IRS Delays Start of Filing Season to February 12, 2021January 15, 2021

The IRS announced on Friday January 15, 2021 that the tax filing season would commence on February 12, 2021. On that date, IRS will start accepting and processing individual tax returns. The IRS needs more time to prepare because of the recent tax legislation that took effect in late December. The tax filing deadline at …

Additional 2020 Economic Impact PaymentsJanuary 4, 2021

Additional 2020 Economic Impact Payments

You’ve probably heard that IRS will be making millions of ”economic impact payments” (also called ”recovery rebates”) in the near future to help people stay afloat during this time of economic uncertainty related to the COVID-19 crisis. These payments are in addition to the $1,200 payments ($2,400 for married couples) issued earlier in 2020. Here’s …

Deductibility of Business Meals Provided by Restaurants in 2021 and 2022January 4, 2021

Deductibility of business meals

You’ve probably heard that the recent stimulus legislation included a provision that removes the 50% limit on deducting business meals provided by restaurants in 2021 and 2022 and makes those meals fully deductible. Here are the details. In general, the ordinary and necessary food and beverage expenses of operating your business are deductible. However, the …

Consolidated Appropriations Act, 2021
AKA COVID-19 Relief PackageDecember 23, 2020

Consolidated Appropriations Act, 2021

Congress passed the 5000+ page Consolidated Appropriations Act, 2021 on Monday, December 21, 2020. Here are some highlights of that bill. Please note this has not yet been signed by President Trump and could be subject to change. Additional 2020 Recovery Rebates – Additional 2020 stimulus payments of $600 per taxpayer and qualifying children. The …

Round Two of the COVID-19 Stimulus PlanDecember 22, 2020

Round Two of the COVID-19 Stimulus Plan

Monday night Congress approved the new COVID-19 related stimulus package. A major development that many contractors have been anticipating, arrived for the holiday season. Under the Consolidated Appropriations Act, 2021 expenses paid with forgiven Paycheck Protection Program (PPP) loans are 100% tax deductible.   Businesses who received funding under the Payroll Protection Program (PPP) will now …

New Jersey Pass – Through Business Alternative Income Tax ActOctober 27, 2020

Legislation was passed on January 13, 2020 establishing a pass-through business alternative tax (PTBAT). How Does It Work Starting in 2020, pass-through entities may elect to pay a PTBAT. Paying the tax is an annual election. The tax is based on each member’s share of distributive proceeds. Distributive proceeds mean “net income, dividends, royalties, interest, …

PPP Forgiveness Applications on HoldAugust 5, 2020

PPP Forgiveness Applications on Hold

Paycheck Protection Program (PPP) borrowers who have completed their covered period and used their funds in line with the requirements for loan forgiveness will have to wait until at least August 10 to be able to submit a forgiveness application, pending economic stimulus legislation that will likely impact PPP forgiveness procedures. The Small Business Administration …

IRS Provides Guidance on CARES Act Waiver of Required Minimum DistributionsJune 26, 2020

IRS Provides Guidance on CARES Act

On June 23, 2020 IRS released updated guidance in regard to Required Minimum Distributions (RMD) for 2020. Specifically, Notice 2020-51 provides rollover relief (including an extension of the 60-day rollover period to August 31, 2020), permits certain repayments to inherited IRAs, and sets out Q&As regarding the waiver of 2020 RMDs. The Notice allows taxpayers …

Mnuchin May Consider Extending Tax Filing Due Date AgainJune 26, 2020

Extending Tax Filing Due Date Again

Treasury Secretary Steven Mnuchin said on June 23 that he may consider delaying the July 15 deadline for filing tax returns originally due on April 15. Generally, the due date for an individual’s income tax return is April 15. But due to COVID-19, for an individual, the due date for filing Federal income tax returns …