Newsletters

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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Advance Child Tax Credit Payments

Posted June 2021

The IRS announced that the 2021 advance child tax credit (CTC) payments, created under the American Rescue Plan Act (ARPA), will begin being made on July 15, 2021. According to the IRS, about 39 million households covering 88% of children in the U.S. “are slated to begin receiving monthly payments without any further action required.” Eligible parents will soon begin receiving payments from the federal government.

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Providing Education Assistance to Employees

Posted June 2021

Many businesses provide education fringe benefits so their employees can improve their skills and gain additional knowledge. Under a “qualified educational assistance program,” an employee can receive, on a tax-free basis, up to $5,250 each year from their employer for educational assistance.

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Tax Filing Reminders – July 2021

July 31
September 15
September 30
October 15

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Tax Filing Reminders – June 2021

June 15
September 15
September 30
October 15

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2020 UNEMPLOYMENT COMPENSATION EXCLUSION

Posted April 2021

In recent months, there have been many tax changes to help mitigate the financial damage caused by COVID-19. One change that may result in tax savings for you on your 2020 tax return is the unemployment compensation exclusion.

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MANDATORY E-FILING IN 2021 FOR TAX-EXEMPT ORGANIZATIONS

Posted April 2021

The Taxpayer First Act requires certain tax-exempt organizations to file information and tax returns electronically for tax years beginning after July 1, 2019. Pending conversion to electronic format, the IRS previously accepted paper-filed Forms 990-T, Exempt Organization Business Income Tax Return, and Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code.  As of March 2021, these forms and instructions have been revised and electronic filing is required.

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EMPLOYEE RETENTION CREDIT FOR 2021

Posted April 2021

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a refundable payroll tax credit, the Employee Retention Credit (ERC). For 2020, the ERC could be claimed by eligible employers who paid qualified wages after March 12, 2020, and before January 1, 2021, if they experienced a full or partial suspension of their operations or a significant decline in gross receipts. The credit for 2020 was equal to 50% of qualified wages paid, including qualified health plan expenses. The maximum credit per employee was $5,000.

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