The Consolidated Appropriations Act of 2021, enacted late last year, includes several tax related changes and incentives affecting businesses.
Congress overruled guidance from the Internal Revenue Service to provide that expenses paid with Payroll Protection Program loans (PPP) will be deductible even if the PPP loans are forgiven. The new law also clarifies how forgiveness works in the context of a partnership or S corporation.
Much of the focus of the attention generated by the CARES Act has been on the Payroll Protection Program (PPP) through the Small Business Association. Loans through the PPP have the potential to be forgiven on a tax-free basis. Please see our client alert for a discussion of the PPP.
The CARES Act also adds relief in the form of employee retention credits and a delay of employer payroll taxes highlighted below.
Employee Retention Credit
The Employee Retention Credit is a fully refundable payroll tax credit that qualifying employers may receive by continuing to fund ... Read More
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