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COVID-19

COVID Relief Bill Contains Numerous Tax, Payroll and Pension Provisions

On Monday, December 21, Congress released official text language for the massive, 5,593 page, Consolidated Appropriations Act, 2021 (CAA, 2021).

The CAA, 2021 serves as a vehicle to provide pandemic relief as well as to fund government operations through the fiscal year.

The bill is expected to be quickly passed by both chambers and signed into law by the President.

For the complete text of CAA, 2021, go here

CAA, 2021 contains the following subtitles, divisions, etc. that cover tax changes:

Subtitle B of Division N of the bill is the “COVID-related Tax Relief Act of 2020” and is abbreviated as COVIDTRA in our articles.

Included in COVIDTRA are provisions for an additional recovery rebate for individuals, amendments to recovery rebates under the Coronavirus Aid, Relief, and Economic Security (CARES; PL 116-136, 3/27/2020) Act, and an extension of certain deferred payroll taxes.

For a further discussion of the Subtitle B provisions, see New law’s tax provisions include direct-to-taxpayer rebate.

Title III of Division N the bill is the “Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act.” Several provisions contained within this Act pertain to the Paycheck Protection Program (PPP).

For further discussion of these provisions, as well as other provisions from Title III, see Consolidated Appropriations Act of 2021 Contains Many COVID-19 Payroll-Related Provisions.

Division EE of the bill is the Taxpayer Certainty and Disaster Tax Relief Act of 2020, abbreviated TCDTR.

Included within this Act are a host of so-called “extender” provisions. The Act permanently extends some provisions, extends some provisions through 2025, and extends certain other provisions for varying periods of time.

This Act also includes several provisions related to disaster relief.

For further discussion of the extenders, see COVID-19 aid package includes tax extenders.

For further discussion of the disaster relief, see New law provides retirement plan modifications for disaster-related distributions.

For other tax provisions in th TCDTR, see Other tax changes in COVID-19 bill.

Additional coverage in Federal Tax Updates. Please continue to monitor Federal Tax Updates for additional coverage of CAA, 2021.

 

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