H\@>E-I7d1?Lfh%-tTY?|n}.9 !mj;s'y?RI9\iH1ILml.=#\B? o.mcprSp&LuIcxYOyy~%1*,sr.$`!=X We are currently analyzing and considering the impact of the Federal CARES Act on California taxpayers. The U.S. Small Business Administrations Paycheck Protection Program (PPP) is providing an important lifeline to help keep millions of small businesses open and their workers employed during the COVID-19 pandemic. 80 (available here), addressing modified conformity to federal income tax provisions relating to loans forgiven pursuant to the Coronavirus Aid, Relief, and Economic Security Kev Kurdoghlian April 21, 2021 9:01 pm Mike Garcia. When reviewing state conformity for purposes of the PPP loan forgiveness exclusion, a state could take a position that section 1106(i) has no impact on whether the loans are forgiven for state tax purposes because, while the state may conform to the IRC, it may not conform to section 1106(i) and the other federal provisions in Title 15 (where . In September 2020, California enacted AB 1577, which conformed to the CARES Act exclusion from gross income for PPP loan forgiveness. More than 750,000 PPP loans were taken out by California small businesses. Governor Newsom, Legislative Leaders Issue - California Governor Legislature passes bill that would allow physicians to deduct PPP Those states include California, Texas, and Florida. Acting Governor Eleni Kounalakis Signs Legislation to Support States COVID-19 Preparedness, PHOTOS: Governor Newsom Visits Diablo Canyon Power Plant, More Time to File State Taxes for Californians Impacted by December and January Winter Storms, Governor Newsom on Read Across America Day: While Other States Ban Books, Were Helping Students Read, Governor Newsom Proclaims State of Emergency in 13 Counties Due to Winter Storms, Activates California Guard. 1 Under A.B. CARB-Accredited LCFS Verification and Validation, IRS Extends Tax Deadline for California, Alabama, and Georgia Disaster Areas, 7 FAQs for Colorado Businesses Preparing for New FAMLI Rules, Schedule K-2 and K-3 Filing Requirements for 2022: IRS Changes Timeline, Summary of Proposed American Families Plan, How to Secure and Update an Estate Plan Ahead of Changes . Impacted by California's recent winter storms? California has yet to make a final determination on whether to conform state tax code to current federal tax rules related to the treatment of expenses associated with forgiven Paycheck Protection Program (PPP) loans. conformity to federal on PPP forgiveness. News. It depends. California is not adding additional supporting documentation requirements. endobj California Largely (But Not Fully) Conforms To Deductibility Of If a taxpayer receives a penalty and believes that the actions for which they were penalized were the result of reasonable cause (for penalties that can be abated due to reasonable cause) or that a reason exists for waiver of a penalty, they can make a request for penalty abatement/waiver in which the facts and circumstances will be evaluated on a case by case basis. AB 80 was introduced earlier this month as a legislative vehicle to partially conform and allow some PPP related deductions for state tax purposes.
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