{ Federal Taxation | 2021 review }
A “21-GUN SALUTE” TO
2021 TAX LEGISLATION
2021
was another challenging year as businesses tried to move ahead after months of pandemic-related challenges. Congress, in an attempt to support struggling businesses, continued its COVID-19 relief efforts while also focusing on developing additional areas. The following three pieces of significant tax legislation were enacted in 2021: • The Consolidated Appropriations Act, 2021 (CAA), signed into law on Dec. 27, 2020 • The American Rescue Plan (ARP) Act, enacted on March 11, 2021
By Jim Brandenburg, CPA, MST
• The Infrastructure Investment and Jobs Act (Infrastructure), signed into law on Nov. 15, 2021 The following is our “21-gun salute” as we highlight 21 business tax provisions enacted in 2021:
CAA 1. Tax treatment of expenses on PPP loans — Following the passage of the Coronavirus Aid, Relief and Economic Security Act (CARES) in March 2020, the IRS announced that the Paycheck Protection Program (PPP) costs would not be deductible since the loans could be forgiven. While this led to much concern for borrowers, it was resolved with the passage of the CAA and its provisions that eliminated cause for concern. One of the key changes
30
On Balance
January | February 2022
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