The IRS is issuing the third round of Economic Income Payments (EIP3) to some non-filing federal beneficiaries. Recipients will receive up to $1,400 per qualified individual and qualified dependent. If you have an adjusted gross income of $80,000 ($160,000 for married couples filing jointly) or more, you aren’t eligible for an EIP3. Social Security, Supplemental … Read More
The American Rescue Plan Act (ARPA), signed into law in early March, aims at offering widespread financial relief to individuals and employers adversely affected by the COVID-19 pandemic. The law specifically targets small businesses in many of its provisions. If you own a small company, you may want to explore funding via the Small Business … Read More
The IRS has provided guidance to employers claiming the employee retention credit (ERC) for 2021. In Notice 2021-23, the IRS explains how employers can determine their eligibility for, and the amount of, the ERC they may claim for the first two quarters of 2021. During the first two quarters of 2021, the ERC equals 70% … Read More
During the COVID-19 pandemic, many employees and their families have lost group health plan coverage because of layoffs or reduced hours. If your business has had to take such steps, and it’s required to offer continuing health care coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA), the recently passed American Rescue Plan Act (ARPA) … Read More
The IRS is reminding taxpayers that even though many federal tax deadlines were extended from April 15, 2021, to May 17, 2021, there are some April 15 tax deadlines still in effect. Among the April 15 deadlines that remain include paying first-quarter 2021 individual estimated taxes, filing calendar year 2020 trust and estate income tax … Read More
The IRS is continuing efforts to communicate to taxpayers in languages other than English by expanding multilingual forms and communications. One example is the new Form 1040 Schedule LEP, “Request for Alternative Language Products by Taxpayers with Limited English Proficiency.” This form is available in English and Spanish, with instructions available in English and 20 … Read More
The American Rescue Plan Act, enacted on March 11, extended and changed payroll tax credits for qualifying sick leave and family leave wages. Key provisions include: 1) Both the paid sick leave credit and paid family leave credit now apply to wages paid through Sept. 30, 2021 (formerly March 31); 2) the credits are applied … Read More
The American Rescue Plan Act, signed into law on March 11, provides a variety of tax and financial relief to help mitigate the effects of the COVID-19 pandemic. Among the many initiatives are direct payments that will be made to eligible individuals. And parents under certain income thresholds will also receive additional payments in the … Read More
Is the IRS after you to collect a delinquent tax debt that’s beyond your ability to pay? There may be an option for you. Like any creditor, the IRS prefers a partial payment to no payment at all. So it’s sometimes willing to settle a tax debt for less than the full amount with an … Read More
It’s tax-filing season and you’re likely focused on your income or business tax returns. But don’t forget about another type of return. In 2020, if you made substantial gifts of wealth to family members you may have to file a gift tax return. Filing a gift tax return Generally, a federal gift tax return (Form … Read More