COVID-19 tax news and information

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November 18, 2021

Further guidance issued on tax treatment of PPP loan forgiveness

Forgiveness amounts are excluded from gross income but included in gross receipts for purposes including determining “small business taxpayer” status under Sec. 448(c).

November 9, 2021

Tax treatment of COVID-19 homeowner relief payments clarified

A revenue procedure clarifies Homeowner Assistance Fund payments are excluded from gross income and gives a safe harbor for computing certain itemized deductions.

November 1, 2021

Certification deadline extended for work opportunity tax credit

Certain employers have until Nov. 8 to submit a required worker certification request to a designated local agency for purposes of the work opportunity credit.

November 1, 2021

New safe harbor for ERC gross-receipts calculation

Under the safe harbor, an employer can exclude certain amounts received from other coronavirus economic relief programs in determining whether it qualifies for the employee retention credit based on a decline in gross receipts.

November 1, 2021

AICPA requests LIFO safe harbor

Global supply chain problems caused by the COVID-19 pandemic have made it difficult for US companies to replace inventories, potentially subjecting them to additional taxable income. The AICPA has requested relief under Sec. 473.

October 1, 2021

IRS amplifies and updates ERC for second half of 2021

New guidance clarifies the application of the credit to “recovery startup businesses” and the treatment of wages paid to majority owners and their spouses.

October 1, 2021

COBRA premium assistance credit clarified further

The IRS has supplemented its guidance on COBRA premium payment assistance and the corresponding business tax credit under the American Rescue Plan Act.

September 23, 2021

IRS guidance denies ERC for most majority owners’ wages

The IRS’s release of Notice 2021-49 provides employers with additional guidance on issues of the employee retention credit.

September 8, 2021

Guidance issued on 2021 qualified sick and family leave wage reporting

Information reporting on Form W-2 or a separate statement allows self-employed taxpayers to claim qualified sick leave and qualified family leave equivalent credits.

September 1, 2021

States and individuals do not have standing in PPACA challenge

The U.S. Supreme Court held that several states and other plaintiffs that asked the courts to declare unconstitutional the Sec. 5000A minimum essential coverage provision in the PPACA did not have standing to challenge the provision.