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Avoiding a $100 Billion Tax Hike on Main Street

As the Administration negotiates with Congress over the next round of COVID-19 relief, here’s a simple way they can help Main Street businesses to the tune of $100 billion plus… just do what Congress intended. That’s the message more than 170 business trades are sending to congressional leadership today.  The letter, signed by the Farm Bureau, NFIB, AICPA, the National Restaurant Association, the National Retail Federation among others, makes clear that loan forgiveness under the Paycheck Protection Program should be tax-free as intended in the CARES Act.  Here’s the text of the letter: As Congress negotiates another round of relief ...

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Avoiding a $100 Billion Tax Hike on Main Street2020-08-04T15:36:30+00:00

NOL-Loss Limitation Relief Support Building

Advocates defending the CARES Act NOL-Loss Limitation relief had a busy week.  First, more than 75 national and local trade groups signed a letter in favor of keeping the relief intact.  The broad number of signatories on the letter, drafted by our friends at the National Mining Association, makes clear arguments that the provision was “snuck” into the CARES Act or would only benefit a “narrow” sliver of industries are wholly meritless.  As the letter states: The ability to carryback NOLs is a critical component of a well-operating income tax system. Indeed, NOL carryback provisions have long been bipartisan tools ...

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NOL-Loss Limitation Relief Support Building2020-06-23T15:09:26+00:00

Treasury Addresses 4960 Shortcomings – More Work Needed

When Treasury released its initial Section 4960 guidance last year (Notice 2019-09), S-Corp warned the rules would force many family businesses to dissolve their related charities and/or private foundations to avoid the new tax.  Those concerns remain under the proposed rules published last week, but they are dramatically reduced, so that’s progress.  Here’s the good and the bad on Section 4960. To recap, tax reform created a new excise tax on million-plus salaries earned by executives at non-profits, or applicable tax-exempt entities (ATEOs).  The targets were the high salaries earned by CEOs at charity hospitals and football coaches at large ...

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Treasury Addresses 4960 Shortcomings – More Work Needed2020-06-13T18:10:04+00:00

The truth about business tax relief in the CARES Act

S-Corp has a defense of the CARES Act NOL/Loss Limitation rules in today's Washington Examiner.   The piece begins: For weeks, we’ve heard that the net operating loss and loss limitation relief included in the CARES Act is a “massive” tax break for “hedge funds” that was “snuck” into the bill at the last moment. Those of us who advocated for this provision know none of this is true. Here are the key facts readers need to know. First, the policy at issue is important, even though it may not seem exciting. It gives businesses suffering net operating losses the ability ...

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The truth about business tax relief in the CARES Act2020-06-04T15:46:13+00:00

More Business Community Support for COVID-19 Reforms

The Main Street Employers coalition today endorsed legislation scheduled to voted on in the House of Representatives tomorrow.  The bill, the Paycheck Protection Program Flexibility Act, was introduced by Representatives Dean Phillips (D-MN) and Chip Roy (R-TX) and would help restore confidence and energy to a program badly in need of both – the Paycheck Protection Program.  As the letter states: Congress launched the Paycheck Protection Program (PPP) to help employers keep their workers on payroll and, once it was safe to do so, enable them to quickly return to work.  The PPP is arguably the most successful COVID-19 response ...

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More Business Community Support for COVID-19 Reforms2020-05-27T19:43:00+00:00