COVID-19 Tax Insights

    Tax Deductibility of PPP-Funded Expenses

    By Daniel Rowe, Partner Earlier this year the IRS issued Notice 2020-32 declaring their position that expenses paid with forgiven PPP funds would not be deductible for federal tax purposes. The Franchise Tax Board (FTB) has taken the same position for California tax purposes. While this was [...]

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      The California Small Business Hiring Credit

      By Brett Crowell On Sept. 9, 2020, California Governor Gavin Newsom signed Senate Bill 1447, which established the Small Business Hiring Credit. The bill seeks to provide financial relief to certain small businesses impacted by the unprecedented economic disruptions and job losses that have [...]

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        Earnouts in the Age of COVID-19

        As the transactional markets have begun to defrost and M&A activity is picking back up to pre-shutdown pace, it is a good time to consider how deals are being structured in a COVID-19 world. A key structuring term used in the transaction community recently is the “earnout.” According to SRS [...]

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          CA Personal Property and Property Tax Relief

          By Frances Ellington (Principal) On May 6, Governor Newsom expanded property tax filing and payment relief from county and local guidance announced in GHJ’s prior Tax Alert. In addition to expanding the payment relief guidance for April installments, the executive order extended the deadline for [...]

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            IRS Relaxes U.S. Tax Residency Requirements

            By Polina Chapiro (Partner) and Yan Jiang (Senior Manager) As additional relief for U.S. taxpayers that are affected by COVID-19, the IRS and Treasury provided guidance for tax issues as a result of the travel disruptions for both 2019 and 2020. Rev. Proc. 2020-20: Provides that eligible [...]

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              Property Tax Penalty Relief

              The California local government and county assessors do not have the authority to extend the April 10 property tax deadline because this can only be done by legislative act or executive order. However, beginning on April 11, taxpayers unable to pay on time for reasons related to COVID-19 may submit [...]

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                CA Tax Deadline Extended for Affected Taxpayers

                Governor Newsom signed an Executive Order on Thursday, March 12 stating that state tax filing deadlines have been extended by at least 60 days for California individuals and businesses unable to file a timely tax return or make a timely payment as a result of complying with a state or local public [...]

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