Some Days Are Better Than Others
When it rains it pours, okay done using adages, but really yesterday was another whirlwind of guidance. Good news though:
The IRS significantly expanded relief to remaining upcoming deadlines – nonprofits in particular were waiting for this one. Not to mention the oddity that was going to be paying Q2 estimates before Q1. More time for lots more things now – definitely a win.
Uncertainty on how to claim or waive those 5-year carryback losses was cleared up as well.
And last but may certainly not be least, the Fed announced a new Main Street Lending Program that will provide 4-year loans to companies with up to 10K employees or revenues less than $2.5B. Bank regulators also relaxed the capital ratios related to PPP loans.
Evaluating the Trade-offs of Small Business Relief Provisions of the CARES Act – Taylor LaJoie, Tax Foundation. “Creating multiple programs with overlapping purposes and differing qualification requirements makes relief more complicated, vague, and not neutral.”
Related:
What to Know About the Employee Retention Credit
What You Need to Know About the SBA Loan and Relief Efforts
Small Business Loan Funding Stalls in Senate – Jad Chamseddine, TaxNotes. “Lawmakers continue to urge Treasury and the Small Business Administration to provide more guidance for accountants and practitioners as they advise their clients on how to navigate the new rules.”
For Some Churches, SBA’s Paycheck Protection Program Is Better Than Bingo – Peter J Reilly, Forbes. “There is very little transparency required of churches and this program does not require much in the way of scrutiny.”
Some IRS Mail Being Returned to Taxpayers, Held By Post Office – Allyson Versprille, BloombergTax. “Earlier this week the IRS shut down its campus in Ogden, Utah, with only employees performing ‘mission-critical’ work continuing to report to work. It was the last major IRS facility to close.”
Related: Changes to People First in the Wake of COVID-19
Iowa Issues Order Related to Estimated Tax Payments
Iowa estimated tax payments for 2020 are still due on April 30 and June 30 for Q1 and Q2, respectively. But Order 2020-03 now allows taxpayers to use Iowa 2018 tax to compute 2020 Q1 & Q2 estimated tax payments. IDOR’s website explains the details on its FAQ page as well.
All Hands On Deck: Helping Taxpayers Navigate Impact Payments – Kelly Phillips Erb, BloombergTax.
Right now everyone is doing their part to manage this crazy time. But if you’re feeling helpless, Kelly recommends 5 steps tax pros can take:
Stay informed
Educate taxpayers
Help taxpayers avoid scams
Support each other
Lend a helping hand
We’re all in this together! And remember your strength may be someone’s weakness; explaining tax and finances to a person who doesn’t live in our world can ease their minds and maybe give hope.
The CARES Act Boost In Unemployment Benefits Is Less Likely To Cost More Than Congress Projects. That’s a Feature, Not A Bug – Benjamin R. Page, TaxVox. “A highly desirable feature of the UI program is that it expands automatically if the economic picture is more dire than anticipated.”
New round of stimulus talks face GOP roadblock – Alexander Bolton, The Hill. “Republicans also want to assess the impact of the Federal Reserve’s announcement Thursday morning that it would pump out $2.3 billion in loans to mid-sized businesses and local governments during the coronavirus crisis.”
CARES Act’s Retirement Plan Relief Could Get Messy – Jonathan Curry, TaxNotes. “One thing that remains unclear is how to decide which $100,000 of distributions qualifies.
Tax Trivia
What is the highest marginal income tax rate in history?
Check back for the answer on Monday!
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