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You're wrong about the 1444 series funds. Those are not randomly sent to businesses. There's no need to also cover that here.
"they wanted a specific cite REGARDING SELF EMPLOYMENT SPECIFICALLY which you have not provided."
Yes, a number of responses, not only in this topic, have explained how this is Business Income. And since Business Income would be subject to all taxes related to Business, the Sched C filer has SE tax because it affects the bottom line that is reported as Taxable Business Income. There is nothing to infer or cite, if you simply would follow the links provided. And since this topic you just updated is from April, here is a current link:
https://www.irs.gov/newsroom/cares-act-coronavirus-relief-fund-frequently-asked-questions
Which in turn goes to a guidance link:
All of which is provided by your government.
Now, you do need to understand the specifics of the grant your client received, because there are different treatments for specific grants. Once you know these details, you do the research. You don't need opinions or guidance from peers, if you use the governmental authorities as your source. If you want to get to the raw IRS sections and code, start with the CARES Act, of course. And once you know the grant info, for a business, is one that trickled down, you can use non-IRS resources such as:
In fact, all you need to do is google:
cares act business grants taxable
And if you do your own research, you can read things like:
"Short Answer
Grants to households (i.e., individuals) are taxed differently than grants to small businesses. As explained below, need-based grants to households likely fall under the general welfare exclusion, and are therefore not taxable, whereas grants to small businesses are likely not covered by this exclusion, and would be taxable.
Household Grants
Taxpayers are taxed on their gross income, which is defined as “all income from whatever source derived.” (Tax code Section 61.) However, there are several exclusions from that statutory rule, and the Internal Revenue Service has long recognized a non-statutory exclusion to that rule, i.e., the general welfare exclusion.
The general welfare exclusion exempts from the recipient’s taxable income payments by governmental units under legislatively provided social programs that promote the general welfare. To qualify, the payments must (1) be made from a government fund, (2) be made for the promotion of general welfare (generally based upon individual or family needs), and (3) not represent compensation for services rendered. (Revenue Ruling 75-246; Rev. Rul. 82-106.)
Need-based grants to households are likely excluded from taxable income under the general welfare exclusion. However, there are other possible exclusions for the grant, including characterizing it as a gift under Section 102, as a qualified disaster relief payment under Section 139, or as a capital contribution to the business.
Small Business Grants
While grants to small businesses would appear to fit under the general welfare doctrine, the IRS has ruled that grants to a business generally do not qualify for the general welfare exclusion, because they are not based upon individual or family needs. (Rev. Rul. 2005-46)
Congress recently changed the tax code to make clear that any contribution by a governmental entity to the corporation is taxable. (Section 118(b)(2).) Although the rule only applies to corporations, the IRS would likely treat other businesses (e.g., sole proprietorships, partnerships, LLCs and S corps) similarly.
On July 6, 2020, the IRS confirmed that the receipt of a government grant by a business generally is not excluded from th...."
On your own. Or, you can expect peer users to act as your very own research clerk. Because, you might have noticed how many of the questions here are because people don't bother to do their own research, don't pay attention in CPE class, or some other reason that makes them decide to rely on this software users' group as if it is their local tax library.
"This is part of the intuit community's ongoing plague of 'here's not quite an answer, vote for it as best answer - answer provided by top poster' and I'm sure it's not only helpful and interesting for you, but you're also putting a lot of hard work into it which should be appreciated."
It's because people can't bother to do their own research or don't seem to know how to use search tools, that the rest of us will try to "teach a man to fish" and not throw the fish at him, battered and fried and deboned.
You are welcome to the fish I have prepared here. Hope you enjoy it.
"Level Up" is a gaming function, not a real life function.
