Tax Update Blog

Tax News & Views October 15th Challenges & Game of Thrones Loans Roundup

October 9, 2020 | Blog
By Daniel McNeil

With Oct. 15 looming, some practitioners face daunting challenges – Alistar M. Nevius, J.D. – Journal of Accountancy.

“With that tax filing deadline looming, the pandemic continues to disrupt people’s lives. Many tax practitioners are trying to manage their workload but are still working at home, often with children at home instead of at school, and many are caring for sick family members or are sick themselves. On top of this, many have been helping small businesses with Paycheck Protection Program loan applications and forgiveness.”

 

Practitioners Call for Guidance on Remote Work and Wayfair – Aaron Davis, Tax Notes($). “Speaking on a panel during the Midwestern States Association of Tax Administrators' annual conference October 7, practitioners said they need guidance from states on whether employees who are working remotely create corporate income tax nexus for multistate businesses.”

Have state tax issues? Contact Eide Bailly’s SALT team for help.

Coronavirus Relief Bill Talks Remain in Limbo – Jad Chamseddine, Tax Notes($). “The question marks surrounding a COVID-19 relief package persist as congressional Democrats rejected a piecemeal approach without agreement on a broader package.”

 

It’s Easier to Avoid Taxes When You Own a Business. Just Ask Donald Trump (and Joe Biden). – Laura Saunders, WSJ($). “For people who want to lowball their taxes, it helps to own a business. That can offer strategies for reducing what you owe Uncle Sam—and make you far harder to audit.”

Wyden, Schumer Want Inquiry Into Trump Tax Return Audit – Jad Chamseddine. “Senate Minority Leader Charles E. Schumer, D-N.Y., and Senate Finance Committee ranking member Ron Wyden, D-Ore., asked in an October 8 letter for the Treasury Inspector General for Tax Administration and the acting inspector general for Treasury to determine whether outside parties contacted the IRS about President Trump’s tax returns.”

 

District Court Orders IRS to Rewrite Stimulus Payment FAQ – William Hoffman, Tax Notes($). “The U.S. District Court for the Northern District of California October 8 ordered the IRS to update its FAQ on EIPs by October 9 to reflect the court’s earlier order in Scholl v. Mnuchin finding that eligible incarcerated individuals are entitled to EIPs and to instructions on how to get them.” 

SBA Provides Relief from Forgiveness Reduction for PPP Loans of $50,000 or Less, and Limits Need for Lender to Review Expenses in Excess of Those Necessary for Forgiveness – Ed Zollars, CPA, Current Federal Tax Developments.

“The SBA published an additional interim final rule on PPP loan forgiveness on October 8, 2020.  The October 8, 2020 IFR which provides:

  • Additional guidance concerning the forgiveness and loan review processes for PPP loans of $50,000 or less and
  • For PPP loans of all sizes, lender responsibilities with respect to the review of borrower documentation of eligible costs for forgiveness in excess of a borrower’s PPP loan amount.”

 

Health coverage reporting deadline extended – Sally Schreiber, J.D. “The IRS announced on Friday that it is extending the due dates for sending certain health care information statements to individuals as required under the Patient Protection and Affordable Care Act (PPACA), P.L. 111-148 (Notice 2020-76).”

 

Man attempted to steal $6M in PPP loans using companies named after 'Game of Thrones' – Morgan Gstalter, The Hill.

The accused submitted multiple fraudulent loan applications, on behalf of entities named White Walker, Khaleesi and The Night’s Watch. The accused ultimately received more than $1.7 million in benefits to “White Walker” and another entity.


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This is a roundup of tax news and opinion. Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.