Newsletters
2020 UNEMPLOYMENT COMPENSATION EXCLUSION
Posted in 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.
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.
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.
Tax Filing Reminders – April 2021
May 17th
June 15th
Tax Filing Reminders – March 2021 – UPDATED
April 15th
May 17th
June 15th
TWO WEEKS FOR SMALL BUSINESSES TO APPLY FOR PPP WITH SBA
Posted March 2021
On Monday, February 22, President Biden and the U.S. Small Business Administration (SBA) announced changes to the Paycheck Protection Program (PPP) to assist small businesses. The SBA established a 14-day loan application period exclusively for businesses and nonprofits with fewer than 20 employees. It is anticipated that larger PPP-eligible businesses will still have plenty of time to apply for and receive support before the program expires on March 31.
CASUALTY LOSSES IN FEMA DISASTER AREA
Posted March 2021
Tax relief is part of a coordinated federal response to the damage caused by winter storms in February 2021 and is based on local damage assessments by FEMA. Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses may be able to deduct a casualty loss, choosing to claim the loss on either the return for the year the loss occurred (in this instance, the 2021 return normally filed next year) or the return for the prior year. This means that taxpayers can, if they choose, claim these losses on the 2020 return they are preparing this tax season.
VICTIMS OF WINTER STORMS GET DEADLINE EXTENSIONS
Posted March 2021
Due to the February winter storms, residents and businesses in Oklahoma and Texas now have until June 15, 2021, to file their individual and business tax returns and make tax payments. The FEMA disaster declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area, which includes all 77 counties in Oklahoma and the entire state of Texas.
Tax Filing Reminders – February 2021
March 2nd
March 15th
April 15th
FINAL INSTRUCTIONS REVISE VIRTUAL CURRENCY TRANSACTION LIST
Posted February 2021
For the 2020 tax year, taxpayers will need to answer the question on page 1 of Form 1040. The final version of the instructions to Form 1040 has revised the non-exhaustive list of transactions involving virtual currency by removing the purchase of virtual currency and the acquisition of a financial interest in virtual currency from the list.