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Category Archives: Small business Tax

Domestic Production Activity Deduction Update

The Internal Revenue Service (IRS) issued final rules regarding the domestic production activities deduction 199A(g) (DPAD) Thursday. The IRS has made the decision to not allow the DPAD to apply to non-member-based business. The Office of Information and Regulatory Affairs (OIRA) completed its review of the final regulations under 199A(g) and plan to reveal guidance...

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Payroll Tax Deferral Option for Employers

Under the umbrella of payroll-related provisions providing relief to employers and employees in response to the coronavirus outbreak comes one more – the Presidential Memorandum (Memorandum) on deferring the employee portion of Social Security Tax (released August 8, 2020).   The Treasury and the IRS then issued Notice 2020-65 (the Notice), released August 28, 2020, which...

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DPAD Updates – Robert Bell, CPA, Auditor

Iowa DPAD DeductionThe Tax Cuts and Jobs Act 2017 (TCJA) removed section 199 from the Internal Revenue Code (IRC), which created several unintended consequences. In response, Congress introduced Section §199A(g), which essentially re-instated the federal Domestic Production Activities Deduction (DPAD) deduction. As a result, the State of Iowa announced Tax Reform Guidance regarding the DPAD...

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PPP Loan Tax Consequences – Robert Bell, CPA, Auditor

As you know, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27th, 2020. Part of this law provided aid to businesses in the form of Payroll Protection Program (PPP) loans; which were intended to be forgivable to the extent that these loans were utilized for certain payroll-related costs....

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States Tax Treatment of the SBA PPP Loan Forgiveness Program under the CARES Act – Cristina Bucksbaum, Senior Tax Manager

The Paycheck Protection Program is designed to be a forgivable loan if certain conditions are met.  The forgiveness of debt shall be excluded from gross income for federal income tax purposes as expressed by the federal government in the CARES Act. Currently, states have not given guidance regarding tax treatment regarding SBA PPP forgivable loans. ...

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