For 2020, eligible employers with a PPP loan can now claim the Employee Retention Credit (ERC), although the same wages cannot be counted for both. The IRS has made clarifications to the CARES Act changes passed late December that expanded eligibility for the ERC in 2020. It now may be easier for employers to both
Surprising Tax Saving Expenses Eligible For R&D Credits
In pandemic times, every penny saved counts. Tax planning can reduce business taxes, but there are additional savings opportunities. When it comes to research and development tax credits, certain costs related to wages, supplies and contract research are eligible, and can save you $$$. Taxpayers often overlook processes and routine work that counts towards extra
New PPP Loan Parcel Plus Tax Provisions Packaged In 2021 COVID Relief Bill
Extension and Enhancement of PPP Loans The Consolidated Appropriations Act, 2021, makes available an additional $284 billion in PPP loans. What does the “ACT” mean for you and your business? If you are a first-time borrowers that meets the eligibility criteria, you can apply, because the availability of PPP Loans has been extended. If you
Biden’s Tax Policy Changes Will Impact 2021 Tax Planning
Nothing is yet set in stone, but we want to alert clients to “expect the unexpected” when it comes to potentially significant tax and regulatory policy changes in 2021. The first hint of things to come may be hidden in President Joe Biden’s American Rescue Plan. The $1.9 Trillion COVID-19 relief package represents the Biden administration’s
Crunch Time for Crypto Taxation
Bitcoin rose above $52,000 on February 17th and has gained over 400% in 12 months. If you were lucky and bought bitcoin when it was worth less, you are sitting on big gains, which is why it is important to understand that the IRS views bitcoin and other cryptocurrencies as assets. Not currency and not
New PPP Access Window for Small Businesses Opens February 24th
President Joe Biden just announced there will be a 2-week period starting on Wednesday, February 24, 2021, during which only businesses with less than 20 employees will be able to apply for a Paycheck Protection Program (PPP) loan. The White House is hoping to further target the PPP Loan to the smallest businesses. The administration
Patience Needed for The PPP & ERC
“Patience is not the ability to wait, but the ability to keep a good attitude while waiting.” Patience is a virtue when it comes to PPP loans and forgiveness applications, it needs to be done right and that takes time. Matters have been complicated by changing guidance and regulations that continue to be published weekly,
More Audits on the Way for Small Businesses in 2021
The IRS announced it will increase audits of small businesses by 50%. This news is shocking after years of low examination rates, and couldn’t come at more inopportune time since COVID tax law changes, paid leave programs, PPP Loans, and closures etc., have made operating a small entity more difficult. Starting in February of 2021
IRS Scrutiny May Cost Some Partnerships Penalties
The IRS and Treasury have put partnerships and pass-through entities under a magnifying glass right now. The IRS confirmed in October that partnerships would need to report partners’ capital accounts on the tax basis. After previous delays, tax basis capital reporting will be required on all Forms 1065, Forms 8865 and Schedules K-1 starting with
Trends That Will Impact Financial Markets In The New Year
2021 will be a year of continued uncertainty. Many risks exist to economic vitality and social stability besides COVID that investors should be aware of. Here are some trends to keep your eye on moving forward. 1. The vaccination “corona”-coaster continues. Once the vaccine is readily available, who gets it, who doesn’t, and will it
