May 26, 2020
Forgiven PPP Loans and the Deductibility of Expenses Paid
Summary While most states have yet to comment on whether taxpayers can deduct ordinary business expenses paid with Paycheck Protection Program (PPP) loan proceeds that are forgiven by the IRS, taxpayers should monitor state conformity to the CARES Act (P.L. 116-136) and the Internal Revenue Code. Rolling conformity states that conform to the CARES Act …
CA Revised Budget Proposal Includes Suspension of NOLs and Limits on Business Tax Incentive Credits
Summary Prior to COVID-19, California was projecting a budget surplus of $5.6 billion for the 2020-2021 fiscal year, with March actual revenues coming in $1.35 billion above projections. COVID-19 changed all that as businesses were forced to temporarily close and lay off or furlough employees, and the entire US economy came to an abrupt halt. …
May 20, 2020
State Tax Implications of Remote Employees Due to COVID-19
Summary With the rapid adoption of city and county shelter-in-place rules and state lockdowns (i.e. Hawaii) many employees found themselves working from locations that they never expected to be working from and for much longer than expected. Now employers have begun to ask, “Where are my employees working from? And what do I need to …
May 17, 2020
House Passes HEROES Act, Steep Challenges Expected in Senate
On May 15 the House passed, with some Democratic dissent, the $3 trillion Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act. The HEROES Act returns certain elements taken away by the 2017 Tax Cuts and Jobs Act (TCJA) and adjusts for elements within the CARES Act. Highlights include $1 trillion in state and local …
May 12, 2020
DAC6 Reporting Requirement for All Cross-Border Tax Arrangements Postponed
DAC6 is an EU Council Directive 2011/16 in relation to reporting requirements for all cross-border tax arrangements. It has been in force since June 25, 2018, promoting transparency and fairness in taxation. DAC6 applies to cross-border tax arrangements that meet one or more specified characteristics (hallmarks) and that concern either more than one EU country …
Estate Planning – Gifts You Can Still Access
Married couples with a net worth of $12 million and up should consider this estate planning technique. As you may know, the 2017 Tax Cuts and Jobs Act (“TCJA”) changed the estate and gift tax regime by increasing the amount of assets an individual may pass to their heirs tax-free (referred to as the “lifetime …
May 7, 2020
BE-10 Benchmark Survey of US Direct Investment Abroad
Learn about the BE-10 Benchmark Study on Foreign Direct Investment by the US Department of Commerce’s Economic Analysis Agency (BEA).
May 5, 2020
Tax Alert: Nonprofit Guidance on Self-Funded Unemployment, Main Street Lending Program and Faxing Amended Refund Claims
Last week, there were a number of pronouncements from various government agencies that impact nonprofits. The U.S. Department of Labor, the Federal Reserve, and the Internal Revenue Service issued guidance for nonprofit organizations regarding the eligibility or impact of certain provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Here is a summary …
April 27, 2020
Additional Stimulus and Changes to SBA FAQ Amid Concerns Over “Need” for PPP loans
On Friday April 24, 2020, President Trump signed legislation providing additional funding.
April 20, 2020
Revenue Procedure 2020-24 and International Tax Considerations
Background Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) modified section 172 by adding a new section 172(b)(1)(D)(i) which provides that net operating losses (“NOL”) arising in tax years beginning after December 31, 2017, and before January 1, 2021 may be carried back to each of the five tax years preceding the taxable year …