Questions regarding AB 80 June 2021 Tax News
We understand there are many questions about AB 80, Taxation: Coronavirus Aid, Relief, and Economic Security Act: Federal Consolidated Appropriations Act, 2021 which was approved by the Governor and chaptered into law on April 29, 2021. California conforms, with certain modifications, to federal law with respect to the tax treatment of Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loan (EIDL) advance grants under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Consolidated Appropriations Act of 2021.
Currently we do not plan to change any tax forms. We will be updating instructions for 2020 taxable year booklets in light of this new law. If necessary, a taxpayer may file an amended tax or information return using normal procedures. Otherwise, if a taxpayer makes an election under Rev. Proc. 2021-20 for federal purposes, California will follow the federal treatment for California tax purposes.
We will not be updating instructions for 2019 taxable year booklets because this issue only impacts a very small volume of fiscal year filers. For the 2019 taxable year, please follow similar instructions as the 2020 taxable year, as applicable. Rev. Proc. 2021-20 does not apply to the 2019 taxable year.
Visit our website for up to date information on AB 80. Go to: tax-form-changes, Recent law changes.