Professionals sign contract to close the deal

IRS extension of COVID-19 relief (2020-50)

On June 19, 2020, the Internal Revenue Service (IRS) issued Notice 2020-50, which expanded the categories of qualified individuals eligible for the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provisions and provided guidance for tax treatment of CARES Act loans and distributions for those qualified individuals.

The expanded definition of a qualified individual who experiences adverse financial consequences now includes reduction in pay or self-employment income, rescinded job offer, delayed job start date and adverse financial consequences of the qualified individual’s spouse or household member.

Qualified individuals can claim the tax benefits of coronavirus-related distribution rules, even if plan provisions are not changed. Specific examples of tax treatments are detailed out in the guidance, including how the distributions should be reported on the qualified individual’s federal income tax return.

For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.

Assumptions – Damage period
Next up

The next four waves of mergers and acquisitions (M&A)