As the IRS and U.S. Treasury roll out FAQs and additional guidance on the CARES Act and COVID-19-related legislation, the GHJ State and Local Tax Team has fielded numerous questions from clients on how these new laws will affect California’s state taxes. Below is some insight into the most frequently asked about topics and how they will apply on a state-level. Reba [...]

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 COVID-19 emergency, can exclude up to 60 consecutive calendar days for [...]

COVID-19 has affected every major industry in the past three months. Arguably the most severely impacted is the food and beverage industry. However while many restaurants are taking major losses, sales are doing well for Consumer Product Goods (CPG), packaged food and beverage brands. Raw Material Concerns In a recent video message, Nestle’s CEO Mark Schneider sh [...]

Consumers have all been met with empty shelves at grocery store over the past weeks as most states are under stay-at-home orders. Or the grocery store might have the product but not the brand a consumer would traditionally purchase. Availability and Price Factors Consumers in the current economy are having to base their decisions on factors other than brand loyal [...]

In the CARES Act that was unveiled several weeks ago, there was a separate section that allotted close to $50 billion to the agricultural community. However, at the time of the issuance of the Act, there was relatively little information to how these funds were to be disbursed. That was until Friday, April 17, 2020. Agriculture Bailout On Friday afternoon, Preside [...]

As documented through various news reports and articles, the healthcare industry has been overwhelmed by the first wave of coronavirus cases. Healthcare providers have struggled with performing necessary healthcare services as a result of several factors stemming from the lack of medical equipment (ventilators, etc.), medical supplies (including personal protective eq [...]

The Coronavirus Aid, Relief and Economic Security (CARES) Act provides employers with the opportunity to defer the employer portion of social security taxes (6.2 percent) on wages paid between March 27, 2020 and Dec. 31, 2020. The Act also provides that employers that have a Paycheck Protection Program (PPP) loan forgiven are not eligible for the deferral. Until recen [...]

COVID-19 has created uncertainty and resulted in major economic changes, which has had a chilling effect on the economy, M&A deals and capital market transactions. Deals and financings (including IPOs) that were in process at the beginning of this year are now paused. Companies and investors are looking for answers about how to prepare for the future. Before COVID-19 [...]

The $2-trillion Coronavirus Aid, Relief and Economic Security (CARES) Act, has been a saving grace during the COVID-19 era. Companies industry-wide are most aware of the CARES Act’s $350-billion apportionment to the U.S. Small Business Administration (SBA) for emergency loans. The SBA’s most popular relief package is arguably the Payroll Protection Program (PPP), whic [...]

Last evening, the Small Business Administration (SBA) released an Interim Final Rulemaking Guide for individuals that file Paycheck Protection Program (PPP) applications. The guidance clarifies several aspects of the PPP loan application amount that were previously uncertain and provides taxpayer-friendly guidance on the use of PPP funds. Background Guidance for [...]