April 8, 2020 | Blog
Republicans Seek More Small Business Loan Funding - Jad Chamseddine and Eric Yauch, Tax Notes. "Senate Majority Leader Mitch McConnell, R-Ky., said in an April 7 statement that he will work with the Democratic leader, Charles E. Schumer of New York, to approve up to $250 billion in funding for the PPP by April 9."
In defining payroll costs, the law excludes any employee compensation costs in excess of an annual salary of $100,000. Practitioners were quick to point out several issues with that language, such as whether there was a cliff effect for salaries over $100,000 and what exactly counts as compensation when calculating the annual salaries.
...However, the exclusion doesn’t apply to noncash benefits, such as employer contributions to defined benefit or defined contribution retirement plans or payments for the provision of employee benefits consisting of group healthcare coverage, which includes insurance premiums.
Related: What You Need to Know About the SBA Loan and Relief Efforts - Adam Sweet and Michael Holdren, Eide Bailly.
Can a Professional Gambler Apply for a PPP or EIDL Loan? - Russ Fox, Taxable Talk. "The answer is no."
AICPA posts 20 FAQs on tax filing relief - Alistair M. Nevius, Journal of Accountancy. "Based on member feedback, the AICPA has identified seven key areas in need of immediate tax relief and has posted 20 FAQs on the latest developments in taxpayer relief during the COVID-19 pandemic."
Observations on recent pandemic tax changes and a few more needed - Annette Nellen, 21st Century Taxation. "Push the federal income tax estimated tax payment due June 15 (still) to July 15 or later. It is too confusing for the second payment to be due before the first payment."
Beware of Inflating Coronavirus Balloon Payments - Nathan Richman, Tax Notes. Discussing the deferred due dates of income and payroll tax payments: "While the payment deferrals can provide taxpayers with welcome financial flexibility, taxpayers risk kicking down the road a debt they might be unable to pay when it comes due, Sara V. Spodick, director of the tax clinic at Quinnipiac University School of Law, said April 7 on a webcast sponsored by the Federal Bar Association and myLawCLE.com."
Tax Bar Calls on U.S. Treasury to Provide Residency Relief - Kiarra Strocko, Tax Notes. "The Florida Bar Tax Section has asked Treasury and the IRS to provide relief for foreign individuals unable to leave the United States because of COVID-19 by excluding days of presence under existing regulations."
Temporary Work Locations in a Permanent Establishment World - Daniel Bunn, Tax Policy Blog:
The incredible disruptions that the current pandemic has caused has led to a variety of tax questions. While much of the fiscal conversation has focused on tax relief and tax deferrals, another significant angle needs to be explored. That is the question of nexus. If a business has employees all over the world and some of those employees are stuck working in different locations because of the crisis, does that mean that the business will have to pay income taxes in different jurisdictions? Will the employees become tax residents of a different country?
Offshore Account Related Plea After Quiet Disclosure - Jack Townsend, Federal Tax "I think this the first 'quiet disclosure' prosecution for offshore account income that I am aware of. Quiet disclosure is sending in delinquent or amended tax returns to the Service Center without further ado. The notion is that, so long as the delinquent or amended returns are regular in form and do not draw unnecessary attention (other than the lateness or amounts involved), they might just be processed without further ado, particularly if payment is made with the filings."
The IRS reminds taxpayers that scammers may:
- Emphasize the words "Stimulus Check" or "Stimulus Payment." The official term is economic impact payment.
- Ask the taxpayer to sign over their economic impact payment check to them.
- Ask by phone, email, text or social media for verification of personal and/or banking information saying that the information is needed to receive or speed up their economic impact payment.
- Suggest that they can get a tax refund or economic impact payment faster by working on the taxpayer's behalf. This scam could be conducted by social media or even in person.
- Mail the taxpayer a bogus check, perhaps in an odd amount, then tell the taxpayer to call a number or verify information online in order to cash it.
Be careful out there.
How to Reschedule an Individual Income Tax Payment - Montana Department of Revenue:
To reschedule your payment:
Please contact the department to cancel your scheduled payment.
Schedule a new payment through our TransAction Portal (TAP).
CDTFA Offers Immediate Interest-Free Payment Plans; Small Businesses May Defer Up to $50,000 of Sales and Use Tax Liability for 12 Months - California Department of Tax and Fee Administration. "Under the program released today, qualifying businesses can enter into payment plans to distribute up to $50,000 of sales tax liability over a 12-month period, interest-free."
Today in History: Hank Aaron breaks Babe Ruth’s all-time home run record - History.com. Off of Al Downing of the Dodgers.
This is a roundup of tax news and opinion. Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.