December 22, 2020
Late last evening, the United States Senate approved the $900 billion package of coronavirus assistance shortly after the House passed the relief package. The measure now heads to the White House for President Trump's signature. It is significant to note that the Coronavirus Response and Relief Supplemental Appropriations Act also includes limited spending authority for the government to avoid a shutdown, since federal agencies would have run out of money at midnight on Monday. The package includes a seven-day stop-gap spending authority to allow time to process the combined relief and annual funding bills.
Of significant interest to the CPA profession were provisions intended to clarify the deductibility of the Paycheck Protection Program (PPP) expenses. After the PPP and CARES Act were passed earlier in the spring, questions arose as to the tax treatment of the loans and the impact of forgiveness. Earlier this month, the AICPA and the Illinois CPA Society both issued action alerts asking members to contact their respective members of Congress. Thank you to all who responded to the alert and contracted your member of Congress. Your voice was heard. See KPMG update on Deductibility PPP Expenses.
From a broader perspective, there were many other issues included in the massive legislative package to include other COVID-tax related matters, extension of tax credits and other tax related matters addressing retirement provisions, Employee Retention Credit and rehiring tax credits, business meals deduction, and charitable contributions. Knowing the importance of getting you timely information for your practice, attached is a breakdown providing more information on the various important tax provisions included in the Coronavirus Response and Relief Supplemental Appropriations Act. See KPMG update on Year-end funding and COVID relief legislation.
We thank our colleagues at KPMG for their quick work in drafting these summaries that include links to the 5,593-page legislation and the House Ways and Means Committee section-by-section summary.
The Illinois CPA Society will continue to provide you with substantive updated information through special alerts, Insight Columns and Capitol Insight. We hope that this informational update is useful to you in providing services to your respective clients.