COVID-19 Tax Insights

    PPP Expense Deductibility and Other Tax Law Changes

    On Dec. 21, 2020, Congress passed the Consolidated Appropriations Act of 2021 (“the Bill”), which is a comprehensive bill including COVID-19 relief, tax extenders and funding for the Federal government for the remainder of fiscal year 2021. In addition to providing for a second round of PPP [...]

    See Details

      Tax Deductibility of PPP-Funded Expenses

      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 unwelcome news for taxpayers [...]

      See Details

        The California Small Business Hiring Credit

        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 occurred in 2020. The [...]

        See Details

          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 [...]

          See Details

            CA Personal Property and Property Tax Relief

            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 all business personal property tax [...]

            See Details

              IRS Relaxes U.S. Tax Residency Requirements

              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 nonresident aliens, who were not able to depart the U.S. because of [...]

              See Details

                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 [...]

                See Details

                  U.S. Enacts the Families First Coronavirus Response Act

                  The Families First Coronavirus Response Act (“FFCRA”) was signed into law on March 18, 2020. The FFCRA creates new “emergency sick leave” and expands the current Family and Medical Leave Act (“FMLA”). The FFCRA is intended to address the COVID-19 outbreak by providing paid sick leave, free COVID-19 [...]

                  See Details

                    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 [...]

                    See Details