Most years, we as CPAs ask our clients located in Virginia to hurry up and get us their information, but then wait to file their returns. Why does this happen? One of the reasons is that the Virginia General Assembly meets annually in January and decides on Virginia’s conformity to new federal legislation. Once legislation is […]
IRS Delays Still Prevalent
According to the IRS and Thomson Reuters, IRS delays are still prevalent. The most common taxpayer concerns include 2020 tax return processing and mailed correspondence. The IRS states: They still have millions of tax returns in the processing pipeline. For refunds that could not be issued in 2020 because the tax return is being corrected, […]
How to Identify an IRS Scam
Receiving communication from the IRS can be stressful. Now thanks to scammers, we have to wonder if the communication is legitimate or an IRS scam. We must be vigilant in understanding how and when to respond to written IRS correspondence. If you receive mail from the IRS, they state: They will not demand a specific […]
SBA Provides Interim Final Rules for PPP
The Economic Aid Act was signed into law on December 27, 2020. Now, the SBA has provided its initial interim final rules (IFRs) related to the Paycheck Protection Program (PPP). The IFRs have provided some clarity, but other questions still remain. These are the things you should be thinking about as of today, January 8, 2021. In […]
Employee Retention Tax Credit May be Available Retroactively
PPP Borrowers may want to delay applying for Loan Forgiveness The Consolidated Appropriations Act (CAA) approved last month provides that the Employee Retention Tax Credit (ERTC) is retroactively available to PPP borrowers. Only wages that were not paid with forgiven PPP loan proceeds qualify for the credit. An employer will need to elect which period […]
50% Limit on Business Meal Deductions Removed for 2021 & 2022
To provide additional economic relief to the restaurant industry caused by the coronavirus (COVID-19) pandemic, Congress included a provision in the Consolidated Appropriations Act (CAA, 2021) that removes the 50% limit on business meal deductions during 2021 and 2022. Business related meals provided by restaurants, included those served by takeout or delivery, are fully deductible […]
PPP Second Draw & Deductibility of Expenses Now Available
At the end of 2020, Congress passed, and President Trump signed, a new law that provides for additional relief related to the coronavirus (COVID-19) pandemic. This law, the Consolidated Appropriations Act, 2021 (CAA, 2021), includes a second draw of Paycheck Protection Program (PPP) loans (PPP Second Draw Loans). It also allows businesses to deduct ordinary […]
Rebuild! VA Small Business Grant Program Expanded
The Rebuild! VA Small Business Grant Program has made some changes. They’ve expanded eligibility requirements to any small business or nonprofit under $10 million in gross revenue or 250 or fewer employees and the grant can now be up to $100,000 (technically the lessor of $100,000 or 3 months of your business’ average reoccurring operating […]
2020 Year-End Tax Planning for Individuals
It’s more important than ever to think about 2020 year-end tax planning for individuals. However, there has never been a year quite like 2020. We think it is safe to say that year-end tax planning for 2020 is proving to be the trickiest in recent memory. In response to the Coronavirus, Congress and the IRS […]
2020 Year-End Tax Planning for Businesses
There has never been a year like 2020. It’s important to start considering your 2020 year-end tax planning for businesses. In response to the Coronavirus, Congress and the IRS have been exceedingly busy enacting and issuing never-seen-before tax relief for businesses and employers. Congress had little choice but to pass this complex legislation quickly, without […]
