Trump Signs PPP Revision Bill Loosening Loan, Tax Deferment Rules – Frederic Lee, Tax Notes ($). “President Trump has signed into law the latest bill expanding the Paycheck Protection Program (PPP), while also reaffirming his support for a payroll tax cut to help spur economic recovery.”
More here on what you need to know about the newly issued PPP changes.
Congress May Soon Choose Between Wage Credits Or More Unemployment Benefits – Howard Gleckman, Forbes.
“President Trump has pushed an unspecified payroll tax holiday since well before the pandemic. But whatever its design, a payroll tax cut creates two fundamental problems—it benefits only those who are working, not the millions who lost their jobs in the pandemic. And it blows a hole in the Social Security Trust fund that inevitably would have to be filled with general fund revenues—a challenge when the federal government could run a deficit this year in the neighborhood of $4 trillion.”
Several Democrats and Republicans have floated ideas on expanding credits:
“The basic design of all these ideas is the same: An employer tax credit linked to wages. They differ in the size of the credit, the qualified wage amount, other expenses eligible for the credit, whether they are available for current workers, and criteria for business eligibility. But all would provide tax subsidies to firms based in some way on their workforce.”
Positive Unemployment Report Doesn’t Mean Government Spending Should Stop – Richard McGahey, Forbes. “Although any good economic news is welcome, don’t overreact: the depth of our labor market problems means any full economic recovery is a long way off. And if we stop government spending, we could easily make things worse.”
Qualified opportunity zone rules are relaxed – Sally P. Schreiber, J.D., Journal of Accountancy. “In Notice 2020-39, the IRS extended some deadlines for investing in qualified opportunity funds (QOF) and relaxed some investment requirements to make it easier for QOF investors to deal with the coronavirus pandemic.”
“Under the IRS relief, taxpayers who sold property for an eligible gain and who would have had 180 days to invest in a QOF to defer that gain have additional time. If a taxpayer’s 180th day to invest in a QOF would have fallen on or after April 1, 2020, and before Dec. 31, 2020, the taxpayer now has until Dec. 31, 2020, to invest that gain into a QOF. Notice 2020-23 had already postponed that deadline to July 15, 2020.”
CPA Group Calls for IRS to Expand, Reform E-Signature Programs – William Hoffman, Tax Notes ($). “The American Institute of CPAs asked IRS Commissioner Charles Rettig in a letter June 4 to modify e-signature publications and allow electronic return originators an easier path to taxpayer identity verification. The AICPA also wants the IRS to expand e-signature authorizations for business entity tax returns and permit non-income-tax return preparers to e-sign original or amended returns and requests for filing extensions.”
After Cranking Out $267 Billion in Stimulus Payments, IRS Faces Fresh Challenges – Richard Rubin, WSJ ($). “The Internal Revenue Service cranked out $267 billion in stimulus payments in about two months, faster than many analysts expected. But challenging work lies ahead, such as opening 10 million pieces of piled-up mail and resuming a semblance of normal taxpayer service.”
Lost or Destroyed EIP Debit Card – Keith Fogg, Procedurally Taxing. “The IRS has now published a phone number for individuals who lost or destroyed their debt card.”
COVID-changed work patterns mean tax hassles, possible KC workers' refunds – Kay Bell, Don’t Mess With Taxes. “Folks who work in Kansas City, Missouri, pay a 1 percent earnings tax on the money they make there. That includes residents and nonresidents who commute to work in the city. Now, however, if they're doing their jobs in homes or other locations outside Kansas City's limits, they could claim a refund on the tax they've paid.”
Proposed Nonprofit Executive Comp Regs Tackle Host of Issues – Fred Stokeld, Tax Notes ($) “The proposed rules (REG-122345-18), released June 5, offer answers and definitions to help EOs navigate section 4960, which imposes an excise tax on remuneration above $1 million and on excess parachute payments paid by an applicable tax-exempt organization (ATEO) to any covered employee.”
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