Employee retention credit guidance includes rules for PPP borrowers

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Notice 2021-20, 2021-11IR 2021-48, 3/1/2021

Not. 2021-20

IR-2021-48

In a Notice and accompanying News Release, IRS has issued guidance for employers claiming the employee retention credit under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), as modified by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act), for calendar quarters in 2020. The new guidance includes clarifications of the Relief Act’s rules for eligibility for the credit by Paycheck Protection Program (PPP) borrowers.

Checkpoint will provide additional information about this guidance in a future Federal Tax Update.

Reference: For the employee retention credit, see FTC 2d/FIN ¶ H-4687.3.