The Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136), which was signed into law March 27, is the federal government’s attempt to mitigate the economic effect of the coronavirus on American businesses. The $2 trillion stimulus package includes several provisions that are aimed at easing the tax burden for companies impacted by COVID-19.
Congress’s intent for the legislation is clear, to help American businesses in the face of a global medical (and economic) emergency. The language of the CARES Act, however, leaves us with some questions and ambiguities. The Act sets up several programs to provide American businesses with liquidity. These programs include the Paycheck Protection Program (“PPP”), the Employer Retention Tax Credit (“ERTC”), the Economic Injury Disaster Loan (“EIDL”), as well as an option to postpone employer’s portion of payroll taxes.
Keeping in line with our mission to help strengthen U.S. businesses, we have set up a CARES Act resource center. It contains the latest IRS and Treasury guidance as well as articles and webinars on some of the most important issues.
Should you have specific questions regarding the CARES Act, or any other tax issue, please contact Steve at [email protected].