If you are like me you are getting phone calls and emails daily with somebody trying to tell you that you qualify for the Employee Retention Credit or ERC or that you could get up to 26,000 per employee. They go as far as saying that time is running out to file. Lucky for me I know the rules to ERC and when I actually do answer one of their calls they don't always seem happy to talk to me. In fact, I was hung up on once for asking too many questions. This is what worries me for my clients or … [Read more...]
Missouri Extended Deadline
The governor announced on the 3/19 that Missouri would follow the federal tax deadlines. The Department of Revenue has updated their information to reflect the same. So the good news is, we know Missouri and Federal deadlines for the tax returns and payment of the returns are both due May 17. However, the estimated payments for 2021 are still due April 15. Also we are still waiting for state guidance on how they will handle the American Relief Act. We are specifically waiting to see if … [Read more...]
2020 Taxable Unemployment
Nothing like changing the rules after we start playing the game. The American Rescue Plan Act of 2021 has changed the 2020 taxable unemployment. Now the only portion that is taxable for unemployment is the amount over $10,200 providing you meet the income limitations. For some of you this means changing your 2020 return that was already filed. As of right now the IRS is telling taxpayers who have already filed to do nothing. They are reviewing the law and will give guidance as they … [Read more...]
2021 Economic Impact Payment
As most of you know the American Rescue Plan Act of 2021 was signed into law March 11, 2021. Part of that bill includes another round of Economic Impact Payments to taxpayers. These payments are for taxpayers and their dependents. The first round of payments were scheduled to go out on the 12th. To check the status of your payment you can use the IRS tool for "Get My Payment" at https://www.irs.gov/coronavirus/get-my-payment. You need to know what was on the last filed return in order to … [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...]
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...]
Scams Related to Economic Impact Payments
As with any new change, there are individuals in the world who will try to cheat others who are in need of these economic impact payments. Please be aware of this, so you don’t fall victim to one any scams. Based on history we know that criminals use times when people are in need or are vulnerable to trick you into giving them information or access to your finances for their benefit. Tips to help you avoid these scams: The IRS is NOT going to call you. If you get a call from somebody … [Read more...]
