Coronavirus Tax Relief for Businesses and Tax-Exempt Entities

Continue to check this page for more information about coronavirus relief for businesses and tax-exempt entities. We’re reviewing the tax provisions of the American Rescue Plan Act of 2021, signed into law on March 11, 2021.

Employee Retention Credit Available for Many Businesses Financially Impacted by COVID-19

Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), as originally enacted March 27, 2020, the Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees. The CARES Act allowed these credits for wages paid after March 12, 2020, and before January 1, 2021. See Notice 2021-20 PDF, Notice 2021-49 PDF, and Revenue Procedure 2021-33 PDF.

The Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act), enacted December 27, 2020, amended and extended the employee retention credit (and the availability of certain advance payments of the tax credits) under the CARES Act for the first and second calendar quarters of 2021. Like the credit for 2020 under the CARES Act, you can get immediate access to the credit by reducing the employment tax deposits you are otherwise required to make. If your employment tax deposits are not sufficient to cover the credit, you may be able to request an advance payment from the IRS. See Notice 2021-23 PDF, Notice 2021-49 PDF, and Revenue Procedure 2021-33 PDF.

The ARP modified and extended the employee retention credit (and the availability of certain advance payments of the tax credits) for the third and fourth quarters of 2021, See Notice 2021-49 PDF and Revenue Procedure 2021-33 PDF for guidance on the third and fourth quarters of 2021. See Notice 2021-24 PDF for guidance on the ability to reduce deposits and, in some cases, request advances for the employee retention credit through December 31, 2021.

Continue to monitor IRS.gov for more information.

Coronavirus-Related Paid Leave for Workers and Tax Credits for Small- and Mid-Size Businesses

The Families First Coronavirus Response Act (FFCRA) PDF, enacted March 18, 2020, gives all American businesses with fewer than 500 employees funds to provide their employees with paid leave, either for the employee's own health needs or to care for family members.

The COVID-related Tax Relief Act of 2020, enacted December 27, 2020, amended and extended the tax credits (and the availability of advance payments of the tax credits) for paid sick and family leave under the FFCRA. You can get immediate access to the credit by reducing the employment tax deposits you are otherwise required to make. If your employment tax deposits are not sufficient to cover the credit, you may request an advance payment from the IRS.  See COVID-19-Related Tax Credits for Paid Leave Provided by Small and Midsize Businesses FAQs for more information.

The ARP further amended and extended the tax credits (and the availability of advance payments of the tax credits) for paid sick and family leave. See Notice 2021-24 for guidance on the ability to reduce deposits and request advances for the credits for periods of leave through September 30, 2021. Continue to monitor IRS.gov for more information.

NOL Carrybacks of C-Corporations

Get answers about NOL Carrybacks of C Corporations to Taxable Years in which the Alternative Minimum Tax Applies.

Tax Exempt NOL Carrybacks

Get more information about the carryback of NOLs by certain exempt organizations.

Payroll Support for Air Carriers and Contractors

Get answers about tax treatment of the air carrier payroll support payments.

Topics for Tribes

Draft FAQs for Payments by Indian Tribal Governments to their Individual Members Under COVID-Relief Legislation and Notice of Tribal Consultation

Family First Coronavirus Relief Act - Tribes

Employee Retention Credit - Tribes

  • Are tribal governments and tribal entities eligible for the employee retention credit? See Question and Answer 3, Notice 2021-20 PDF
  • How do the aggregation Rules apply to tribes and tribal entities? See Question and Answer 9, Notice 2021-20 PDF

Coronavirus Relief Fund - Tribes

Review these resources if your tribe or tribal entity operates a trade or business:

Online Tax Help

Online resources for small business and self-employed taxpayers:

Online resources for tax-exempt and other entities:

More Information