tax faqs

FAQs on Deferral of Employment Tax Deposits and Payments

August 3, 2020

The IRS released updated FAQs on employers deferring the deposit and payment of the employer’s share of Social Security taxes and self-employed individuals to defer payment of certain self-employment taxes. Here are the new FAQs: What’s the difference between a deposit and a payment towards an employment tax liability? Generally, employers with an employment tax…

Read More
lease accounting

Extended Rehabilitation Credit Deadlines

July 30, 2020

The IRS released Notice 2020-58 which provides relief to taxpayers in satisfying the substantial rehabilitation test due to the Coronavirus pandemic. In order to qualify a building for the rehabilitation credit, projects must meet the “substantial rehabilitation test” within a 24- or 60-month period for determining whether the rehabilitation work is satisfactory. The relief allows…

Read More
tax cpa

FAQs on Suspended Installment Agreements

July 28, 2020

The IRS released new FAQs for taxpayers on suspended installment agreements. Taxpayers with an existing installment agreement/payment plan with payments due between April 1 and July 15 were suspended due to the Coronavirus pandemic. IRS’s updated FAQs include the following updates: Interest and penalties while installment agreement is in effect. Interest and late-payment penalties continue…

Read More
tax advisors

Temporary Regulations on Excess Employment Tax Credit

July 27, 2020

The IRS and Treasury Department issued temporary and proposed regulations to reconcile advance payments of refundable employment tax credits provided under the Families First Coronavirus Response Act and the CARES Act as well as recapture the benefit of the credits. The temporary regulations stipulate that erroneous refunds of these employment tax credits are treated as…

Read More
tax related actions

Did You Miss the July 15 Tax Deadline? File Now to Reduce Penalties

July 21, 2020

If you missed the July 15 tax deadline without requesting an extension to October 15, the IRS is reminding taxpayers to file as soon as possible to reduce penalties and interest. Penalties and interest apply to taxes owed after the extended July 15 deadline. The failure-to-file penalty is 5% of the tax owed for each…

Read More
net operating losses

Guidance on Net Operating Losses for Consolidated Groups

July 16, 2020

The IRS issued proposed and temporary regulations to provide guidance on the treatment of net operating losses (NOLs) for consolidated groups after recent statutory changes from the Tax Cuts and Jobs Act (TCJA) and CARES Act. An NOL deduction is the sum of: The total of NOLs arising before Jan. 1, 2018 (pre-2018 NOLs) that…

Read More