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 [...]
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). [...]
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 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. [...]
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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
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, [...]