The IRS often sees the transfer of funds as a loan, whether there is a loan agreement or not. This also means there is an implied term and interest payment. When the IRS says a transaction is a loan, what interest rate do they use? Enter AFRs. Here is what you need to know. Your …
SBA announces PPP process changes
The U.S. Small Business Administration (SBA) announced changes Wednesday designed to reduce delays in the Paycheck Protection Program (PPP) approval process. Millions of small businesses have applied for PPP forgivable loans since it reopened Jan. 11 with $284 billion in fresh funding. A significant percentage of those applications has been held up by process and system issues …
Eligible educators may deduct personal protective equipment expenses
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 …
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Oops! I Wish I Knew That.
There are a few areas within the tax code that can cause an unpleasant surprise when encountered. Thankfully they do not happen too often. Here are six you should know about. Here are six tax topics that seem innocent but can cause problems if not handled correctly. 1. Gambling winnings. If you receive a tax form …
Client Update Newsletter: February 2021
Learn about a new tool to protect your tax return from would-be thieves. Plus find out how you are giving away the most valuable thing you own! As the tax filing season gets underway, now is a great time to review some tips to help ensure your tax return is processed without a delay. Also …
IRS Identity Theft Program NOW OPEN! – New one-time use PIN option available for all
After a long pilot program, the IRS is making its identity theft PIN program available to all taxpayers. Here is what you need to know. The IRS is expanding a pilot program that uses Identity Protection Personal Information Numbers (IP PINs) to provide an extra layer of security for all taxpayers. Here is what you …
Alert: Look for New 1099 NEC Your 1099’s are coming soon
So many 1099's. How do you keep them all straight? Here is a quick review of the most common 1099's to help you prepare to file your tax return. Virtually every small business, including sole-proprietors, must issue at least one 1099 each year. And this year there is a new one called the 1099 NEC. …
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IRS Identity Theft Season Begins Now
Be on your guard as the IRS identity theft season starts in late January. Here's what you need to know. Each year thieves try to steal billions in federal withholdings by stealing your identity. As the IRS focuses more attention on this quickly growing problem, now is the time of year to be extra vigilant. …
Tax & Business Newsletter: January 2021
You can now deduct expenses paid with PPP loans on your tax return. There's also a new round of funding for additional PPP loans if your business is struggling. Read about what it means for you. PPP Loan Expenses Are Now Tax Deductible If you or your business received funds from the Paycheck Protection Program …
Are You a Contractor or Employee? – Knowing the difference is very important
A recent voter initiative in California overrules the state's desire to make all Uber and Lyft drivers employees. This puts a spotlight on all workers to know the difference. Are you an independent contractor or an employee? As the pandemic continues, many long-time employees are now picking up jobs as contractors. In the meantime, states …
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