Latest Virus Relief Provisions Add To State Tax Uncertainty

January 8, 2021Media Mention

Greenberg Glusker partner, Michael Wiener, provided insight to Law360 regarding tax provisions in the Consolidated Appropriations Act and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The coronavirus relief portion of the Consolidated Appropriations Act clarified that expenses paid for with money from PPP loans created under the CARES Act would be deductible for federal income tax purposes. In the CARES Act passed in March, it was only clear that the loan income itself would be excluded from federal taxable income. State tax professionals are uncertain about conformity with provisions in the original CARES Act.

"One way to clear up some uncertainty would be to look to the intent of Congress, Michael Wiener, tax partner at Greenberg Glusker, told Law360. He said the point of the CARES Act and the follow-up supplemental appropriations law is that individuals and businesses are struggling, and this is one way to help. States should not opt out of providing relief, Wiener said."

"Congressional intent was very clear," Wiener said. "I would advocate for conforming wholesale to the federal legislation."

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