Tax

For businesses substantially affected by COVID-19, the employee retention credit (ERC) has been one of the more valuable incentives to keep workers on the payroll. Since its inception in March 2020, the ERC has undergone several modifications and extensions which has increased the credit’s value. There was an initial extension for the first half of the year in the Consolidated Appropriations Act, 2021, (CAA) and then another through the end of the year in the American Rescue Plan Act. The changes are meant to provide additional relief to businesses challenged by the pandemic.

Since the American Rescue Plan Act of 2021 (ARPA) was signed by President Biden, there has been a flurry of changes and updates impacting individual taxpayers. Initially, attention was focused on the distribution of the $1,400 economic impact payment and shifted to other issues such as the 2020 tax exemption on certain unemployment benefits. Attention quickly changed when it was announced the IRS would extend the individual tax filing deadline by 32 days to May 17th.

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.

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

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.

Rural hospitals face a number of challenges to delivering comprehensive patient care. The combination of demographic, economic, and industry issues has left facilities facing financial difficulties. The COVID-19 pandemic has intensified the problem because there are now far more individuals needing care than capacity permits. This has left many searching for additional income to deliver desperately needed healthcare.

The Consolidated Appropriations Act, 2021, passed in late December provided many Atlanta businesses and nonprofit organizations with much needed financial and tax relief. While helpful, the new Biden Administration believes more is needed and is proposing a new $1.9 Trillion package to broaden the scope of assistance. The continued focus on economic relief makes it clear just how devastating the pandemic has been on the economy. While Congress and the White House work out the details of another rescue package, the IRS has also been making changes to provide relief to taxpayers. On January 19th, the IRS issued Notice 2021-10 which extends several deadlines originally outlined in IRS Notice 2020-39 governing Qualified Opportunity Zone (QOZ) investments.