COVID-19 Disruption: Challenges for Life Sciences Companies (and Beyond)

Collectively, life sciences companies are experiencing a wide range of effects, including intense patient and consumer focus on certain products, treatments, and equipment as well as distraction or delay with respect to others. [...]it makes sense to use the life sciences industry to frame a discuss...

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Bibliographic Details
Published in:Tax Executive 2020-07, Vol.72 (4), p.36-44
Main Authors: Majure, Kim, Atkinson, James, Abad, Luis, Cody, Brian, De Jong, Dan, Bloom, Brett
Format: Article
Language:English
Subjects:
Cash flow
Coronavirus Aid Relief & Economic Security Act 2020-US
Coronaviruses
COVID-19
Economic impact
Financing leases
Foreign tax credits
Income taxes
Life sciences
Losses
Operating leases
Pandemics
State taxes
Tax rates
Tax refunds
Taxable income
Taxpayers
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Summary:Collectively, life sciences companies are experiencing a wide range of effects, including intense patient and consumer focus on certain products, treatments, and equipment as well as distraction or delay with respect to others. [...]it makes sense to use the life sciences industry to frame a discussion of disruption that can be used as a baseline for other industries. A word of caution: IRS Notice 2020-26 may accelerate the filing deadline if the taxpayer files a single Form 1139, Corporation Application for Tentative Refund, so as to claim both a net operating loss (NOL) carryback and remaining MTCs at the same time. [...]the administrative deferral of both filing and paying federal income taxes otherwise due on April 15, 2020, will aid cash flow, as will the ability under the CARES Act to defer paying a portion of federal employment taxes until as late as December 31, 2021, and December 31, 2022. [...]when the CARES Act passed in late March, roughly only half the states conformed to its provisions.
ISSN:0040-0025