COVID-19 Tax Resources Overview

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Negotiated Incentive Agreements during COVID-19

Businesses receiving negotiated or discretionary economic incentives (tax abatements, cash grants, land grants, etc) in exchange for a minimum investment and jobs in a community could be at risk of losing these incentives due to the economic downturn caused by COVID.


This information is based on the statutes and guidance available as of the date of publication (November 11, 2020) and is subject to change.

 

Telecommuting Workers during COVID: Considerations for Businesses and their Employees
At the beginning of the COVID pandemic, much of the world retreated to the safety of homes, anticipating a  short-term crisis. Businesses and their employees are faced with potential tax consequences as the result of decisions made for employees’ safety. Unfortunately, governments have been slow to provide guidance to businesses and employees on how working from a different tax jurisdiction may impact tax liabilities. 

This information is based on the statutes and guidance available as of the date of publication (October 7, 2020) and is subject to change.

Update on Presidential Memorandum for Deferring Payroll Tax Obligations

As previously discussed in Rödl Tax Matters Volume 2020 – 10, on August 8, 2020, President Trump signed a Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster, which directed the Secretary of the Treasury to use his authority to defer the withholding, deposit, and payment of employee Social Security taxes on wages or compensation paid during the period of September 1, 2020, through December 31, 2020.

This information is based on the statutes and guidance available as of the date of publication (September 25, 2020) and is subject to change.

 

Presidential Memorandum for Deferring Payroll Tax Obligations

On August 8, 2020, President Trump signed a Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster, which directs the Secretary of the Treasury to use his authority to defer the withholding, deposit, and payment of employee Social Security taxes on wages or compensation paid during the period of September 1, 2020, through December 31, 2020.


This information is based on the statutes and guidance available as of the date of publication (August 18, 2020) and is subject to change.

 

PPP Loan Application Deadline Extended To August 8, 2020

On July 4, President Trump signed S. 4116 extending the deadline for applying for a loan under the Paycheck Protection Program (PPP) from June 30 to August 8, 2020. No other statutory changes to the PPP or borrower eligibility were made.

 


Paycheck Protection Program Flexibility Act Favorably Modifies the Terms of Loan Forgiveness

On Friday, June 5th, the President signed the Paycheck Protection Program Flexibility Act of 2020 modifying the terms of the loan forgiveness for a Paycheck Protection Program ("PPP") loan. The amendments are effective as if included in the CARES Act and apply to any PPP loan. There is welcome relief in the Act providing taxpayers greater flexibility in achieving loan forgiveness.

This information is based on the statutes and guidance available as of the date of publication (June 8, 2020) and is subject to change.

 

Main Street Lending Program

The Paycheck Protection Program has received a lot of attention, particularly given that part of the loan may be forgiven. Another loan program that is part of the recently enacted Coronavirus Aid, Relief, and Economic Security Act of 2020 (the “CARES Act”) may, however, also be of benefit. The “Main Street Lending Program” is intended to provide additional financing for small- and medium-sized businesses impacted by the ongoing COVID-19 pandemic.

This information is based on the statutes and guidance available as of the date of publication (May 12, 2020) and is subject to change.



PPP Loan Practices to Consider

The Paycheck Protection Program (PPP) was created as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act which was signed into law on March 27, 2020.

 

 

 

CARES Act Business Provisions

On Friday March 27, 2020, President Trump signed the new Coronavirus Aid, Relief, and Economic Security Act (“CARES Act” or the “Act”) into law. Major provisions of the Act affecting business taxpayers are discussed below. More details regarding the specifics of each provision are emerging daily.
 

 

 

 
 

COVID-19 - “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act)

President Trump has signed the new Coronavirus Aid, Relief, and Economic Security Act (CARES Act) into law. Major highlights of the Act are discussed below. Details regarding the specifics of each provision are forthcoming. If you have questions, please contact your Rödl & Partner representative.  

 

Federal Payment Extensions



 

In a press conference on Tuesday, March 17, 2020 Treasury Secretary Steven Mnuchin announced that individuals and corporations can delay their tax payments for 90 days due to the Coronavirus pandemic. Individuals can defer up to $1 million in payments for 90 days from the April 15 deadline. Corporations can defer up to $10 million in payments for 90 days. During that time, the IRS will not charge interest or penalties. 

 

COVID-19 Tax Impacts - Families First Coronavirus Response Act

On March 18, 2020, the President has signed into law the Families First Coronavirus Response Act (H.R. 6201) which provides affected individuals with paid sick and family leave, creates tax credits for affected employers, expands food and nutrition services, allows for emergency state unemployment insurance grants, and increases Medicaid funding to states, among other things.  

 

 

Unemployment Claims

Please check with local labor departments regarding new rules relating to COVID-19-induced layoffs and slowdowns.

 

COVID-19 Resources for Employers

Please check these important outside resources for employers.

  

  

 Disclaimer

This publication contains general information and is not intended to be comprehensive or to provide legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any decision or action that may affect you or your business. Consult your advisor.

We have made reasonable efforts to ensure the accuracy of the information contained in this publication, however this cannot be guaranteed. Neither Rödl Langford de Kock LP nor any of its subsidiaries nor any affiliate thereof or other related entity shall have any liability to any person or entity which relies on the information contained in this publication, including incidental or consequential damages arising from errors or omissions. Any such reliance is solely at user's risk.

Any tax and/or accounting advice contained herein is based on our understanding of the facts, assumptions we have been asked to make, and on the tax laws and/or accounting principles in effect as of the date of this advice. No assurance is given that the conclusions would be the same if the facts or assumptions change, or are not as we understand them, or that the tax laws and/or accounting principles will not change subsequent to the issuance of these conclusions. In addition, we do not undertake any continuing obligation to advise on future changes in the tax laws and/or accounting principles, or of the impact on the conclusions herein.

No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Rödl Langford de Kock LP.

Copyright © March-August 2020 Rödl Langford de Kock LP
All rights reserved. 


We hope you are safe and healthy during these challenging times. We are here to support your business in any way we can.
 
 
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