In a news release, the IRS has updated guidance for a now-expired tax deferral program that benefitted certain employees in 2020. According to an executive memorandum signed by President Trump last summer, employers could elect to not withhold Social Security tax (6.2%) from paychecks of eligible employees from Sept.1 through Dec. 31, 2020. The deferred … Read More
Your estate plan may include several different trusts. The reason is that various types of trusts can accomplish a myriad of estate planning goals. Thus, it’s critical to understand the role of a trustee. The trustee’s duties The trustee is the person who has legal responsibility for administering the trust on behalf of the interested … Read More
The IRS has released the covered compensation tables for the 2021 plan year. For purposes of determining covered compensation for the 2021 year, the taxable wage base is $142,800. As background, the tax code provides that certain employee benefit plans are qualified plans only if the contributions or benefits provided don’t discriminate in favor of … Read More
A new year has arrived and, with it, a fresh 12 months of opportunities to communicate with customers and prospects. Like every year, 2021 brings distinctive marketing trends to the table. The COVID-19 pandemic and resulting economic challenges continue to drive the conversation in most industries. To get more for your marketing dollars, you’ll need … Read More
The IRS announced that tax season will start on Feb. 12, 2021. That’s when the tax agency will begin accepting and processing 2020 individual income tax year returns. It is later than in past years. The IRS stated that the start date will allow time to do additional programming and testing of systems following the … Read More
A long-standing benefit for some educators gets an update. Eligible K-12 teachers and instructors are entitled to up to $250 annually in an “above-the-line deduction” for certain school-related expenses paid out of their own pockets. Thanks to the new Consolidated Appropriations Act, the list of qualified deductible items has expanded. Now included are personal protective … Read More
Businesses and not-for-profit entities capitalize machines, furniture, buildings, and other property, plant and equipment (PPE) assets on their balance sheets. Here’s a refresher on some common questions about how to properly report these long-lived assets under U.S. Generally Accepted Accounting Principles (GAAP). What’s included in book value? PPE is reported on the balance sheet at … Read More
National Taxpayer Advocate Erin M. Collins released her “2020 Annual Report to Congress.” The report focuses on the challenges that taxpayers faced filing their tax returns and receiving refunds and Economic Impact Payments due to COVID-19. It also notes that a roughly 20% inflation-adjusted reduction in the IRS’s budget since 2010 has left the IRS … Read More
COVID-19 has shut down many businesses, causing widespread furloughs and layoffs. Fortunately, employers that keep workers on their payrolls are eligible for a refundable Employee Retention Tax Credit (ERTC), which was extended and enhanced in the latest law. Background on the credit The CARES Act, enacted in March of 2020, created the ERTC. The credit: … Read More
The IRS has expanded its Identity Protection (IP) PIN Opt-In program to all taxpayers who can verify their identities. The IP PIN is a six-digit code known only to the taxpayer and to the IRS. It helps prevent identity thieves from filing fraudulent tax returns using a taxpayer’s personally identifiable information. Taxpayers who want an … Read More