The tax implications of employer-provided life insurance

August 14, 2020By Smeriglio Associates LLCNews

Does your employer provide you with group term life insurance? If so, and if the coverage is higher than $50,000, this employee benefit may create undesirable income tax consequences for you. “Phantom income” The first $50,000 of group term life insurance coverage that your employer provides is excluded from taxable income and doesn’t add anything … Read More

IRS: Do’s and Don’t of IRS Correspondence

August 14, 2020By Smeriglio Associates LLCNews

Finding a letter from the IRS in your mailbox can make some people go weak in the knees. Don’t assume it means trouble, since the IRS mails letters or notices for many reasons. Here are some DOs and DON’Ts for taxpayers if a dreaded letter shows up. First, don’t ignore it. Contact us with questions. … Read More

SBA: PPP Frequently Asked Questions

August 13, 2020By Smeriglio Associates LLCNews

The Small Business Administration (SBA), in consultation with the U.S. Treasury Dept., has issued additional FAQs regarding the forgiveness of Paycheck Protection Program (PPP) loans. In general, the new FAQs provide guidance on general loan forgiveness, payroll and nonpayroll costs, and reductions to a borrower’s forgiveness amount. More specifically, the SBA details how to calculate … Read More

IRS: TIGTA Audit Conclusions

August 12, 2020By Smeriglio Associates LLCNews

A recent Treasury Inspector General for Tax Administration (TIGTA) audit has concluded that most IRS applications have insufficient audit trails to detect unauthorized access to sensitive taxpayer information. The audit said that while the IRS has made “some progress” in implementing relevant solutions to address audit trail weaknesses, “[the] solutions are not effective, and the … Read More

IRS: $500 per Qualifying Child

August 11, 2020By Smeriglio Associates LLCNews

The IRS is issuing $500 per qualifying child to some parents. These individuals used the IRS Non-Filers tool before May 17, 2020, and claimed at least one qualifying child. These individuals didn’t receive the qualifying child portion of the Economic Impact Payment (EIP) because of an error that was corrected on May 17. Direct deposit … Read More

IRS: Special Funding & Benefit Limit CARES Act

August 10, 2020By Smeriglio Associates LLCNews

The IRS has issued guidance that addresses questions about the special funding and benefit limitations rules for single-employer defined benefit pension plans under the CARES Act. In a nutshell, the special rules state that a contribution that would otherwise be required to be made during the 2020 plan year must be made by Jan. 1, … Read More