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CARES Act Provider Relief Fund and Taxes: What You Need to Know

Posted On: August 31, 2020 by Essentially Women in: Business, Essential News

In enacting the CARES Act, Congress did not specifically address the taxation of the Relief Payments. Although the IRS’s position is that its FAQ guidance is not citable as legal authority, it seems clear that the IRS expects taxpayers to rely on these FAQs and other recently issued FAQs to meet their federal income tax obligations during the coronavirus (COVID-19) pandemic. The U.S. Department of Health and Human Services (HHS) has frequently updated its Relief Payments FAQs since April but had not addressed the taxability question in those HHS FAQs. Mark Higley, VP of Regulatory Affairs with VGM Government Relations recently discussed taxation issues on economic stimulus programs including on the CARES Act payments and employee retention tax credit. Watch the Recording      Slide Deck We will look at some applicable FAQs that confirm that Relief Payments to for-profit healthcare providers are taxable on receipt. You can find the CARES Act Provider

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