Diane Fuller and Lynn Freer, EA
Have you noticed how we’re bombarded with acronyms? In a world where even “thank you” has been reduced to “Ty,” we’re all suffering from acronym overload.
At the end of 2019, after a year of confusion over TCJA acronyms, a group of frustrated Spidell editors declared 2020 an acronym-free year. But before the end of the first quarter, with the FFCRA, we were again pulled into the quagmire of acronyms.
For the tax community, consider these new acronyms we got from 2020 federal legislation: CAA, FFCRA, ACRRA, TCDTRA (which our own Mike Giangrande lovingly named the “Wanna buy a vowel?” Act), PPP, PPPHCE, PPPFA, PPPEA, ERC, EIP, CARES, SECURE, and PUA.
ICYMI, the ACRRA (Additional Coronavirus Response and Relief Act, part of the Consolidated Appropriations Act of 2021 (CAA)) reopened the Paycheck Protection Program (PPP) loan program ASAP. FYI, the program has now been extended to March 31, 2021, with more funding for PPP loans and with set-asides for certain businesses (IMO, it might be too little, too late, for many businesses, but WTH). New PPP funds are available either as second draw loans for smaller businesses whose gross receipts have dropped or as supplemental funding for original PPP loans. And the ACRRA makes it clear that expenses paid with forgiven PPP loan amounts are deductible on the federal return, TYVM.
BTW, it can be fun to get creative with acronyms, e.g., ACRRA — Acronyms Cause Raging Recurrent Anger. We’d love to hear your ideas … just RSVP to this e-mail. We’ll probably all LOL.
Also, does anyone remember Roy Can Just Get Sam? Not an acronym, but it’s how I learned the dependency tests: Relationship, Citizenship/residency, Joint return, Gross income, Support.
For those who aren’t textperts, here’s what some of the above acronyms mean:
BTW: By the way
ICYMI: In case you missed it
IMO: In my opinion
LOL: Laugh out loud
TYVM: Thank you very much
WTH: What the heck
In the upcoming weeks, we’ll review some of the other 2020 tax acronyms and give them new meaning!