H.R. 6821, Small Business Expense Protection Act of 2020
Summary
H.R. 6821, the Small Business Expense Protection Act of 2020, is a bill introduced in the House of Representatives on May 12, 2020 by Mr. Holding and referred to the Committee on Ways and Means. Its stated purpose is to clarify for purposes of the Internal Revenue Code of 1986 that receipt of coronavirus assistance does not affect the tax treatment of ordinary business expenses. Section 2 adds a paragraph to subsection (i) of section 1106 of the CARES Act providing that no deduction shall be denied or reduced, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided by paragraph (1).
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“H.R. 6821, Small Business Expense Protection Act of 2020.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-116hr6821ih-bills-116hr6821ih/
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I
116TH CONGRESS
2D SESSION
H. R. 6821
To clarify for purposes of the Internal Revenue Code of 1986 that receipt
of coronavirus assistance does not affect the tax treatment of ordinary
business expenses.
IN THE HOUSE OF REPRESENTATIVES
MAY 12, 2020
Mr. HOLDING (for himself, Mrs. WALORSKI, Mr. FERGUSON, Mr. KELLY of
Pennsylvania, and Mr. NUNES) introduced the following bill; which was
referred to the Committee on Ways and Means
A BILL
To clarify for purposes of the Internal Revenue Code of
1986 that receipt of coronavirus assistance does not af-
fect the tax treatment of ordinary business expenses.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the ‘‘Small Business Ex-
5 pense Protection Act of 2020’’.
6 SEC. 2. CLARIFICATION OF TREATMENT OF BUSINESS EX-
7 PENSES.
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8 (a) IN GENERAL.—Subsection (i) of section 1106 of
9 the CARES Act (Public Law 116–136) is amended—
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2
1 (1) by striking ‘‘1986, any amount’’ and insert-
2 ing ‘‘1986—
3 ‘‘(1) any amount’’;
4 (2) by striking the period at the end and insert-
5 ing ‘‘, and’’; and
6 (3) by adding at the end the following new
7 paragraph:
8 ‘‘(2) no deduction shall be denied or reduced,
9 no tax attribute shall be reduced, and no basis in-
10 crease shall be denied, by reason of the exclusion
11 from gross income provided by paragraph (1).’’.
12 (b) EFFECTIVE DATE.—The amendments made by
13 this section shall apply as if included in the enactment
14 of section 1106 of the CARES Act (Public Law 116–136).
Æ
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