirus (COVID-19) pandemic.
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April 7 | Updated FAQs about PPP loans
The U.S. Treasury Department posted an updated version of a set of frequently asked questions (FAQs) concerning the Paycheck Protection Program (PPP) as administered by the Small Business Administration (SBA).
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April 2, 2021 | Notice 2021-23: Employee retention credit, for first two quarters of 2021
The IRS today released an advance version of Notice 2021-23 concerning the employee retention credit claimed by employers for the first and second calendar quarters of 2021.
March 2021
TaxNewsFlash – United States
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March 30 | President Biden signs legislation extending PPP (COVID-19)
President Biden today signed into law H.R. 1799—legislation that extends the Paycheck Protection Program (PPP) through June 30, 2021.
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March 30 | IRS guidance for students, higher education institutions on reporting emergency financial aid (COVID-19)
The IRS today released guidance and a set of frequently asked questions (FAQs) addressing the tax treatment and how students and higher education institutions are to report emergency financial aid grants made in response to COVID-19.
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March 26 | Announcement 2021-7: Personal protective equipment deductible as medical care expense (COVID-19)
The IRS today released an advance version of Announcement 2021-7 notifying taxpayers that amounts paid for personal protective equipment (PPE) for the primary purpose of preventing the spread of the coronavirus disease 2019 (COVID-19) are treated as amounts paid for medical care under section 213(d).
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March 25 | Congress passes bill extending PPP through June 30, 2021
The U.S. Senate today passed H.R. 1799—a bill to extend the Paycheck Protection Program (PPP) through June 30, 2021. The House of Representatives passed H.R. 1799 on March 16, 2021. Accordingly, with today’s action by the Senate, the bill will be enrolled and then sent to the White House for action by the president.
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March 22 | SBA to accept “Shuttered Venue Operators Grant” applications beginning April 8, 2021
The Small Business Administration (SBA) announced the launch of a portal for accepting “Shuttered Venue Operators Grant” (SVOG) applications beginning April 8, 2021.
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March 18 | Updated FAQs about “Shuttered Venue Operators Grant” program
The Small Business Administration has updated a set of frequently asked questions (FAQs) concerning the Shuttered Venue Operators Grant program.
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March 16 | CBP provides trade statistics for FY 2020
A report from U.S. Customs and Border Protection (CBP) on trade and travel for fiscal year (FY) 2020 summarizes trade and travel statistics and reflects challenges presented by the coronavirus (COVID-19) pandemic.
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March 11 | President Biden signs COVID relief legislation
President Joe Biden today signed into law H.R. 1319, the “American Rescue Plan Act of 2021” thus making March 11, 2021, the date of enactment.
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March 10 | Congress Passes COVID Relief Legislation
The U.S. House of Representatives today passed the Senate-amended version of H.R. 1319, the American Rescue Plan Act of 2021, by a near party-line vote of 220-211. The legislation is estimated by the Congressional Budget Office to increase the deficit by $1.86 trillion over 10 years.
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March 8 | U.S. product exclusion extensions, medical-care products from China (COVID-19)
The Office of the U.S. Trade Representative (USTR) posted on its website a notice of extension of certain product exclusions with regard to the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.
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March 6 | Senate passes its version of COVID-19 relief bill
The U.S. Senate today passed its version of H.R. 1319, the “American Rescue Plan Act of 2021,” by a vote of 50-49.
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March 5 | Notice 2021-20 provides much anticipated guidance regarding the employee retention credit for 2020
The IRS on March 1, 2021, released an advance version of Notice 2021-20 as guidance regarding the employee retention credit (ERC) with respect to the 2020 calendar year.
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March 3 | Updated FAQs on PPP loans; guidance on second draw PPP loans
The U.S. Treasury Department today posted an updated set of “frequently asked questions” (FAQs) concerning the Paycheck Protection Program (PPP) as administered by the Small Business Administration (SBA).
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March 1 | Notice 2021-20: FAQs on employee retention credit, and Paycheck Protection Program loans (COVID-19)
The IRS today released an advance version of Notice 2021-20 to address the employee retention credit as it applies to qualified wages paid after March 12, 2020, and before January 1, 2021.
February 2021
TaxNewsFlash – United States
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February 27 | House passes COVID-19 relief bill, including tax provisions
The U.S. House of Representatives in the early morning hours of February 27, 2021, passed H.R. 1319, the “American Rescue Plan Act of 2021,” by a mostly party-line vote of 219-212.
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February 19 | Grants for “Shuttered Venue Operators” not available if venue operators filed PPP applications
The Consolidated Appropriations Act, 2021—legislation enacted December 27, 2020—provides funding for various coronavirus (COVID-19) relief programs, including $15 billion for the “Shuttered Venue Operators” (SVO) grant program which is administered by the Small Business Administration (SBA).
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February 18 | Notice 2021-15: Relief for health FSAs and dependent care assistance programs under “cafeteria plans” (COVID-19)
The IRS today released an advance version of Notice 2021-15 to clarify application of provisions of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (enacted as part of the Consolidated Appropriations Act, 2021) which provides temporary special rules for health flexible spending arrangements (health FSAs) and dependent care assistance programs under section 125 cafeteria plans.
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February 18, 2021 | IRS allows fax transmission of Form 8023 for section 338 elections by corporations making qualified stock purchases
The IRS issued a set of frequently asked questions (FAQs) announcing a temporary procedure for the fax transmission of Form 8023 on a webpage devoted to guidance offered as relief in response to COVID-19.
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February 12 | Ways and Means advances reconciliation legislation
The U.S. House Committee on Ways and Means yesterday evening voted 25-18 to advance the elements of reconciliation within its jurisdiction to the House Budget Committee.
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February 8 | New IRS form for self-employed individuals to claim sick and family leave tax credits (COVID-19)
The IRS today announced that a new form is available for eligible self-employed individuals to claim sick and family leave tax credits under Families First Coronavirus Response Act (Pub. L. No. 116-127).
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February 8 | Ways and Means schedules mark-up of COVID-19 relief proposals
House Ways and Means Committee Chairman Richard E. Neal (D-MA) this evening announced the committee will mark up nine proposals (subtitles) relating to coronavirus (COVID-19) relief beginning February 10, 2021, at 10:00 a.m. and running through Friday, February 12, 2021. The proposals relate to a variety of matters within the committee’s jurisdiction, including tax.
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February 4 | Safe harbor, educators deducting out-of-pocket expenses for protective items (COVID-19)
The IRS today released an advance version of Rev. Proc. 2021-15 that provides a safe harbor for “eligible educators” to treat unreimbursed expenses paid or incurred after March 12, 2020, for personal protective equipment, disinfectant, and other supplies used to prevent the spread of the coronavirus (COVID-19) in the classroom, as expenses that are allowable as a deduction under section 62(a)(2)(D) (subject to the aggregate dollar limitation).
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February 1 | Updated FAQs on PPP loans; guidance about “second draw” PPP loans
The U.S. Treasury Department has updated a set of frequently asked questions (FAQs) concerning the Paycheck Protection Program (PPP) as administered by the Small Business Administration (SBA).
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February 1 | Announcement 2021-2: Lenders to correct Forms 1099-MISC if previously reported loan payments as income
The IRS today released an advance version of Announcement 2021-2 to notify lenders that have filed with the IRS (or furnished to a borrower) a Form 1099-MISC, “Miscellaneous Information,” reporting certain payments relating to loans subsidized by the U.S. Small Business Administration as income of the borrower and further providing that these lenders must file and furnish corrected Forms 1099-MISC that exclude these subsidized loan payments.
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February 1 | Congressional Democrats release FY 2021 budget resolution
Democrats in the U.S. House of Representatives today released their FY 2021 budget resolution. Importantly, this resolution includes reconciliation instructions for use in developing and enacting further COVID-related emergency legislation.
January 2021
TaxNewsFlash – United States
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January 28 | IRS guidance (updated FAQs), tax credits for small and midsize employers providing paid leave (COVID-19)
The IRS today updated a set of “frequently asked questions” (FAQs) regarding the extended and expanded tax credits for qualified paid sick and qualified family leave wages provided employees by small and midsize employers—relief measures provided in response to COVID-19.
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January 20 | Notice 2021-10: Additional relief for qualified opportunity zones and investors (COVID-19)
The IRS released an advance version of Notice 2021-10 providing additional relief for “qualified opportunity funds” (QOFs) and their investors in response to COVID-19.
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January 19 | Notice 2021-6: Information returns and payee statements waived regarding PPP, other relief programs (COVID-19)
The IRS today released an advance version of Notice 2021-6 to waive the requirement to file certain information returns or furnish certain payee statements pursuant to provisions of the Consolidated Appropriations Act, 2021 (December 27, 2020).
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January 19 | Notice 2021-8: Relief from addition to tax, underpayment of individuals’ estimated income tax (COVID-19)
The IRS today released an advance version of Notice 2021-8 to provide a waiver of the addition to tax for an underpayment of estimated income tax by individual taxpayers when the underpayment is attributable to an amendment to section 461(l)(1)(B) made by the CARES Act.
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January 19 | Notice 2021-11: Employee payroll tax deferral, further postponed (COVID-19)
The IRS today released an advance version of Notice 2021-11 to further extend the time period employers must withhold and pay “Applicable Taxes” to December 31, 2021 (from April 30, 2021) related to a payroll tax deferral for certain employers as a response to the COVID-19.
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January 15 | Notice 2021-12: Extended temporary relief, low-income housing credit under section 42 (COVID-19)
The IRS today released an advance version of Notice 2021-12 to extend temporary relief from certain requirements regarding the low-income housing credit available under section 42 for qualified low-income housing projects.
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January 14 | President-elect Biden announces “American Rescue Plan”—includes tax components
President-elect Joe Biden, in a speech this evening (January 14, 2021), unveiled the first step in his two-step plan for rescue and recovery—the “American Rescue Plan.” He indicated that he will lay out the second step, the “Build Back Better Recovery Plan,” next month in his first appearance before a joint session of Congress.
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January 14 | Extension of safe harbors; loan forbearance, mortgage loans, lease arrangements of certain trusts (COVID-19)
The IRS today released an advance version of Rev. Proc. 2021-12 to extend—until September 30, 2021—certain safe harbors that were previously granted in response to COVID-19 and related to loan forbearance programs and modifications to mortgage loans and to lease arrangements of certain trusts.
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January 4 | Notice 2021-7: Temporary relief to value personal use of employer-provided automobile (COVID-19)
The IRS today released an advance version of Notice 2021-7 to provide temporary relief for employers using the automobile lease valuation rule to value an employee’s personal use of an employer-provided automobile for purposes of income inclusion, employment tax, and reporting.
2020
December 2020
TaxNewsFlash – United States
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December 28 | President signs year-end funding, COVID-19 relief legislation; tax provisions are enacted
President Trump on December 27, 2020 (Sunday evening) signed into law the “Consolidated Appropriations Act, 2021”—legislation that includes over $900 billion for various coronavirus (COVID-19) relief programs, government funding of $1.4 trillion, and myriad tax provisions. Accordingly, the date of enactment is December 27, 2020.
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December 23 | President vetoes defense authorization bill; status of year-end funding and COVID relief bill uncertain
The president last evening expressed his disagreement with certain provisions of the massive year-end funding bill (5,593 pages). The bill, as passed by both houses of Congress, would provide over $900 billion for various COVID relief programs, government funding of $1.4 trillion, and a number of tax provisions. The president specifically requested an increased amount of direct payments to be made to individual taxpayers. The situation remains fluid, and the outlook for this legislation is currently unresolved.
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December 23 | U.S. product exclusion extensions, Section 301 action concerning medical-care products from China (COVID-19)
The Office of the U.S. Trade Representative posted on its website a notice of product exclusion extensions and additional modifications concerning the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. Prior notices excluded from additional duties certain medical-care products needed to address the COVID-19. The USTR notice announces the U.S. Trade Representative’s determination to extend certain product exclusions and to make further modifications to remove Section 301 duties from additional medical-care products to address COVID-19.
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December 22 | Legislative update: Compensation and benefit-related tax provisions in year-end funding and COVID relief legislation
The year-end funding and stimulus legislation includes several compensation and benefit-related tax provisions.
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December 22 | Legislative update: Year-end funding and COVID relief legislation; charitable giving provisions extended, expanded
The bill would extend into 2021 several provisions in the CARES Act that increase incentives for charitable giving.
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December 22 | Notice 2021-3: Extension of relief allowing retirement plan elections, spousal consents to be signed remotely (COVID-19)
The IRS today released an advance version of Notice 2021-3 that extends—through June 30, 2021—temporary relief from a requirement that retirement plan elections that require the signature of an individual participant, including spousal consents under section 417, must be witnessed in the physical presence of a plan representative or notary public. The relief from the physical-presence witnessing requirement is offered in response to COVID-19.
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December 21 | Legislative update: Year-end funding and COVID relief legislation; includes important tax measures
After months of negotiation and wrangling over additional coronavirus (COVID-19) pandemic relief legislation, House and Senate leaders struck a bipartisan funding deal over the weekend. The massive year-end deal (5,593 pages) includes over $900 billion for various COVID relief programs, government funding of $1.4 trillion, as well as a bevy of tax provisions. Tax provisions in the bill are included in Division N of the bill (the “COVID-Related Tax Relief Act”) as well as in Division EE, which addresses expiring provisions, miscellaneous tax provisions, and tax provisions for disasters unrelated to COVID-19.
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December 21 | Legislative update: Proposal to clarify the deductibility of PPP expenses
Provisions in the pending ‘‘Consolidated Appropriations Act, 2021’’ are intended to clarify the deductibility of Paycheck Protection Program (PPP) expenses.
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December 18 | TTB guidance, extended tax-free withdrawal of distilled spirits for hand sanitizers (COVID-19)
The U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) today extended the tax-free withdrawal of distilled spirits and products containing distilled spirits for hand sanitizer purposes through June 30, 2021, in response to the coronavirus (COVID-19) pandemic.
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December 17 | IRS memorandum for TE/GE employees, examination timelines again modified (COVID-19)
The IRS this week released guidance for employees of the Tax Exempt and Government Entities (TE/GE) Division regarding the extended “information document request” (IDR) timelines due to COVID-19).
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December 10 | Updated FAQs on PPP loans; questionnaires to verify loan eligibility and forgiveness
The U.S. Treasury Department updated a set of frequently asked questions (FAQs) concerning the Paycheck Protection Program (PPP) as administered by the Small Business Administration.
November 2020
TaxNewsFlash – United States
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November 19 | IRS offers clarifications in FAQs addressing interaction of ERC and PPP loans in acquisitions (COVID-19)
Parties engaging in transactions in 2020 have faced uncertainty regarding the intersection between the employee retention credit (ERC) and Paycheck Protection Program (PPP). There has been significant concern regarding the eligibility for an acquiror to claim the ERC in situations when a target has previously received a PPP loan.
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November 19 | Rev. Rul. 2020-27: No deduction of eligible expenses for 2020 if reasonable expectation of PPP loan forgiveness
The IRS last evening released an advance version of Rev. Rul. 2020-27 providing that a taxpayer computing taxable income on the basis of a calendar tax year may not deduct eligible expenses in its 2020 tax year if, at the end of the 2020 tax year, the taxpayer has a reasonable expectation of reimbursement for such expenses in the form of Paycheck Protection Program (PPP) loan forgiveness.
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November 19 | Rev. Proc. 2020-51: Safe harbor for claiming deductions by taxpayers that received PPP loans
The IRS last evening released an advance version of Rev. Proc. 2020-51 that provides a safe harbor allowing a taxpayer to claim a deduction in the taxpayer’s tax year beginning or ending in 2020 (the 2020 tax year) for certain otherwise deductible eligible expenses.
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November 16 | Notice 2020-82: Contributions to defined benefit plans, extended due date (COVID-19)
The IRS today released an advance version of Notice 2020-82 announcing a contribution to a single-employer defined benefit pension plan with an extended due date of January 1, 2021, will be treated as timely if it is made no later than January 4, 2021 (which is the first business day after January 1, 2021).
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November 16 | IRS updates FAQs on employee retention credit, interaction with PPP relief (COVID-19)
The IRS today updated a set of frequently asked questions (FAQs) about the employee retention credit (ERC) as provided by the CARES Act.
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November 13 | Regulations that can be rescinded, modified or waived to assist taxpayers with economic recovery (COVID-19)
The U.S. Treasury Department and IRS today released for publication in the Federal Register a “request for comments” concerning regulations and other requirements that can be rescinded, modified or waived to assist business and individual taxpayers with their economic recovery from COVID-19. Comments are due 45 days after this item is published in the Federal Register (which is scheduled for November 17, 2020).
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November 4 | Rev. Proc. 2020-49: Extended relief regarding tax-exempt bonds (COVID-19)
The IRS today released an advance version of Rev. Proc. 2020-49 that extends temporary relief measures regarding the public approval requirement under section 147(f) for tax-exempt bonds—relief originally provided in response to COVID-19.
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November 2 | Interim final rule: Accessibility to COVID-19 vaccine for individuals in the United States
The U.S. Treasury Department and IRS, jointly with the Labor Department and Department of Health and Human Services, this afternoon released for publication in the Federal Register an interim final rule (T.D. 9931) with respect to Medicare coverage concerning a vaccine for the disease caused by the coronavirus (COVID-19).
October 2020
TaxNewsFlash – United States
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October 22 | IRS provides temporary procedures allowing fax of material advisor disclosure statement (COVID-19)
The IRS today posted a set of frequently asked questions (FAQs) providing a temporary procedure for the fax transmission of Form 8918, “Material Advisor Disclosure Statement.”
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October 8 | Updated FAQs on PPP loans; extension of deferral period (COVID-19)
The U.S. Treasury Department updated a set of frequently asked questions (FAQs) concerning the Paycheck Protection Program (PPP) as administered by the Small Business Administration (SBA).
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October 8 | FAQs to allow fax submission of paper copy of Form 8886 (reportable transaction disclosures)
The IRS today posted a set of frequently asked questions (FAQs) announcing that the IRS is temporarily allowing taxpayers to fax certain reportable transaction disclosure statements. (The FAQs were posted on an IRS webpage that includes other guidance and relief provided by the IRS in response to COVID-19.
September 2020
TaxNewsFlash – United States
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September 23 | Announcement 2020-12: No information reporting by lenders, PPP loans forgiven under CARES Act (COVID-19)
The IRS today released an advance version of Announcement 2020-12 clarifying that lenders that make Paycheck Protection Program (PPP) loans that are later forgiven under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) should not file information returns or furnish payee statements to report the amount of qualifying forgiveness.
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September 16 | IRS release on expedited request for letter rulings (COVID-19)
The IRS today—in a release reminding taxpayers of the availability of expedited requests for letter rulings—noted that COVID-19 is a “factor outside of the taxpayer’s control” and as such can support a request for expedited handling under Rev. Proc. 2020-1.
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September 16 | Treasury’s CDFI Fund to consider NMTC requests for reporting extensions (COVID-19)
The U.S. Treasury Department’s Community Development Financial Institutions (CDFI) Fund today announced that it will consider requests for extensions of compliance and certification reports when the recipients have been affected by COVID-19.
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September 14 | TTB reminder: Extra semi-monthly excise tax periods, five due dates in September 2020
The U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) issued a reminder to semi-monthly excise tax return filers that there are three excise tax return periods and five due dates in September 2020.
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September 10 | IRS expands list of forms and returns available for digital signature (COVID-19)
The IRS today announced it has expanded the list of forms and returns for which the use of digital signatures will be allowed temporarily.
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September 10 | The IRS today released an advance version of Announcement 2020-17 announcing that the due dates for reporting and paying excise taxes under sections 4971(a)(1) and 4971(f)(1) regarding delayed minimum required contributions to a single employer defined benefit plan are postponed to January 15, 2021.
The IRS today released an advance version of Announcement 2020-17 announcing that the due dates for reporting and paying excise taxes under sections 4971(a)(1) and 4971(f)(1) regarding delayed minimum required contributions to a single employer defined benefit plan are postponed to January 15, 2021.
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September 9 | Notice 2020-66: Medicaid coverage of COVID-19 testing and diagnostic services
The IRS today released an advance version of Notice 2020-66 as interim guidance providing that certain Medicaid coverage of coronavirus (COVID-19) testing and diagnostic services is not “minimum essential coverage” for purposes of section 36B. Therefore, an individual’s eligibility for Medicaid coverage solely for COVID-19 testing and diagnostic services will not prevent that person from being able to claim a premium tax credit under section 36B.
August 2020
TaxNewsFlash – United States
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August 28 | Notice 2020-65: Implementing executive action, employment tax deferral (COVID-19)
The IRS this evening released an advance version of Notice 2020-65 as guidance for employers with respect to a presidential memorandum directing the Treasury Secretary to use his authority to defer the withholding, deposit, and payment of certain payroll tax obligations, as relief in response to COVID-19.
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August 28 | IRS temporarily to allow digital signatures on certain forms and returns (COVID-19)
The IRS today announced that the use of digital signatures will be allowed temporarily on certain forms and returns that cannot be filed electronically in an effort to reduce in-person contact and lessen the risk to taxpayers and tax professionals during COVID-19.
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August 24 | IRS reminder, required minimum distribution rollovers, repayments due by August 31 (COVID-19)
The IRS today issued a release as a reminder to individual taxpayers that the deadline to rollover or repay retirement plan “required minimum distributions” (RMD) is August 31, 2020.
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August 21 | IRS statement on failure-to-deposit penalties, employers claiming new tax credits (COVID-19)
The IRS today posted a statement indicating that it was aware that a “small population of employers” that reduced their tax deposits in anticipation of claiming the sick and family leave credits or employee retention credit may have received a notice stating that there was a failure-to-deposit penalty applicable to the Form 941 on which the credits were claimed. The credits were made available by U.S. legislation enacted earlier in 2020 in response to COVID-19.
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August 12 | FAQs on PPP loans; payments of fees and health benefits (COVID-19)
The U.S. Treasury Department updated a set of frequently asked questions (FAQs) concerning the Paycheck Protection Program (PPP) as administered by the Small Business Administration (SBA).
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August 8 | Executive memorandum: Deferral of collection of payroll taxes (COVID-19)
President Trump this evening signed a memorandum directing the Treasury Secretary to defer the collection of certain payroll taxes for the period of September 1, 2020, through December 31, 2020. This payroll tax deferral is provided in response to COVID-19.
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August 7 | Notice 2020-55: Postponed deadline, federal excise tax for sports fishing, archery equipment (COVID-19)
The IRS today released an advance version of Notice 2020-55 that provides until October 31, 2020, for filing a Form 720 and paying the related federal excise tax under section 4161(a) on sales of sport fishing equipment and under section 4161(b) on sales of archery equipment (bows and arrows) for the first calendar quarter (January, February, and March) of 2020. This relief is provided in response to COVID-19.
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August 6 | Notice 2020-61: Special rules for single-employer defined benefit pension plans (COVID-19)
The IRS today released an advance version of Notice 2020-61 that provides guidance—in a question and answer (Q&A) format—concerning the special rules relating to funding of single-employer defined benefit pension plans, and related benefit limitations, as enacted by the CARES Act.
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August 6 | Notice 2020-62: Safe harbor explanations about eligible rollover distributions (COVID-19)
The IRS today released an advance version of Notice 2020-62 reflecting modifications to two safe harbor explanations that plan administrators may use to satisfy the requirement under section 402(f) that certain information be provided to recipients of an eligible rollover distribution.
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August 4 | FAQs address PPP loan forgiveness issues (COVID-19)
The U.S. Treasury Department today released a set of frequently asked questions (FAQs) addressing loan forgiveness issues under the Paycheck Protection Program (PPP) as administered by the Small Business Administration (SBA).
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August 3 | IRS issues FAQs on leave-sharing plans (COVID-19)
The IRS today posted a set of frequently asked questions (FAQs) concerning the tax treatment of leave-sharing plans—guidance issued in response to COVID-19.
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August 3 | IRS updated FAQs on retirement plan distribution rules, partial plan terminations (COVID-19)
The IRS updated a set of frequently asked questions (FAQs) that were issued to implement certain retirement plan relief measures enacted in response to COVID-19.
July 2020
TaxNewsFlash – United States
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July 31 | IRS updates FAQs on deferral of employment tax deposits, payments (COVID-19)
The IRS has updated a list of frequently asked questions (FAQs) concerning the deferral of employment tax deposits and payments through December 31, 2020—relief allowed in response to COVID-19.
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July 30 | House passes child care support bill, includes tax provisions (COVID-19)
The U.S. House of Representatives yesterday passed the “Child Care for Economic Recovery Act” (H.R. 7327) by a vote of 250 to 161. The bill would aim to provide relief in response to COVID-19.
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July 30 | Notice 2020-58: Rehabilitation credit under section 47, deadline relief (COVID-19)
The IRS today released an advance version of Notice 2020-58 to provide taxpayers additional time—through March 31, 2021—to satisfy the “substantial rehabilitation test” under the rehabilitation credit. This additional time is being provided in response to COVID-19.
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July 29 | IRS’s temporary procedure for filing Form 3115, accounting method changes (COVID-19)
The IRS today posted a set of frequently asked questions (FAQs) providing a temporary procedure for taxpayers to fax the duplicate copy of Form 3115, “Application for Change in Accounting Method”—a procedure provided in response to COVID-19.
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July 28 | Senate Republican proposals would limit withholding for remote workers, nexus for employers (COVID-19)
U.S. Senate Republicans last evening released several legislative proposals that are intended to serve as components of a broader Senate legislative response to COVID-19. In particular, tax provisions in the “American Workers, Families and Employers Assistance Act” would adopt general limitations on withholding and taxation of employee income through 2024.
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July 28 | No extension of duration of ITAR licenses, agreements (COVID-19)
The U.S. State Department today released for publication in the Federal Register a notice addressing certain temporary suspensions, modifications, and exceptions to provisions of the International Traffic in Arms Regulations (ITAR)—measures that were provided in response to COVID-19.
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July 27 | U.S. Senate Republicans release COVID-19 response bills, with tax provisions
Senate Republicans this evening released several bills that are intended to serve as components of a broader Senate legislative response to COVID-19. These bills include a number of tax measures.
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July 27 | Regulations: Refundable employment tax credits; assessment for erroneous refundable credits (COVID-19)
The U.S. Treasury Department and IRS on Friday afternoon, July 24, 2020, released for publication in the Federal Register temporary regulations and, by cross-reference, proposed regulations as rules for reconciling advance payments of refundable employment tax credits, as provided under legislation enacted earlier in 2020 as relief in response to COVID-19.
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July 15 | IRS notification regarding delay in processing advance payment of employer credits
The IRS today announced that it is sending letters to taxpayers that have experienced a delay in the process of Form 7200, “Advance Payment of Employer Credits Due To COVID-19.” Form 7200 is used for claiming the advance payment of employer credits made available in legislative responses to COVID-19.
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July 14 | Regulations on limiting business interest expense deductions under section 163(j)
OMB’s Office of Information and Regulatory Affairs (OIRA) reported that it has completed its review of final and proposed regulations concerning the limitation on the deduction of business interest under section 163(j). The 2017 TCJA added new section 163(j) to the Code, a provision that generally limits the amount of a taxpayer’s business interest deduction. Subsequently, the CARES Act made changes to the section 163(j) rules by temporarily loosening the interest deduction limitation.
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July 14 | Postponed deadline, hospitals and community health needs under section 501(r)(3) (COVID-19)
The IRS today released an advance version of Notice 2020-56 to further postpone the deadline for hospital organizations that are required to meet the community health needs assessment (CHNA) rules under section 501(r)(3). The extended deadline is intended as relief in response to COVID-19.
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July 13 | CBP to accept electronic phytosanitary certificates through September 2020 (COVID-19)
U.S. Customs and Border Protection (CBP) today announced that electronically produced versions of phytosanitary certificates will continue to be accepted through September 30, 2020. The use of electronically produced versions of phytosanitary certificates is intended to facilitate the clearance of imported plants and plant products during the COVID-19 pandemic.
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July 10 | CBP reminder of approaching end of postponed deadlines for customs duties, fees (COVID-19)
U.S. Customs and Border Protection (CBP) today issued a release as a reminder of approaching end of the extended 90-day postponement for estimated customs duties, taxes, and fees—deadlines that were postponed as relief in response to COVID-19.
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July 10 | Congress passes unemployment relief for tax-exempt entities (COVID-19)
The U.S. Congress has passed legislation to provide relief for tax-exempt organizations, allowing offsets of the costs of unemployment benefits provided for the organizations’ workers who received unemployment insurance payments.
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July 9 | Notice 2020-54: Reporting qualified sick leave, qualified family leave wages (COVID-19)
The IRS released an advance version of Notice 2020-54 as guidance for employers regarding the requirement to report amounts of qualified sick leave wages and qualified family leave wages paid to employees under the Families First Coronavirus Response Act (Pub. L. No. 116-127).
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July 7 | IRS memorandum for TE/GE employees, modified examination timelines (COVID-19)
The IRS today released guidance for employees of the Tax Exempt and Government Entities (TE/GE) Division regarding the extended information document request (IDR) timelines due to COVID-19.
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July 6 | IRS provides FAQs on treatment of certain payments to health care providers (COVID-19)
The IRS today released a set of frequently asked questions (FAQs) concerning the tax treatment of payments from certain relief funds made available by legislation in response to COVID-19.
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July 6 | Legislative update: Extension of PPP loan application deadline enacted (COVID-19)
The president on July 4, 2020, signed into law S. 4116—legislation that extends the deadline for applying for loans under the Paycheck Protection Program to August 8, 2020.
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July 6 | FAQs on coronavirus relief fund payments to states, local governments (COVID-19)
The IRS today released a set of frequently asked questions (FAQs) concerning the treatment of “coronavirus relief fund” payments.
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July 2 | Regulations: Consolidated net operating losses (text of regulations)
The U.S. Treasury Department and IRS this afternoon released for publication in the Federal Register temporary regulations (T.D. 9900) and proposed regulations (REG-125716-18) as guidance under sections 1502 and 172 regarding consolidated net operating losses (NOLs).
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July 2 | Congress passes PPP extension bill; House passes infrastructure bill (COVID-19)
The U.S. House of Representatives on July 1, 2020, passed, by unanimous consent, legislation to extend the deadline for applying for loans under the Paycheck Protection Program (PPP) from June 30 to August 8, 2020.
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July 2 | LB&I memo on activities postponed, continued and resuming (COVID-19)
The Commissioner of the IRS Large Business and International (LB&I) Division issued a memorandum—LB&I-04-0620-0011 (June 26, 2020)—addressing which LB&I compliance activities are postponed; which will continue through July 15, 2020, and beyond; and which will resume beginning July 15, 2020.
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July 1 | Notice 2020-53: Temporary relief, low-income housing credit under section 42 (COVID-19)
The IRS today released an advance version of Notice 2020-53 to provide temporary relief from certain requirements regarding the low-income housing credit available under section 42 for qualified low-income housing projects.
June 2020
TaxNewsFlash – United States
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June 29 | New FAQs on faxing refund claims, NOL carrybacks under CARES Act (COVID-19)
The IRS today updated a set of frequently asked questions (FAQs) addressing how taxpayers can file applications for eligible refund claims related to the net operating loss (NOL) carryback provisions of the CARES Act.
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June 29 | FAQs on PPP loans, maturity of loans (COVID-19)
The U.S. Treasury Department updated a set of frequently asked questions (FAQs) concerning the Paycheck Protection Program (PPP) as administered by the Small Business Administration.
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June 29 | National Taxpayer Advocate report to Congress identifying taxpayer challenges (COVID-19)
The National Taxpayer Advocate Erin M. Collins today released her first report to Congress identifying taxpayer challenges arising from COVID-19, the CARES Act, and IRS implementation of the Taxpayer First Act as priority issues for the coming year.
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June 29 | Notice 2020-52: Mid-year amendment to safe harbor section 401(k) plan (COVID-19)
The IRS today released an advance version of Notice 2020-52 to clarify the requirements that apply to a mid-year amendment to a safe harbor section 401(k) or section 401(m) plan that reduces only contributions made on behalf of “highly compensated employees.”
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June 26 | IRS updated FAQs on deferral of employment tax deposits, payments (COVID-19)
The IRS today updated a list of frequently asked questions (FAQs) concerning the deferral of employment tax deposits and payments through December 31, 2020—relief allowed in response to COVID-19).
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June 24 | U.S. Treasury relief, reduced assessments from banks paid to Comptroller of Currency (COVID-19)
An interim final rule released by the Office of the Comptroller of the Currency, U.S. Treasury Department, and published in today’s edition of the Federal Register is intended to reduce assessments from banks as relief in response to the coronavirus (COVID-19) pandemic.
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June 24 | TTB release: Extension of relief from notice requirement for destruction of beer (COVID-19)
The U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) has updated a set of frequently asked questions (FAQs) regarding the destruction of un-merchantable beer and recovery of excise taxes paid. The FAQs provide guidance in response to the coronavirus (COVID-19) pandemic.
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June 23 | IRS updated FAQs on employee retention credit
The IRS on June 19, 2020, released another set of updated frequently asked questions (FAQs) for the employee retention credit (ERC) provided by the CARES Act. The updated FAQs include, but are not limited to, a number of helpful clarifications and expanded examples.
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June 23 | Notice 2020-51: Waiver of 2020 required minimum distributions, retirement plans (COVID-19)
The IRS today released an advance version of Notice 2020-51 as guidance relating to the waiver of 2020 required minimum distributions from certain retirement plans pursuant to relief provisions provided by the CARES Act—legislation enacted in response to COVID-19.
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June 23 | Notice 2020-48: Postponed deadline, federal excise tax for sports fishing, archery equipment (COVID-19)
The IRS today released an advance version of Notice 2020-48 that provides more time regarding the federal excise tax under section 4161(a) on sales of sport fishing equipment and under section 4161(b) on sales of archery equipment (bows and arrows). This relief is provided in response to COVID-19.
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June 22 | Updated FAQ on employee retention credit for exempt organizations (COVID-19)
The IRS updated a list of frequently asked questions (FAQs) concerning the employee retention credit (ERC) under the CARES Act. FAQ 46, whicj concerns the definition of gross receipts for a tax-exempt employer, was updated.
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June 19 | Notice 2020-50: Retirement plan distributions and loans, CARES Act relief (COVID-19)
The IRS today released an advance version of Notice 2020-50 as guidance relating to measures of the CARES Act that provide favorable tax treatment in response to COVID-19 pandemic for individuals who take certain distributions from eligible retirement plans that are “coronavirus-related distributions.”
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June 17 | Federal Reserve considers expanding “Main Street lending program” for nonprofits (COVID-19)
The Federal Reserve Board this week announced it will be seeking public feedback on a proposal to expand its “Main Street lending program” to provide access to credit for certain nonprofit organizations.
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June 17 | PPP loan-forgiveness application forms (COVID-19)
The U.S. Small Business Administration (in consultation with the Treasury Department) today released two Paycheck Protection Program (PPP) loan-forgiveness application forms—a revised PPP loan-forgiveness application form and an “EZ” application form.
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June 17 | IRS employees continue to accept, transmit documents by email (COVID-19)
IRS Services and Enforcement employees are authorized until December 31, 2020, to continue to accept documents by email and digital signatures on certain documents, in response to the coronavirus (COVID-19) pandemic.
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June 15 | Updated FAQs, relief for nonresidents and foreign business employees affected by travel disruptions (COVID-19)
The IRS has updated a set of frequently asked questions (FAQs) as guidance regarding nonresident alien individuals and foreign businesses with employees or agents that have been affected by the emergency travel disruptions as a result of the coronavirus (COVID-19) pandemic.
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June 12 | Notice 2020-49: Postponed time-sensitive actions, New Markets Tax Credits (COVID-19)
The IRS today released an advance version of Notice 2020-49 regarding the New Markets Tax Credit (NMTC) and specifically to extend the time for taxpayers to make certain time-sensitive actions—relief provided in response to the coronavirus (COVID-19) pandemic.
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June 11 | Notice 2020-46: Employer leave-based donation programs (COVID-19)
The IRS today released an advance version of Notice 2020-46 as guidance for employers whose employees forgo sick, vacation or personal leave because of the coronavirus (COVID-19) pandemic.
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June 8 | IRS provides FAQs on NOL carrybacks by certain exempt organizations
The IRS today provided a list of “frequently asked questions” (FAQs) concerning net operating loss (NOL) carrybacks by certain exempt organizations.
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June 5 | President signs legislation providing payroll tax deferral for taxpayers with forgiven PPP loans (COVID-19)
President Trump today signed into law the Paycheck Protection Program Flexibility Act of 2020. The date of enactment is June 5, 2020. The Paycheck Protection Program (PPP) was enacted as part of the CARES Act, to provide lending to both small and large businesses. The new law makes several important changes to the PPP—for instance, it extends the time for the expenditure of funds and eases the requirement that 75% of funds be used for wages. A tax provision of the legislation amends the CARES Act to allow the deferral of payroll taxes without losing forgiveness of indebtedness under the PPP.
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June 4 | Legislative update: Senate passes bill, payroll tax deferral for taxpayers with forgiven PPP loans (COVID-19)
The U.S. Senate in the evening of June 3, 2020, approved by voice vote the Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010). The bill was passed by the House of Representatives on May 28, 2020, by a vote of 417 to 1. After being enrolled, the bill will be sent to the White House for action by the president.
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June 4 | Notice 2020-39: Relief for qualified opportunity zones and investors (COVID-19)
The IRS today released an advance version of Notice 2020-39 providing relief for qualified opportunity funds (QOFs) and their investors in response to the coronavirus (COVID-19) pandemic.
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June 4 | Rev. Proc. 2020-34: Relief for mortgage loans, lease arrangements of certain trusts (COVID-19)
The IRS today released an advance version of Rev. Proc. 2020-34 to provide temporary relief under a safe harbor for arrangements treated as trusts holding rental real property that may be subject to a mortgage loan and is leased to tenants who are experiencing financial hardship as a result of the coronavirus (COVID-19) pandemic.
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June 3 | Notice 2020-42: Temporary relief allowing retirement plan elections, spousal consents to be signed remotely (COVID-19)
The IRS today released an advance version of Notice 2020-42 that provides temporary relief from the requirement that retirement plan elections that require the signature of an individual participant, including spousal consents, must be witnessed in the physical presence of a plan representative or notary public.
May 2020
TaxNewsFlash – United States
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May 28 | House passes bill, payroll tax deferral for taxpayers with forgiven PPP loans (COVID-19)
The U.S. House of Representatives today passed the “Paycheck Protection Program Flexibility Act of 2020” (H.R. 7010). The bill would make several important changes to the PPP, such as extending the time for the expenditure of funds and easing the requirement that 75% of funds be used for wages. A tax provision of the bill would amend the CARES Act to allow the deferral of payroll taxes without losing forgiveness of indebtedness under the PPP.
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May 28 | FAQs on “Main Street Lending Program” (COVID-19)
The Federal Reserve Bank established the “Main Street Lending Program” to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the coronavirus (COVID-19) pandemic. The Federal Reserve Bank of Boston released on its website a set of “frequently asked questions” (FAQs) and other information about the Main Street Lending Program.
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May 28 | IRS provides FAQs on treatment of NOL carrybacks and AMT by C corporations (COVID-19)
The IRS posted a series of “frequently asked questions” (FAQs) concerning the treatment of net operating loss (NOL) carrybacks of C corporations to tax years in which the alternative minimum tax also applies.
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May 28 | Postponed deadlines for employment taxes, employee benefit plans, IRAs, HSAs, MSAs, other time-sensitive actions
The IRS today released an advance version of Notice 2020-35 announcing that deadlines for certain time-sensitive actions will be postponed because of the coronavirus (COVID-19) pandemic. Notice 2020-35 specifies that the postponed deadlines are intended to provide relief for actions regarding certain employment taxes, employee benefit plans, exempt organizations, individual retirement arrangements (IRAs), Coverdell education savings accounts, health savings accounts (HSAs), and Archer and Medicare Advantage medical saving accounts (MSAs) that generally are due to be performed on or after March 30, 2020, and before July 15, 2020.
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May 28 | IRS provides FAQs for individuals claiming the “medical condition exception” in 2020 (COVID-19)
The IRS provided a set of frequently asked questions (FAQs) to offer relief to certain alien individuals who are present in the United States but were unable to follow through on their plans to leave the United States because they contracted the coronavirus (COVID-19) or experienced other medical conditions or problems.
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May 27 | Updated FAQs on employee retention credit and PPP repayments
The U.S. Treasury Department and the IRS today each updated separate lists of “frequently asked questions” (FAQs) concerning the employee retention credit and the Paycheck Protection Program (PPP) enacted as part of the CARES Act.
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May 27 | Extension of safe harbor, “beginning of construction” under sections 45 and 48 (COVID-19)
The IRS today released an advance version of Notice 2020-41 that modifies prior IRS guidance concerning the “beginning of construction” requirement for both the production tax credit for renewable energy facilities under section 45 and the investment tax credit for energy property under 48.
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May 20 | United States: Competent authority, changes regarding requests and APA consultations
IRS officials recently announced changes to the procedures for filing documents under Rev. Proc. 2015-40 (mutual agreement procedure (MAP) requests) and under Rev. Proc. 2015-41 (advance pricing agreement (APA) requests and APA annual reports). These changes were released in a statement posted on the IRS webpage containing relief measures issued in response to the coronavirus (COVID-19) pandemic.
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May 18 | TTB guidance, tax-free withdrawal of distilled spirits for hand sanitizers (COVID-19)
The U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) today released guidance concerning the tax-free withdrawal of distilled spirits and products containing distilled spirits for hand sanitizer purposes, in response to the coronavirus (COVID-19) pandemic.
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May 18 | Treasury provides PPP loan forgiveness form, instructions
The U.S. Treasury Department issued a release about the Paycheck Protection Program (PPP) loan forgiveness application and related instructions.
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May 18 | IRS fact sheet, tax credits for COVID-19-related paid leave
The IRS issued a “fact sheet” with information about tax credits available to employers for funding paid leave in response to the coronavirus (COVID-19) pandemic.
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May 15 | Legislative update: House passes COVID-19-related legislation (HEROES Act)
The U.S. House of Representatives this evening passed a bill (including an adopted managers’ amendment)—the Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act) (H.R. 6800)—that includes measures intended to provide additional tax relief in response to the coronavirus (COVID-19) pandemic.
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May 15 | IRM update, addressing CARES Act provisions concerning net operating losses and minimum tax credits
The IRS updated sections of the Internal Revenue Manual (IRM) specifically addressing the treatment of net operating losses in light of legislative changes made by the Coronavirus Aid, Relief, and Economic Security Act of 2020 (CARES Act).
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May 15 | IRS provides FAQs on aviation excise tax holiday under CARES Act (COVID-19)
The IRS has provided a set of frequently asked questions (FAQs) that address issues related to the aviation excise tax holiday pursuant to relief provided by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
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May 13 | FAQs for PPP borrowers, safe harbor from SBA audit for “good faith” certification
The U.S. Treasury Department today posted an updated set of frequently asked questions (FAQs) concerning the Paycheck Protection Program (PPP) as administered by the Small Business Administration (SBA).
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May 12 | Legislative update: COVID-19-related legislation unveiled in House, includes tax proposals
The U.S. House of Representatives today unveiled additional COVID-19-related legislation—the ‘Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act) (H.R. 6800). The legislation contains a number of tax proposals, including several that would be applicable to businesses.
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May 12 | Notice 2020-29, Notice 2020-33: Expanded relief for health-related cafeteria plans (COVID-19)
The IRS today released advance versions of two notices—Notice 2020-29 and Notice 2020-33—as guidance allowing temporary changes to section 125 cafeteria plans. The IRS notices extend the claims period for health flexible spending arrangements (FSAs) and dependent care assistance programs, and allow taxpayers to make mid-year changes.
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May 8 | IRS updates FAQs on employee retention credit, treatment of health plan expenses and PPP repayments
The IRS updated a list of frequently asked questions (FAQs) concerning the employee retention credit, enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Updates concern health plans expenses paid during a furloughed period as qualified wages for purposes of the employee retention credit and PPP loan repayment deadlines.
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May 7 | Rev. Proc. 2020-30: Relief from creating foreign branch separate units under the dual consolidated loss rules
The IRS today released an advance version of Rev. Proc. 2020-30 to address situations when a foreign branch separate unit will not be created as a result of travel restrictions and disruptions resulting from the coronavirus (COVID-19) pandemic.
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May 7 | IRS releases FAQs on emergency relief grants to students being excluded from income (COVID-19)
The IRS today posted a set of “frequently asked questions” (FAQs) concerning the treatment of funds used by higher education institutions in response to the coronavirus (COVID-19) pandemic under the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) (Pub. L. No. 116-136, enacted March 27, 2020).
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May 6 | New deadline of May 14 to repay Paycheck Protection Program (PPP) loans for SBA “good faith” certification
The U.S. Treasury Department updated a list of “frequently asked questions” (FAQs) concerning the Paycheck Protection Program (PPP) that is administered by the Small Business Administration (SBA).
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May 6 | U.S. DDTC reduces registration fees (COVID-19)
The Directorate of Defense Trade Controls (DDTC) of the U.S. State Department announced that registration fees are being reduced as a response to the coronavirus (COVID-19) pandemic.
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May 6 | U.S. notice of 2020 GSP annual review, comment submission deadlines (COVID-19)
The Office of the United States Trade Representative (USTR) today released for publication in the Federal Register a notice and “request for comments“ concerning the 2020 generalized system of preferences (GSP) annual review. According to today’s USTR notice, because of the COVID-19 pandemic, written submissions rather than an in-person hearing are requested on all petitions that the USTR accepted for the 2020 GSP annual product review.
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May 5 | Employer retention credit can be claimed if Paycheck Protection Program (PPP) loan repaid by May 7
The IRS has updated a list of frequently asked questions (FAQs) concerning the employee retention credit. According to an updated FAQ, employers that received a loan under the PPP but opt to repay the loan by the Small Business Administration’s May 7, 2020 deadline may claim the employee retention credit after repaying the PPP loan.
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May 4 | Rev. Proc. 2020-19: Temporary modification to safe harbor for distributions by REITs and RICs (COVID-19)
The IRS today released an advance version of Rev. Proc. 2020-19 to provide temporary guidance regarding the treatment of certain stock distributions by publicly offered real estate investment trusts (REITs) and publicly offered regulated investment companies (RICs).
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May 4 | IRS relief regarding tax-exempt bonds (COVID-19)
The IRS today released guidance—advance versions of Rev. Proc. 2020-21 and Notice 2020-25—concerning the rules regarding tax-exempt bonds and providing certain relief in response to the coronavirus (COVID-19) pandemic.
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May 4 | TTB release: FAQs on destruction of beer, recovery of taxes paid (COVID-19)
The U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) issued a release that includes a set of frequently asked questions (FAQs) regarding the destruction of un-merchantable beer and recovery of taxes paid, including the waiver of certain requirements for beer destructions and using beer to make hand sanitizer at a distillery. The FAQs provide guidance in response to the coronavirus (COVID-19) pandemic.
April 2020
TaxNewsFlash – United States
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April 30 | Notice 2020-32: Deductibility of expenses when loan is forgiven under Paycheck Protection Program (COVID-19)
The IRS this evening released an advance version of Notice 2020-32 providing guidance regarding the deductibility for federal income tax purposes of certain otherwise deductible expenses incurred in a taxpayer’s trade or business when the taxpayer receives a loan (covered loan) pursuant to the Paycheck Protection Program (PPP).
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April 30 | IRS adds new FAQs on faxing refund claims, NOL carrybacks under CARES Act (COVID-19)
The IRS today updated a set of “frequently asked questions” (FAQs) addressing how taxpayers can file applications for eligible refund claims related to the net operating loss (NOL) carryback provisions of the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) (Pub. L. No. 116-136).
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April 30 | FAQs on “Main Street” lending program (COVID-19)
The U.S. Federal Reserve Bank today released a set of “frequently asked questions” (FAQs) concerning the “Main Street” lending program as established to address the economic impact of the coronavirus (COVID-19) pandemic on small and medium-size businesses.
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April 30 | Changes to ITAR requirements for renewals, remote workers (COVID-19)
The U.S. State Department today released for publication in the Federal Register a notification of temporary suspension, modification or exception to provisions of the International Traffic in Arms Regulations (ITAR). In particular, the dates for renewal of registrations, for licenses and agreements, and other items are extended in response to the coronavirus (COVID-19) pandemic.
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April 30 | IRS temporary procedures for electronic submission of requests for letter rulings, closing agreements, other advice
The IRS today released an advance version of Rev. Proc. 2020-29 that temporarily allows for 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 determination letters issued by the IRS Large Business and International Division.
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April 29 | IRS updates, expands FAQs on employee retention credit (COVID-19)
The IRS today updated and expanded a list of “frequently asked questions” (FAQs) concerning the employee retention credit that is available as a relief measure in response to the coronavirus (COVID-19) pandemic.
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April 29 | Extension of healthcare, health plan coverage, employee benefit plan timeframes (COVID-19)
The IRS and Employee Benefits Security Administration (U.S. Labor Department) have jointly issued a final rule to extend certain timeframes concerning participants’ rights to healthcare coverage, portability, and continuation of group health plan coverage under COBRA, and to extend the time for plan participants to file or perfect benefit claims or appeals of denied claims. The extensions are provided as relief measures in response to the coronavirus (COVID-19) pandemic.
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April 29 | FATCA certification submissions extended to 15 December 2020 (COVID-19)
The IRS today updated a list of “frequently asked questions” (FAQs) concerning FATCA and specifically adding an FAQ that extends the due date—to 15 December 2020—for an entity with a FATCA certification due date of 1 July 2020 to submit a FATCA certification. The extension of time is provided as a relief measure in response to the coronavirus (COVID-19) pandemic.
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April 28 | IRS adds to FAQs on postponed tax return filing, paying deadlines
The IRS today updated a list of “frequently asked questions” (FAQs) concerning the postponed deadlines for filing federal income tax returns and paying federal taxes in response to the coronavirus (COVID-19) pandemic.
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April 27 | Updated FAQs on PPE exports from United States
U.S. Customs and Border Protection (CBP) today issued updated “frequently asked questions” (FAQs) regarding exports of personal protection equipment (PPE).
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April 24 | Treasury issues guidance on Paycheck Protection Program (PPP); Trump signs PPP funding legislation
The U.S. Treasury Department today posted a new interim final rule on the Paycheck Protection Program (PPP) to supplement previously released interim final rules with additional guidance. The interim final rule discusses PPP eligibility issues for investment funds and portfolio companies. Also today, President Trump signed the Paycheck Protection Program and Health Care Enhancement Act (H.R. 266)—legislation that provides more than $400 billion in new funding for the PPP as well as funds for health care, including relief for health care providers and for COVID-19 testing, but no tax provisions.
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April 23 | JCT description of employee retention credit, payroll deferral provisions in CARES Act
The staff of the Joint Committee on Taxation (JCT) on April 22, 2020, released its description of the tax provisions of the CARES Act. Among other provisions, JCT described the employee retention credit (ERC) and the payroll deferral, with additional narrative and examples that are helpful to taxpayers considering the provisions, as well as Treasury in constructing related guidance. Additional FAQs are expected from Treasury.
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April 23 | IRS expands FAQs on postponed tax return filing, paying deadlines
The IRS today updated a list of “frequently asked questions” (FAQs) concerning the postponed deadlines for filing federal income tax returns and paying federal taxes in response to the coronavirus (COVID-19) pandemic.
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April 23 | IRS provides FAQs on NOL carrybacks for taxpayers with section 965 inclusions
The IRS today released a set of “frequently asked questions” (FAQs) that address how taxpayers with section 965 inclusions may carryback a net operating loss (NOL).
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April 23 | Treasury releases updated FAQs on Paycheck Protection Program
The U.S. Treasury Department today released a set of “frequently asked questions” (FAQs) concerning the Paycheck Protection Program (PPP).
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April 22 | Legislative Update: JCT general explanation of tax provisions in CARES Act
The staff of the Joint Committee on Taxation (JCT) today released a 105-page description of the tax provisions in the CARES Act. The JCT explanation could be helpful to taxpayers in better understanding tax provisions in the CARES Act, as well as for Treasury as it continues to implement those provisions.
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April 22 | IRS extends FATCA reporting deadline, Model 1 IGA jurisdictions (COVID-19)
The IRS has updated a “frequently asked question” (FAQ) related to the FATCA regime. The updated FAQ extends the deadline to 31 December 2020 for Model 1 intergovernmental agreement (IGA) jurisdictions to submit FATCA data for the 2019 reportable year, in response to the coronavirus (COVID-19) pandemic.
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April 22 | FAQs on payroll support for air carriers and contractors (COVID-19)
The IRS released a set of “frequently asked questions” (FAQs) concerning certain payroll support provided for air carriers and contractors in the United States.
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April 21 | Senate passes COVID-19 legislation, with additional Paycheck Protection Program funds
The U.S. Senate this afternoon passed by unanimous consent the "Paycheck Protection Program and Health Care Enhancement Act" (H.R. 266). The bill would provide more than $400 billion in new funding for the Paycheck Protection Program (PPP) and for health care, including relief for health care providers and for coronavirus (COVID-19) testing. The bill does not include tax provisions. The House is expected to consider the legislation later this week, possibly on Thursday, April 23, 2020. The White House has expressed support for the legislation.
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April 21 | Revenue procedures, FAQs: Relief for nonresidents remaining in United States (COVID-19)
The IRS today released advance versions of two revenue procedures that provide relief for certain individuals who remain in the United States beyond a specified number of days because of the coronavirus (COVID-19) pandemic: Rev. Proc. 2020-20 and Rev. Proc. 2020-27.
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April 20 | Excise tax relief, distilled spirits used to produce hand sanitizers (COVID-19)
The U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) today issued a release announcing that it will continue to waive certain excise tax provisions with regard to distilled spirits that are used in the production of hand sanitizers as a response to the coronavirus (COVID-19) pandemic.
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April 20 | Relief relating to deposits of estimated customs duties, taxes, fees (COVID-19)
U.S. Customs and Border Protection (CBP) and the U.S. Treasury Department today jointly released for publication in the Federal Register a temporary final rule that temporarily extends—for 90 days—deadlines for remitting certain estimated customs duties, taxes, and fees as relief measures in response to the coronavirus (COVID-19) pandemic.
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April 20 | Reminder of sanctions compliance requirements (COVID-19)
The Office of Foreign Assets Control (OFAC) of the U.S. Treasury Department today issued a notice to encourage persons—including financial institutions and other businesses—to communicate OFAC compliance concerns related to the coronavirus (COVID-19) pandemic.
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April 17 | Rev. Proc. 2020-25: Depreciation of qualified improvement property
The IRS today released an advance version of Rev. Proc. 2020-25 as guidance allowing taxpayers to change the depreciation of “qualified improvement property” placed in service by the taxpayer in a tax year ending in 2018, 2019 or 2020.
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April 17 | IRS expands FAQs on faxing refund claims, NOL carrybacks under CARES Act (COVID-19)
The IRS has updated a set of “frequently asked questions” (FAQs) addressing how taxpayers can file claims for eligible refund claims related to the net operating loss (NOL) carryback provisions of the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act).
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April 17 | IRS FAQs on tax credits for required paid leave provided employees by SMEs (COVID-19)
The IRS today posted a list of “frequently asked questions” (FAQs) concerning tax credits for required paid leave provided by small and midsize employer (SME) businesses.
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April 16 | OFAC “fact sheet” on humanitarian assistance and trade (COVID-19)
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) today released guidance in the form of a “fact sheet” that highlights certain exemptions and exceptions from U.S. sanctions and concerning authorizations for humanitarian assistance and trade under the Iran, Venezuela, North Korea, Syria, Cuba, and Ukraine-Russia sanctions programs.
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April 15 | LB&I activities that are temporarily suspended, continued (COVID-19)
The Commissioner of the IRS Large Business and International (LB&I) Division issued a memorandum addressing which LB&I compliance activities would be postponed and which would be allowed through July 15, 2020, as a result of the coronavirus (COVID-19) pandemic.
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April 14 | New COVID-19 relief imports web portal
U.S. Customs and Border Protection (CBP) today announced that because of a high volume of inquiries received in the “COVID-19 relief imports email inbox” that it was migrating to a new “COVID-19 relief imports portal.”
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April 13 | Rev. Proc. 2020-26: Safe harbors, loan forbearance programs under CARES Act (COVID-19)
The IRS today released an advance version of Rev. Proc. 2020-26 that sets forth safe harbors under which modifications to certain mortgage loans in connection with a forbearance program related to the coronavirus (COVID-19) pandemic are not treated as replacing the unmodified obligation with a newly issued obligation, or as manifesting a power to vary for purposes of determining the federal income tax status of certain securitization vehicles—such as investment trusts and real estate mortgage investment conduits (REMICs)—that hold the loans.
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April 13 | IRS provides Q&As on “quick refunds” process for NOL carrybacks under CARES Act (COVID-19)
The IRS today released a set of “questions and answers” (Q&As) addressing how taxpayers can file claims for “quick refunds”—that is, eligible refund claims—related to the net operating loss (NOL) carryback provisions of the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act).
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April 13 | IRS issues FAQs on deferral of employment tax deposits and payments (COVID-19)
The IRS posted a list of “frequently asked questions” (FAQs) concerning the deferral of employment tax deposits and payments through December 31, 2020, in response to the coronavirus (COVID-19) pandemic.
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April 13 | IRS cautions certain mechanisms for requesting taxpayer records not available
An IRS communication today advises that currently IRS operations are temporarily unable to process third-party authorizations.
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April 10 | IRS announces extensions for section 1031 “like-kind exchange” deadlines (COVID-19)
Notice 2020-23, released by the IRS in the afternoon of April 9, 2020, amplifies and significantly expands the relief previously provided in Notice 2020-18 and Notice 2020-20 in response to the coronavirus (COVID-19) pandemic.
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April 10 | Section 163(j) interest expense deduction limitations, elections for real property trade, farming businesses
The IRS this afternoon released an advance version of Rev. Proc. 2020-22 as guidance for purposes of the business interest expense deduction limitation under section 163(j), regarding the election under section 163(j)(7)(B) to be an electing real property trade or business and the election under section 163(j)(7)(C) to be an electing farming business.
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April 10 | IRS updates FAQs on postponed tax return filing, paying deadlines (COVID-19)
The IRS today updated a list of “frequently asked questions” (FAQs) concerning the postponed deadlines for filing federal income tax returns and paying federal taxes in response to the coronavirus (COVID-19) pandemic.
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April 10 | IRS re-issues Form 941 to address employee retention credit
The IRS has re-issued Form 941, “Employer’s Quarterly Federal Tax Return” for 2020 and the related instructions—each with a note providing guidance for employers claiming the newly enacted employee retention credit that allows a tax credit to certain employers operating a business during 2020 that is negatively affected by COVID-19.
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April 9 | Notice 2020-23: Relief for taxpayers affected by coronavirus pandemic (COVID-19)
The IRS today released an advance copy of Notice 2020-23 that amplifies and significantly expands the relief previously provided in Notice 2020-18 and Notice 2020-20 in response to the coronavirus (COVID-19) pandemic.
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April 9 | Legislation to increase CARES Act funding fails in Senate
The U.S. Senate today was unable to obtain unanimous consent to pass alternative Republican and Democratic measures that would increase funding for the programs that were part of the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) (Pub. L. No. 116-136), signed into law on March 27, 2020.
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April 9 | Rev. Proc. 2020-24: Guidance on NOL carryback measures from CARES Act (COVID-19)
The IRS this afternoon released an advance version of Rev. Proc. 2020-24 to provide guidance regarding certain net operating loss (NOL) elections pursuant to section 172(b)(1)(D) as enacted by the “Coronavirus Aid, Relief and Economic Security Act” (CARES Act) (Pub. L. No. 116-136).
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April 9 | United States: Exports of personal protective equipment restricted (COVID-19)
An April 2020 memorandum from President Trump announced that pursuant to the Defense Production Act, certain medical resources would be kept within the United States for domestic use.
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April 8 | Rev. Proc. 2020-23: Relief for partnerships, allowing amended returns (COVID-19)
The IRS today released an advance version of Rev. Proc. 2020-23 allowing eligible partnerships to file amended returns in lieu of filing an administrative adjustment request (AAR).
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April 8 | IRS statement on corporate tax refunds (COVID-19)
The IRS today released a statement concerning corporate tax refund claims.
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April 7 | U.S. Senate to propose additional funding for paycheck protection program this week (COVID-19)
U.S. Senate Majority Leader Mitch McConnell (R-KY) today released a statement concerning additional funding for the paycheck protection program (PPP).
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April 7 | Treasury guidance, Q&As on loan program for air carriers, eligible businesses (COVID-19)
The U.S. Treasury Department released guidance regarding certain loan programs being made available pursuant to the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) (Pub. L. No. 116-136) as signed into law on March 27, 2020.
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April 6 | IRS Appeals to temporarily accept, transmit documents by email (COVID-19)
The Director of IRS Appeals, Case Operations and Support, issued a memorandum noting certain steps that IRS Appeals is taking in response to the coronavirus (COVID-19) pandemic.
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April 2 | Lending programs under CARES Act, Treasury "Fact Sheet"
The CARES Act signed into law on March 27, 2020—in addition to its numerous tax provisions—establishes two important lending programs: (1) the Small Business Administration-administered “paycheck protection program” (PPP) and (2) the Treasury Department’s economic stabilization fund. Applications to obtain a PPP loan may be filed beginning tomorrow, April 3, 2020.
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April 1 | Postponed payment, reporting date for TTB excise taxes (COVID-19)
The U.S. Treasury Department announced March 31, 2020, that the date for paying excises taxes for wine, beer, distilled spirits, tobacco products, firearms, and ammunition—excises taxes administered by the Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB)—has been delayed for 90 days in response to the coronavirus (COVID-19) pandemic.
March 2020
TaxNewsFlash – United States
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March 31 | FAQs on employee retention credit in CARES Act (COVID-19)
The U.S. Senate Finance Committee today released a set of “frequently asked questions” (FAQs) prepared by the committee’s Republican staff to address the employee retention credit provisions included in the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) (Pub. L. No. 116-136).
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March 31 | IRS provides Q&As on employee retention credit (COVID-19)
The IRS today issued a release concerning the employee retention credit that is available as a relief measure in response to the coronavirus (COVID-19) pandemic.
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March 31 | IRS Services and Enforcement employees to accept, transmit documents by email (COVID-19)
IRS Services and Enforcement employees will temporarily accept documents by email and digital signatures on certain documents, according to a March 27 memorandum from the IRS Deputy Commissioner (Services and Enforcement). These measures are in response to the coronavirus (COVID-19) pandemic.
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March 31 | Notice 2020-22: Penalty relief, reduced federal employment tax deposits in anticipation of tax credits (COVID-19)
The IRS today released an advance version of Notice 2020-22 to provide penalty relief with regard to employers’ deposits of federal employment taxes—including deposits of withheld income taxes and employment taxes—that are reduced in anticipation of tax credits under legislation recently enacted to address the coronavirus (COVID-19) pandemic.
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March 31 | Draft IRS form, instructions for claiming advance payment of employer credits (COVID-19)
The IRS has posted draft versions of Form 7200 and the related instructions for claiming the advance payment of employer credits made available in legislative responses to the coronavirus (COVID-19) pandemic.
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March 31 | Personal protective equipment, required data for imports (COVID-19)
Imports of surgical masks, gloves, and other personal protection equipment into the United States in response to the coronavirus (COVID-19) pandemic need certain required data.
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March 27 | President signs CARES Act “phase 3” COVID-19 bill, following House passage
President Trump today, March 27, 2020, signed H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act)—a bill that includes numerous tax provisions. The House of Representatives earlier today passed the bill by voice vote. The U.S. Senate passed the bill on March 25, 2020. The House passed the bill on March 27, 2020.
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March 27 | Notice 2020-21: Employment tax credits for certain paid leave (COVID-19)
The IRS today released an advance version of Notice 2020-21 as guidance concerning tax credits for paid leave required to be paid by the “Families First Coronavirus Response Act” (also referred to as the “phase 2” coronavirus or COVID-19 legislation).
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March 27 | Extension of time to file returns, make payments of federal gift and generation-skipping transfer taxes (COVID-19)
The IRS today release an advance version of Notice 2020-20 that provides relief to taxpayers who have federal gift (and generation-skipping transfer) tax returns and payments due on April 15, 2020, in response to the coronavirus (COVID-19) pandemic. The April 15, 2020 deadline is postponed to July 15, 2020.
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March 27 | FAQs for USTR special trade exclusion requests (COVID-19)
The Office of the U.S. Trade Representative (USTR) is currently requesting comments on modifications to the Section 301 tariffs imposed on imports from China, in response to the coronavirus (COVID-19).
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March 27 | Tax provisions in the CARES Act (COVID-19 “phase 3” response): Preliminary analysis and observations
Congress has already enacted two coronavirus relief bills and is poised to enact a massive “phase 3” bill, reportedly with a cost approaching two trillion dollars. This third bill, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), includes a significant number of tax items applicable to individuals and businesses. This report outlines CARES Act tax provisions along with KPMG initial observations.
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March 27 | Tax relief for tax-exempt organizations in “phase 3” coronavirus legislation (COVID-19)
Congress is poised to enact a massive “phase 3” bill, reportedly with a cost approaching $2 trillion. This third bill—the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act)—includes a significant number of tax items that are relevant to exempt organizations and their donors.
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March 27 | IRS suspends certain administrative procedures (COVID-19)
The IRS announced the suspension of certain administrative procedures in response to the coronavirus (COVID) pandemic.
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March 26 | Puerto Rico: Extended tax return filing, tax payment dates (table format) (COVID-19)
The Puerto Rico Treasury Department issued Administrative Determinations No. 20-09 and 20-10 (March 24, 2020) providing extensions of certain tax return filing and tax payment due dates as relief in response to the coronavirus (COVID-19) pandemic.
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March 26 | Puerto Rico: Additional extension of deadlines, tax relief relating to coronavirus (COVID-19)
The Puerto Rico Department of Treasury (PRTD) issued various communications extending the filing dates for tax returns and for tax payments in response to the coronavirus (COVID-19) pandemic. The communications described below supersede previous communications regarding extensions of time.
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March 26 | U.S. Labor Department, additional guidance on paid sick leave, expanded FMLA (COVID-19)
The U.S. Department of Labor’s Wage and Hour Division today announced more guidance for employers and workers about the provisions and relief under the “Families First Coronavirus Response Act” which will be effective April 1, 2020.
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March 26 | Senate passes “phase 3” coronavirus (COVID-19) bill
The U.S. Senate last night passed the “phase 3” coronavirus (COVID-19) legislation—H.R. 748, the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act). The vote was 96 to 0.
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March 25 | Senate’s “phase 3” coronavirus (COVID-19) bill; initial impressions of tax provisions
The U.S. Senate tonight released its “phase 3” coronavirus (COVID-19) legislation—H.R. 748, the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act). Initial impressions of tax provisions from KPMG professionals issued.
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March 25 | IRS suspends key compliance programs, responding to coronavirus (COVID-19)
The IRS today announced it was providing relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions.
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March 25 | Text of U.S. Senate’s “phase 3” coronavirus bill (COVID-19)
The U.S. Senate this evening released text of a bill—the “Coronavirus Aid, Relief, and Economic Security Act’’ (CARES Act)—to serve as the “phase 3” COVID-19 bill.
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March 25 | IRS extends time for certain financial institutions to file Form 8966, “FATCA Report”
The IRS today announced the release of a new “frequently asked question” (FAQ) concerning an extension of time for reporting Model 2 financial institutions and participating foreign financial institutions to file Form 8966, “FATCA Report.” According to an IRS transmittal message, the extension is being provided in response to the coronavirus (COVID-19) pandemic.
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March 25 | IRS issues postponed tax return FAQs; rules for Form 990-T clarified
The IRS posted a list of “frequently asked questions” (FAQs) about Notice 2020-18, which provided postponed deadlines for filing certain federal income tax returns and paying federal income taxes in response to the coronavirus (COVID-19) pandemic, but generally provided little relief for charities and other tax-exempt organizations.
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March 24 | U.S. Labor Department: Guidance about paid sick leave, expanded FMLA (COVID-19)
The U.S. Labor Department’s Wage and Hour Division today announced the first round of published guidance to provide information to employees and employers about how each will be able to take advantage of the protections and relief offered by the “Families First Coronavirus Response Act” when it takes effect on April 1, 2020.
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March 24 | IRS provides FAQs on postponed tax return filing, paying deadlines (COVID-19)
The IRS today posted a list of “frequently asked questions” (FAQs) concerning the postponed deadlines for filing federal income tax returns and paying federal taxes in response to the coronavirus (COVID-19) pandemic.
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March 24 | Considerations for modifying or unwinding related-party transactions (COVID-19)
U.S. taxpayers with existing related-party transactions may want to consider adjusting or terminating certain related-party transactions that may not make economic or business sense, given the business climate resulting from the coronavirus (COVID-19) pandemic.
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March 23 | House Democrats release text of “phase 3” bill, response to coronavirus (COVID-19)
U.S. House Appropriations Committee Chairwoman Nita Lowey (D-NY) tonight introduced the House Democrats’ "phase 3" coronavirus response bill—the "Take Responsibility for Workers and Families Act” (H.R. 6379). The bill includes a tax title (Division T), which begins on page 1073 of the 1404-page bill.
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March 23 | Legislative Update: House to unveil “phase 3” bill, response to coronavirus (COVID-19)
U.S. House Speaker Nancy Pelosi stated this afternoon that House Democrats will unveil today a "phase 3" COVID-19 response bill—the "Take Responsibility for Workers and Families Act."
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March 23 | U.S. customs duties on medical-care products from China, related to coronavirus (COVID-19)
The Office of the U.S. Trade Representative today released for publication in the Federal Register a notice and request for comments on possible changes to the Section 301 investigation of China and possible removal of medical-care products needed to address the coronavirus (COVID-19) pandemic from customs duties.
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March 22 | Senate procedural vote fails to advance updated version of “phase 3” coronavirus bill (COVID-19)
The U.S. Senate this evening failed to invoke cloture to consider the “phase 3” COVID-19 bill released by Senate Majority Leader Mitch McConnell (R-KY) earlier today. The Senate vote was along party lines (with several Senators who are self-sequestering due to possible coronavirus exposure not voting). Congressional leaders are expected to continue negotiations overnight and into tomorrow.
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March 22 | Tax-exempt organizations appear not included in extension to file returns, make tax payments (COVID-19)
The IRS on March 20, 2020, released an advance copy of Notice 2020-18 that provides relief for certain taxpayers to file federal income tax returns and make payments of federal income tax. Notably absent is relief for charities and other tax-exempt organizations.
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March 22 | Notice 2020-18: Extension of time to file returns, make payments of federal income tax, response to coronavirus
The IRS last evening released an advance copy of Notice 2020-18 to provide relief for certain taxpayers to file federal income tax returns and make payments of federal income tax.
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March 21 | KPMG report: New law (H.R. 6201) provides paid FMLA and sick leave (COVID-19)
The “Families First Coronavirus Response Act” (the “Act”)* provides for two new programs: (1) The Emergency Family and Medical Leave Expansion Act and (2) The Emergency Paid Sick Leave Act. These two programs are effective no later than April 2, 2020 (15 days after the March 18, 2020 date of enactment).
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March 20 | Senator Wyden introduces small business bill (COVID-19)
U.S. Senate Finance Committee ranking member Ron Wyden (D-OR), along with Senator Ben Cardin (D-MD), today unveiled a draft bill entitled “Save America’s Main Street Act.” The bill contains a number of proposals that may reflect priorities of some Senate Democrats as negotiations continue with Senate Republicans to potentially craft a bill—widely referred to as “Phase 3”—to address concerns raised by the coronavirus (COVID-19) pandemic.
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March 20 | United States: Treasury expected to announce tax return filing extension
U.S. Treasury Secretary Steven Mnuchin today announced via Twitter that at President Trump’s direction, the U.S. Treasury Department and the IRS will be extending the filing deadline for 2019 U.S. federal income tax returns from April 15 to July 15, 2020.
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March 19 | Senate Republicans release draft “Phase 3” coronavirus (COVID-19) bill, with tax provisions
U.S. Senate Republicans this afternoon, March 19, 2020, released a draft bill intended to further address the coronavirus (COVID-19) crisis. The bill includes both tax and non-tax measures, for both individuals and for businesses.
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March 19 | President signs “phase 2” coronavirus bill, includes tax relief for paid leave (COVID-19)
President Trump, yesterday evening, March 18, 2020, signed into law H.R. 6201, the “Families First Coronavirus Response Act”—the so-called “phase 2” coronavirus bill that includes temporary tax credits for certain employers and self-employed individuals for emergency paid leave.
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March 19 | Excise tax relief, distilled spirits used to produce hand sanitizers (responding to COVID-19)
The U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) on March 18, 2020, issued a release announcing that it was waiving certain excise tax provisions with regard to distilled spirits that are used in the production of hand sanitizers.
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March 18 | Legislative update: U.S. Senate passes bill including tax relief for paid leave relating to coronavirus (COVID-19)
The U.S. Senate today, March 18, 2020, passed (by a vote of 90 to 8) H.R. 6201, the “Families First Coronavirus Response Act”—a bill passed by the House on March 17 that includes temporary tax credits for certain employers and self-employed individuals for emergency paid leave.
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March 18 | Notice 2020-17: Extension of time to make payments of federal income tax, response to coronavirus (COVID-19)
The IRS today released an advance copy of Notice 2020-17 that provides relief for certain taxpayers to make payments of federal income tax.
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March 17 | U.S. House passes modifications to COVID-19 bill
The U.S. House of Representatives, last night March 16, 2020, passed, by unanimous consent, a resolution (H.Res. 904) modifying H.R. 6201, the “Families First Coronavirus Response Act”—a bill passed by the House on March 14 that includes temporary tax credits for certain employers and self-employed individuals for emergency paid leave.
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March 17 | Puerto Rico: Tax deadline extensions, response to coronavirus (COVID-19)
The authorities in Puerto Rico have issued guidance in response to the coronavirus crisis.
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March 14 | House passes bi-partisan bill to address coronavirus (COVID-19), includes tax credit provisions
The U.S. House of Representatives early this morning passed H.R. 6201, the “‘Families First Coronavirus Response Act”— a bill that includes tax credits for certain employers and self-employed individuals for emergency paid leave. The bill was approved by a vote of 363-40.
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March 12 | House Democrats introduce bill to address coronavirus (COVID-19); possible tax relief proposals from administration
House Democrats have introduced a bill, H.R. 6201, “‘Families First Coronavirus Response Act”—a bill that includes a tax provision that would exclude emergency medical leave benefits paid to individuals from their gross income.
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March 11 | Notice 2020-15: High-deductible health plans, expenses related to coronavirus (COVID-19)
The IRS today released an advance version of Notice 2020-15 as guidance allowing individual taxpayers with high-deductible health plans to receive testing and treatment related to the novel coronavirus (COVID-19) without jeopardizing the status of these health plans.
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March 6 | U.S. humanitarian assistance relating to coronavirus in Iran (FAQ)
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) today issued a “frequently asked question” (FAQ) regarding the manner in which humanitarian goods or assistance can be provided to the people of Iran in response to the coronavirus (COVID-19) outbreak.
State and local tax updates
August 23, 2021 | Colorado: Department Revises CARES Act Guidance | More
August 2, 2021 | TWIST podcast | Many States End COVID Nexus and Withholding Relief | More
July 19, 2021 | TWIST podcast | States Address PPP Loans (Rhode Island, Minnesota, Hawaii, California) | More
June 28, 2021 | TWIST podcast | Tax Treatment of PPP Loan Forgiveness (New Hampshire, Vermont) | More
March 22, 2021 | TWIST podcast | Virginia: Conformity and CARES Act Decoupling and PPE Exemption Legislation Enacted | More
March 22, 2021 | TWIST podcast | Oregon: Extends Telecommuting Worker Nexus Guidance | More
March 15, 2021 | TWIST podcast | Massachusetts: COVID-19 Telecommuting Regulation Adopted | More
Tax relief, updated state and local tax guidance (October 26, 2020)
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Income Tax Accounting Impacts, including Interim Estimates & Valuation Allowances
This KPMG Hot Topic issue addresses the possible income tax accounting impacts stemming from the economic and financial markets effects of the COVID-19 outbreak.
Liquidity
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Addressing Liquidity Issues during COVID-19 Using Intercompany Pricing Tools
The COVID-19 pandemic has created economic instability and associated liquidity strains for businesses globally. This article identifies various transfer pricing approaches that can be deployed to meet short-term and long-term operational, financial, and capital needs by conserving available cash, enhancing access to external sources of new liquidity, and tapping into cash reserves in multiple jurisdictions.
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Managing Global Indirect Taxes During COVID-19
This article provides an overview of potential savings opportunities and unintended consequences when managing global indirect taxes in today's environment. | Bloomberg Tax
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Leveraging Tax Accounting Methods and Credits to Generate Cash Flow
The new CARES Act includes tax provisions designed to support the efforts of companies to preserve and perhaps enhance cash flow. This, along with traditional tax accounting method and credits techniques and procedures, can provide companies with means to support cash management efforts. Consider this summary of 15 opportunities that can help drive cash flow.
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Current Cash Refund for Costs of Abandoned Transactions
Businesses that cancel transactions may be able to take loss deductions for costs incurred in connection with those abandoned transactions to the extent the costs were not already deductible; the losses may be carried back and potentially generate tax refunds. This article provides an overview of the 165(a) deduction and focuses on the application of the section 165(i) and section 172(b)(1)(D) carryback provisions.
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Employer-related Liquidity - Tax Credits, Deferrals, and Efficiencies (COVID-19)
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Supply Chain and Transfer Pricing
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INSIGHT: Transfer Pricing Substance in Flux - DEMPE, BEPS 2.0, and COVID-19
In this Bloomberg Tax article, the authors discuss the role of substance in transfer pricing in light of OECD's Action 8-10 and DEMPE, BEPS 2.0, and COVID-19.
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COVID-19 Disruption: International Tax and Transfer Pricing Issues
In this Journal of International of Tax article, the authors focus on some of the significant international tax and transfer pricing issues, including supply chain, consumer demand, and cash flow, arising from companies' activities disrupted by TCJA and COVID-19.
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Advance Pricing Agreements and COVID-19
This article, which appeared in Tax Notes Federal, explains how recent changes to the U.S. advance pricing agreement (APA) confirm the potential to amend existing APAs and highlight the value of the APA process to address extraordinary economic disruption through tailored long-term solutions.
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Transfer Pricing Changes May Result in Potential Customs Tariff Opportunities
COVID-19 is causing multinational corporations to reassess transfer pricing (TP) policies and consider making TP adjustments or additional payments. Customs risks and opportunities exist, and in the current high-tariff environment, the duty costs can be significant. This KPMG article highlights related compliance and planning issues, which may require advance customs, accounting, and TP coordination and planning.
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Restructuring post-COVID-19 Supply Chains
This KPMG white paper examines the critical short-term and long-term tax planning considerations for supply chain leaders in the wake of COVID-19.
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Supply Chain's New World Order
This KPMG white paper discusses how tax and trade are among the critical competencies organizations must build in the wake of COVID-19.
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Covid-19 Puts Limited Risk Structure at Risk—Analysis from the Chinese Angle
Many multinational companies deploy limited risk structures, such as contract manufacturing or limited risk distribution, in their global operations, including China.This Bloomberg Tax article sets out what taxpayers should consider in analyzing the steps to be taken to manage transfer pricing risk in light of declines in profits of limited risk companies resulting from the demand supply shocks caused by the COVID-19 outbreak.
Valuations
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Goodwill Impairment Valuation Insights – FAQs
A number of frequently asked questions that typically arise when performing goodwill impairment tests in economic downturns are discussed.
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Goodwill Impairment Valuation Insights
This article discusses the market participant acquisition premium, one of the most critical inputs to valuation analysis in goodwill impairment tests.
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COVID-19 and Corporate Credit Valuations
COVID-19 as well as the geopolitical forces that have driven oil prices to lows not seen since 1999 has severely affected the corporate credit market. This article, by the KPMG Valuations team, provides market participants who invest in illiquid and private loans insights in how to meet related valuation challenges.
Workforce Operations - Compensation & Benefits
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Initial Impressions about Presidential Memorandum on Deferring Payroll Tax Obligations
President Trump on August 8, 2020, signed an executive action in the form of a memorandum directing “the Secretary of the Treasury to use his authority to defer certain payroll tax obligations with respect to the American workers most in need.” This KPMG report provides initial impressions from KPMG on the memorandum.
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Employer-related Liquidity - Tax Credits, Deferrals, and Efficiencies
This KPMG report summarizes select labor-related tax provisions of the CARES Act, the Families First Coronavirus Response Act, and provisions triggered by the COVID-19 National Emergency Declaration.
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Compensation and Benefits Considerations in a Troubled Economy
This article addresses some of the more frequent compensation and benefits tax considerations that can arise during difficult economic times.
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Payroll Offsets Using R&D Tax Credits
Small businesses may be looking for ways to better manage cash flow and total tax liabilities—in particular given the challenges that U.S. businesses are facing with regard to the COVID-19 pandemic. A section 41(h) election may provide opportunities for eligible small businesses. Under section 41(h), a qualified small business can elect to convert up to $250,000 per year, for up to five years, into payroll offset credits.
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Employers Providing Employee Hardship Assistance Related to Coronavirus
On March 13, 2020, President Trump declared the coronavirus outbreak to be a national emergency. This declaration not only frees up resources that the federal government may use to address the crisis but also expands the options that businesses have to help employees. This report reviews the options for employer to provide assistance directly or through charities or foundations.
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Compensation Benefits Concerns in Uncertain Times—Telecommuting and Other Items
Efforts to contain the 2019 novel coronavirus (COVID-19), declared by the World Health Organization as a pandemic, have led many employers (whether voluntarily or pursuant to government action) to change the normal working environment and operating procedures. This report focuses on the initial approaches that employers are taking, such as increased telecommuting, and the resultant tax considerations.
Workforce Operations - Global Mobility
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Permanent Establishment-related Considerations, Employees Working Remotely
As companies evaluate whether to bring employees back into offices once the global pandemic is under control, they will need more than ever to give more thought to permanent establishment (PE) issues created by a remote workforce. This KPMG report briefly highlights PE-related considerations for companies that contemplate having employees provide significant services or work for extended periods outside of their jurisdictions and provides references to helpful resources.
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COVID-19 Spot Survey: Tax Ramifications of the CARES Act
Polling results | Nearly 50 global professionals in human resources, global mobility and immigration, and tax, finance and legal functions were asked about their organization’s initial responses to the provisions in the CARES Act affecting their global mobility programs, their employees, and their accompanying family members.
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COVID-19 Spot Survey: Implications on Total Rewards Programs
Polling results | KPMG polled nearly 100 global professionals in human resources, compensation and benefits, global mobility and tax regarding the impact of the global COVID-19 challenges on their organization’s total rewards programs.
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COVID-19 Spot Survey: Implications on Globally Mobile Employees
Polling results | Human resources, global mobility, tax, and relocation professionals were asked about how the global COVID-19 situation is affecting them. This report summarizes the findings of nearly 250 global, cross-industry professionals.
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COVID-19: Preparing for the Future
In a series of articles, published between April 1 and June 9, KPMG provides advice on how to navigate the changing landscape caused by COVID-19. They provide a step-by-step template for alleviating some of the stresses and keeping you moving forward. Our goal is to help you emerge stronger by evaluating and revolutionizing your global mobility program to adapt to the changing business world.
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Mobility via Podcast: Global Mobility Responses to COVID-19
Martha Klasing, who leads the KPMG Global Mobility Services (GMS) team in Washington National Tax, sits down with GMS professionals Bob Rothery and Glen Collins to discuss how global mobility functions continue to respond to COVID-19. [14:24]
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FAQs for Determining U.S. Trade or Business or Permanent Establishment (COVID-19)
This KPMG report considers the FAQs released by IRS on April 21, 2020, on determining U.S. trade or business or permanent establishment, providing relief from COVID-19 challenges, in light of OECD and other countries' related guidance.
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2020 Mid-Year International Assignee Newsletter – Special COVID-19 Edition
This newsletter addresses some key U.S. government initiatives that may have an impact on you, as a U.S. individual taxpayer.
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Global Reward and Mobility Considerations Related to COVID-19
Organizations are now beginning to consider various reward and mobility issues that my arise in the coming weeks and months. This publication provides a framework to begin evaluating short- and long-term actions.
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Mobility via Podcast: Global Mobility Considerations of COVID-19
Martha Klasing, who leads the KPMG Global Mobility Services (GMS) team in Washington National Tax, sits down with GMS professionals Bob Rothery and Glen Collins to discuss the potential implications of COVID-19 on organizations and their assignees. [20:53]
American Rescue Plan Act of 2021, Consolidated Appropriations Act, 2020, and other COVID-19 legislative developments and executive orders
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KPMG Report: IRS Guidance on Premium Assistance for COBRA Benefits
The American Rescue Plan Act of 2021 provides a 100% reduction in premium that would otherwise be payable by individuals and their families who elect Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) continuation coverage from a loss of healthcare coverage due to a reduction in hours or an involuntary termination of employment. Notice 2021-31 provides guidance on the COBRA premium assistance in a series of 86 questions and answers, with clarifications on administering premium assistance subsidies and tax credits. This KPMG report includes an overview of the information contained in the notice, including eligibility, the definition of involuntarily termination, and reduction in hours, as well as how to claim the credit.
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Employer’s Role in Rescue Act COBRA Subsidies and Tax Credits
The American Rescue Plan Act of 2021, enacted March 11, 2021, contains a particularly helpful provision for individuals who were involuntarily terminated or had their hours reduced as a result of COVID-19, by subsidizing the cost of such continued COBRA benefits—with employers being a significant part of that process.
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Congress Passes COVID Relief Legislation
The U.S. House of Representatives today passed the Senate-amended version of H.R. 1319, the American Rescue Plan Act of 2021, by a near party-line vote of 220-211. This KPMG update provides a summary of the tax-related provisions.
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Compensation and Benefits-Related Provisions in COVID Relief Bill
The U.S. House of Representatives today approved the Senate amendment to H.R. 1319, the American Rescue Plan Act of 2021 (Rescue Act)—thus, completing congressional action on the legislation. This KPMG update summarizes the several compensation and benefit-related provisions in the Rescue Act.
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Compensation and Benefits-Related Provisions in Consolidated Appropriations Act, 2020
The Taxpayer Certainty and Disaster Tax Relief Act of 2020, which is part of the Consolidated Appropriations Act, 2020 (enacted December 27, 2020), includes a variety of compensation and benefits-related tax provisions such as an expansion of the employee retention credit and full deductibility of business meals provided by a restaurant for two years. This KPMG report examines the tax provisions in this stimulus legislation.
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President Signs Year-end Funding, COVID-19 Relief Legislation; Tax Provisions Are Enacted
President Trump on December 27, 2020 (Sunday evening) signed into law the “Consolidated Appropriations Act, 2021”—legislation that includes over $900 billion for various coronavirus (COVID-19) relief programs, government funding of $1.4 trillion, and myriad tax provisions. Accordingly, the date of enactment is December 27, 2020.
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Initial Analysis of Notice 2020-65, Guidance on Employee Payroll Tax Deferral
The IRS and Treasury Department late on Friday, August 28, 2020, released an advance version of Notice 2020-65 providing guidance on an employee payroll tax deferral as directed by President Trump’s August 8 memorandum. This KPMG report outlines the guidance and provides initial insights on the possible implications for taxpayers.
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The Recent COVID-Related Executive Actions and Implications for Legislation
Catching Up on Capitol Hill podcast | John Gimigliano, Jennifer Gray, and Carol Kulish from the Federal Legislative & Regulatory Services group of the KPMG Washington National Tax practice try to answer the question of how the recent executive actions from the administration might affect Congressional efforts to enact further COVID-19-relief legislation. [16:11]
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COVID Relief – Looking at the Senate’s HEALS Act
Catching Up on Capitol Hill podcast | The Senate has released its next COVID relief plan, the HEALS Act, which presents both interesting policy and procedural aspects. Carol Kulish and Jennifer Gray join John Gimigliano to discuss why HEALS looks the way it does and where it might be headed. [16:20 minutes]
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Compensation and benefits issues in Senate Republican COVID-19 bills
Senate Republicans this week released several bills intended to serve as components of a Senate response to COVID-19. This summary focuses on provisions in two of the bills that could affect compensation and benefits issues. These provisions address modifications to the ERC; introduce a new tax credit for certain COVID-19-related expenses; and provide clarifications related to several CARES Act qualified plan issues.
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Recent Economic and Social Developments May Affect Legislation Timing
Catching Up on Capitol Hill podcast | John Gimigliano, Jennifer Acuna, and Carol Kulish from the Federal Legislative & Regulatory Services group of the KPMG Washington National Tax practice discuss how the week's events—the jobs report and increasing national focus on racial inequality—may impact the timing of additional COVID-19 relief legislation. [11:00 minutes]
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HEROES Act Negotiations Unpacked – Tax Components
Catching Up on Capitol Hill podcast | John Gimigliano, Jennifer Acuna, and Tom Stout from the Federal Legislative & Regulatory Services group of the KPMG Washington National Tax practice discuss COVID-19 relief legislation, focusing on the HEROES Act passed by the House of Representatives and the Senate's possible response. [13:25 minutes]
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How Might Congress Enact Additional COVID-19 Relief Legislation
Catching Up on Capitol Hill podcast | John Gimigliano, Jennifer Acuna, and Tom Stout from the Federal Legislative & Regulatory Services group of the KPMG Washington National Tax practice discuss whether, when, and how Congress might enact additional COVID-19 relief legislation. [14:51 minutes]
CARES Act – Coronavirus Aid, Relief, and Economic Security Act
Overview
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Employee Retention Credit - Additional Guidance Ties Up Many Loose Ends
The U.S. Treasury Department and IRS in August 2021—more than a year after enactment of the CARES Act—provided additional guidance and information regarding the employee retention credit (ERC). This KPMG report discusses Notice 2021-49 and Rev. Proc. 2021-33 and addresses several open questions regarding not only the application of the ERC in the third and fourth quarters of 2021, but also describes coordination among the ERC and other assistance programs and clarifications to existing ERC terms.
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The CARES Act Executive Summary
The CARES Act is summarized on one page, providing an overview of the act's main tax and nontax provisions.
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Employer-related Liquidity - Tax Credits, Deferrals, and Efficiencies
This KPMG report summarizes select labor-related tax provisions of the CARES Act, the Families First Coronavirus Response Act, and provisions triggered by the COVID-19 National Emergency Declaration.
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Accounting and Reporting Impacts of the CARES Act and Subsequent COVID-19 Relief
This KPMG Hot Topic issue addresses key accounting and financial reporting impacts of the CARES Act and subsequent relief bills on companies applying US GAAP.
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Tax Provisions in the CARES Act (COVID-19 "Phase 3" Response): Analysis and Observations
This KPMG report outlines in detail significant tax provisions in the CARES Act along with KPMG initial observations.
Net Operating Losses
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CARES Act Refund Claims and ATNOL Guidance: Another Fly in the Ointment
In this article, the authors analyze the IRS's FAQs regarding the five-year carryback period for net operating losses, and they clarify how C corporations can carry back NOLs to years subject to the alternative minimum tax rules. | Tax Notes Federal
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Expediting NOL Refunds
In this letter to the editors of Tax Notes Federal, the authors update their June 8, 2020, article, titled "Navigating IRS Fax Rules to Expedite NOL and Minimum Tax Refunds" (see below), providing an updated table of deadlines for filing Forms 1139 based on supplemental IRS guidance. | Tax Notes Federal
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Navigating IRS Fax Rules to Expedite NOL and Minimum Tax Refunds
In this article, the authors examine the benefits and requirements of the expedited tentative refund procedure for net operating loss carrybacks and unused minimum tax credits, with special emphasis on temporary procedures adopted by the IRS in light of the coronavirus pandemic under the CARES Act. | Tax Notes Federal
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IRS FAQs on NOL Carrybacks for Taxpayers with Section 965 Inclusions (COVID-19)
The IRS on April 23, 2020, released a set of frequently asked questions (the Section 965 FAQs) that address the interaction of the new CARES Act net operating loss (NOL) carryback provisions with taxpayers’ section 965 “transition tax” liabilities and inclusion years. This reports provides KPMG observations on the FAQs, which largely follow the previously released guidance in Rev. Proc. 202-24 and Notice 2020-26.
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Rev. Rul. 2020-8 and 10-year Limitations Period, FTC and NOL Carrybacks
The IRS on Friday afternoon, April 17, 2020, released an advance version of a new revenue ruling (Rev. Rul. 2020-08) addressing the appropriate period for refund claims resulting from a foreign tax credit (FTC) carryback that was “released” by reason of a net operating loss (NOL) carryback from a subsequent year. This summary provides KPMG initial impressions of Rev. Rul. 2020-08.
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ATNOL Carrybacks under the CARES Act
This article addresses the interaction between the CARES Act's five-year NOL carryback provisions and the retained AMT rules.
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THE CARES Act and CNOLS: Avoiding Unanticipated Consequences
The CARES Act resurrects a five-year NOL carryback rule, in recognition of the immediate cash flow needs of American businesses and the valuable counter-cyclical role that NOL carrybacks can provide during a time of widespread financial stress. In this letter to the editor of Tax Notes Federal, the authors wish to raise awareness of certain issues related to this NOL carryback and consolidated returns. | Tax Notes Federal
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Initial impressions of IRS guidance implementing NOL provisions in CARES Act
The IRS has issued guidance—Rev. Proc. 2020-24 and Notice 2020-26—providing needed and helpful guidance on implementation and reporting of the expanded net operating loss (NOL) provisions contained in the CARES Act. The following discussion provides initial impressions of the guidance provided by Rev. Proc. 2020-24 and Notice 2020-26.
Partnerships – Section 163(j)
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CARES Act Changes to Section 163(j) for Partnerships
The CARES Act makes significant changes to the section 163(j) business interest expense limitation rules. This article discusses what partnerships and partners should take these changes into consideration when formulating cash retention and transaction structure planning, as well as organizing compliance efforts.
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Rev. Proc. 2020: Excepted Business Election and CARES Act Changes to Section 163(j)
The IRS on April 10, 2020, released an advance version of Rev. Proc. 2020-22, providing relief to make or withdraw a real property trade or business or farming business election and certain other elections related to the CARES Act changes to section 163(j). This article provides initial impressions of the revenue procedure guidance.
Paychek Protection Program
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Lending Programs under CARES Act, Interactions with Tax Provisions
The CARES Act establishes two lending programs—the Small Business Administration-administered “paycheck protection program” and the Treasury Department’s economic stabilization—that provide nearly $900B to support lending to small and large businesses. This KPMG report outlines the requirements for the paycheck protection program, the economic stabilization fund, and the interaction with the tax provisions of the CARES Act.
Tax insights by industry
Asset management
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Current Topics in Asset Management Transfer Pricing
This publication looks at COVID-19 impacts on transfer pricing for asset managers and considerations for analyzing cash repatriation, mitigating cash outlays, evaluating intercompany financing, and achieving transfer pricing certainty.
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COVID-19 Impact on Business Development Companies
Talking Asset Management podcast | COVID-19 and the resulting economic downturn are testing market liquidity, portfolio company business models and valuation policies and procedures in ways that they have not been tested since the Great Recession of 2008-2009. In this podcast, KPMG Tax Partner Deidre Fortune joins Audit partners Sean McKee, Matt Giordano, and Andrew Parsons examine the implications for business development companies.
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Asset Management: Tax Implications of the Disaster Declaration for the United States
Two tax provisions that may be useful to organizations in the asset management industry activated when President Trump declared a national emergency on March 13, 2020. This article discusses these provisions: section 165(1) – one-year carryback of 2020 losses and Section 139 – tax-free payments to employees and partners.
Infrastructure investment
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COVID-19 and U.S. Tax Impacts for Infrastructure
This article considers key U.S. tax issues and questions that all infrastructure investors should consider in light of COVID-19's unprecedented impact on the global economy and financial markets.
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COVID-19 and Infrastructure Private Equity Valuations
This article, by the KPMG Valuations team, discusses the valuation challenges faced by infrastructure fund managers during volatile times and outline valuation considerations.
Regulated investment companies
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COVID-19 Tax Impact on RICs
KPMG Investment Management Perspectives podcasts | Listen as KPMG thought leaders Deanna Flores, Deirdre Fortune, and Brandon Andres discuss the tax impact COVID-19 is having on regulated investment companies (RICs).
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Evaluating the Tax Impact of COVID-19 on RICs and Their Shareholders
Five key steps to enhance you tax position | This article is intended to provide a working checklist for the top five tax issues that have emerged to date for RICs of all types—mutual funds, exchange traded funds, closed-end funds, fund of funds, and business development companies.
Banking
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Tax Issues Banks Should CARES(S) About in Light of COVID-19
This KPMG report addresses tax issues that are currently affecting banks and their customers, including the impact of the CARES Act.
Consumer and retail
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Topics You Should Be Discussing with Your Head of Tax – Retail Industry
KPMG TaxRadio podcast | Disruption in the retail industry is having a significant impact on business operations, resulting in tax implications that could affect your company’s decision-making. In this podcast, Tony Castellanos, KPMG Tax industry leader, and Brian Campbell, KPMG Consumer & Retail Tax industry leader, examine current and anticipated trends and how they translate into tax issues that retailers are facing.
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How the Retail Industry Can Manage Trade Disruption from COVID-19
Despite the challenges facing the retail industry, key import-related opportunities exist to mitigate the impact of COVID-19, decrease costs, increase cash flow, and enhance overall savings.
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COVID-19-related Inventory Impairments; Cash Flow Opportunity for Resellers
Wholesalers, retailers, and similar businesses (referred to collectively in this report as “resellers”) may have an opportunity to enhance current cash flow by treating COVID-19-related inventory impairments as disaster losses eligible to be recovered on the 2019 federal tax return, rather than accounting for those losses through their inventory accounts in 2020. This report outlines related considerations.
Energy
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Initial Impressions, Notice 2020-41 & “Beginning of Construction” under Sec. 45 and 48
Renewable energy facilities are eligible for certain tax credits if construction of the facilities proceeds according to timelines designated by the IRS. COVID-19 is causing delays in the construction of such facilities and, in response, the IRS recently issued Notice 2020-41, which provides taxpayers with additional time to complete construction. This KPMG Report provides initial impressions of the notice.
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Drilling Down: Tax Implications of COVID-19 and Low Commodity Prices
This edition of KPMG Global Energy Institute's Drilling Down discusses the tax-related issues that oil and gas companies should keep in mind in the current environment for managing liquidity and debt concerns.
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Plugged In: Tax Implications Related to COVID-19
This edition of KPMG Global Energy Institute's Plugged In provides an overview of recent tax developments relevant to power and utilities, particularly organizations with renewable energy projects in the works.
Exempt organizations
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Legislative Changes to SVOG Program and PPP Eligibility Requirements
Changes to the Shuttered Venue Operators Grant (SVOG) program and Paycheck Protection Program (PPP) were included in the American Rescue Plan Act of 2021 as signed into law by President Biden on March 11, 2021. These changes now allow organizations to apply for and receive assistance from both programs, rather than forcing a choice between the two.
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Updated Information on “Shuttered Venue Operators Grant” Program
The Shuttered Venue Operators Grant (SVOG) program provides relief to entities such as live venues and live performing arts organizations, museums, and theatres that have encountered financial challenges because of COVID-19. The SVOG program is administered by the Small Business Administration, which released more information about SVOG in March. Read KPMG overview of the updated program information.
Healthcare and life sciences
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COVID-19: Telemedicine and Tax
Telemedicine's accelerated acceptance in light of the COVID-19 environment and recent changes to regulatory and reimbursement rules has resulted in the need for greater clarity on possible tax implications. This KPMG paper examines various considerations relating to telemedicine and explores several hypothetical scenarios providing possible interpretations of tax outcomes.
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COVID-19's Impact on Transfer Pricing in the Life Sciences Industry
In this article, the authors examine key trends affecting the life sciences industry in the COVID-19 pandemic and the associated transfer pricing considerations. | Tax Notes Federal
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COVID-19 Impact on Physician Compensation
The article highlights the impacts of COVID-19 on physician compensation and the factor to consider when addressing the impacts, including the opportunity to re-design ad standardize compensation plans and a potential shift to additional value-based contracting, all with a lens on fair market value compliance.
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Covid-19 Disruption in Life Sciences Industry—Tax, Trade, Value Chain Considerations
This article discusses significant challenges posed by COVID-19 disruption and some of the key issues for life sciences companies from tax, trade and valuation perspectives, covering supply chain, financing and cash flow, and research and development. Possible post-COVID-19 trends, opportunities, and issues for the industry are also discussed. | Bloomberg Tax
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COVID-19 and Its Potential Impact on Health Insurance Exchange Enrollment
With over half of U.S. individuals having their health insurance tied to their employment, and an estimated 40.5 million anticipated to lose their jobs through June 2020, many may also lose health coverage. In this report, KPMG professionals outline individuals’ options to get and stay covered and estimate new health insurance exchange enrollments in state-based exchanges and through HealthCare.gov.
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Tax Considerations of Disruptions in Healthcare Industry in COVID-19 Environment
The COVID-19 pandemic has caused unprecedented operational and economic disruption that reaches every corner of a healthcare organization, even the tax function. Tax leaders in both taxable and tax-exempt healthcare organizations need to be mindful of the tax consequences that can flow from these business changes. This report highlights some of the tax issues and opportunities.
Infrastructure
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COVID-19 and U.S. Tax Impacts for Infrastructure
This article considers key U.S. tax issues and questions that all infrastructure investors should consider in light of COVID-19's unprecedented impact on the global economy and financial markets.
Insurance
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Insurance-related Measures in Consolidated NOL Regulations
Temporary regulations (T.D. 9900) and proposed regulations (REG-125716-18) released for publication in the Federal Register by the U.S. Treasury Department and IRS provide guidance under sections 1502 and 172 regarding consolidated net operating losses (NOLs). This report focuses on the implications of the proposed regulations regarding the treatment of consolidated NOLs of life insurance companies.
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COVID-19: Insurer Capital and Solvency – Having a Game Plan
State of the Insurance Industry podcast | Laura Gray, National Actuarial Network Leader, and Phil Jacobs, National Insurance Tax Leader, discuss capital and solvency challenges for insurers.
Private equity
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COVID-19 Transfer Pricing Strategies for Private Equity Portfolio Companies
Disruptions to supply and distribution chains have created pressure on corporate profitability and cash flows. These pressures can be magnified for typically highly leveraged private equity portfolio companies. This report explores transfer pricing strategies for these companies and finds that proactive steps to revisit transfer pricing policies may provide opportunities to reduce tax liabilities and preserve cash flows.
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COVID-19 and Infrastructure Private Equity Valuations
This article, by the KPMG Valuations team, discusses the valuation challenges faced by infrastructure fund managers during volatile times and outline valuation considerations.
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Debt Restructuring Considerations for Private Equity
As a result of the impact of COVID-19 on the global economy and capital markets, many businesses are assessing the need to restructure their debt. This article outlines the key related tax considerations for private equity funds and their portfolio companies.
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The CARES Act: Considerations for Private Equity Funds with Corporate Portfolio Companies
Private equity funds and their corporate portfolio companies may benefit from the net operating loss and other tax provisions included in the CARES Act. This article highlights certain of the income tax provisions, and resulting opportunities, relevant to the operation and the acquisition/disposition of private equity portfolio companies classified as corporations for U.S. federal tax purposes.
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COVID-19 and Private Equity Valuations
This article, by the KPMG Valuations team, provides investors in private equity insights on measuring fair value during the volatile times.
Real estate
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QIP Glitch Fixed, but Only for New Build-Outs
In this article, the author reviews changes the CARES Act made to the definition of qualified improvement property. | Tax Notes Federal
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COVID-19 Impact: U.S. Real Estate Tax and Regulatory Resource Guidebook
This guidebook is intended to help real estate investors and operators address the seismic changes in the tax law and in the wider economy to help protect their business and prepare for the future, in the wake of COVID-19.
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Documenting Changes in Intent and the Dealer Property Analysis
Market disruption brought on by COVID-19 will cause many real property owners and developers to re-evaluate their plans (either voluntarily or involuntarily) with respect to property that they hold. This article discusses a number of points to consider with respect to such property that could affect taxation upon a current or future sale.
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COVID-19 and Distressed Leases
Many taxpayers with real estate ventures may be encountering tenants who are having troubling paying their rents and are considering entering into forbearance agreements or modifications with respect to their leases. This article highlights the tax implications of these distressed leases and the requirements to continue to recognize rental income even when payments are not actually being made that landlords need to understand.
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Decisions, Decisions: COVID-19 Guidance and Real Estate
In this article, the author discusses decision points of tax provisions and guidance relevant to the real estate industry issued in response to the COVID-19 pandemic. | Tax Notes Federal
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Relief for Taxpayers to Correct, Change QIP Depreciation Methods
Rev. Proc. 2020-25 provides relief for taxpayers to correct "qualified improvement property" (QIP) depreciation methods and to retroactively make, revoke or withdraw certain depreciation elections related to the CARES Act technical correction of section 168. This report discusses the Rev. Poc. 2020-25 relief.
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COVID-19 and Its Impact on Fair Value Reporting for Real Estate
This article discusses the unique valuation challenges that COVID-19 presents to real estate owners, investors, appraisers, and developers.
Real estate investment trusts
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Common Question from Healthcare REITs: Should the TRS Lease Be Amended during Tough Times?
The effects of the coronavirus (COVID-19) pandemic on the U.S. economy and different businesses have resulted in certain rent concession requests from tenants. In turn, this raises a common question when the landlord is a REIT that leases property to a related tenant: Should a lease between the healthcare REIT and its taxable REIT subsidiary (TRS) be modified? This article examines this question.
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The Use of Elective Stock Dividends by a Publicly Offered REIT—What to Consider
Should a widely held real estate investment trust (REIT) use elective stock dividends in an effort to build up cash reserves? Before engaging in this form of tax planning, REITs would benefit from a high-level summary of the process and an evaluation of the underlying considerations.
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Distressed Debt—REIT Considerations
Investors, including existing and newly formed mortgage real estate investment trusts (REITs), with liquidity may acquire distressed investments. Special considerations associated with REITs should be taken into account, however.
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Hoarders, REIT Edition: Cash Conservation in the Time of Coronavirus
To address issues presented by the COVID-19 pandemic, Congress is considering extraordinary stimulus measures, including significant changes to the tax laws. Businesses of all types, including REITs, are evaluating how to preserve liquidity, and there are some things that REITs can do (or at least consider) now to conserve cash.
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A Common Question from Hotel REITs: Should the TRS Lease Be Amended during Tough Times?
With the COVID-19 pandemic—which has led to a reduction in travel (business or pleasure) and temporary closures (voluntarily or involuntarily)—many hotel "taxable REIT subsidiaries" (TRSs) are likely facing operational challenges in the near term. Thus, a threshold question is whether it is permissible for a hotel REIT and its TRS to modify an existing lease during its term.
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