Paycheck Protection Program – Deductibility Dilemma
A strong argument that 265 does not apply is that it kind of makes the exclusion in the CARES Act kind of pointless. Hopefully the IRS will rule on this soon. My money is on deductibility. My reading of the politics is that the Republicans prefer that aid to people thrown out of work filter to them through banks and employers rather than just go the them directly. Of course as political analyst, I make a pretty good tax researcher.
Is Now The Time For Non-Filers To Come In From The Cold?
One of the earlier responses of the IRS to the COVID-19 crisis was IR-2020-59- IRS unveils new People First Initiative; COVID-19 effort temporarily adjusts, suspends key compliance programs. Ironically, one practitioner sees the IRS suspension of collection activity as an opportunity for non-filers to get their compliance affairs in order. We should start with some background.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.