Effective January 12, 2021, the Small Business Administration and the Department of the Treasury issued an Interim Final Rule concerning the Paycheck Protection Program (“PPP”). The rule applies to the second round of PPP loans under the Economic Aid to …
Cooperative Taxation
IRS Issues Sec. 199A Guidance for W-2 Limitation
As part of the 2017 tax reform bill, Congress passed new Section 199A, which authorizes a deduction for “specified agricultural or horticultural cooperatives.” As discussed in a subsequent post, Congress enacted Section 199A(g) to limit the 199A deduction …
New IRS Ruling: The Timing of Patronage Business for Allocations
In a new ruling, the Service considered the period of historical patronage business that should be used to calculate the gain on a liquidation sale.
Coop was a cooperative within the meaning of Subchapter T. It struggled in …
Farm Credit Administration Guidance on PPP for Small Businesses
The Farm Credit Administration has issued an updated informational memorandum for the purposes of providing Farm Credit System institutions with updated guidance on the Paycheck Protection Program. Follow this link for the memorandum:
The memorandum explains,
…Does the
Happy Cooperative Month from AHC!
October is Cooperative Month. AHC represents many cooperatives in the telecom, electric, and agricultural industries. So we join with others in celebrating our cooperative clients.
In honor of Cooperative Month, the U.S.D.A. has provided and re-published the following helpful guides
CARES ACT – Cooperative Eligibility
The CARES Act included economic stimulus packages of $349 billion for Paycheck Protection Program (PPP) Loans and modified the existing Economic Injury Disaster Loan (EID) program for companies impacted by COVID-19. Further, in addition to small businesses that continued to …
IRS Rules on Telecom Coop Sale of Stock
A recent IRS private letter ruling addresses whether a cooperative’s gain on sale of stock resulted in patronage or non-patronage income. This particular ruling follows many others that focus on the reason for acquiring the asset.
In Year 1, CORP
Section 501(c)(12) qualified transportation fringes
The IRS has provided guidance on how exempt taxpayers, like Section 501(c)(12) cooperatives, can claim a refund after the repealed provisions concerning qualified transportation fringes. You can visit the IRS site for more information.
…The Taxpayer Certainty and
New Law Fixes Tax Problem for Utility Cooperatives’ Grants
On December 20, 2019, the President signed into law the RURAL Act, H.R. 2147, which fixes an error in the 2019 tax reform law (Public Law 115-97). The error was expected to result in taxation of government grants, and Section …
IRS Issues Proposed Regulations for Cooperatives Under New Section 199A
The IRS issued proposed regulations to provide cooperatives and patrons guidance under New Section 199A, which was enacted as part of the tax reform act, Public Law 115-97 (the “Act”). See our prior blog posts about New Section 199A:
…