US Tax Accountants in Vancouver Say Canadians with Cross-Border Operations Could Benefit from US Tax Relief Proposals

Tax measures included in the Coronavirus Aid, Relief, and Economic Security Act may offer some relief to Canadian Multinationals

North Vancouver, BC -- (ReleaseWire) -- 04/08/2020 -- COVID-19 has dramatically impacted businesses and economies around the world. For Canadians with cross-border operations in the US, there may be some good news. New measures proposed in the Coronavirus Aid, Relief, and Economic Securities (CARES) Act could temporarily reduce tax payments of corporations and in some cases allow refunds of taxes from prior years. For more, go to https://www.us-taxprofessionals.com/Business-Accounting.php

The measures enacted in the CARES Act have not yet been enacted into law. The Senate approved the Act and on March 27th, 2020, President Trump signed the bill into law.

Other measures addressed in the Act include an employee tax retention credit to offset employee taxes and deferral on payroll tax payments. The Act also includes several measures that will impact individual US taxes for Canadian residents.

It should be noted that the US has extended its filing deadline from April 15, 2020, to July 15, 2020, so that tax filing and payment deadlines are now one and the same. There will also be additional sick leave measures with tax credits to employers to offset costs. Some of the changes will temporarily reverse or suspend the tax reform changes enacted in 2017.

Changes enacted by the CARES Act could significantly benefit some organizations. The US will allow taxpayers to deduct losses suffered this year against previous years, meaning taxpayers may apply losses to income previously taxed at 35% to obtain funds. The interest deduction rate for corporations will be raised to 50% from 30% of Adjusted Taxable Income (ATI), and corporations will be allowed to apply their 2019 ATI to calculate the deduction of their 2020 tax return.

Alternative Minimum Tax Credit Refunds (AMTCs), which were scheduled for phased creditably from 2018-2021 will be fully refundable for 2018 and 2019 tax years. Ask US Tax Professionals for details about immediately filing a claim on a 2018 tax return.

The Employer's retention credit will introduce a tax credit of up to $10,000 per employee against employment taxes for when services are not needed or not accessible due to COVID-19 restrictions. The credit is limited to 50% of the actual wages paid. Qualifying employers are those who have had their business partially or completely suspended due to COVID-19 restrictions enacted by the Government.

The CARES Act is meant to cushion the impact COVID-19 will have on businesses and corporations. To discuss how the proposed changes may be leveraged to reduce tax payments and maximize the benefits of refunds and deferrals, contact US Tax Professionals in Vancouver at (604) 281-3318.

About CARES Act
US Tax Professionals provide tax services for dual American and Canadian citizens in Vancouver. Founded in 2013, they specialize in taxation for US citizens and expats, taxation and accounting for business, cross-border taxation for US and Canadian citizens, as well as accounting and taxation of alternative investments, including private equity funds and hedge funds.

For more information, visit https://www.us-taxprofessionals.com/ or call (604) 281-3318.

US Tax Professionals
Mark Schiffer
(604) 281-3318
Company Website: https://www.us-taxprofessionals.com

For more information on this press release visit: http://www.releasewire.com/press-releases/us-tax-accountants-in-vancouver-say-canadians-with-cross-border-operations-could-benefit-from-us-tax-relief-proposals-1286624.htm

Media Relations Contact

Mark Schiffer
Telephone: 1-604-281-3318
Email: Click to Email Mark Schiffer
Web: https://www.us-taxprofessionals.com/

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