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Coronavirus Aid, Relief, and Economic Security (CARES) Act

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Worldwide investment at risk as business tax reform critical to capital investment costs expire and phase out Child Tax Credit changes and Child Tax credit reform options States should follow federal lead in postponing tax day

Business Tax Refunds Must Be Provided Quickly During Future Downturns

A new report finds many businesses have yet to receive tax refunds that they are due from pandemic-related emergency relief. Future business tax relief must be provided in a timely manner during the next downturn, because delayed tax relief is not much better than no relief at all.

2 min read
US households saved their COVID-19 economic impact payments during the pandemic

Census Data Shows Households Saved Economic Impact Payments

In 2020 and 2021, Congress enacted three rounds of economic impact payments (EIPs) for direct relief to households amidst the pandemic-induced downturn. Survey data from the U.S. Census Bureau indicates that households increasingly saved their EIPs or used them to pay down debt rather than spend them.

5 min read
State conformity to federal pandemic relief, state tax conformity to federal COVID-19 relief legislation (CARES Act, American Rescue Plan), including Paycheck Protection Program (PPP) loans and unemployment compensation tax exclusion.

State Conformity to Federal Pandemic-Related Tax Provisions in CARES and ARPA

With so many federal changes occurring in such a short amount of time—including some federal provisions changing more than once and a major change to the treatment of UC income occurring in the middle of tax filing season—state legislators have faced the challenge of responding to these changes quickly in order to provide certainty to taxpayers.

23 min read
2021 tax season, tax refunds, IRS extends tax filing deadline to May 17

What to Expect During the 2021 Tax Season

The IRS recently announced the extension of tax filing and payment deadlines from April 15th to May 17th to help taxpayers navigating the many tax changes amid the pandemic and give the IRS opportunity to clear its backlog of tax returns and correspondence.

7 min read
PPP state tax PPP loan forgiveness. State tax treatment of PPP loans. States tax forgiven PPP loans August 23 2021

Which States Are Taxing Forgiven PPP Loans?

Congress chose to exempt forgiven Paycheck Protection Program (PPP) loans from federal income taxation. Many states, however, remain on track to tax them by either treating forgiven loans as taxable income, denying the deduction for expenses paid for using forgiven loans, or both.

7 min read
GOP Covid GOP proposal GOP Covid proposal and Biden American Rescue Plan Biden GOP covid proposal GOP covid relief bill

Modeling Different Proposals for Round Three Direct Payments

President Biden is calling for a third round of economic impact payments to households as part of his $1.9 trillion American Rescue Plan. Under the plan, the payments would be $1,400 per person, topping off the recent round of $600 payments for a combined $2,000 per person. Senate Republicans have proposed payment amounts of $1,000 per individual and $500 per dependent, lower income thresholds, and faster phaseout rates.

5 min read
Small Town Main Street Small Business, Wisconsin ppp loans taxes

Wisconsin’s PPP Loan Recipients Face Hundreds of Millions in Surprise Taxes

Unless the legislature acts, businesses that have received PPP loans and related federal assistance will face $457 million in state taxes through 2024—with more than half of those taxes coming due this spring—despite Wisconsin being on track to see continued general fund revenue growth even amid the pandemic.

4 min read
tax exemption definition TaxEDU 2021 state tax changes. net operating loss policies in the OECD NOL omnibus covid-19 relief deal. phase 4 coronavirus relief, phase 4 business relief, phase 4 relief net operating loss, cost recovery

Tax Extenders Hitch a Ride on Omnibus and COVID-19 Relief Deal

Tax extenders are no stranger to hitching a last-minute ride on year-end legislation. This year they made another last-minute appearance, finding a hold in their own division of the 5,593-page bill to fund the government through the fiscal year and provide additional coronavirus relief through March.

2 min read
Business tax hikes Some Corporations Pay Zero Federal Income Taxes—and That Is Not a Problem Democrats child tax credit plan. tax administration issues, tax complexity cares act. trump tax cuts who benefited taxpayer subsidies for drug ads

What Federal Policymakers Can Learn from Business Tax Refunds in 2020

Policymakers should consider finding ways to simplify the administration of relief during future crises. This will help ensure the relief is timely and targeted, key components of any successful relief package for this crisis or crises in the future.

3 min read