Newsletters

Deferred Charitable Giving

Posted September 2021

Deferred donations, often called deferred giving plans, usually allow you to retain the benefit of the donated funds while providing a gift to charity at a later date. You receive an immediate income tax deduction for the value of your gift, and you avoid paying capital gains tax on a gift of appreciated property.  It is important to remember that a contribution to any of the deferred giving type funds is irrevocable. 

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EMPLOYEE RETENTION CREDIT DUE TO SUNSET 12/31/2021

Posted September 2021

Many qualified businesses are not claiming the 2021 employee retention tax credit (ERC), a pandemic relief measure worth up to $28,000 a year per employee kept on the business’s payroll. The clock is ticking, and this provision will sunset on December 31, 2021.

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House Aims to Push Business into Auto-Sign-Up Retirement Plans

Posted September 2021

House Democrats proposed requiring companies to automatically enroll workers for IRAs or 401(k)-type retirement plans under a provision tucked into draft legislation enacting the bulk of President Joe Biden’s economic plan.

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TAX FILIING REMINDERS – SEPTEMBER 2021

September 30th
October 15th
November 15th

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IRS Letter Indicating No Valid Extension Filed

Posted August 2021

Many taxpayers are receiving letters from the Internal Revenue Service (IRS) stating the IRS was unable to grant an extension of time to file because the extension was not requested by the return due date.

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IRS TO UPDATE VIRTUAL CURRENCY QUESTION FOR 2021

Posted August 2021

On July 22, 2021, the IRS released the draft of Form 1040.  The IRS has made an important change to the wording of the virtual currency question that was on the front of Taxpayer’s 2020 Form 1040:  “At any time during 2020, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?”

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IRS releases advance version of Rev. Proc. 2021-30 for retirement plan sponsors

Posted on August 2021

On July 13, 2021, the IRS released an advance version of Rev. Proc. 2021-30 as an update on a comprehensive system of correction programs for sponsors of retirement plans that are intended to satisfy the requirements of sections 401(a), 403(a), 403(b), 408(k) and 408(p), but that have not met these requirements for a period of time.

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IRS Enhances Key Online Tool for Monthly Child Tax Credit Payments

Posted July 2021

On June 30, 2021, the IRS added a bank account update feature to its Child Tax Credit Update Portal (which is available only on IRS.gov).  This new feature allows eligible families to easily update their bank account information so that they can receive their monthly Child Tax Credit payments in their desired bank account.

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Capital Gains Tax Rate Increase Could Be on the Horizon

Posted July 2021

High-income investors may want to take action to realize gains at current, lower tax rates. President Biden’s current tax plan will raise the top tax rate on capital gains from 23.8% to 43.4% for households with income over $1 million. However, the President’s proposed budget appears to reflect this tax increase occurring in late April of 2021. If Congress agrees to a retroactive tax increase, tax planning will not be possible.

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Supreme Court Strikes Down California Donor Disclosure Rule

Posted July 2021

On July 1, 2021, the U.S. Supreme Court ruled that California’s nonprofit donor disclosure requirements violate the First Amendment. The case, which is also seen as having a potential impact on campaign finance regulations, opens the door for further legal challenges against states that have similar rules requiring tax-exempt organizations to share their IRS Form 990 Schedule B and Schedule of Contributors with state officials. This schedule generally includes the names, addresses, and total contributions of all donors who contribute more than $5,000.

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