March 27, 2020
President Trump signed the
Coronavirus Aid, Relief and Economic Security (CARES) Act
into law today just a few hours after the House of Representative passed the legislation. The White House, Treasury Department, Small Business Administration, and other agencies are going to do their best to quickly flood the economy with money under the new law. The law authorizes Treasury to send $1,200 payments to millions of Americans and creates programs to disburse close to $1 trillion in business loans and guarantees to millions of large and small companies throughout the entire economy. Boeing is earmarked to receive some of these funds.
More than 150 million households would receive checks under the legislation, which will send payments of $1,200 to many individual Americans plus $500 for children. A family of four could qualify for $3,000. People with incomes above $99,000 are not eligible, and the total benefit is phased out for people earning between $75,000 and $99,000.
Treasury Secretary Steven Mnuchin promised in a Fox Business interview on today that the IRS would be moving rapidly to send out payments to Americans who qualify and that the Small Business Administration (SBA) would set up a new lending program within a week. Small businesses will have access to close to $400 billion in loans from the new legislation, which amounts to the largest economic stimulus package in the nation’s history.
Officials will send electronic payments to households that have bank accounts on file with the IRS. Otherwise, the IRS will have to issue paper checks. Mnuchin claims that these funds will be available for direct deposit in three weeks. It could take longer for paper checks to be mailed.
According to MSN News, the White House has promised it will swiftly implement the new law, but its economic approach to the coronavirus crisis continues to change by the day. For example, Trump finally invoked the Defense Production Act today in an effort to compel General Motors to manufacture ventilators after holding back on using such a tool for more than a week.
As previously mentioned, The New York Times posted an excellent article entitled
F.A.Q. on Stimulus Checks, Unemployment and the Coronavirus Bill
. I encourage you to read this article to determine if you qualify for these benefits. Generally, unemployment benefits are available for self-employed individuals, as well as full time and part time workers displaced due to COVID-19. The New York Times is not charging to access articles on COVID-19.
We will share more details as they become available. Please visit our COVID-19 Resource Page (link to: https://mcc-cpas.com/COVID-19.php) for more updates.
Feel free to contact any member of our team at (610) 828-1900 (PA) or (732) 341-3893 (NJ) with questions. Rich Higgins, CPA, managing principal – New Jersey office can be contacted at Richard.Higgins@MCC-CPAs.com . I can be reached at Marty.McCarthy@MCC-CPAs.com. As always, we are happy to help.
We will continue to share more details as they become available. Feel free to contact any member of our team at (610) 828-1900 (PA) or (732) 341-3893 (NJ) with questions. Rich Higgins, CPA, managing principal – New Jersey office can be contacted at
Richard.Higgins@MCC-CPAs.com
. I can be reached at
Marty.McCarthy@MCC-CPAs.com
. As always, we are happy to help.
Stay safe,
Marty McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company
Source: MSN News and the New York Times
Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).
