News and Analysis
Since 2008, U.S. federal debt has surged nearly 200%, reaching $27 trillion in October 2020. It matters because this accumulation of federal debt cannot go on forever; taxpayers eventually will be forced to fill the hole. Over the past decade, more taxpayer dollars have been used to pay interest on the debt than on federal funding for veterans benefits and education programs.
To gain a better understanding of America’s federal debt crisis, VisualCapitalist.com has published this infographic. 11/23/2020
Last week, the IRS and U.S. Treasury Department provided new guidance reaffirming the non-deductibility of certain expenses paid from proceeds of a Paycheck Protection Program (PPP) loan.
OMA Connections Partner RSM has published its analysis, noting that the IRS rule “holds that taxpayers should not deduct PPP funded expenses in the year the expense was paid or incurred regardless of whether the taxpayer has sought forgiveness on the loan.”
OMA Connections Partner Clark Schaefer Hackett has also published this overview of the new guidance. 11/24/2020
This year’s challenges have brought new tax implications for businesses. OMA Connections Partner Crowe LLC has produced this year-end tax planning guide to provide an overview of the most significant tax law changes going into effect in 2020. It can help you better understand the best tax-savings opportunities via deductions; how to save on taxes through capital losses; and COVID-19 tax relief for employers. 11/24/2020
This week, the OMA Tax Committee met virtually for its third and final meeting of the year. Members were briefed on Ohio’s financial condition by Kimberly Murnieks, director of the Ohio Office of Budget and Management. She noted that consumer spending by higher and middle-income households has not fully recovered, but said Ohio is approaching 90% in Moody’s/CNN Business’s “Back to Normal” index.
A key topic of discussion was the effort to repeal Ohio’s emergency local income tax withholding provision — included in COVID-19 legislation approved last spring. The provision allows employers to continue their pre-pandemic withholdings even if employees are currently working from home in another community. There is much debate about whether employees can file for refunds. Allowing refunds would cost Ohio’s largest six cities up to $306 million annually, according to one estimate. This issue will continue to be debated through the remainder of the year and into next year’s state budget discussions.
OMA members also heard from Phil Hurak and Steve Estelle of OMA Connections Partner Clark Schaefer Hackett on the top 10 considerations for Ohio manufacturers during COVID-19.
The OMA will soon publish the 2021 meeting dates for all policy committees. Stay tuned. 11/18/2020
While it’s still unclear how federal tax policy may change under a Biden administration, the president-elect’s campaign proposals suggest he could attempt to make significant changes. OMA Connections Partner Crowe has compiled this extensive list of Biden’s tax proposals to help business leaders get a better understanding what changes could be coming from Washington. 11/17/2020
The IRS has extended the deadline to make an investment in a qualified opportunity zone fund, which means there’s more time to receive potential tax benefits. Find out more by reading this insight from OMA Connections Partner CliftonLarsonAllen. 11/19/2020
The IRS this week released another revenue ruling affirming its previous guidance that expenses paid with Paycheck Protection Program (PPP) proceeds, which would otherwise be deductible, will not be permitted to be deducted. Read more about this development in this update from OMA Connections Partner Benesch. 11/19/2020
The Columbus Dispatch this week reported on growing calls from Ohio lawmakers who argue that work-from-home residents — who reside in one city and worked in another prior to the pandemic — should not have to pay municipal income taxes as if they were driving to their regular workplace. Officials from larger cities say repealing a temporary law (passed last March) that maintains pre-pandemic tax collection would devastate city budgets.
Learn more about this development and other tax issues at the OMA’s Nov. 18 Tax Committee meeting, which is open to all members. Register here. 11/10/2020
OMA Connections Partner GBQ Partners will conduct a free webinar on Nov. 19 to review President-elect Joe Biden’s tax proposals and how likely these proposals are to become law.
Also, OMA Connections Partner CliftonLarsonAllen will host a complimentary webinar on Dec. 3 to discuss tax and economic implications as a result of the election. 11/10/2020
Recently, the SBA requested approval from the Office of Management and Budget to collect certain information on borrowers who have Paycheck Protection Program (PPP) loans in excess of $2 million. This is an important and evolving situation for many PPP borrowers.