Victims of California wildfires qualify for tax relief. The IRS has announced that taxpayers impacted by the wildfires that began Aug. 14, 2020, and who reside or have a business in a designated federal disaster area qualifying for individual assistance, have more time to make tax payments and file returns. The relief generally applies to … Read More
Increasing diversity is a key initiative at many companies in 2020. This movement goes beyond social responsibility — it can lead to better-informed decision-making, improved productivity and enhanced value. Congress has also jumped on the diversity-and-inclusion bandwagon: Legislation is in the works that would require public companies to expand their disclosures about diversity. Good for … Read More
No taxpayer signature on amended return results in no tax refund. The U.S. Court of Federal Claims has jurisdiction over tax refund claims if the claims are “duly filed,” including being signed by the taxpayers under penalty of perjury. Claims that aren’t duly filed will be considered for a refund only if the IRS waives … Read More
Are you a late tax filer? You may still get an Economic Impact Payment (EIP) under the CARES Act. The IRS says that if individuals filing 2019 tax returns in 2020 are determined to be eligible based on those returns and haven’t already received an EIP (or been determined ineligible based on their 2018 returns), … Read More
No one likes to think about income tax returns before they have to. But if you start preparing now for 2021, it’ll make things easier when tax time comes. Everyone should have a system for keeping information organized, such as file folders for paper documents. Add tax records to your files throughout the year as … Read More
During the COVID-19 crisis, you can’t afford to lose sight of other ongoing risk factors, such as cyberthreats, fraud, emerging competition and natural disasters. A so-called “stress test” can help reveal blind spots that threaten to disrupt your business. A comprehensive stress test requires the following three steps. 1. Identify the risks your business faces … Read More
Does your employer provide you with group term life insurance? If so, and if the coverage is higher than $50,000, this employee benefit may create undesirable income tax consequences for you. “Phantom income” The first $50,000 of group term life insurance coverage that your employer provides is excluded from taxable income and doesn’t add anything … Read More
Finding a letter from the IRS in your mailbox can make some people go weak in the knees. Don’t assume it means trouble, since the IRS mails letters or notices for many reasons. Here are some DOs and DON’Ts for taxpayers if a dreaded letter shows up. First, don’t ignore it. Contact us with questions. … Read More
A widely circulated article about the COVID-19 pandemic, written by author Tomas Pueyo in March, described efforts to cope with the crisis as “the hammer and the dance.” The hammer was the abrupt shutdown of most businesses and institutions; the dance is the slow reopening of them — figuratively tiptoeing out to see whether day-to-day … Read More
The Small Business Administration (SBA), in consultation with the U.S. Treasury Dept., has issued additional FAQs regarding the forgiveness of Paycheck Protection Program (PPP) loans. In general, the new FAQs provide guidance on general loan forgiveness, payroll and nonpayroll costs, and reductions to a borrower’s forgiveness amount. More specifically, the SBA details how to calculate … Read More