More people are eligible this year to receive the Child Tax Credit in 2021 as part of the American Rescue Plan. If you claimed the Child Tax Credit for 2020, you received it as a dollar for dollar offset to your tax liability when filing your taxes. For the 2021 tax year, the IRS will send out 50% of that […]
Highlights of The American Rescue Plan Act (ARPA)
The American Rescue Plan Act (ARPA), signed by President Biden on March 11, 2021, extended and expanded many of the tax and economic incentives that Congress has passed to address the continuing economic impact on employers and their employees from the Coronavirus pandemic. Among the many provisions and grants, the ARPA: Enhanced and extended paid […]
The American Rescue Plan Act
The American Rescue Plan Act, 2021 (ARPA, 2021) was signed by President Biden on March 11, 2021 to address the continuing economic impact on employers and employees the coronavirus (COVID-19) pandemic has posed. The legislation extends and expands provisions found in the Families First Coronavirus Relief Act (FFCRA), Coronavirus Aid, Relief and Economic Security (CARES) […]
PPP Second Draw Application Deadline is March 31
Don’t forget! The Paycheck Protection Program (PPP) Second Draw application deadline is March 31, 2021 or when the approximately $284 billion of funding is exhausted. Current trends indicate there will be funds available through March 31. Of course, trends and guidance can always change, so be aware. Additionally, per the SBA website, President Biden announced […]
Home Office Tax Deductions
With an increase in individuals working from home, we have seen questions arising about home office tax deductions. It is important to distinguish the difference in deductions available to employees and those that are self-employed. Employees Under the Tax Cuts and Jobs Act (TCJA), employee business deductions, including home office tax deductions, were suspended through […]
Status of Virginia’s Conformity to Federal Legislation
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 […]
