Review the recently released cost-of-living adjustments (COLA) as released by the Internal Revenue Service, taking effect January 1, 2021. ...
In response to the Global pandemic caused by COVID-19, or more commonly called the Coronavirus, the United Sates has enacted the Coronavirus Aid, Relief, and Economic Security Act, or the “CARES Act” (the Act). After much deliberation and continued delays, the Senate was finally able to pass the CARES ACT late on Wednesday night March 25. The House is not expected to vote on the bill until Friday (at the earliest)
Over the course of less than one week, the package grew in size from fewer than 250 pages to almost 900 pages. The Act contains numerous provisions affecting a wide variety of areas intended to provide business relief, individual stimulus payments, enhanced unemployment benefits, support for health care providers, corporate and individual tax relief, as well as assistance to states and cities
As the country’s economy continues to constrict from the impact of COVID-19, many businesses and individuals have been impacted in a variety of ways. We have already seen earlier bills passed related to expanded health care coverage and small business provisions, as well as extensions in tax filing deadlines and payment due dates. The CARE ACT is intended to be a “Phase 3” of the economic stimulus related packages. Further still though, some politicians have hinted additional phases may be required
The size of this economic package is unprecedented. The bill provides $2 Trillion in funding. Further, the U.S. Federal reserve will be able to provide $4 trillion in aid to local governments and industries. Some of the details of the bill are noted below.
For businesses, governments, and health care related enterprises, the Act includes:
For individuals, the Act contains a variety of benefits including:
A number of provisions affect business and individual taxes. Some of the significant tax-related provisions in the bill are summarized below. More in-depth analysis will follow over the coming days when the bill becomes law:
Additional Individual tax provisions include:
Business tax measures (including business items in individual returns) include:
The passage of the Act is a significant step forward in assisting many U.S. businesses, and their employees, survive the economic turmoil caused by COVID-19. As the unprecedented fight against the virus continues, it is impossible to say how long the economic down turn will last and how quickly the recovery will take. Hopefully, this Act will help both businesses and individuals
Please visit our Coronavirus resource page at schneiderdowns.com/our-thoughts-on/category/Coronavirus for related content.
Review the recently released cost-of-living adjustments (COLA) as released by the Internal Revenue Service, taking effect January 1, 2021. ...
Learn more about the significant changes to PPP Loans as a result of the American Rescue Plan Act signed into law on March 11, 2021. ...
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