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Tax Alerts
Tax Briefing(s)

Do you provide company owned autos to your employees? Whether as "perks" or as necessary tools to get the work done, employee personal use of the vehicle has tax implications for them and for you.


As 2021 comes to an end, it is time to gather the data needed for year-end business reporting requirements.  We have attached information relating to the reporting requirements for Form 1099.  


The Employee Retention Credit (ERC) under IRC Sec. 3134 was enacted by Section 9651 of the American Rescue Plan Act of 2021 (ARPA) that provides a credit for qualified wages. The IRS has issued further guidance on the ERC, amplifying guidance provided in Notices 2021-20 and 2021-23. Changes include, among other things, (1) making the credit available to eligible employers that pay qualified wages after 6/30/21 and before 1/1/22, (2) expanding the definition of eligible employer to include "recovery startup businesses," (3) modifying the definition of qualified wages for "severely financial distressed employers," and (4) providing that the ERC does not apply to qualified wages taken into account as payroll costs in connection with a shuttered venue grant. Also, guidance is provided on several miscellaneous issues with respect to the ERC for both 2020 and 2021. News Release IR-2021-165 and Notice 2021-49.


The IRS announced broad-based penalty relief for taxpayers affected by the COVID-19 pandemic. The relief applies to failure to file penalties and certain international information return (IIR) penalties with respect to tax returns for tax years (TY) 2019 and TY 2020, filed on or before September 30, 2022.


The IRS has issued guidance to taxpayers, who have inappropriately received forgiveness of their Paycheck Protection Program ('PPP') loan, and has encouraged them to take steps towards compliance, such as filing amended returns that include the forgiven loan amounts, as income.


The IRS has reminded taxpayers to develop emergency preparedness plans due to the upcoming hurricane season and the ongoing threat of wildfires in some parts of the country.


The IRS has released information regarding the pre-screening and certification process for employers taking advantage of the Work Opportunity Tax Credit (WOTC). 


Businesses are still waiting for pandemic relief made available to them during the COVID-19 outbreak amid ongoing processing delays at the Internal Revenue Service, according to the Treasury Inspector General for Tax Administration.


The IRS has released a list of exceptions for the inclusion of a cancelled student loan debt in income. Generally, had a taxpayer's student loan been cancelled or repaid by someone else, the taxpayer was mandated to include the cancelled or repaid loan amount as part of their gross income, for tax purposes. 


Upgrading the Internal Revenue Service’s antiquated information technology infrastructure will help honest taxpayers, especially those making $400,000 or less, from being audited, Department of the Treasury Secretary Janet Yellen said.


Shortly after resuming operations post-government shutdown, the IRS told taxpayers that the start of the 2014 filing season will be delayed by one to two weeks. The delay will largely impact taxpayers who want to file their 2013 returns early in the filing season. At the same time, the White House clarified on social media that no penalty under the Affordable Care Act's (ACA) individual mandate would be imposed during the enrollment period for obtaining coverage through an ACA Marketplace.


Despite the 16-day government shutdown in October, a number of important developments took place impacting the Patient Protection and Affordable Care Act, especially for individuals and businesses. The Small Business Health Option Program (SHOP) was temporarily delayed, Congress took a closer look at income verification for the Code Sec. 36B premium assistance tax credit, and held a hearing on the Affordable Care Act's employer mandate. Individuals trying to enroll in coverage through HealthCare.gov also experienced some technical problems in October.


The arrival of year end presents special opportunities for most taxpayers to take steps in lowering their tax liability. The tax law imposes tax liability based upon a "tax year." For most individuals and small business, their tax year is the same as the calendar year. As 2013 year end gets closer, most taxpayers have a more accurate picture of what their tax liability will be in 2013 than at any other time during the current year. However, if you don't like what you see, you have until year end to make improvements before your tax liability for 2013 is permanently set in stone.


Code Sec. 179 allows taxpayers to expense the cost of qualified property instead of capitalizing the cost and recovering it over a period of years. The provision is designed to help small business. For the period 2010-2013, taxpayers can write off up to $500,000 of the costs of qualified property placed in service during the year. The $500,000 cap is reduced dollar-for-dollar to the extent that the cost of qualified property placed in service during the year exceeds $2 million. The amount claimed cannot exceed the income from the taxpayer's trade or business for the year. Any amount disallowed can be carried over to a future year.


A child with earned income above a certain level is generally required to file a separate tax return as a single taxpayer. However, a child with a certain amount of unearned income (from investments, including dividends, interest, and capital gains) may find that this income becomes subject to tax at his or her parent's highest marginal tax rate. This is referred to as the "kiddie tax," and it is designed to prevent parents from transferring income-producing investments to their children, who would generally be taxed at a lower rate.


Despite the passage of the American Tax Relief Act of 2012 - which its supporters argued would bring greater certainty to tax planning - many taxpayers have questions about the tax rates on qualified dividends and capital gains.


- CERTIFIED PUBLIC ACCOUNTANTS and CONSULTANTS -