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Tax Alerts
May 10, 2021
Tax Briefing(s)
Most business owners make some kind of gift to employees at Christmas. While many companies still hand out the holiday turkey, others go all out with formal dinners, cash bonuses, or gift certificates. What many employers may not realize, however, is that many of theft gifts to employees are considered compensation by the Internal Revenue Service and are subject to federal and state income taxes as well as Social Security taxes.

Record retention is a must, whether for personal, business, or tax reasons. However, record retention is necessary only to the extent it serves a useful purpose or satisfies legal requirements.

A Savings Incentive Match Plan for Employees (SIMPLE) is a simplified retirement plan intended to allow small employers to provide retirement savings for their employees.

Individuals with no wills, particularly those with substantial assets, may be following a path that will lead to extra complications and financial burdens for their families. The financial implications extend to owing more tax than necessary, increasing costs of estate administration, and diverting assets to unintended heirs.

Then, when you're ready, here are five tips to help take the worry out of hiring your first employee.

The taxation of municipal and corporate bonds is complex. Hered is a brief explanation of the tax effects.

A well known, but sometimes overlooked, way to alter investment holdings without paying tax at the time of the transaction is through the use of "like-kind" exchanges.

You can generally pay part or all of your estimated tax by using a credit card (American Express Card, MasterCard, or Discover Card)

This is to disclose to you, our client, our disclosure policy regarding personal data that we obtain from you

New rules have been released regarding IRA distributions, which will hopefully simplify and provide benefits to taxpayers.

Before you start a new business, there are a number of preliminary decisions to be made. One of the first choices you will face, is the legal form in which you will operate the business.

Here is a checklist highlighting advantages and disadvantages of the S corporation form.

Before you start a new business, there are a number of preliminary decisions to be made. One of the first choices you will face, is the legal form in which you will operate the business.

INFORMATION NEEDED TO COMPLETE YOUR BUSINESS TAX RETURN

In this article, we examine the various issues involved in plan selection.

You first offset long-term (LT) gains with long-term losses (resulting in either a net LT capital gain or a net LT capital loss), and then you offset short-term (ST) capital gains with short-term capital losses (resulting in either a net ST capital gain or a net ST capital loss).

The IRS has postponed the federal tax filing and payment deadlines, and associated interest, penalties, and additions to tax, for certain taxpayers who have been adversely affected by the Coronavirus Disease 2019 (COVID-19) pandemic. 


The IRS has provided guidance related to the temporary 100-percent deduction for business meals provided by a restaurant. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 ( P.L. 116-260) temporarily increased the deduction from 50 percent to 100 percent for a business’s restaurant food and beverage expenses for 2021 and 2022. All other food and beverage expenses are still subject to the 50 percent deduction limitation unless some other exception applies.


The IRS has issued guidance for employers claiming the employee retention credit under Act Sec. 2301 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) ( P.L. 116-136), as modified by Act Secs. 206 and 207 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act) (Division EE of P.L. 116-260), for the first and second calendar quarters in 2021. The guidance amplifies previous guidance which addressed amendments made by section 206 of the Relief Act for calendar quarters in 2020.


The IRS has issued guidance clarifying that amounts paid for personal protective equipment—such as masks, hand sanitizer and sanitizing wipes—for the primary purpose of preventing the spread of the Coronavirus Disease 2019 (COVID-19 PPE) are treated as amounts paid for medical care under Code Sec. 213(d).


The U.S. Department of Labor has published a new webpage with guidance implementing the Continuation of Health Coverage premium assistance provisions of the American Rescue Plan (ARP), to provide full COBRA premium assistance to certain individuals who experienced a reduction in hours or involuntary termination of employment.


The IRS has announced that, under the American Rescue Plan Act of 2021 (ARP) ( P.L. 117-2), the requirement that taxpayers increase their tax liability by all or a portion of their excess advance payments of the Premium Tax Credit (excess APTC) is suspended for tax year (TY) 2020.


The IRS has extended the penalty relief provided in Notice 2020-22, I.R.B. 2020-17, 664, for failure to deposit employment taxes, to eligible employers that reduce their required deposits in anticipation of the following credits.


Continuing an ongoing effort to help those experiencing homelessness during the pandemic, the IRS has reminded people who do not have a permanent address or a bank account that may still qualify for Economic Impact Payments (EIP) and other tax benefits.


Death benefits that an S corporation provided to its sole shareholder under a split-dollar life insurance arrangement were employee compensation rather than a corporate distribution. In reaching this decision, the Tax Court firmly rejected the contrary conclusion reached by the Sixth Circuit Court of Appeals in J.J. Machacek, CA-6, 2018-2 U.S.T.C. 50,447.


The termination date for an empowerment zone designation under Code Sec. 1391 is generally deemed to extend until December 31, 2025. However, the state or local government that nominated the zone may decline the deemed extension.


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