News

First, say thanks to the Consolidated Appropriations Act, 2021 (CAA), enacted December 27, 2020. It opened the door (retroactively and going forward) for Paycheck Protection Program (PPP) participants to also claim the employee retention credit (ERC). Reminder. Tax credits are the best. They usually reduce taxes dollar-for-dollar.  (The ERC...

If you are married, most likely you’ve always filed a joint tax return with your spouse. Most of the time, a joint return shows less overall tax than two separate tax returns do, because the married-filing-separately status has many tax disadvantages. Fast-forward to the 2020 tax filing season, however—and...

Members of the tax community struggle with the “solo corporate owner” qualification for the employee retention credit (ERC). The IRS in one of its answers to frequently asked questions explains the rule as follows: 59. Are wages paid by an employer to employees who are related individuals considered qualified...

This is likely it—your last chance to obtain first- and second-draw Paycheck Protection Program (PPP) monies.  A new law, the PPP Extension Act of 2021, extends the expiration date to the later of May 31 or when the money runs out. Note the phrase “when the money runs out,”...

The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted on December 27, 2020, deals with the annual tax extenders. Congress made some of them permanent, while others got short- or long-term extensions.  These are the big five Form 1040 tax breaks that were scheduled to expire on...

Previously, we sent you emails discussing the tax issues that arise when a financially comfortable loved one has passed away. In this email, we dive into some of the non-tax issues you will have to deal with as the executor of the estate. Getting Extra Death Certificates For various...

The IRS can waive penalties it assessed against you or your business if there was “reasonable cause” for your actions. The IRS permits reasonable cause penalty relief for penalties arising in three broad categories: Filing of returns Payment of tax Accuracy of information Contrary to what you might think,...

How do you multiply your net worth? Let the government help. Here’s how: with both the SEP IRA and the solo 401(k) retirement plans, your investment in your tax-favored retirement creates tax deductions for the money you invest in the plan,  grows tax-deferred inside the plan, and  suffers taxes...

Are you one of the millions of businesses that have an outstanding non-disaster Small Business Administration (SBA) loan? These include 7(a) loans (general small business loans of up to $5 million), 504 loans (loans of up to $5.5 million to provide financing for major fixed assets such as equipment...

Embedded in the COVID-19 relief law is $900 billion for financial assistance. As you would expect in these unusual times, some of the relief is in the form of direct government financial assistance and some is from tax benefits that can impact both tax year 2020 and tax year...

Before the December 27, 2020, enactment of the new COVID-19 relief law, you may have chosen the Paycheck Protection Program (PPP) loan and given no thought to the employee retention credit.  Remember, under the original law, you had to choose between the retention credit and the PPP loan. Millions...

Two things to know about the Paycheck Protection Program (PPP) first draw enacted on December 27, 2020:  The first draw is for those who missed getting in on the original PPP, which expired on August 8, 2020. Don’t think of a PPP draw as a loan. It’s not a...