IRS: Economic Impact Payment FAQs

May 26, 2020By Smeriglio Associates LLCNews

Taxpayers have many questions regarding Economic Impact Payments (EIPs) and the IRS is answering some of them in FAQs on its website. Specifically, individuals are wondering whether an EIP is considered taxable income. The IRS said it’s not, and taxpayers won’t owe tax on it. In addition, the payment won’t reduce taxpayers’ refunds or increase … Read More

Auditing revenue

May 25, 2020By Smeriglio Associates LLCNews

Traditionally, audit procedures for private companies tend to focus on the balance sheet. That is, auditors evaluate whether the book values of the company’s assets are overstated and its liabilities are understated. However, the income statement needs attention, too, especially in light of the updated guidance on recognizing revenue from contracts and the potential for … Read More

IRS: People First Initiative

May 25, 2020By Smeriglio Associates LLCNews

The IRS’s “People First Initiative” was set up to give taxpayers relief during the novel coronavirus (COVID-19) crisis. The relief (much of it previously announced) covers a variety of issues from easing payment guidelines to delaying compliance actions. It also involves extending many filing and payment deadlines to July 15. For example, you may delay … Read More

IRS: FSA Carryover to $550 for 2021

May 24, 2020By Smeriglio Associates LLCNews

The IRS has increased the health Flexible Spending Account (FSA) carryover amount. In Notice 2020-33, the IRS stated that the FSA carryover limit (currently fixed at $500) will now be indexed for inflation. For a plan year starting in 2020, the maximum unused amount that can be carried over to the next plan year starting … Read More

IRS: EIP Reporting State

May 23, 2020By Smeriglio Associates LLCNews

More than 130 million individuals have already received Economic Impact Payments (EIPs) worth more than $200 billion, according to the IRS. “Millions more are on the way every week,” said IRS Commissioner Chuck Rettig, to help offset economic damage caused by the novel coronavirus (COVID-19) crisis. The U.S. Treasury Dept. and the IRS have just … Read More

CBO: Budget Deficit $1.48 Trillion

May 22, 2020By Smeriglio Associates LLCNews

The federal government logged an estimated budget deficit of $1.48 trillion for the first seven months of fiscal year 2020, which a Congressional Budget Office (CBO) report said “appears to be unprecedented.” The deficit was $949 billion more than the same period last year, as receipts fell $200 billion and outlays rose $749 billion. “That … Read More

IRS: Health Care Expenses as Qualified Wages? Yes.

May 21, 2020By Smeriglio Associates LLCNews

Can an employer that averaged 100 or less full-time employees in 2019 treat its health plan expenses as qualified wages for purposes of the Employee Retention Credit? The answer is “yes.” According to an updated version of the IRS FAQs about the credit, an eligible employer can count health plan expenses paid or incurred, after … Read More