President Signs CARES Act
By Alan S. Kufeld, CPA, Partner, Leo Parmegiani, CPA, Partner, and Christopher Migliaccio, JD, Senior Manager
This is part of a continuing series updating our clients regarding the effects on tax filings due to COVID-19. Please find our prior articles as part of PKF O’Connor Davies’ COVID-19 Resource Center.
On Friday, March 27, 2020, the President signed H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or Act). The Act includes provisions both for tax relief relating to tax payments and current filings, as well as economic stimulus by allowing for tax refunds on 2019 returns and amended returns for the last several years.
The Act is substantially unchanged from the version passed by the Senate late Wednesday night. Our analysis of the Act can be found here. In addition, our COVID-19 Resource Center includes articles covering other information related to the pandemic which may be of interest to our clients, e.g. direct aid to affected businesses, the availability of loans for small businesses, etc.
What to Do Now
If you are a business owner, or have business income or loss through a pass-through entity, there’s a chance you may be eligible for an immediate refund by filing an amended 2018 income tax return or a 2019 income tax return reflecting the new rules.
Please contact us if you have:
- Unused or limited NOLs from 2018 or a predicted NOL in 2019
- An excess business loss limitation from 2018
- Large 2019 overpayments that would be credited to 2020 estimated tax obligations
- Qualified improvement property placed in service in 2018 or 2019
- Unused business AMT credits
- 2019 business interest expense limitation
We are ready and able to assist. In addition, if you have any questions about how the new rules will affect you, we’re here to advise.
State and Local Updates
We are actively monitoring state and municipal deadlines and announced procedures as well. Please see our recent newsletter. Further updates will be provided as states and municipalities announce their policies.
PKF O’Connor Davies is monitoring the situation in Washington, DC and as it changes we will keep you informed. If you have any questions, please contact your client services team at PKF O’Connor or any of the following:
Alan S. Kufeld, CPA
firstname.lastname@example.org | 646.449.6319
Leo Parmegiani, CPA
email@example.com | 646.699.2848
Christopher Migliaccio, JD
firstname.lastname@example.org | 646.699.2890