News

New IRS "Submit Forms 2848 and 8821 Online" offers contact-free signature options for tax pros and clients sending authorization forms

January 25, 2021

The Internal Revenue Service today rolled out a new online option that will help tax professionals remotely obtain signatures from individual and business clients and submit authorization forms electronically.

  • coronavirus
  • federal tax

6 tips for CPAs on newest round of PPP funding

January 21, 2021

Business leaders and the CPAs who serve them will need to use a variety of strategies all at once as they pursue economic support in the newest round of Paycheck Protection Program (PPP) funding.

  • coronavirus
  • practice management
  • advocacy - federal
  • federal tax

Overcoming Tax Policy Issues for Remote Workers

January 21, 2021

Working from home has been the reality for millions of Americans for months due to the COVID-19 pandemic, but it also creates new tax challenges for employers. Many staff members reside in one state but work for a company in another. Nahla Davies addresses how business owners can work around these kinds of tax issues.

  • coronavirus
  • federal tax

What will happen to estate, gift and generation-skipping transfer tax exemptions in 2021 and beyond?

January 21, 2021

With the inauguration of President Joe Biden and a congress narrowly controlled by the Democratic party, many clients and estate planners have begun to worry about what, if anything, will happen to the federal estate, gift and generation-skipping transfer (“GST”) tax exemptions and rates in 2021 and beyond.

  • personal financial planning
  • state tax
  • federal tax

Employee Retention Credit Under COVID-19 Relief

January 20, 2021

Here is a recap of the Employee Retention Credit under the CARES Act and the higher-impact modifications under the latest COVID-19 Relief Package.

  • business and industry
  • coronavirus
  • practice management
  • advocacy - federal
  • federal tax

Partner capital account reporting gets transition penalty relief

January 20, 2021

The IRS provided transition penalty relief Tuesday to partnerships in complying with new rules for reporting partners’ capital account balances.

  • coronavirus
  • federal tax

Employers can withhold, make payments of deferred Social Security taxes from 2020

January 19, 2021

The Internal Revenue Service today released Notice 2021-11 PDF addressing how employers who elected to defer certain employees' taxes can withhold and pay the deferred taxes throughout 2021 instead of just the first four months of the year.

  • business and industry
  • coronavirus
  • practice management
  • advocacy - federal
  • federal tax

2021 tax filing season begins Feb. 12; IRS outlines steps to speed refunds during pandemic

January 15, 2021

The Internal Revenue Service announced that the nation's tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns.

  • coronavirus
  • federal tax

Refund delays, stimulus check errors foreshadow rough tax season

January 13, 2021

Tax-refund delays and stimulus-payment hiccups could spill into the upcoming tax season as the Internal Revenue Service continues to face challenges related to the coronavirus pandemic and as Congress considers yet another round of direct payments.

  • coronavirus
  • state tax
  • federal tax

Stimulus payments and tax returns: What tax pros need to know

January 13, 2021

2020 introduced a number of unprecedented situations that have required some massive adjustments. And now, with the tax filing season upon us, a raft of brand new challenges await ahead of the April 15 deadline. Chief among them: uncertainty around the economic stimulus given to American taxpayers as part of the Coronavirus Aid, Relief and Economic Security, or CARES Act.

  • coronavirus
  • federal tax

IRS ready for the upcoming tax season; last-minute changes to tax laws included in IRS forms and instructions

January 12, 2021

The Internal Revenue Service today assured taxpayers and tax professionals that updates to key federal tax forms and instructions are complete and will be available when Americans begin filing their tax returns.

  • federal tax

SBA and Treasury reopen Paycheck Protection Program

January 11, 2021

The U.S. Small Business Administration and the Treasury Department relaunched the Paycheck Protection Program on Monday to new borrowers, prioritizing loans from community lenders. The program, funded with $284.5 billion thanks to the latest stimulus package passed by Congress late last month, opened Monday to so-called “first draw” PPP loans for those small businesses who didn’t take advantage of the program last year. “Second draw” PPP loans will be available starting Wednesday. Initially only community financial institutions will be able to make the first-draw and second-draw loans, but the SBA and the Treasury said Friday that the program would be open to other lenders shortly thereafter.

  • business and industry
  • coronavirus
  • practice management
  • federal tax

PPP application forms released

January 09, 2021

The US Small Business Administration and Treasury released borrower loan application forms Friday night for the rebooted Paycheck Protection Program (PPP), which will launch Monday, initially for select lenders and borrowers before a broader opening takes place a few days later

  • coronavirus
  • federal tax

New PPP guidance issued by SBA, Treasury

January 07, 2021

The U.S. Small Business Administration (SBA) and Treasury issued guidance late Wednesday night for the reconstituted Paycheck Protection Program (PPP). The guidance came in the form of two interim final rules (IFRs).

  • coronavirus
  • federal tax

Labor Department finalizes rule on employee vs. independent contractor status

January 06, 2021

The U.S. Department of Labor issued a final rule Wednesday to clarify the standard for determining whether a worker should be considered an employee or an independent contractor. The rule is one of many contentious regulations that the Trump administration has been rushing to finalize in its waning days and is likely to have an impact on labor relations, pay scales and benefits for workers. It also has an impact on the taxes they pay and whether taxes need to be withheld from their paychecks or simply reported on a Form 1099 and sent to them before Jan. 31. More companies in recent decades have been classifying their workers as independent contractors as opposed to full-time employees to save on salaries and benefits, and that trend has only accelerated in recent years with the growth of the gig economy.

  • business and industry
  • career resources
  • practice management
  • advocacy - federal
  • federal tax

Guidance permits change in vehicle use valuation during pandemic

January 05, 2021

In response to the COVID-19 pandemic, the IRS is allowing employers to switch from the vehicle lease valuation method to the cents-per-mile method (57.5 cents for 2020, 56 cents for 2021) for determining the value of an employee’s personal use of a vehicle during the pandemic (Notice 2021-7). Because many businesses have either closed or switched to telecommuting, employers have noticed that using the Regs. Sec. 1.61-21(d) automobile lease valuation rule has resulted in an increase in the lease value required to be included in an employee’s income for personal use of a vehicle in 2020 compared with earlier years. In contrast, the cents-per-mile method produces a more accurate income inclusion.

  • coronavirus
  • federal tax

IRS releases 2020 Progress Update; annual report details unprecedented year

January 05, 2021

The Internal Revenue Service today released its 2020 annual report describing the agency's work delivering taxpayer service and compliance efforts during COVID-19 while spotlighting actions taken by IRS employees to help people during the challenging year.

  • federal tax

Managing warehousing in a changed world

January 05, 2021

The global COVID-19 crisis is accelerating the transformation of the warehousing sector. A surge in online retailing and global supply chain uncertainties, combined with the departure of the UK from the European customs union, present new challenges for CFOs and other financial professionals.

  • federal tax

COVID-19 relief bill addresses key PPP issues

December 27, 2020

President Donald Trump on Sunday night signed into law the $900 billion COVID-19 relief bill passed Dec. 21 by Congress. Trump had said he would not sign the bill because he wanted $2,000 stimulus checks for individuals instead of the $600 in the legislation. His signature Sunday came a day after unemployment benefits expired for millions of Americans and only hours before the federal government would have shut down due to a temporary funding bill expiring.

  • coronavirus
  • advocacy - federal
  • federal tax

PPP expense deductibility and forgiveness raises basis, other issues

December 27, 2020

The Consolidated Appropriations Act, 2021 (CAA 2021), H.R. 133, Division N, Section 276, provides that deductions are allowed for otherwise deductible expenses paid with the proceeds of a Paycheck Protection Program (PPP) loan that is forgiven and that the tax basis and other attributes of the borrower’s assets will not be reduced as a result of the loan forgiveness. CAA 2021 passed both houses of Congress on Dec. 21, and President Donald Trump signed the bill into law on Dec. 27.

  • coronavirus
  • federal tax