An employer receives a loan of $300,000 under the paycheck protection program in 2020. All funds are used for eligible 2020 payroll costs and the employer applied for forgiveness of the entire $300,000 loan in 2020 and has a reasonable expectation the loan will be forgiven. How does the employer report the loan and expenses if the loan is not forgiven in 2020?

The taxpayer cannot deduct $300,000 in payroll expenses.

The $300,000 loan is income in 2020 because it will be reasonably forgiven.

The $300,000 loan is not income. The taxpayer cannot deduct the expenses because the loan is not forgiven in 2020.

The $300,000 loan is not income. The taxpayer can deduct payroll expenses used to qualify for forgiveness.

What should an eligible taxpayer who did not receive a stimulus check do?

Nothing. All payments are already distributed.

File a complaint with the Treasury Department.

File an amended tax return.

Claim a credit on their 2020 tax return

How does the IRS tax sick or family leave wages received by employees who are unable to work or telework due to COVID-19?

Leave payments are not taxable

Leave payments are taxable wages, but are not subject to the employer portion of social security tax

Leave payments are taxable wages, but are not subject to medicare tax

Leave payments are taxable wages, and subject to social security and medicare tax

What options are available to individual taxpayers who incur a net operating loss in 2020?

Carry the NOL to each of the five preceding tax years, then forward indefinitely

Carry the NOL to each of the five preceding tax years, then forward indefinitely, subject to 80% of taxable income limit.

Must carry the NOL forward indefinitely.

Must carry the NOL forward, subject to 80% of taxable income limit.

Jim, age 45, withdraws $150,000 from his IRA on July 1, 2020 to help keep the doors open at his restaurant during the pandemic. What is the premature distribution penalty if Jim does not return any of the money to his IRA within 3 years?

$0

$5,000

$10,000

$15,000