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 …

(Read More)

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 …

(Read More)

More than 200 national and state-based trade groups wrote to congressional leadership today calling on Congress to increase funding for Paycheck Protection Program (PPP) loans.

That program was authorized by the CAREs Act last month and, among many other programs, provided individually and family-owned businesses with $350 billion in loans to help those businesses retain their employees during the COVID-19 crisis.

According to the latest figures from the Small Business Administration, however, applications to date number over million and nearly$300 billion of the initial authorization.  The expectation is that the program will run out of authorization by the end of the …

(Read More)

Is the loss limitation relief in the CAREs Act an unwarranted giveaway, as claimed by the Washington Post this week?  That’s a big “N-O.”  As others have noted, this relief prevents the “recession bombs” of the underlying NOL and loss limitation rules from inflicting damage on Main Street during the COVID-19 crisis.

Here’s the reality and why 120 Main Street business groups asked Congress to adopt this provision earlier this year:

• The benefit is timing only: Aside from some limited rate arbitrage, any tax reductions allowed by the loss limitation relief this year would have otherwise been claimed in …
  
  (Read More)