249- XYZ Company owns three restaurants. None of the three restaurants operate separately under its own EIN, and XYZ Company files Federal income tax returns that include gross receipts and expenses from all three restaurants. When applying for a grant from the Restaurant Revitalization Fund (RRF) which of the following is true?

A. All of the restaurants may file its own application separately from XYZ Company

B. XYZ Company must file one application that includes funding for all three restaurants

C. If XYZ Company is unable to use all Restaurant Revitalization funds on eligible expenses by the end of the covered period they can keep any unused funds to the government

D. Funds cannot be used for Payments on any business mortgage obligation

251- All of the following are true regarding the third round of the Recovery Rebate Credit and the Economic Impact Payments (EIP3) except:

A. For couples filing jointly, the Recovery Rebate Credit is $2,800

B. Economic Impact Payments of up to $1,400 were sent for qualifying dependents (including college students and dependent adults) reported on a taxpayers return

C. To receive the full $1,400 (Economic Impact Payment), a taxpayers AGI must not exceed $200,000 for single taxpayers

D. All Economic Impact Payments are tax-free

253- Recognizing the high degree of economic dislocation and uncertainty that took place during the pandemic, Congress waived which of the following for the 2020 tax year only?

A. Requirement to repay excess advance payments of the Premium Tax Credit

B. Individual mandate penalty

C. Health Savings Account early distribution penalty

D. All of the above

254- The Employee Retention Credit was limited to a maximum of $5,000 per employee for 2020, but this cap was increased to what amount per employee per quarter for the first through third quarters of 2021?

A. $5,500

B. $6,000

C. $7,000

D. $7,500

255- If a taxpayer takes a $15,000 coronavirus-related early distribution, he or she can elect to report what amount of the distribution as income over a three-year period and pay the taxes owed on their 2020, 2021, and 2022 tax returns?

A. $0

B. $5,000

C. $5,500

D. $6,000

256- During the eight-week period following Paycheck Protection Program (PPP) loan funding, the taxpayer is a sole proprietor and his or her business spends $75,000 on payroll costs, making it eligible for up to $100,000 in PPP forgiveness. The extra $25,000 above payroll costs may be allocated across which of the following expenses paid or incurred during the same 8-week period?

A. Utility cost

B. Health Insurance Premiums

C. Retirement Plans

D. None of the above