The American Rescue Plan Act of 2021 and IRS Notice 2021-20: New Stimulus Coverage and Changes to PPP Loan Forgiveness/Employee Retention Tax Credit

Description

This program will cover two critical topics that every practitioner must know about immediately: the new American Rescue Plan Act of 2021 (ARP) and new IRS rules relating to PPP borrowers who are also eligible for the Employee Retention Tax Credit (ERTC). Congress is expected to pass the ARP, which contains many new items, including significant changes that all practitioners need to be aware of right away. The first half of our program will cover the ARP to the extent it addresses tax changes and new tax developments.

The second half of our program is an analysis of IRS Notice 2021-20, which covers new IRS rules applicable to tax year 2020, relating to taxpayers who have PPP loans and who also are eligible to claim the ERTC. Notice 2021-20 is over 100 pages in length and addresses many of the questions tax practitioners have regarding the interaction between PPP loan forgiveness and the ERTC. The program will cover helpful examples and FAQs that address many situations we simply did not understand until the IRS issued this Notice.

Take this course prior to 4/15/21, as anyone preparing income tax returns for 2020 would immensely benefit from this program.

Highlights

Please note: major topics are expected to be those shown below but are subject to possible change based on final legislation.

From the American Rescue Plan Act of 2021:  

• $1,400 stimulus checks for each family member
• First $10,200 in unemployment for 2020 will not be taxed
• Student loan forgiveness exempt from tax through 2025
• Changes to the Child Tax Credit, the Earned Income Tax Credit, and the Child and Dependent Care Tax Credit
• Extension of employer credits for sick leave and family leave
• The Employee Retention Tax Credit and the Premium Tax Credit in 2021
• Tax treatment of targeted EIDL advances
• Restaurant Revitalization grants
• Subsidized COBRA continuation coverage
• PPP loan changes for 2021
• Coverage of any other relevant tax provisions

• How to claim the ERTC
• Options for taxpayers eligible for the ERTC who did not claim it for 2020
• Eligible employers
• The ERTC and its interaction with PPP loans
• The maximum amount of an employer’s ERTC
• Meaning of full and partial suspension of business
• The deemed election for qualified wages
• Aggregation rules
• Significant declines in gross receipts

Objectives

• Understand and advise clients now regarding major changes included in the American Rescue Plan Act of 2021
• Understand and advise clients now regarding the interaction between PPP loan forgiveness and the Employee Retention Tax Credit, as well as other critical developments included in IRS Notice 2021-20

Designed For

Any tax practitioner advising clients with respect to preparing individual and business income tax returns for 2020, or anyone wishing to be informed on the latest stimulus coverage and IRS guidance