Translations from Your Trusted Advisor.
Yesterday, the IRS issued News Release 2021-71 in which they confirm that most taxpayers who filed their tax returns before the excludable unemployment compensation tax change should not amend returns that were filed before the change.
The American Rescue Plan Act of 2021 was signed into law on March 11, 2021 and included changes to the law that impact 2020 taxes. As some tax returns have already been filed, there are many questions about how resolve or when to file affected tax returns.
Yesterday, the American Rescue Plan Act (HR 1319) passed in the US House of Representatives. The bill now goes to the president for signature. There are many tax components included in the act, some of which are coming as a surprise as the were added late to final versions of the bill.
If your business received Main Street Funds in 2020 and performed better than anticipated, there is a looming question of whether your business will need to repay any of those funds. Taylor Caswell, Executive Director of the Governor's Office for Emergency Relief Recover, recently spoke with WMUR and provided some important clarification.
Yesterday, the IRS announced that all first and second round Economic Impact Payments (EIP) have been issued. For those who should have been eligible but did not receive payments, you can now take the Recovery Rebate Credit on your 2020 tax return. You can also take the credit on your tax return if you received payments that were too low.
Earlier this month a bill was filed with the NH Senate that would allow for PPP loan forgiveness to mirror the federal tax treatment. This ultimately means that loan forgiveness would not be taxable for BPT or BET purposes and the expenses would continue to be deductible.
Due to the increased unemployment amounts being paid out during 2020, there was an uptick in identity theft related to unemployment benefits. If you receive an erroneous Form 1099-G reporting unemployment benefits you should contact your state unemployment agency to get a corrected form showing $0 paid in benefits.
Even if your business received a Payroll Protection Program (PPP) Loan, you may still qualify for the Employee Retention Credit. If you haven’t already claimed the credit in 2020, you still have the opportunity to amend your Q4 Form 941 to benefit from the credit.
Employers who elected to defer certain employees’ payroll taxes can withhold and pay the deferred taxes throughout 2021 instead of just the first four (4) months of the year, announced the IRS. IRS Notice 2021-11 extended the end date of the period during which employers must withhold and pay applicable taxes (the employee share of social security tax) from April 30, 2021 to December 31, 2021. Accordingly, interest and penalties will not begin to accrue until January 1, 2022, rather than on May 1, 2021.
Yesterday, the U.S. Small Business Administration (SBA) and the Department of the Treasury released a document outlining how Paycheck Protection Program (PPP) borrowers should calculate revenue reduction and maximum loan amounts for second-draw PPP loans. The guidance also lists the documents borrowers must provide to support each set of calculation.
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