H.R. 6884, 116th Congress — receipt of coronavirus assistance does not affect the tax treatment of ordinary business expenses
Summary
H. R. 6884, the FIRST Act, was introduced in the House of Representatives on May 15, 2020, by Newhouse and referred to the Committee on Ways and Means. It clarifies, 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 amends subsection (i) of section 1106 of the CARES Act so that no deduction is denied or reduced, no tax attribute is reduced, and no basis increase is denied by reason of the exclusion from gross income. The amendments apply as if included in the enactment of section 1106 of the CARES Act.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
- Issuer
- Congressional materials
Cite this document
“H.R. 6884, 116th Congress — receipt of coronavirus assistance does not affect the tax treatment of ordinary business expenses.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-116hr6884ih-bills-116hr6884ih/
, SHA-256 6e92759cfaaf582658ecbe9a425a748f89f5cf8377f1c6041216f9e88ae2e625.Full text
I
116TH CONGRESS
2D SESSION
H. R. 6884
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 15, 2020
Mr. NEWHOUSE 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 ‘‘Fixing the Income
5 Ramifications for Small Businesses and Tax Relief Act’’
6 or the ‘‘FIRST Act’’.
pbinns on DSKJLVW7X2PROD with BILLS
VerDate Sep 11 2014 21:20 Jun 08, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6884.IH H6884
2
1 SEC. 2. CLARIFICATION OF TREATMENT OF BUSINESS EX-
2 PENSES.
3 (a) IN GENERAL.—Subsection (i) of section 1106 of
4 the CARES Act (Public Law 116–136) is amended—
5 (1) by striking ‘‘1986, any amount’’ and insert-
6 ing ‘‘1986—
7 ‘‘(1) any amount’’;
8 (2) by striking the period at the end and insert-
9 ing ‘‘, and’’; and
10 (3) by adding at the end the following new
11 paragraph:
12 ‘‘(2) no deduction shall be denied or reduced,
13 no tax attribute shall be reduced, and no basis in-
14 crease shall be denied, by reason of the exclusion
15 from gross income provided by paragraph (1).’’.
16 (b) EFFECTIVE DATE.—The amendments made by
17 this section shall apply as if included in the enactment
18 of section 1106 of the CARES Act (Public Law 116–136).
Æ
pbinns on DSKJLVW7X2PROD with BILLS •HR 6884 IH
VerDate Sep 11 2014 21:20 Jun 08, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H6884.IH H6884
File and source
- File
- BILLS_bills-116hr6884ih_bills-116hr6884ih.pdf
- Size
- 230,689 bytes
- SHA-256
- 6e92759cfaaf582658ecbe9a425a748f89f5cf8377f1c6041216f9e88ae2e625
- Original
- www.govinfo.gov