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 [...]

By |2021-12-27T09:19:53-06:00December 23rd, 2021|COVID-19, Tax|Comments Off on Repaying Deferred Self-Employment and Household Employment 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).  [...]

By |2021-11-18T12:02:17-06:00November 18th, 2021|Tax|Comments Off on Attention Contingency-Fee Attorneys

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 [...]

By |2021-11-08T16:00:10-06:00November 8th, 2021|Tax|Comments Off on Infrastructure bill headed to President for enactment eliminates Employee Retention Credit

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. [...]

By |2021-08-11T09:06:06-06:00August 11th, 2021|COVID-19, Tax|Comments Off on New Guidance on the Employee Retention Credit Benefits Many Companies

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 [...]

By |2021-06-18T09:33:06-06:00June 18th, 2021|Tax|Comments Off on Supreme Court dismisses ACA Challenge

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 [...]

By |2021-03-31T15:40:24-06:00March 31st, 2021|COVID-19, Tax|Comments Off on PPP Deadline Extended through May 31, 2021

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 [...]

By |2021-03-28T18:12:10-06:00March 28th, 2021|COVID-19, Tax|Comments Off on Masks, hand sanitizer, wipes, and other personal protective equipment now count as medical expenses

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 [...]

By |2021-03-20T21:14:07-06:00March 20th, 2021|Tax|Comments Off on Kansas and Missouri Announce That Individuals Have Until May 17th to File and Pay 2020 Taxes

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 [...]

By |2021-03-17T17:16:11-06:00March 17th, 2021|Tax|Comments Off on Tax Day Extended Until May 17th for Individuals to Give Flexibility to File and Pay 2020 Taxes

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, [...]

By |2021-03-10T15:21:50-06:00March 10th, 2021|COVID-19, Tax|Comments Off on Congress Passes American Rescue Plan Act of 2021
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