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The Employee Retention Credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been impacted by COVID-19. In Notice 2021-20, the IRS issued detailed guidance for employers claiming the employee retention credit for calendar quarters in 2020. The credit was created by the Coronavirus Aid, Relief, and Economic Security …
Continue reading IRS issues employee retention credit guidance
The IRS provided a safe harbor under which “eligible educators” can deduct unreimbursed expenses for COVID-19 protective items as educator expenses under Sec. 62(a)(2)(D) (Rev. Proc. 2021-15). COVID-19 protective items include, but are not limited to: Face masks;Disinfectant for use against COVID-19;Hand soap;Hand sanitizer;Disposable gloves;Tape, paint, or chalk to guide social distancing;Physical barriers (e.g., clear …
Continue reading Eligible educators may deduct personal protective equipment expenses
2021 Mileage Rates are Here!New mileage rates announced by the IRS The Internal Revenue Service today issued the 2021 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2021, the standard mileage rates for the use of a car …
The IRS on Wednesday issued final regulations (T.D. 9925) implementing provisions of the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, that disallow a business deduction for most entertainment expenses. The regulations also clarify the treatment of business deductions for food and beverages that remain deductible, generally limited to 50% of …
Continue reading IRS releases final rules on Business Meals and Entertainment
o prevent confusion, the IRS notified lenders on Tuesday that they should not file cancellation-of-debt information returns or furnish payee statements under Sec. 6050P to report the amount of qualifying forgiveness with respect to covered loans made under the Paycheck Protection Program (PPP) (Announcement 2020-12). The PPP was created under the Coronavirus Aid, Relief, and …
Continue reading Lenders will not file Form 1099-C for forgiven PPP loans
The Internal Revenue Service has advised that new rules under the CARES Act provide flexibility for health care spending that may be helpful in the current environment where more people may need at-home services due to measures to fight the coronavirus. Telehealth and High Deductible Health Plans Under the CARES Act, a high deductible health …
Continue reading IRS outlines changes to health care spending available under CARES Act
Tax-exempt organizations must now electronically file Forms 990, 990-PF, 8872 and 1065. The new law affects tax exempt organizations in tax years beginning after July 1, 2019. The following IRS forms are included in the mandate: Form 990, Return of Organization Exempt from Income Tax.Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated …
Continue reading IRS: Recent legislation requires tax exempt organizations to e-file forms
The IRS has announced contribution and benefit limits for 2020. The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $19,000 to $19,500. The catch-up contribution limit for employees aged 50 and over who participate in these plans is increased from $6,000 …
Continue reading IRS Announces 2020 Contribution and Benefit Limits
Each year, thousands of people lose millions of dollars, not to mention their personal information, in these schemes. Typically, the new scams are variations on old themes but are even slicker than before and harder to detect. ‘Tis the season for tax scams. As the time for filing 2019 tax returns fast approaches, the IRS is again …
Continue reading Clients Beware: 7 Tax Scams to Watch Out for in 2020
An IRS audit is simply the IRS double-checking your numbers to make sure you don’t have any discrepancies in your return. Sometimes state tax authorities do audits, too. If you’re telling the truth, and the whole truth, you needn’t worry. Nothing is inherently sinister about an IRS audit or state audit. However, people who are consciously cheating …
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