MRPR Blog

Christmas came early this year! As part of the Consolidated Appropriations Act of 2021, Congress has passed a stimulus package (“COVID-related Tax Relief Act of 2020”) that has provided a variety of useful provisions and clarifications for individual and business taxpayers alike. While not as comprehensive as the CARES Act passed earlier this year, it provides much-needed aid.

This past week, new PPP forgiveness applications were released by the SBA to simplify the process and mirror the language of the PPP Flexibility Act that was signed into law earlier this month. We're here to clarify some of the changes to the application and shed light on a newly updated interim final rule.

We watched this week as another chapter unfolds in the PPP saga.

The Small Business Administration (SBA) has released a Loan Forgiveness Application for the Paycheck Protection Program (PPP), which was created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The application and its instructions provide step-by-step guidance on calculating a borrower's PPP loan forgiveness amount. The application is much anticipated and helps clarify some of the questions we referred to in our previously published Top Ten Questions About the PPP blog -- but not all. The SBA and the U.S. Treasury have indicated they will continue to release guidance on the forgiveness calculation.

On May 21, 2020, Governor Whitmer announced Executive Order 2020-97 (amending Executive Order 2020-91) which indicates that all businesses or operations that are permitted to require their employees to leave the homes or residences for work under Executive Order 2020-92 (since amended to Executive Order 2020-96 and extended through June 12, 2020 under EO 2020-100) and any order that follows it, must, at a minimum:

The COVID-19 pandemic has had far-reaching consequences across the entire business world and one of the most hard-hitting effects has been the reduction of cash flow throughout nearly all business lines. Invoices are not getting paid on time, monthly bills are accumulating, and for some businesses, (like restaurants and theaters) activity and cash inflow may be completely stopped. To provide some relief to businesses affected by the coronavirus, Congress recently passed the CARES Act which offers the possibility of a one-time infusion of cash in the form of tax refunds.

We have gathered the notable updates, guidance, and reminders from the Department of Labor (DOL) and Internal Revenue Service (IRS) regarding the Families First Coronavirus Response Act (FFCRA) and Unemployment Insurance Agency (UIA).  

The Tax Cuts and Jobs Act of 2017 (TCJA) was one of the most consequential tax law changes of the last three decades. However, when it was passed, it expanded and reworked the definition of “qualified improvement property". The new definition contained a critical error, which we will explore below. That error has just been corrected with the passage of the CARES Act of 2020. Since the correction is retroactive, the IRS has released new information and new guidance for taxpayers to address these new changes. Here's what you need to know.

In a previous article; Internal Revenue Service Notice 2020-18 we outlined the details of the sweeping relief to taxpayers as the nation battles the ongoing COVID-19 pandemic. Under the Notice, most income tax filing deadlines have been extended from April 15, 2020, to July 15, 2020, with no interest or penalty to taxpayers.

The IRS has now released Notice 2020-20, which clarifies and amplifies the relief granted under the previous notice.

On March 27, 2020, Governor Gretchen Whitmer signed Executive Order 2020-26, granting Michigan taxpayers much-needed relief as Michigan and the nation at large, battle the COVID-19 pandemic.