April 16, 2020
Most years April 16 is a quiet day in the tax world, as we take it easy after a long tax season. With three months left until the new filing deadline, though, it's back to the important work of trying to figure out the SBA loan program.
Economic Analysis: Partners Shut Out of PPP While Self-Employed Get Automatic Money - Martin Sullivan, Tax Notes. "So perhaps we are misinterpreting after too much coffee, but we can’t be sure what loan forgiveness will be for Schedule C filers."
Lawmakers at Standstill as Small Business Loan Funding Runs Low - Jad Chamseddine, Tax Notes. "Lawmakers from both parties have acknowledged that most of the $349 billion in PPP funding set aside under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) has already been used, with the expectation that the rest will be gone by the end of the week."
Need a Small Business Loan? Here’s What You Need to Know - Yuka Hayashi, Wall Street Journal ($). "Could the money run out? Yes. The SBA says the initial funding of roughly $350 billion has been reached. Congress and the Trump administration are working to appropriate $250 billion more to the fund."
Ten Things We Need To Know About Paycheck Protection Program Loan Forgiveness - Tony Nitti, Forbes. "Of course, any portion of a PPP loan that isn’t forgiven must be repaid over two years – after a six-month deferral period – at an interest rate of 1%."
CARES Act Provides New NOL Options - Kristine Tidgren, Ag Docket. "While helpful in many cases, the NOL changes mean that impacted taxpayers must take action to conform to the new law and take advantage of the relief provided."
IRS Changing Operations Due to COVID-19 - Ben Peeler and Elyse Katz, Eide Bailly. "The best way to continue working with the IRS currently is through irs.gov and filing and submitting information electronically including fax. You won’t be able to call the main IRS hotlines, but if you have a current examination or collection process in which you are working directly with IRS personnel you will still be able to speak with them."
Tax Court Filing Deadlines in a Time of Coronavirus - Keith Fogg, Procedurally Taxing. "It is unknown at the moment how long the Tax Court will remain closed."
Is Now The Time For Non-Filers To Come In From The Cold? - Peter Reilly, Forbes. "If you do want to use this time to clean up your past non-compliance, try to find someone experienced in working with delinquent taxpayers." Well, I know a guy.
Coronavirus 'Get My Payment' tracking troubles - Kay Bell, Don't Mess With Taxes. "That's when the IRS told me, via the screen shown below, that while the hubby and I are eligible for the COVID-19 economic relief payment, it didn't have enough information to directly deposit our money."
Why “Get My Payment” Doesn’t Work for 2018 Filers who Owed Tax and Haven’t Filed 2019 Returns - Russ Fox, Taxable Talk. "If you’re an individual who will not qualify based on 2019 but do qualify based on 2018, you cannot enter banking information in the “Get My Payment” app. You’re stuck receiving a paper check sometime (unless the IRS updates the app)."
IRS Confirms SSI Recipients Will Automatically Get Stimulus Checks - But No Change For Vets - Kelly Phillips Erb, Forbes. "'Since SSI recipients typically aren't required to file tax returns, the IRS had to work extensively with these other government agencies to determine a way to quickly and accurately deliver Economic Impact Payments to this group,' said IRS Commissioner Chuck Rettig."
Is A Modified Destination-Based Income Tax The Solution For Taxing Global Multinational Corporations? Eric Toder, TaxVox. "Instead of taxing multinational firms on where they undertake business activities (the source country) or where their parent company is chartered or managed (the residence country), they argue that firms should be taxed on where they sell their products (the destination country)."
How Well-Funded Are Pension Plans in Your State? - Jannelle Cammenga, Tax Policy Blog. "The current crisis highlights the cost of underfunding pensions in years of economic growth. Replenishing these funds will be extremely challenging now, as state revenues decline; states that failed to use more than a decade of economic growth to shore up their funds will be in particularly poor shape now."
There's always a tax angle. A report claims that a Sioux City woman asked the local police to test her meth for COVID-19. "She was booked for felonies of failure to affix a drug tax stamp, controlled substance violation and first-offense of possession of marijuana."
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.