After the Tax Cuts and Jobs Act (TCJA) tax reform, employee business expenses can be deducted as an adjustment to income only for specific employment categories and eligible educators. Taxpayers can no longer claim unreimbursed employee expenses as miscellaneous itemized deductions, unless they are a qualified employee or an eligible educator. They must complete Form [...]
Economic damages, lost profits, business interruption- intuitively, these sound quite similar, and they are; these terms are commonly used interchangeably when referring to a business’s loss in income following an event. Additionally, the calculations and methodology used for determining the financial impact from each of these terms is the same. The difference? Business Interruption is [...]
Coronavirus has impacted all industries including construction projects, owners. Supply chain has been disrupted for many, government’s civil authority orders have stopped work, workers quarantine has caused delays and increased project costs. Many such construction delays and disputes may involve a claim for lost profits. Specific policy terms can vary significantly by policy, but common [...]
Employers who are filing Form 941, Employer's Quarterly Federal Tax Return and claiming an employer tax credit should read the instructions carefully and take their time when completing the form to avoid mistakes. Using a reputable tax preparer including certified public accountants, enrolled agents or other knowledgeable tax professionals can also help avoid errors. Mistakes [...]
The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, was passed in order to provide relief to individuals and businesses which were disrupted due to the pandemic. The rise in the pandemic led to the lock down and hence most of the business were out of operation resulting in loss [...]
Employee Retention Tax Credit (ETRC) is credit against certain employment taxes. This credit was limited to 50% of qualified wages under the previously passed CARES Act, with maximum wages being $10,000 per employee per year. However, the most recently passed COVID-19 Relief Bill has extended this credit till July 1, 2021, compared to CARES Act [...]
Wrapping up an unpredictable year with many changes and challenges wasn’t easy. As we are stepping into a new year, in this article, we would like to share some important reminders for you to prepare for the upcoming tax filing season for tax year 2020. Start date of e-filing: The 2021 tax season will start [...]
The Internal Revenue Service announced the tax year 2021 annual inflation adjustments for more than 60 tax provisions on October 26, 2020 in Revenue Procedure 2020-45, including the tax rate schedules and other tax changes. This article below talks about some highlights of changes about these annual adjustments. The tax year 2021 adjustments described below [...]
An independent valuation or appraisal may be needed to determine the fair market value (FMV) of a privately held company’s certain nonqualified deferred compensation plans such as stock appreciation rights (SARS) or stock options. Whether such plans are subject to section 409A depends on the rules and features designed in a compensation plan including the [...]
Simplify the PPP Application Process The new COVID -19 relief bill also simplified the application process - Simplified the forgiveness application process for loans of $150K or less. EIDL advance need not be deducted from the PPP forgiveness amount And here in below is a list of documents that SBA may require for PPP loan [...]
