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 [...]

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 [...]

On March 21, 2020, Internal Revenue Service announced that the federal income tax filing due date is extended from April 15, 2020, to July 15, 2020. This is an automatic extension and there is no requirement to file any l forms or to call the IRS. Individual taxpayers who need additional time to file beyond [...]

What is Qualified Business Income Deduction (QBID)? Can you claim it? Before the Tax Cuts and Jobs Act law (pre 2018), there was no special deduction for qualified business income (QBI). After the Tax Cuts and Jobs Act law was passed, the new QBI deduction came into existence. The deduction is generally 20% of a [...]

Tax treaties or the Double Taxation treaties (DTT), as the name suggests are entered into between the two countries to coordinate their tax system at the international level. With the advent of globalization during 60’s & 70’s it became imperative to enter into bilateral conventions in order to reduce double taxation on international income. DTT [...]