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IRS Issues FAQs on Coronavirus State and Local Fiscal Recovery Funds
The IRS has provided FAQs regarding Coronavirus State and Local Fiscal Recovery Funds (SLFR Funds). The FAQs detail the tax consequences for individual recipients and the reporting requirements for the states and local governments and employers as applicable...
The FAQs also provide answers regarding payments used to assist with childcare or other basic needs.
The IRS stated that some SLFR Fund recipients may have to report certain payments as income and may owe tax depending on the purpose of the payment. State and local government administrators will find answers regarding their filing requirements, including when Forms 1099 need to be filed. More information about reliance is available at https://www.irs.gov/newsroom/general-overview-of-taxpayer-reliance-on-guidance-published-in-the-internal-revenue-bulletin-and-faqs.
The IRS has released frequently asked questions (FAQs) detailing reporting directions for certain passthrough entities and taxpayers partnership interests reporting held in connection with the performance of services, known as "carried interests"...
In October and November of 2021, the IRS is sending informational-only CP256V Notices to self-employed individuals and household employers that chose to defer paying certain Social Security taxes under the Coronavirus Aid, Relief, and Economic Security (CARES) Act ( P.L. 116-136)...