The government’s new stimulus package includes significant opportunities for businesses to access cash, but only if you know about them.
In March of this year, the Coronavirus Aid, Relief and Economic Security (CARES) Act passed the House of Representatives in an effort to stimulate the economy in the face of the COVID-19 pandemic. President Trump then signed the bill into law, sighting significant benefits for COVID-impacted business owners. Company owners should speak to a tax expert and assess how this new law could set up their business’ finances for the coming year and beyond.
NOL modifications mean tax credit wins for American businesses
The provision of the CARES Act where businesses can access sizable dollar amounts is called Modifications for Net Operating Losses. Normally, businesses operating at a net operating loss (NOL) can report this loss for 3 previous tax years (2017, 2018 or 2019.) However, the CARES Act now makes it legal for businesses to carryback NOL’s to five years.
The inclusion of two more tax years can potentially generate a lucrative tax recovery for businesses, because tax rates before 2018 were considerably higher than their current rates. This can translate into a sizable cashflow that businesses can use to invest in their operations and into the economy at large.
How tax experts can help you apply for CARES Act benefits:
- Summarizing your company’s investments and expenses
- Cataloging your company wages
- Leveraging your activities for minimum tax liability
- Ensuring compliance with all applicable tax laws and regulations
- Filling out and filing the appropriate tax forms
- Preparing your tax returns and related documentation for a possible audit
Working with a national tax expert experienced in business tax can mean thousands of dollars for your company. Finding the right tax company who fits your needs is easy. Contact National Tax Group at (561) 257-3436 to claim your free tax analysis report.