In today’s Morning Call on the coronavirus (COVID-19) emergency, Rachel Kleinberg and Michael Mollerus, partners in our Tax Department, discussed significant business tax provisions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, as passed by the Senate yesterday. The discussion included and was moderated by Nora Jordan, a partner and head of the Investment Management Group.
These Cares Act provisions include:
- Expanded opportunities to use net operating losses to reduce taxes, including a carry-back provision allowing companies with losses to get refunds for taxes paid in prior years
- Relaxation of limits on deducting interest, a benefit to highly leveraged companies
- Payroll-tax relief, including a new refundable credit and extended deadlines for employers’ Social Security tax payments
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