IRS explains extended payroll tax due dates
The IRS issued updated procedures for the deferred employee portion of employment tax payments, which were further extended from April 30, 2021, to Dec. 31, 2021, by year-end legislation.
COVID-19
Some individual taxpayers get relief from underpayment penalty
The IRS granted individual taxpayers a waiver from the penalty for underestimated tax due solely to the amendment to Sec. 461(l)(1)(B) in the CARES Act repealing the excess business loss limitations for years before 2021.
Taxpayers need clarity on coordination of ERC and PPP loans
The AICPA asked the IRS and Treasury to clarify that the filing of a Paycheck Protection Program loan forgiveness application is not an election by the taxpayer to forgo the employee retention credit for wages reported on the application exceeding the amount of wages necessary for loan forgiveness.
Some paper forms can temporarily be e-signed
The IRS made it easier for taxpayers to sign certain paper returns and other paper IRS forms in an environment where taxpayers and preparers alike are working remotely.
Claiming the recovery rebate credit on 2020 individual returns
Tax preparers can help taxpayers claim the recovery rebate on 2020 returns.
AICPA focuses advocacy efforts on mobile workforce legislation
Congressional action could simplify the business landscape for interstate workforce models that have expanded sharply due to stay-at-home orders isssued to fight the COVID-19 pandemic.
How to report deferred employee payroll taxes
The IRS issued guidance to employers and employees on reporting deferred Social Security tax on Form W-2 under the Presidential Memorandum authorizing the deferral.
Taxpayer Relief Initiative to help taxpayers with tax debt during pandemic
The IRS said it was revising its procedures to help taxpayers who cannot pay their taxes because of the pandemic. The new program is called the Taxpayer Relief Initiative.
PPP expense deductibility and forgiveness raises basis, other issues
The potential for the deductibility of PPP-funded expenses raises some practice questions, and traps for the unwary lurk in the details.
Many tax provisions appear in year-end coronavirus relief bill
The year-end coronavirus relief and spending bill passed by Congress includes many tax provisions, including pandemic-related relief, extensions of expired provisions, and a large number of miscellaneous items, including temporary 100% deductibility for business meals.
Temporary e-signature authorization for IRS forms extended
The IRS announced that it was extending taxpayers’ ability to file a number of forms using electronic signatures due to the pandemic. The limited relief extends the authorization through June 30, 2021.
AICPA and trade associations ask Congress to fix PPP loan deductibility
In a letter to Congress, dated Dec. 3, hundreds of national trade associations and their state and regional affiliates asked that legislation be enacted before the end of 2020 reversing the IRS’s position that amounts forgiven in loans under the PPP be nondeductible business expenses.
Expenses used for PPP loan forgiveness: Deductible or not?
Two experts look at the issue of the deductibility of expenses paid with PPP loan funds and conclude that they should be deductible.
CARES Act changes to retirement plans
A distribution that meets the definition of a coronavirus-related distribution carries several advantages and tax planning opportunities.
Expenses funded with PPP loans
This item discusses tax issues related to the forgiveness of PPP loans.
Improving cash flow with loss carrybacks
This article discusses two planning areas related to NOL carrybacks: The decision whether to carry a loss forward or back and planning strategies to increase the balance of the NOL carryback.
Changes to charitable giving rules for 2020
There is a unique opportunity this year for clients with charitable contribution carryforwards to 2020.
Modernize and virtualize your tax practice: Part 1
The COVID-19 pandemic fast-tracked the need to invest in technology to accommodate clients and staff in the new remote-working environment.
AICPA mobilizes members to push for deductibility of PPP-funded expenses
The AICPA is asking its members to write to their senators and representatives in Congress in support of legislation that would mandate that anyone who receives a loan through the PPP can deduct business expenses even when payment of those expenses results in loan forgiveness under the CARES Act.
IRS doubles down on nondeductibility of PPP-funded expenses
The IRS issued guidance for taxpayers who pay otherwise deductible expenses with PPP loan funds, stating that even if the payment and PPP loan forgiveness happen in different tax years, the expenses are not deductible.
