Taxpayers with net operating losses (NOLs) form a business are provided tax relief under the CARES Act. Tax relief for partnerships filing amended returns is provided as well. Let’s take a look at three key points:
Answers to Questions about Economic Impact Payments
COVID Tax Tip 2020-44, April 22, 2020
The IRS is issuing Economic Impact Payments. These payments are being issued automatically for most individuals. However, some people who don’t usually file a tax return will need to submit basic information to the IRS to receive their payment.
SBA PPP and EIDL Loan Details Update — April 13, 2020
On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The …
Watch Out for Coronavirus-related Scams
Taxpayers should be on the lookout for calls and email phishing attempts regarding the Coronavirus, or COVID-19 that could lead to tax-related fraud and identity theft. Because criminals take every opportunity to perpetrate a fraud on unsuspecting victims during times of need, taxpayers should also be skeptical about text messages received and websites and social media attempts to request money or personal information.
The Tax-Smart Way to Loan Money to Friends & Family
Offering to lend money to cash-strapped friends or family members during tough economic times is a kind and generous offer, but before you hand over the cash, you need to plan ahead to avoid tax complications for yourself down the road.
Take a look at this example: Let’s say you decide to loan $5,000 to your daughter who’s been out of work for over a year and is having difficulty keeping up with the mortgage payments on her condo. While you may be tempted to charge an interest rate of zero percent, you should resist the temptation.
Here’s why:
Tax-exempt Organizations e-filing requirements & Forms
The Taxpayer First Act enacted July 1, 2019, requires tax-exempt organizations to electronically file information returns and related forms. Those that previously filed paper forms will receive a letter from the IRS informing them of the change.
The new law affects tax-exempt organizations in tax years beginning after July 1, 2019, and applies to the following IRS forms (filing deadlines vary by form type):
- Form 990, Return of Organization Exempt from Income Tax.
- Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation.
- Form 8872, Political Organization Report of Contributions and Expenditures.
- Form 1065, U.S. Return of Partnership Income (if filed by a Section 501(d) apostolic organization).
Five Tips to Protect Against Identity Theft
Tax-related ID theft occurs when someone uses a taxpayer’s stolen personal information to file a tax return claiming a fraudulent refund. Thieves then use personal information like a stolen Social Security number. While the accounting profession and IRS work hard to prevent identity theft, taxpayers also play an important role.
SBA COVID-19 Loans and Grant Application Information
Paycheck Protection program The SBA has just released the application for the Paycheck Protection program. This program is for a forgivable loan to help small businesses and self-employed to help pay for payroll, health insurance, rent, and utilities. I have …
Families First Coronavirus Response Act — Benefits and Tax Relief
The Families First Coronavirus Response Act (FFCRA), passed by Congress and signed by President Trump on March 18, 2020, will become law 15 days after the signing. FFCRA provides benefits such as paid sick leave, free coronavirus testing, expanded food assistance and unemployment benefits, and requires that employers provide additional safeguards for health care workers. For many, it provides welcome support as employers and employees deal with the extraordinary effects of COVID-19 on the workforce and economy.