CARES Act Provides Critical Tax Relief

By Tom Molins, Jay Simpson, Charley Jensen and Allison Woodbury

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which addresses the public economic and health crisis related to the 2019 novel coronavirus (COVID-19). Among other provisions, the CARES Act contains a number of tax provisions, some of which are intended to provide critical tax relief to businesses and individuals. 

Tax provisions impacting businesses include: 

  • Employer payroll tax and self-employment tax delay
  • Employee retention payroll tax credit
  • Net operating loss changes
  • Business interest limitation changes
  • Changes to corporate charitable deduction limits
  • Corporate alternative minimum tax credits
  • "Retail glitch" fix
  • Excise tax exception for alcohol used in hand sanitizers

Tax provisions affecting individuals include: 

  • Extensions for federal tax filings and payments
  • Recovery credits/rebates
  • New charitable deduction rules
  • Waiver of certain required minimum distributions from qualified retirement plans
  • Waiver of early withdrawal penalty (and deferral of taxation) for certain qualified retirement plan distributions
  • Increased limit on loans from qualified plans
  • Student loan repayment benefits for employers/employees

For more information on the CARES Act as it pertains to tax issues, please read the full article.

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