KSCPA Letter to Kansas Congressional Delegation

  • July 23, 2020
  • Source: KSCPA

The Kansas Society of CPAs sent the following letter with recommendations to our Kansas Congressional Delegation.

On behalf of the Kansas Society of CPAs 2,500 members, we extend our appreciation for your leadership and responsiveness throughout this extraordinary time. Through it all, CPAs continue to support the U.S. economy and deliver essential services and objective advice to individuals and small businesses struggling with financial economic uncertainty. 

A number of our members and many of the small business clients they advise found a vital lifeline in the CARES Act relief funding allocated by Congress, along with other measures put in place to assist struggling businesses. As we move into mid-summer and the COVID-19 pandemic continues, small businesses face continued economic uncertainty and pressure.  Additional relief and support are desperately needed in many areas. We understand there is no easy fix to the complex issues we face, but we ask for your help in guiding federal assistance to help restore and create jobs and ask for your consideration and support of bills that will help alleviate financial strain and allow Kansas small businesses move forward in their recovery.

Support for 501(c)(6) organizations
Local trade and professional associations organized under section 501(c)(6) of the Internal Revenue Code are currently ineligible for assistance through the PPP. These organizations play a critical role in economic development, particularly during times of crisis. The KSCPA and other 501(c)(6) organizations have continued to support small businesses during this unprecedented time and have done this work without the benefit of federal aid offered to other 501(c) organizations. We ask Congress to reconsider its limitation to ensure ALL Section 501(c) organizations are included in crucial funding to combat COVID-19. Without this financial support, innumerable associations will fail.

S.4117, Paycheck Protection Small Business Forgiveness Act
Eighty-six percent of PPP borrowers received loans of $150,000 and less, but these loans account for fewer than 27 percent of total PPP loan dollars. As the struggle to reopen our economy continues, please help ensure that the forgiveness process is easy, simple, and less technical for small business owners who are still trying to figure out how to survive the economic impact of the coronavirus shutdown by eliminating the unnecessarily complicated paperwork required by the SBA.

S.3612, Small Business Expense Protection Act of 2020
In late April, the Internal Revenue Service released Notice 2020-32, which indicates that no tax deduction is allowed for an expense that is otherwise deductible if the payment of the expense results in forgiveness of a PPP covered loan. S. 3612 will remedy the IRS guidance and allow taxpayers to deduct covered expenses paid or incurred by an eligible recipient of a small business loan that is forgiven pursuant to section 1106(b)4 of the CARES Act.

S. 3995, Remote and Mobile Workforce Relief
Serious problems facing remote workers as a result of the pandemic have come to the forefront. Normally, they would be taxed on the resulting income by the state in which they work, but their remote work has opened up the possibility of having that income taxed by their state of residence as well.  This situation can create unexpected filing complications and possibly a higher tax bill. This bill would establish a 30-day threshold and uniform rules to help ensure that the appropriate amount of tax is paid to state and local jurisdictions without placing undue burdens on employees and their employers.

Thank you for your work to guide the country through this economic recovery. The KSCPA appreciates your ongoing efforts. We respectfully ask for your support of funding and necessary regulatory changes to position our members and their thousands of small business clients for success as we begin to rebuild.

See KSCPA’s COVID-19 Resources

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