How Teleworking Is Impacting Your Tax Obligations During The COVID-19 Pandemic

Posted by on Nov 4, 2020 in Advice As the COVID-19 outbreak continues, many employers are continuing to encourage or require their employees to work from home (i.e., telework). Such remote working arrangements could potentially have tax implications that should be considered. State tax obligations for the employer When an employee works in more than one state, an employer may be obligated to withhold and remit income taxes to...
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IRS provides tax inflation adjustments for tax year 2021

Posted by on Oct 28, 2020 in Advice The Consolidated Appropriation Act for 2020 increased the amount of the minimum addition tax for failure to file a tax return within 60 days of the due date. Beginning with returns due after Dec. 31, 2019, the new additional tax is $435 or 100 percent of the amount of tax due, whichever is less, an increase from $330. The $435 additional tax will be adjusted for inflation. The tax year 2021...
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Balance due notices resume

Posted by on Oct 26, 2020 in Advice The IRS will resume issuing the 500 series balance due notices to taxpayers later this month. These notices were paused on May 9 due to COVID-19. Although the IRS continued to issue most agency notices, the 500 series were suspended temporarily because of a backlog of mail at the IRS due to COVID-19. The mail backlog is now caught up enough to account for the timely mailed payments. In late...
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IRS to Mail Special Letters to Non-Filers

Posted by on Oct 1, 2020 in Advice The IRS has announced that it will start mailing letters to roughly nine million Americans who typically do not file federal income tax returns who may be eligible for, but have not registered to claim, an Economic Impact Payment. The letters will urge recipients to register at www.irs.gov by October 15 in order to receive their payment by the end of the year. Individuals can receive up to...
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Reminder to not cancel IRS check payments in backlog due to COVID-19

Posted by on Sep 25, 2020 in Advice Do not cancel any check payments to the IRS while the IRS continues to process its backlog of mail. This is important so that taxpayers avoid any penalties and interest. Payments will be posted as the date received rather than the date the agency processed them. Learn more about IRS operations during COVID-19.
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Failure to Deposit Penalty

Posted by on Sep 24, 2020 in Advice The IRS is aware that a small population of employers that reduced their tax deposits in anticipation of claiming the sick and family leave credits, or employee retention credit, may have received a notice stating there was a failure to deposit penalty applicable to the Form 941 on which the credits were claimed. Under Notice 2020-22, employers claiming the new tax credits may reduce their...
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Payment Due Notices

Posted by on Sep 17, 2020 in Advice The IRS has suspended the mailing of three notices: the CP501, the CP503, and the CP504. These notices are mailed to taxpayers who have a balance due on their taxes. Although the IRS continues to make significant reductions in the backlog of unopened mail that developed while most IRS operations were closed due to COVID-19, this temporary adjustment to processing is intended to lessen any...
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Extension FAQs

Posted by on Jul 6, 2020 in Advice Sometimes “extension” sounds like a bad word. Here are some frequently asked questions to understand the potential benefits of going on extension. Tax extensions faqsDownload
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PPP Flexibility Act

Posted by on Jun 8, 2020 in Advice The Paycheck Protection Program (PPP) has been changed to benefit most small businesses. In our opinion, this will lead to more opportunity of PPP loan forgiveness. See the press release and highlights below. https://home.treasury.gov/news/press-releases/sm1026 These modifications will implement the following important changes: Extend the covered period for loan forgiveness from eight weeks...
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2020 Employee Retention Credit

Posted by on Apr 12, 2020 in Advice The Coronavirus Aid, Relief, and Economic Security Act (CARES Act, Public Law 116- 136) provides for a refundable tax credit up to 50% of the qualified retention wages paid, including allocable qualified health expenses, limited to up to $10,000 in wages paid per employee, if such wages are paid by an eligible employer experiencing a full or partial business suspension due to orders from a...
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