This bill will require most Real Estate investors to refile and amend Corporate tax returns. CPAs will quickly have to learn new laws to best help their clients in real estate (this will be a big problem)…..no accountant will have updated software to deal with this….and I’m afraid most real estate investors will simply miss the massive benefits given to them in this new bill to be signed today….
Highlights of the Bill Agreed to Last Night:
- 4 months of more unemployment insurance instead of 3 months.
- $55 billion increase in the Marshall Plan for our Health Care System.
- $150 billion for a state, tribal, and local Coronavirus Relief fund.
- $10 billion for SBA emergency grants of up to $10,000 to provide immediate relief for small business operating costs.
- $17 billion for SBA to cover 6 months of payments for small businesses with existing SBA loans.
- $30 billion in emergency education funding and $25 billion in emergency transit funding.
- $30 billion for the Disaster Relief Fund to provide financial assistance to state, local, tribal, and territorial governments, as well as private nonprofits providing critical and essential services.
- More than $10 billion for the Indian Health Services, and other tribal programs.
- Prohibit businesses controlled by the President, Vice President, Members of Congress, and heads of Executive Departments from receiving loans or investments from Treasury programs.
- Make rent, mortgage and utility costs eligible for SBA loan forgiveness.
- Ban stock buybacks for the term of the government assistance plus 1 year on any company receiving a government loan from the bill.
- Establish robust worker protections attached to all federal loans for businesses.
- Create real-time public reporting of Treasury transactions under the Act, including terms of loans, investments or other assistance to corporations.
- Create of Treasury Department Special Inspector General for Pandemic Recovery to provide oversight of Treasury loans and a Pandemic Response Accountability Committee to protect taxpayer dollars.
- Add a retention tax credit for employers to encourage businesses to keep workers on payroll during the crisis.
- Provide income tax exclusion for individuals who are receiving student loan repayment assistance from their employers.
- Eliminated $3 billion bailouts for big oil.
- Eliminated “secret bailout” provision that would have allowed bailouts to corporations to be concealed for 6 months.
- Saved hundreds of thousands of airline industry jobs and prohibited airlines from stock buybacks and CEO bonuses.
This is the link to the IRS Q&A’s that were posted to try to help clarify what’s covered under the new tax extension deadlines. You can find the full list here:
Also sharing the below from this morning’s tax news — referencing areas CPAs are still confused about and/or are pushing for further changes.
NOW WHEN DO I FILE? The IRS sought to answer all the frequently asked questions about the recent decision to push this year's tax filing deadline back to mid-July. One of the potential issues with the filing deadline set up now is that the only delays are for 2019 returns, and for anything that was due on April 15.
So you need to get a refund for 2016? Your deadline is still April 15. (Remember that taxpayers generally have three years after an original filing deadline to claim a refund.) This also sets up a weird situation in which estimated second-quarter payments (June 15) are due before first-quarter payments (July 15). And as The Wall Street Journal's Laura Saunders noted, there's quite a lot that doesn't qualify for extensions — estate taxes, excise taxes, plus those partnership returns that were due last week.
With all that in mind, the American Institute of CPAs is calling for more extensive filing season relief. One issue, the group says: The guidance posted on the IRS website is informal and doesn't have any legal authority. Beyond that, CPAs say the IRS should be delaying all deadlines, for all filers and for every kind of tax. “With shelter-in-place orders issued throughout the country and a spreading pandemic, there is a significant list of filing and payment challenges left unresolved,” said Edward Karl, the group's vice president of taxation.