Reporting the New Employee Retention Credit: Thanks to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a refundable payroll tax credit is available for 50% of qualified wages paid by eligible employers to employees after 3/12/20 and before 1/1/21. The credit is available to employers, including nonprofits, (1) whose operations were fully or partially suspended due to a COVID-19-related … Read More
3.31.20 – Changes to NOL rules under IRC Section 172(a)
Changes to NOL rules under IRC Section 172(a) The CARES Act temporarily suspends the 80% taxable income limitation on the use of a net operating loss (NOL) to offset taxable income for tax years beginning after December 31, 2017 and before January 1, 2021. Taxpayers may elect to: Carry NOLs arising in any tax year beginning after December 31, 2017, … Read More
Direct stimulus payments. How much do I get?
Individuals would be due up to $1,200 and couples would receive up to $2,400 — plus $500 per child. But the payments would start phasing out for individuals with adjusted gross incomes of more than $75,000. The amount would then be reduced by $5 for every additional $100 of adjusted gross income, and those making more than $99,000 would not … Read More
IRS unveils new People First Initiative; temporarily adjusts, suspends key compliance programs
IRS unveils new People First Initiative; COVID-19 effort temporarily adjusts, suspends key compliance programs IR-2020-59, March 25, 2020 WASHINGTON – To help people facing the challenges of COVID-19 issues, the Internal Revenue Service announced today a sweeping series of steps to assist taxpayers by providing relief on a variety of issues ranging from easing payment guidelines to postponing … Read More
Year-End Tax Planning for Businesses
There are a number of end of year tax planning strategies that businesses can use to reduce their tax burden for 2018. Here are a few of them: Deferring Income Businesses using the cash method of accounting can defer income into 2019 by delaying end-of-year invoices, so payment is not received until 2019. Businesses using the accrual method can defer … Read More
The IRS Can Take Your Passport for Unpaid Taxes
The Internal Revenue Service (“IRS”) has a new collection tool for taxpayers with serious delinquent tax deficiencies and it was created under § 7345 of the Internal Revenue Code. The tax section authorizes the IRS to certify to the State Department individuals who have serious delinquent tax debt. Receipt of the certification allows the State Department to deny or revoke … Read More
Are You a Small Business Owner With Back Taxes?
The stress of owing the IRS money can be crippling. The IRS can place a lien on your property or even levy your bank account. For whatever reason, you’ve gotten into a tough situation but how do get out? Here are a few options the IRS offers to help. 1. Offer in Compromise (OIC): With an OIC, you offer the … Read More
Tax Cut and Jobs Act – Guidance needed as Sec. 199A appears “poorly defined”
House Ways and Means Committee ranking member Richard Neal, D-Mass., has asked the Treasury and the IRS for guidance on the tax code’s new passthrough deduction. In a May 1 letter, Neal asked Treasury Secretary Steven Mnuchin and Acting IRS Commissioner David Kautter, for clarifying guidance on Code Sec. 199A. Passthrough Deduction The new Code Sec. 199A, enacted under the Tax Cuts … Read More
Tax Reform Guidance Will Take Years, Says IRS Chief
Acting IRS Commissioner David Kautter told lawmakers on April 11 that implementing tax reform is one of the IRS’s highest priorities, but issuing guidance will likely take years. “Preliminary efforts to implement this new law are already underway,” Kautter said during a House Appropriations Financial Services Subcommittee hearing. The Tax Cuts and Jobs Act (TCJA) was enacted last December. Kautter testified before … Read More
Filing Deadline for S Corporation and LLCs is March 15th!
When it comes to income tax returns, April 15 isn’t the only deadline taxpayers need to think about. The federal income tax filing deadline for calendar-year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships or S corporations for tax purposes is March 15. While this has been the S corporation deadline for a long time, it’s only … Read More
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