The Incentives from the Cares Act – FAQ and Live Discussion
On May 15, attendees joined IACC member KPMG for "The Incentives from the Cares Act – FAQ and Live Discussion," a webinar that covered taxpayers’ most common questions, as well as what KPMG considers the incentives often overlooked by companies. Experts from KPMG shared their experience and suggestions developed while helping companies maximize the incentives provided by the Cares Act, by the Emergency Declaration from March 2020, as well as addressing transfer pricing challenges arising from business disruptions. Participants had the opportunity to ask specific questions related to their businesses, in addition to learning more about the incentives available as a result of the challenges brought by COVID-19.
To view the video recording please CLICK HERE
To download the slides please CLICK HERE
A list of questions that will be discussed during the seminar is included below:
Cares Act Specific Questions
- What are the key differences between PPP and ERC and which one is better for my company? What is the implication of these two opportunities with other CARES Act credits (i.e., FMLA / Sick / leave)?
- What type of scrutiny/audit/information may the IRS request in the future when they audit our request for PPP or ERC?
- How is a small company defined, based on the number of US employees or global?
- What is the difference between the 100 and 500 thresholds I have heard with respect to the Cares act?
- If sales have not declined by 50%, can a small company benefit from ERC? Discuss other qualifying criteria, i.e., “partial suspension” of business operations.
- What other aspects of the Cares act can benefit my company?
Additional Opportunities due to the Emergency Declaration
- If FY2018, FY2019 and / or FY2020 are loss years, can a company carry those losses back 5 years and possibly obtain a refund for US federal taxes paid at a higher tax rate?
- What is the technical correction related to the recovery period of Qualified Improvement Property under the CARES Act and how can companies benefit from it?
- If any of the tax years 2018 - 2020 are profitable, are there still opportunities to benefit from the 5-year NOL carry back provision?
- How can refunds of Alternative Minimum Tax credits be accelerated?
- How is the interest expense limitation under Section 163(j) temporarily modified?
- Should I look at the single year or at the three year average to compute the year end adjustment?
- My Italian parent company is incurring steep losses. If the US affiliate is incurring a loss, is there any possibility to avoid a year end adjustment, which would result in greater losses in Italy and taxable income in the US?
- Has the IRS provided any guidance on Covid-19?