April 24, 2020

2020 – 04/24

How are air carriers and contractors being helped by the Coronavirus Aid, Relief and Economic Security (CARES) Act? This law allows the U.S. Treasury Dept. to provide payments both to passenger and cargo air carriers, and certain contractors, exclusively for continued payment of employee wages, salaries and benefits. In exchange for payroll support, the Treasury may receive financial instruments (such as debt securities or notes), referred to as Taxpayer Protection Instruments, to compensate the federal government for the financial assistance. These instruments will be treated as indebtedness. Here’s a list of frequently asked questions on the subject from the IRS: https://bit.ly/3cH6RI