Tax & Regulatory Briefing: March 2020

MARCH 27, 2020

As the tide of disruption caused by COVID-19 continues to rise, it remains too early for outlooks that aren’t dated by the time they’re issued.

Meanwhile, many of us have seen our inboxes flooded with COVID-19-related information, news, and alerts that can make it difficult to sift through the noise and focus on sound data and advice.

As a way to help you concisely gather trusted advice and resources in a simple way, this month’s Tax & Regulatory Briefing, focuses on recent tax and regulatory issues as well as live and active resources to help you, your organization, and your stakeholders safely navigate uncharted waters.

Want to include your updates for the next briefing? Let us know.

Links: 12 | Words: 338 | Read Time: 2 minutes

COVID-19, CFIUS and the Defense Production Act 

Stroock: “Although the administration has yet to invoke the DPA [as of March 27], commercial contractors in the health care sector, as well as in other industries with capabilities relevant to the COVID-19 pandemic, should assess the requirements of the DPA, and how to address potential DPA compliance issues.” READ MORE.

Initial US Federal and State Tax Relief Developments Relating to COVID-19

Mayer Brown: “We anticipate that various strategies to stabilize the markets and provide further relief to businesses and individuals will be proposed over the short-term and that some of this relief may be effected through Internal Revenue Service (the “IRS”) guidance and through tax legislation.” READ MORE.

Disinfecting for COVID-19: The Role of the US Environmental Protection Agency

Arnold & Porter: “Businesses must be aware that [cleaning agents and materials claiming to disinfect SARS-CoV-2] are regulated by the US Environmental Protection Agency (EPA) and many state agencies, and making these claims without proper EPA approval could result in an enforcement action. ” READ MORE.

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What May Be Considered “Qualified Disaster Relief Payments” Related to COVID-19?

Deloitte Tax: “Under Internal Revenue Code (IRC) section 139, qualified disaster relief payments may be made by employers and other parties to an individual on a tax-free basis in the event of a qualified disaster. To qualify under section 139, a two-prong test must be met.” READ MORE.

COVID-19 and the Construction Industry: Important Considerations 

Constructlaw: “Owners, contractors, suppliers and others may currently have more questions than answers. This article addresses some important concerns, and provides links to additional resources that more specifically address these concerns.” READ MORE.

CARES Coronavirus Relief Act: What You and Your Business Need to Know

CohnReznick: “Among the provisions included in the Act are those to provide rebate checks to many Americans, delay employer payroll taxes, greatly expand unemployment assistance, temporarily relax several provisions of the 2017 Tax Cuts and Jobs Act  (TCJA), and provide a technical correction for the TCJA drafting error regarding qualified improvement property.” READ MORE.

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