Additional 2020 Economic Impact PaymentsJanuary 4, 2021
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
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
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
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 …
The Last Word on the Payroll Protection Program… Well at Least in 2020!November 4, 2020
If you are reading this, congratulations on surviving. 2020 is the benchmark of change and chaos highlighting that survival and success favored those prepared. The PPP loan program saw the issuance of more than 4.9 million loans to small businesses around the U.S. Many business owners may be numb about the news and latest revisions …
PPP: Simpler Forgiveness for Smaller LoansOctober 30, 2020
Business owners who received a Paycheck Protection Program (PPP) loan of $50,000 or less can now apply for loan forgiveness through a simplified application. The U.S. Small Business Administration (SBA) announced the change on October 8, while Treasury Secretary Steven Mnuchin said the Treasury Department and SBA will continue to advocate for additional legislation in …
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, …
IRS Temporarily Stops Mailing Three Balance-Due NoticesAugust 28, 2020
The IRS currently has a large backlog of unopened mail, creating confusion in taxpayers receiving balance-due notices for payments previously submitted. To reduce miscommunication, the IRS is suspending the automatic mailing of three balance-due notices. Read More
Telecommuting and Sales NexusAugust 18, 2020
Nexus Based on COVID-19 Telecommuting This chart shows which states have issued specific guidance on whether telecommuting employees temporarily working in a state due to the impact of COVID-19 create corporate income tax nexus for an employer who does not operate in that state. See Corporate Tax Chart This chart shows which states have issued …
Thomas Reuters Income Tax and Sales Tax Appointment ChartAugust 7, 2020
The latest state by state income tax and sales tax appointment chart has been updated, as of August 7th. See Page 6 for NJ. See Chart