COVID-19 tax news and information

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July 1, 2021

Safe harbor allows 2020 PPP expenses to be deducted in 2021

The IRS issued guidance on a safe harbor permitting qualifying taxpayers who have PPP loans, who did not deduct expenses related to those loans paid or incurred in 2020 on their 2020 returns, to deduct the expenses on their returns for 2021.

July 1, 2021

Penalty relief for payroll tax deposits allows immediate use of pandemic credits

The IRS provided for penalty relief under Sec. 6656 for an employer’s failure to timely deposit certain employment taxes with the IRS to allow employers to immediately take advantage of various credits enacted in response to the COVID-19 pandemic.

July 1, 2021

ARPA-adjusted 2021 individual credit amounts set

The IRS issued guidance on the amount of and limitations on the child tax credit, earned income tax credit, and premium tax credit available for taxpayers for the 2021 tax year.

July 1, 2021

IRS reminds taxpayers of ARPA suspension of 2020 excess APTC repayment

The IRS said it would not require taxpayers who received excess advance premium tax credits for 2020 to file Form 8962, Premium Tax Credit, after the American Rescue Plan Act retroactively exempted those amounts from being taxe

July 1, 2021

E-signing extended, new forms added

In response to the coronavirus pandemic, the IRS issued guidance extending the temporary authorization to issue a number of IRS forms using electronic signatures through Dec. 31, 2021.

July 1, 2021

‘Restaurant’ defined for 100% deductible business meals in 2021 and 2022

The IRS issued guidance on the temporary rule that allows a 100% deduction for eligible restaurant meals in 2021 and 2022.

June 28, 2021

Supreme Court declines to take up remote worker taxation case

The US Supreme Court declined to allow New Hampshire to sue Massachusetts over a pandemic-related regulation that allows Massachusetts to continue to collect state income tax from remote workers who normally work in Massachusetts.

June 11, 2021

IRS posts ARPA credit FAQs

The IRS has posted two sets of FAQs that explain changes to the child and dependent care credit and to the sick and family leave credits made by the American Rescue Plan Act.

June 1, 2021

A conversation on future-proofing CPA firms

The experts on the AICPA Tax Practice Management
Committee discuss the technology updates that helped their firms endure through COVID-19 and beyond.

June 1, 2021

IRS refunding taxes overpaid on unemployment benefits

To help taxpayers who might otherwise have been required to file amended income tax returns, the IRS announced that it will automatically issue to eligible taxpayers refunds of income tax paid on 2020 unemployment benefits.