Good news for businesses comes from the COVID-related Tax Relief Act of 2020. PPP Expenses are now deductible! This was signed into law on December 27, 2020. The IRS hadn't posted anything until January 6, 2021, which is why have waited to share this news. The new law states that "no deduction is denied, no tax attribute is reduced, and no basis increase is denied by reason of exclusion from gross income of the forgiveness of an eligible recipient's covered loan." Up to this point businesses … [Read more...]
Missouri Small Business Grant Program
We are wrapping up another tax season with tax day on July 15. We are also still working with our business clients; many of whom have had to close or partially close due to COVID. The state of Missouri recognized that the closures have brought about a hardship for businesses. The Department of Economic Development has introduced the Small Business Grant Program. This program has factored in $30 million for small business and $7.5 million for family owned farms. Grants are initially limited … [Read more...]
IRS Extending More Deadlines Helps Nonprofits
Many accountants have been waiting for this announcement. The IRS has issued an extension of time for file form 990-series. Typically for a calendar year nonprofit the tax return is due May 15 following the end of the year. This year due to the relief for COVID-19, the IRS has announced that deadline will be moved to July 15. If the nonprofit is unable to file at that time an extension will need to be filed. The release says "the extensions generally now apply to all taxpayers that have … [Read more...]
CARES Act Changes Net Operating Loss Rules
We are still learning about the CARES Act that was signed into law in March. With the act being so inclusive there are many tax changes for both business and individual. We have written about several and here is yet another change. The Tax Cut and Jobs Act (TCJA) that was enacted at the end of 2017 eliminated the option to carry back net operating losses. This meant many businesses or individuals lost out on getting refunds from prior years. The CARES Act has changed that to be more inline … [Read more...]
Credit for Sick and Family Leave for Businesses
We wrote about the Employee Retention Credit previously https://wassmancpaservices.com/employee-retention-credit/. Now there is another credit to help employers, pay employees. This credit is available for business with employees and for self-employed individuals. Employers are getting help to pay employees who have to miss work. It is allowed for employees who are unable to work including telework. The reasons for not being able to work include: Required quarantine, self quarantine, or … [Read more...]
Filers: Get your Economic Impact Payment
The IRS has created an online resource for individuals who have filed tax returns to determine when and how payments will be received. Some of the functionalities of the tool are still in process, but it is a good resource. Please visit the website to: Check your payment statusConfirm your payment type: direct deposit or checkEnter your bank account information for direct deposit, if the IRS doesn't have that information and hasn't sent the paymentUpdate your mailing address if you have … [Read more...]
End of Tax Season?? Note to Our Clients
I wanted to take a minute to address our clients. First I want to say thank you for the support through the years and especially this difficult tax season. I want to thank our new clients for being so understanding through this strange time. Also, I want to thank all the other essential workers for all of their hard work. Just as you can't see everything we are doing, we can't see everything they are going through. This year, I think we can all say has been unlike any other. The idea for … [Read more...]
Non-Filers looking for Economic Impact Payment
The IRS has now put up a site for individuals who are not required to file to enter their information to receive the Economic Impact Payments. You should only use this site to enter your information if you : Have a valid Social Security Number.Could not be claimed as a dependent of another.Were not required to file a tax return because the income was under the filing requirements. This means your income was below $12,200 if single or $24,400 of married.You did NOT file a 2018 or 2019 … [Read more...]
Social Security Recipients and Economic Impact Payment
The IRS has announced that a social security recipients will not be required to file a tax return to receive the stimulus payment. The payments will automatically be sent to recipients based on their social security records. The IRS will be using your SSA-1099 or your RRB-1099 to generate your $1,200 economic impact payment. These payments will be in the form of a direct deposit or paper check, depending on how you receive your normal benefits. The Wassman CPA Services website … [Read more...]
Employee Retention Credit
This was talked about in the news but now we have more specifics on how the IRS is going to help businesses through payroll tax credits. To qualify your business must be fully or partially suspended by a government order due to COVID-19. Also, the employer’s gross receipts must be below 50% of the comparable quarter in 2019. If you qualify and your income goes up you will no longer qualify once your receipts go above 80% of a comparable quarter in 2019. The credit is 50% of … [Read more...]
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