Tax Considerations of the CARES Act: QIP Correction, PPP and EIDL Loans, NOL Carrybacks and Contributions

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A


Conducted on Tuesday, May 26, 2020

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will review the latest developments and clarifications of the relief packages so that practitioners can better serve clients suffering from economic losses as a result of the pandemic. The program will benefit tax advisers wading through the massive relief offered to taxpayers to mitigate losses sustained as a result of COVID-19.

Description

In the first week of April 2020, taxpayers rushed to banks to take advantage of Payroll Protection Program (PPP) loans available to qualified employers with less than 500 employees. With maximum interest rates of one percent, a loan forgiveness feature, and initial repayments deferred for six months, businesses are scrambling to banks to take advantage of these loans.

Also included as part of the relief is an employer retention credit (ERC). A 50% credit for wages paid up to $10,000 is allowed for qualifying employers, including self-employed taxpayers. However, there are specific economic loss requirements to qualify, and employers taking advantage of a PPP loan are not eligible for the ERC. Understanding which is better for which taxpayers is critical for tax advisers.

In addition to loans and tax credits, net operating loss rules that were curtailed by the 2017 tax act have returned. The recent tax act imposed an 80% limitation and removed the carryback. Now businesses have a five-year carryback, no cap, and an indefinite carryforward.

Listen as our panel of tax experts explains what we know and what we don't know about the four phases of coronavirus relief and how advisers can best take advantage of the offerings for themselves and their clients.

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Outline

  1. Business relief
    1. Economic Injury Disaster Loans
    2. Paycheck Protection Program Loans
    3. Employer retention credit
    4. QIP life
    5. Business interest limit
    6. NOL changes
  2. Individual relief
    1. Rebates
    2. RMD waivers
    3. Retirement plan withdrawal changes
    4. Unemployment benefits
    5. Medical payments and HSAs
    6. Charitable contribution changes

Benefits

The panel will cover these and other critical issues:

  • Who is eligible for an Economic Injury Disaster Loan?
  • How is loan forgiveness calculated with a PPP loan?
  • What are the latest net operating loss carryback rules?
  • Which taxpayers need to amend returns to benefit from recent changes?

Faculty

Donovan, Jim
Jim Donovan, CPA

Partner
Eide Bailly

Mr. Donovan has more than 17 years of tax consulting experience providing R&D tax incentives to a variety of...  |  Read More

Mouw, Andrea
Andrea B. Mouw, JD

Partner
Eide Bailly

Ms. Mouw focuses on federal, state and international tax issues. Her key areas of expertise include accounting method...  |  Read More

Schwarz, Mel
Mel Schwarz, CPA

Director of Tax Legislative Affairs
Eide Bailly

Mr. Schwarz has over 37 years of experience specializing in legislative affairs, including development and...  |  Read More

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