COVID-19 tax news and information

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February 5, 2021

Eligible educators may deduct personal protective equipment expenses

The IRS issued guidance providing a safe harbor under which eligible educators who have unreimbursed expenses for personal protective equipment, disinfectant, and other supplies used to prevent the spread of COVID-19 in the classroom can deduct those expenses as educator expenses.

February 2, 2021

IRS requires corrected information returns for certain SBA loans

The IRS issued guidance requiring lenders who mistakenly sent Forms 1099-MISC reporting loan payments that are permitted to be excluded from the taxpayer’s gross income under the Consolidated Appropriations Act, 2021, to send corrected forms.

February 1, 2021

Transfer pricing and the pandemic recession: What to do about it

MNEs will need to reevaluate their pre-pandemic
transfer-pricing approach based on an updated application of the arm’s-length principle and be prepared to defend changes in the approach and results.

February 1, 2021

Congress affirms deductibility of expenses paid by forgiven PPP loans

Congress makes expenses funded by forgiven Paycheck Protection Program loans deductible.

January 28, 2021

Employee retention credit changes leave practitioners with questions

The IRS issued guidance on two aspects of the employee retention credit — how to claim the credit when filing the fourth quarter Form 941 when the taxpayer knows its loan under the PPP will not be forgiven and how the newly extended and amended employee retention credit will apply.

January 20, 2021

IRS explains extended payroll tax due dates

The IRS issued updated procedures for the deferred employee portion of employment tax payments, which were further extended from April 30, 2021, to Dec. 31, 2021, by year-end legislation.

January 19, 2021

Some individual taxpayers get relief from underpayment penalty

The IRS granted individual taxpayers a waiver from the penalty for underestimated tax due solely to the amendment to Sec. 461(l)(1)(B) in the CARES Act repealing the excess business loss limitations for years before 2021.

January 19, 2021

Taxpayers need clarity on coordination of ERC and PPP loans

The AICPA asked the IRS and Treasury to clarify that the filing of a Paycheck Protection Program loan forgiveness application is not an election by the taxpayer to forgo the employee retention credit for wages reported on the application exceeding the amount of wages necessary for loan forgiveness.

January 1, 2021

AICPA focuses advocacy efforts on mobile workforce legislation

Congressional action could simplify the business landscape for interstate workforce models that have expanded sharply due to stay-at-home orders isssued to fight the COVID-19 pandemic.

January 1, 2021

How to report deferred employee payroll taxes

The IRS issued guidance to employers and employees on reporting deferred Social Security tax on Form W-2 under the Presidential Memorandum authorizing the deferral.