What the Federal Government has put into place to date is summarized in the following:
Phase 1 – “Coronavirus Supplemental Appropriations,” which provides financial aid for the federal, state, and local public health response
Phase 2 – “Families First Coronavirus Response,” which targets relief for individuals, including mandatory, but refundable, paid family leave to small businesses
Phase 3 – “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act), which is designed to deliver cash to individuals, small businesses, as well as the retail and hospitality industries to help them weather the economic downturn
It is imperative that businesses be able to discern which programs or incentives they qualify for without unknowingly double-dipping or invalidating credits or loan forgiveness of federal or state funds.
Ryan can assist your business with a dedicated and well-informed team of professionals who understand the new programs. Our aim is to work with you to assess your company’s specific needs and program eligibility during this unprecedented time. Our partnership serves to create an immediate, supportive action plan. In addition, our team will assist in implementing policies, procedures, and controls by providing a compliance tracking system to ensure tax decisions are clear and accountable. Accountable records are important for any audits of these programs.
The CARES Act created a broad oversight and enforcement regime charged with ensuring that the Federal Government programs and loans are obtained and used consistent with the specified eligibility requirements of each incentive. The specific new enforcement mechanisms for COVID-19 benefits include the Special Inspector General for Pandemic Recovery, Pandemic Response Accountability Committee, and the Congressional Oversight Commission. This does not include the existing enforcement entities such as the Department of Justice, which has indicated in numerous public statements its intention to investigate misconduct associated with the CARES Act and COVID-19. State Attorneys General will enforce its state aid packages, and the Internal Revenue Service (IRS) will be monitoring any tax filings and relevant disclosures.
A successful partnership will ensure your business and employees have the depth of tax insight required to thrive, without the added burden of unforeseen, or unintended, financial consequences. Please see links for additional resources:
Ryan is as committed as ever to our clients, especially during these trying times, and we hope to encourage you by standing strong by your side as an ever-present resource.
Please contact us if you have any questions.
TECHNICAL INFORMATION CONTACT:
Sharon M. Welhouse
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at firstname.lastname@example.org.