Congress passes the American Rescue Plan Act

While the COVID-19 pandemic is finally slowing down, the economic damage that it caused lingers on. In order to relieve the financial burdens facing many taxpayers and accelerate recovery, Congress has passed the American Rescue Plan Act (the Act). The Act is a $1.9 trillion relief package that will affect millions of individuals and businesses. … Continue reading Congress passes the American Rescue Plan Act

Economic Impact Payment info available on IRS.gov

Since many taxpayers may have mistakenly discarded their Letter 1444, which came with the Economic Impact Payments (stimulus payment) during the spring of 2020 and during January of 2021, the IRS has made this information available on taxpayers’ online accounts at IRS.gov. Here is a brief how-to video to show you how to access your … Continue reading Economic Impact Payment info available on IRS.gov

Emergency COVID Relief Agreement reached — Help is on the way

UPDATE: President Trump has signed the ECRA into law on Sunday, December 27. Downloadable summary of pandemic relief for: IndividualsBusinesses Original Post: After months of political bickering, Congress has reached an agreement on an emergency coronavirus relief bill and the President has said he would sign it. Although not all the details are fully available … Continue reading Emergency COVID Relief Agreement reached — Help is on the way

IRS backlog leads to due date confusion

During the shutdown, the IRS generated more than 20 million notices of various types; however, due to the challenges of the ongoing pandemic, the IRS was unable to mail the notices in a timely manner. Therefore, some of them have due dates that have passed. For that reason, if you have received one of these notices in the … Continue reading IRS backlog leads to due date confusion

Simplified PPP Forgiveness for Smaller Borrowers — a step in the right direction

This past Thursday, the Treasury & SBA released a simplified application for PPP loan forgiveness for borrowers of less than $50k. In addition, a new interim final rule (IFR) was issued that provides guidance about forgiveness and loan review processes (for banks and other lenders) for these smaller loans. The good news here is that under the … Continue reading Simplified PPP Forgiveness for Smaller Borrowers — a step in the right direction

The 2020 Payroll Tax Deferral is a Bad Idea

The IRS issued guidance last week on the 2020 payroll tax deferral, which was enacted by Executive Order by President Trump. Under the guidance (IRS Notice 2020-65, summarized below), employers are able to stop withholding Social Security taxes from employee paychecks from September 1 through December 31, 2020. A bullet point summary of IRS Notice … Continue reading The 2020 Payroll Tax Deferral is a Bad Idea