There were several important tax developments in 2020 that affect tax reporting by ministers, church staff, and churches for the upcoming tax-filing season as well as reporting and records-keeping requirements in 2021 and beyond. The top ten developments are explained in this article as well as in the 2021 Church & Clergy Tax Guide, which also covers 61 other key developments.
#1: Coronavirus Aid, Relief, and Economic Security (CARES) Act
The 900-page $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act became law on March 27, 2020. The CARES Act is the third coronavirus response package enacted by Congress. It follows:
- The CARES Act (March 6, 2020) provided $8.3 billion in emergency funding for federal agencies to respond to the coronavirus outbreak.