Apply Now to Get New Money from the Paycheck Protection Program PPP! Taking Care of Business

Congressional leadership and the White House spent more than a week negotiating the final details. The big breakthrough occurred when both political parties agreed to withdraw their top demands. For Republicans, this meant walking away from a complicated effort to provide a liability shield to protect business from lawsuits involving COVID transmission. For Democrats, this meant abandoning a demand of between $160 to $500 billion in relief for state and federal governments. The Massachusetts personal income tax does not allow the deduction of an NOL.[57]  Therefore, the changes to the NOL rules adopted by CTRA have no impact for Massachusetts personal income tax purposes. The Massachusetts personal income tax follows the current Code with respect to trade or business expense deductions.

It also allows businesses to claim a tax deduction for the ordinary and necessary expenses paid from the proceeds of PPP loans. In addition, the CAA established a simplified, one-page forgiveness application for loans up to $150,000. It clarified that PPP borrowers aren’t required to include any forgiven amounts in their gross income for tax purposes and that borrowers can deduct otherwise deductible expenses paid with forgiven PPP proceeds. This relief doesn’t apply to estimated tax payments that are due on April 15, 2021. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. In general, estimated tax payments are made quarterly to the IRS if your income isn’t subject to income tax withholding.

Period 3 Reporting Now Open: PRF Update

The data submission requirements in these interim final rules will provide the Departments and OPM with a better understanding of prescription drug and health care spending in the United States. Further, these interim final rules are necessary to meet the statutory requirements of section 9825 of the Code, section 725 of ERISA, and section 2799A-10 of the PHS Act. As a result, the dispensing frequency, total spending, and prescription drug rebates, which are used to rank the top 50 and top 25 lists, are likely to be different for drugs covered under the pharmacy benefit and for drugs covered under the hospital or medical benefit.

  • You should consult with counsel to determine applicable legal requirements in a specific fact situation.
  • For example, the Departments may choose to allow data submitted by affiliated issuers to be aggregated at the holding group level within a state and market segment.
  • As with expanded family leave, covered employers can claim an elective refundable 100% tax credit for qualified paid sick leave wages, also against Social Security taxes.
  • The exclusion applies to the 2020 and 2021 tax years.[17]  See TIR 21-6 for additional details.

In determining this limitation, taxpayers can exclude jobless benefits from their computation of adjusted gross income. Taxpayers who filed their 2020 returns prior to this date should wait on IRS guidance regarding potentially amending their Ma Clarifies 2020 Tax Treatment Of Ppp Income, Eidl Grants, & Sba Debt Relief Subsidies returns, as the IRS is looking into updating their systems to automatically calculate any refunds due. To qualify, you must have filed a 2021 return on or before October 17, 2022, however, this includes both resident AND nonresident filings.

Additional Guidance on Deferral of Employment Tax Deposits and Payments under CARES Act

Several RFI commenters also raised concerns about duplicative reporting or requested that OPM reconcile its current reporting requirements with any reporting required under section 204 of Title II of Division BB of the CAA. While OPM does require its FEHB carriers to submit certain data directly to OPM, the specific type of reporting diverges from section 204 of Title II of Division BB of the CAA in terms of the nature of the reporting as well as its purpose. The Departments seek comment as to whether there are any other plans with unique benefit designs that should be exempt from these interim final rules. It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. Procedures relating solely to matters of internal management are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published.

The amount of these tax credits is increased by allocable health plan expenses and contributions for certain collectively bargained benefits, as well as the employer’s share of social security and Medicare taxes paid on the wages (up to the respective daily and total caps). The Departments and OPM estimate the burden to report the information will be the time and effort necessary for plans, issuers, FEHB carriers, and other reporting entities to submit the required information in the required format to the Departments. The Departments and OPM assume that issuers, TPAs, and PBMs will submit the required information on behalf of group health plans or FEHB carriers. The Departments and OPM acknowledge that TPAs and PBMs are likely to pass on any related costs to plans, issuers, and FEHB carriers. The Departments and OPM estimate there are 473 health insurance issuers offering individual and group health insurance, TPAs34 (generally submitting on behalf of self-funded group health plans), 46 FEHB carriers, and 66 PBMs35 (submitting on behalf of plans, issuers, and FEHB carriers) that will submit the required information annually. The Departments and OPM assume that all costs will be incurred in 2022 and beyond, since reporting entities are unlikely to begin implementation in the last month of 2021.