The IRS Sheds New Light on the Use of COVID-19 Relief Programs

        One of the lifelines for Small Businesses last year was the Paycheck Protection Program (PPP). There was also the Employee Retention Credit (ERC). Both were a part of the CARES Act in March 2020. Until the Taxpayer Certainty and Disaster Tax Relief Act of December 2020, they were essentially treated as separate. A business would have had to choose between one or the other. Now they can participate in both and the Internal Revenue Service (IRS) has released guidance on this subject.

          Getting involved in both forms of relief is certainly an attractive option to most businesses. However, there is no “one size fits all” path to COVID-19 relief. PPP funds are still very difficult to acquire and this guidance allowing for ERC use is still new. Keeping good records and talking to your Qualified Tax Professional is essential at this point. This is a situation that is constantly changing, with more IRS guidance likely to come soon.

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