Treasury’s Stances on Virus Relief Draw Ire in Desperate Times

Narrow tax guidance on some parts of recently enacted coronavirus relief has sparked criticism that the IRS and Treasury aren’t interpreting the law correctly.

Initial guidance limiting the benefits of two measures—a tax break for businesses that retain employees and a new loan program for small businesses—drew the ire of lawmakers on both sides of the aisle and, in one of those cases, forced Treasury to reverse its position. Meanwhile, scholars and tax practitioners have expressed skepticism about FAQs that say incarcerated and recently deceased people aren’t eligible for stimulus payments and should return that money.

Some of the ...