Since earlier this year, the Biden Administration has been pursuing a legislative agenda that focuses on COVID-19 economic recovery and re-energizing the American economy. It started with the American Rescue Plan Act and has continued with several other proposals culminating in the Build Back Better Act (the Act). The Act is designed to reduce costs, create new jobs, and cut taxes for working families. There are proposed investments in health and childcare, higher education, workforce training, and teachers and schools.

Within the IRS is the Tax-Exempt & Government Entities Division (TE/GE), and its mission is to help customers understand and comply with tax laws and apply those laws with integrity and fairness to all.  Its customers comprise employee plans, exempt organizations, and government entities, covering such diverse organizations as major universities, pension funds, state and local governments, charities, and private foundations. 

As federal COVID-19 relief programs continue to diminish, New Jersey and Pennsylvania-area businesses are searching for other funding opportunities. Several companies have not yet fully recovered from the pandemic’s devastating fallout, while others are concerned about the potential impact of COVID variants. There has been a reported 30% increase in COVID hospitalizations in New Jersey, while Pennsylvania reported triple-digit growth in the number of new cases. 

Recently, the IRS announced that victims of Hurricane Ida in various parts of New Jersey, New York, and Pennsylvania now have until January 3, 2022, to file individual and business tax returns and make certain tax payments.  The tax relief is being offered to taxpayers in any areas designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance.

The U.S. Small Business Administration’s (SBA), 8(a) Business Development Program, offers disadvantaged small businesses access to sole source and other government contracts. Program participants enjoy several benefits that make it easier to win work with the federal government, the details of which we have summarized below.