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 [...]
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 [...]
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 [...]
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 [...]
Tax Day Extended Until May 17th for Individuals to Give Flexibility to File and Pay 2020 Taxes
The IRS just announced that the April 15th tax filing deadline for both filing tax returns and making payments for 2020 will automatically be moved to Monday, May 17th this year for individuals. Similar to the extension in 2020 due to the pandemic, we will wait for the details to come from the Internal Revenue Service and determine what states and cities will do regarding the April 15th deadline. Please be aware that we will continue to complete and file [...]
Congress Passes American Rescue Plan Act of 2021
This afternoon, Wednesday, March 10th, Congress passed legislation designed as another stimulus to help those in need as a result of the COVID-19 pandemic. The American Rescue Plan Act of 2021 is a $1.9 trillion economic stimulus package designed to provide additional relief to address the continued impact of COVID-19 on the economy, public health, state and local governments, individuals, and businesses. The legislation now awaits President Biden’s signature. MWB's tax partner, Julie Welch, was interviewed by Fox 4's Dave [...]
Employers note – Kansas Governor Laura Kelley Issues Executive Order for Withholding on Telecommuters
States have been struggling with how to deal with telecommuters as a result of the COVID-19 pandemic. This is especially interesting for employers in one state when the employee works from home in a different state. For 2020, Kansas had a temporary rule that applied from March 13, 2020 through December 31, 2020 that allowed employers to continue to withhold based on the state of the employee’s primary work location. For Kansas withholding purposes under the temporary rule, it didn’t [...]
PPP Round 2
The second round of Paycheck Protection Program (PPP) funding is ready to be released. The Consolidated Appropriations Act of 2021 allocated $284 billion to the PPP program allowing second draws for hardest hit businesses. It is expected the SBA will begin taking application next week (January 11-15). Qualifications for a second draw include borrowers that: Have 300 or fewer employees or meet an SBA alternative size standard (restaurants, hotels, etc. with 300 or fewer employees per location) Used or expected [...]
It’s Year-End Tax Planning Time!
The economic situation due to the coronavirus (COVID-19) pandemic, as well as the magnitude of the tax law changes in the stimulus packages known as the CARES Act (The Coronavirus Aid, Relief, and Economic Security Act) and the FFCRA (The Families First Coronavirus Response Act), emphasizes the need for tax planning. Moves you make now can have a significant impact on your tax situation. The goal of tax planning is to minimize your tax liability without sacrificing your other personal [...]
Congress passes Consolidated Appropriations Act of 2021 – including PPP Modifications and COVID-Related Tax Relief
Happy Holidays! 2020 has been an extremely challenging year for many, but overnight (Monday night, December 21st) Congress passed legislation designed as one more stimulus to help those in need as a result of the COVID-19 pandemic. The Consolidated Appropriations Act, which includes the Paycheck Protection Program (PPP) timeframe modification and extensions and other COVID-related tax relief, now awaits President Trump’s signature. In addition to addressing the tax issues related to forgiven PPP loans, the $900 billion COVID stimulus package [...]
BEWARE – COVID-related text message scam
If you receive a text letting you know you “received a direct deposit of $1,200 from COVID-19 TREAS FUND. Further action is required to accept this payment… Continue here to accept this payment …” – BEWARE - a fraudster is attempting to get your bank account information. Do no click on the link, and do not provide your personal and financial account information. The IRS does not send unsolicited texts or emails. If you receive such a message, the IRS [...]
IRS Disallows 2020 Expenses for PPP Loans Forgiven in 2021
As with much of what has been issued regarding PPP loans and ever-changing guidance, the following analysis of deductibility is subject to legislative change. At the end of April, the IRS issued guidance precluding deductions for expenses paid with PPP funds. The Small Business Expense Protection Act would reverse that and allow the expenses to be deducted, however, while still under consideration, this bill has not yet passed Congress. A frequent question by borrowers is how to project 2020 [...]