lease accounting

Changes to Excess Business Losses From the CARES Act

September 3, 2020

The Coronavirus Aid, Relief and Economic Security (CARES) Act made changes to excess business losses. Some changes are retroactive and there may be opportunities for some businesses to file amended tax returns. Here is more information about the changes that may impact your business. Deferral of the excess business loss limits The Tax Cuts and…

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stimulus check

IRS Is Issuing Economic Impact Payments to Spouses That Are Due Child Support

September 2, 2020

The IRS is sending economic impact payments (EIPs) to individuals whose portion of the EIP was diverted to pay their spouse’s past-due child support. Approximately 50,000 catch-up payments will be issued in early to mid-September. They will be mailed as checks to any eligible spouse who submitted Form 8379, Injured Spouse Allocation, along with their 2019…

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employee retention credit

What You Need to Know About the Payroll Tax Deferral

September 1, 2020

The IRS released guidance on the payroll tax deferral from the Presidential Memorandum issued on August 8, 2020, which allows employers to defer withholding and payment of the employee’s portion of the Social Security tax if the employee’s wages are below a certain amount. Under the guidance, the Social Security tax deferral may only apply…

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net operating losses

Temporary Procedures for Electronic Signatures on Certain IRS Forms

August 31, 2020

The IRS is temporarily allowing the use of electronic or digital signatures on certain forms that can’t be filed electronically. This procedure is being put into place to help mitigate the health risks during the Coronavirus pandemic. The following forms can be submitted with digital signatures: Form 3115, Application for Change in Accounting Method; Form…

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tax planning

IRS Temporarily Suspends Mailing Certain Notices

August 25, 2020

The IRS has suspended mailing three notices that go to taxpayers who have a balance due on their taxes. The notices are the CP-501, the CP-503 and the CP-504. This temporary suspension is due to the backlog of unopened mail at the IRS from office closures. It is intended to avoid confusion for taxpayers who…

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nanny tax

Did You Hire a Nanny This Year Due to COVID-19? You May Owe “Nanny Tax”

August 20, 2020

Many parents are hiring nannies and babysitters because their daycare centers and summer camps are closed this year due to COVID-19. This may result in federal “nanny tax” obligations. Be aware, the nanny tax may apply to all household workers, such as housekeepers, babysitters, gardeners or others who aren’t independent contractors. You aren’t required to…

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