1099-Misc and 1099-NEC Reporting Rules in a Nutshell

Note: Beginning with the 2020 tax year, Form 1099-NEC ("nonemployee compensation") has replaced Form 1099-Misc for payments to subcontractors. Form 1099-Misc remains in use for payments to attorneys and landlords. Businesses that have a Form 1099-Misc or 1099-NEC reporting requirement must issue the forms to recipients by January 31. Here is a brief summary [...]

1099-Misc and 1099-NEC Reporting Rules in a Nutshell2021-01-20T14:46:07+00:00

All About the Expanded Employee Retention Tax Credit

The U.S. Senate and House of Representatives overwhelmingly passed a $900 billion COVID-19 relief bill Monday night that provides $600 stimulus payments to individuals, adds $300 to extended weekly unemployment benefits, and provides more than $300 billion in aid for small businesses. One of the bill's key provisions is an expansion of the employee retention credit (ERC), [...]

All About the Expanded Employee Retention Tax Credit2020-12-22T13:20:39+00:00

COVID Relief Bill Extends and Expands PPP Loans

The U.S. Senate and House of Representatives overwhelmingly passed a $900 billion COVID-19 relief bill Monday night that provides $600 stimulus payments to individuals, adds $300 to extended weekly unemployment benefits, and provides more than $300 billion in aid for small businesses. The legislation, the Consolidated Appropriations Act, 2021, also ensures tax deductibility for business expenses paid [...]

COVID Relief Bill Extends and Expands PPP Loans2020-12-22T13:08:00+00:00

R&D Tax Credits Can Provide a Valuable Tax Benefit

U.S. tax law provides a valuable benefit — in the form of a nonrefundable tax credit — for businesses that engage in qualified research and development activities (see a list below). The Sec. 41 credit, which amounts to as much as 20% of the excess of qualified research expenditures for the tax year over [...]

R&D Tax Credits Can Provide a Valuable Tax Benefit2020-11-25T15:58:48+00:00

Business Year-End Tax Planning Strategies

Several end-of-year tax planning strategies are available to business owners that can be used to reduce their tax liability. Let's take a look: DEFERRING INCOME Businesses using the cash method of accounting can defer income into 2021 by delaying end-of-year invoices so that payment is not received until 2021. Businesses using the accrual method [...]

Business Year-End Tax Planning Strategies2020-11-09T17:36:56+00:00

Individual Year-End Tax Planning Strategies

With the end of the year fast approaching, now is the time to take a closer look at tax planning strategies you can use to minimize your tax burden for 2020. GENERAL TAX PLANNING STRATEGIES General tax planning strategies for individuals include accelerating or deferring income and deductions, as well as careful consideration of [...]

Individual Year-End Tax Planning Strategies2020-11-09T17:39:13+00:00

Tips for Starting Your Own Business

Starting your own business can be an exciting prospect, but there is more to it than simply writing a business plan. Also, if you expect to have employees, there are a variety of federal and state forms and applications that you need to complete to get your business up and running. That's where a [...]

Tips for Starting Your Own Business2020-10-15T14:15:35+00:00

Watch Out for PFIC Status if You Own Foreign Investments

The term “passive foreign investment company” (PFIC) suggests a sophisticated, highly specialized investment that the majority of U.S. persons probably would not own. In reality, many U.S. persons--whether living in the United States or abroad--may unwittingly become PFIC shareholders and thus subject to unexpected federal income tax and reporting requirements. PFICs are foreign corporations [...]

Watch Out for PFIC Status if You Own Foreign Investments2020-09-14T17:39:52+00:00

Say No to Payroll Tax Deferral

On August 8, 2020, the President issued a Memorandum allowing employers to defer withholding and payment of an employee's portion of the Social Security tax (i.e., the 6.2% FICA portion of the federal payroll tax on employees). Medicare taxes, however, are not covered. The payroll tax deferral is effective starting September 1, 2020, and [...]

Say No to Payroll Tax Deferral2020-09-02T15:03:28+00:00

Tips for Filing an Amended Tax Return

If you discover a mistake on your tax return after you've already filed, don't panic. In most cases, all you have to do is file an amended tax return. Here's what you need to know: Taxpayers should use Form 1040X, Amended U.S. Individual Income Tax Return, to file an amended (corrected) tax return. An amended [...]

Tips for Filing an Amended Tax Return2020-08-07T13:41:10+00:00
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