IRS Form: Draft Instructions for Reporting Corporate Income Reflect Pandemic Law Changes (IRC §6012)

Nov. 20, 2020, 5:00 AM

Draft instructions for Form 1120, U.S. Corporation Income Tax Return, released November 19 to reflect legislative changes to offset the Covid-19 pandemic impacting corporations. The changes include: (1) the new payroll credit for required paid sick leave or family leave; (2) the new employee retention credit; (3) a temporary suspension of limitations on certain charitable contributions made in 2020; (4) the nondeductibility of expenses related to Paycheck Protection Program loan forgiveness; (5) an increase in limits on contributions of food inventory; and (5) modification of net operating loss rules allowing for a 5-year carryback. [Draft Instructions for IRS Form ...

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