The knowledge you need

The Georgia Department of Revenue (GDOR) announced yesterday the state will also be extending the 2020 individual tax filing deadline from April 15, 2021, to May 17, 2021.

On the same day, the IRS issued millions of taxpayers the economic stimulus payment outlined in the American Rescue Plan Act of 2021; they also announced an extension to the individual tax filing deadline. The original date of April 15th has been the standard deadline but was modified last year during the COVID-19 pandemic.

The persistent COVID-19 pandemic continues to create economic and financial challenges for government agencies, businesses, organizations, and individuals. While there has been a reduction in the number of new cases, thanks in part to the vaccine, many of the protective restrictions across Atlanta remain. It is against this backdrop that President Biden signed the American Rescue Plan Act of 2021 (the Act) into law.

Alabama’s tax environment is known to favor simplicity and taxpayer-friendly policies. Despite this positive reputation, conflicts between state and federal taxation can leave taxpayers hanging in the balance. Recent tax reform, which passed both chambers of the legislature unanimously, provides a solution for some of the uncertainty caused by the Tax Cuts and Jobs Act and COVID-19.

On Saturday, March 6, 2021, the U.S. Senate passed the American Rescue Plan Act of 2021, (the Act) the latest in a series of COVID-19 relief legislation. The package, which includes $1.9 trillion in aid, is set to be signed into law by President Biden within days. While much of the Plan is focused on relief for individuals and families as well as vaccine distribution, a substantial portion is aimed at supporting Atlanta businesses still impacted by the ongoing pandemic.

In recent weeks, the Biden Administration has focused on expanding COVID-19 relief opportunities for small businesses through the Paycheck Protection Program (PPP). It was announced on February 22nd the Small Business Administration (SBA) would be initiating several changes including an exclusive 2-week application period for small businesses and a new loan calculation formula. On March 3rd, the SBA issued Interim Final Rule (IFR), Paycheck Protection Program Revisions to Loan Amount Calculation & Eligibility, that modifies the formula for determining the maximum loan amount using gross income rather than net profit.

As Atlanta area business owners continue to manage the economic challenges presented by the persistent pandemic, federal programs such as the Paycheck Protection Program (PPP) and the Employee Retention Tax Credit (ERC), among others, have been important sources of relief. When the Consolidated Appropriations Act, 2021, was passed in late December, it extended and expanded many important relief measures including the ERC

Since the Paycheck Protection Program (PPP) was launched as part of the CARES Act in March 2020 it has undergone numerous changes and updates. The short timeframe the Small Business Administration (SBA) had to implement the PPP meant the time typically used to develop a comprehensive framework was simply not available. This resulted in many small businesses and organizations missing the opportunity to receive a loan due to confusion, lack of guidance, and inattention from lenders.

In a time when businesses are struggling financially from the persistent COVID-19 pandemic, many continue to find new paths to profitability when managing government orders. For some this has meant a transition to a remote work environment while others have had to make more significant changes to operating hours, location layout, and employee/customer safety practices. Although the impact varies, it is no secret that the pandemic is exacting a toll on many companies.

The Consolidated Appropriations Act (CAA), which was passed on December 27, 2020, provided a much-needed boost to millions of U.S. taxpayers and contained billions of dollars in new federal funding designed to support the construction industry. In addition to reviving the Paycheck Protection Program, the CAA contained several tax extenders and made other tax incentives permanent. This included a renewal of the Employee Retention Tax Credit, Section 179d, and several renewable energy-related credits. When combined these relief measures can help Atlanta construction companies and contractors manage through the persistent COVID-19 pandemic.