The Financial Accounting Standards Board voted Wednesday to give private companies and not-for-profit organizations an extra year to comply with the revenue recognition standard, giving them some more time as organizations struggle to adjust to the novel coronavirus pandemic. FASB issued a proposal last month to defer the effective date of the revenue recognition and
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The just-released Paycheck Protection Program Forgiveness Application answers a number of important questions, but leaves many more unanswered, according to the American Institute of CPAs. More importantly, the document and related instructions, issued by the Treasury Department and the Small Business Administration, “still do not provide enough flexibility for those who receive funds,” the institute
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As state and local governments begin to relax their restrictions on business and individual activities, the debate has begun over what policies will best help the economy recover from the COVID-19-induced shutdown. The Tax Foundation’s General Equilibrium Model suggests that allowing businesses to immediately deduct or “expense” their capital investments in the year in which
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The State Municipal Assistance for Response and Transition (SMART) Act, sponsored by Senators Bob Menendez (D-NJ) and Bill Cassidy (R-LA) in the Senate and by Rep. Mikie Sherrill (D-NJ) in the House, would provide $500 billion in flexible funding to state, local, and tribal governments to backfill lost revenues and otherwise provide fiscal relief during
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Today, lawmakers and the administration are exploring policies to meet the need to increase investment and economic output amid an economic downturn. Improving the cost recovery treatment of long-lived assets is a cost-effective tax policy change that can boost investment and growth. While full expensing is one approach and is a policy that lawmakers are
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Among other revenue provisions (Division B) of last week’s House-passed Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, the bill would make changes to certain refundable and non-refundable credits aimed at taxpayers with dependents under the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), and Child and Dependent Care Tax Credit (CDCTC). This
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Across the country, unemployment insurance (UI) benefits are playing an important role in helping individuals who have lost work due to the COVID-19 pandemic and associated economic fallout. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, provided a temporary, federally-funded increase in UI benefits and expanded benefits eligibility.
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Thomas Barwick Lawmakers may allow savers to undo last year’s mandatory withdrawals from retirement accounts. The $3 trillion HEROES Act – the latest round of proposed federal coronavirus relief legislation – was passed by the House last Friday. Aside from granting households another batch of $1,200 stimulus payments and granting student loan relief, the measure
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In a previous post, I outlined portions of the dependent-related provisions in the recently-passed HEROES Act (H.R. 6800), focusing on changes to the EITC, CTC, and CDTC. Although the legislation increases and expands each of the credits, the changes are untimely, intentionally temporary, and lack sufficient stability, simplicity, and transparency. Timing The HEROES Act enters
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Signs hang from the Meridian Heights apartment building in Northwes Washington on Monday, May 18, 2020. (Photo by Caroline Brehman/CQ-Roll Call, Inc via Getty Images) Caroline Brehman The unemployment drama playing out in the U.S. has drawn comparisons to the Great Depression, the worst economic downturn in the history of the industrialized world. But is
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Key Findings Removing tax policy barriers can help businesses and individuals invest, work, create jobs, and lift the economy during a post-pandemic recovery without requiring lawmakers to create new spending programs. One of the most cost-efficient options available to lawmakers is to improve the cost recovery treatment of structures. Residential structures must be depreciated over
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