COVID-19 Kansas Retail Storefront Property Tax Relief Act

For certain retail storefronts that were operationally shut down or restricted at their retail storefront by a COVID-19-related order or by an action imposed by Kansas, the COVID-19 Retail Storefront Property Tax Relief Act may be able to provide relief.  The refunds, for property taxes or rent actually paid, are for tax years 2020 and 2021, and are up to $5,000 per year per retail storefront.  The relief program is funded through the Federal American Rescue Plan Act. There are [...]

By |September 12th, 2022|COVID-19, Tax|

Inflation Reduction Act signed by the President

The Inflation Reduction Act (a scaled-down version of the Build Back Better Act that was introduced in the House in September of 2021), a $430 billion climate, health care, and tax package, was signed by the President this afternoon (August 16, 2022).  The bill also allows the Health Secretary to negotiate prices for prescription drugs for Medicare and extends the Affordable Care Act health care benefits for three years through 2025.  Key tax provisions are: Extends the excess business loss [...]

By |August 16th, 2022|Tax|

$434,000 charitable tax deduction lost because of a few missing words

 $434,000 charitable tax deduction lost because of a few missing words         The IRS continues to remind us how rigid the standards are for charitable tax deductions, and that the absence of a few words before filing the tax return can be disastrous.  In a recent Tax Court decision, a widow donated a collection of Native American jewelry and artifacts worth $434,000 to a museum that she and her husband had acquired during their marriage.  She thought she did everything [...]

By |August 1st, 2022|Tax|

Repaying Deferred Self-Employment and Household Employment Tax

The IRS has sent reminder notices for the upcoming due date for payments of deferred self-employment from 2020 tax returns. Payments of the deferred tax are due half by the end of 2021 and the remaining half by the end of 2022. Background:  The CARES Act created a provision allowing employers, including household employers and self-employed individuals, the ability to defer the payment of 2020 Social Security taxes over two years. The IRS has outlined how the self-employed and household [...]

By |December 23rd, 2021|COVID-19, Tax|

Attention Contingency-Fee Attorneys

Attention Attorneys who work on a contingency fee basis. ACTION ITEM – For cash-basis contingency-fee attorneys, consider delaying payment of case expenses until January 1, 2022. One of the provisions in the proposed Build Back Better legislation would allow case expenses to be deducted currently (rather than treating such amounts as loans for tax purposes).  Under current law, attorneys who work on a contingency-fee basis generally must wait to deduct case expenses (costs of discovery, depositions, expert witness testimony, etc.) [...]

By |November 18th, 2021|Tax|

Infrastructure bill headed to President for enactment eliminates Employee Retention Credit

After several stalls in the House, the $1.2 trillion infrastructure bill was passed by Congress very late Friday night (November 5, 2021) and now awaits the President’s signature.  While there are relatively few tax-related provisions in this legislation, more extensive changes are included in the Build Back Better Act (the Reconciliation Bill). One tax provision in the Infrastructure legislation that affects many businesses is the termination of the Employee Retention Credit (ERC) RETROACTIVE to September 30, 2021.  Thus, the ERC [...]

By |November 8th, 2021|Tax|

New Guidance on the Employee Retention Credit Benefits Many Companies

In the recently issued Notice 2021-49 (August 4, 2021), the IRS provides guidance for employers claiming the Employee Retention Credit (ERC). Included in the IRS notice is guidance on the definition of related parties’ wages for purposes of claiming the ERC and whether the wages paid to shareholders and their spouses qualify for the credit.  The notice clarifies that wages paid to a majority owner (one who directly or indirectly owns more than 50% of the entity), are not eligible [...]

By |August 11th, 2021|COVID-19, Tax|

SBA drops PPP Loan Necessity Review

The SBA just informed lenders that the loan necessity review requirement for Paycheck Protection Program (PPP) loans of $2 million or more has been eliminated for both for-profit and not-for-profit borrowers.  Additionally, borrowers are no longer required to submit a loan necessity questionnaire that had been previously requested by the SBA.  Leading up to this, many borrowers had expressed concerns that the loan necessity questionnaire was not reflective on Congress’s intent when the PPP program rolled out in March of [...]

By |July 15th, 2021|COVID-19|

Supreme Court dismisses ACA Challenge

On Thursday, June 17, the Supreme Court ruled the Plaintiffs' challenge on the Affordable Care Act's (ACA) constitutionality did not have standing, and the case was dismissed.  At the heart of the case was the issue of whether the 3.8% Net Investment Income Tax (NIIT) could be justified after Congress eliminated the penalty for failure to comply with individual insurance mandates.  The NIIT was technically not enacted as part of the ACA, but if the ACA was invalidated, the NIIT [...]

By |June 18th, 2021|Tax|

PPP Deadline Extended through May 31, 2021

On the eve of the deadline, President Biden signed the Paycheck Protection Program (PPP) Extension Act of 2021.  The deadline for loan applications for forgivable loans under the Paycheck Protection Program was initially set to expire on March 31, 2021.  The extension provides an additional two months for borrowers to apply for first and second round PPP loans (up through May 31, 2021).  The new law also gives the Small Business Administration an additional 30 days (until June 30) to authorize [...]

By |March 31st, 2021|COVID-19, Tax|

Masks, hand sanitizer, wipes, and other personal protective equipment now count as medical expenses

The IRS just announced that personal protective equipment will be treated as medical expenses if they were purchased primarily for the purpose of preventing the spread of COVID-19.  Thus, masks, hand sanitizer, and sanitizing wipes used to help stop the spread of the Coronavirus can be deducted as medical expenses as long as the taxpayer’s total medical expenses exceed 7.5% of adjusted gross income.  Alternatively, such amounts can be reimbursed by Health Savings Accounts, Health Flexible Spending Arrangements, and Archer [...]

By |March 28th, 2021|COVID-19, Tax|

Kansas and Missouri Announce That Individuals Have Until May 17th to File and Pay 2020 Taxes

Both Kansas and Missouri have announced they will follow the IRS extension until May 17, 2021 to file and pay 2020 taxes for individuals.   More details about the extension should be coming from the Internal Revenue Service, Kansas, and Missouri.  Also, the City of Kansas City has not yet made an announcement regarding its plans for the April 15th deadline. Please be aware that we will continue to complete and file returns as soon as possible.  Payments will not need [...]

By |March 20th, 2021|Tax|
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