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 [...]
About AccelAccel Tax & Business Services combines the dedicated client service expected from a small firm with the experience and capabilities typically found in larger ones. It is this combination that has established our Charleston, Mt. Pleasant based firm for growing businesses, entrepreneurs, professionals and individuals with traditional, special or unique tax, accounting and business advisory needs.
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 [...]
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 [...]
If your business has obtained a PPP loan, you will presumably soon be applying to have some or all of that loan forgiven pursuant to the SBA's PPP guidelines. That raises the interesting question of what the tax effects of forgiveness are. Is the forgiven portion taxable? The short answer, according to the IRS, [...]
Generally, taxpayers must begin taking a required minimum distribution (RMD) from a defined-contribution retirement plan, including a 401(k) or 403(b) plan, or an IRA when they reach age 72 (70 1/2 if they reached 70 ½ before January 1, 2020). The RMD for any year is the account balance as of the end of [...]
Update (6/30/20): The SBA has issued new guidance and a loan forgiveness application that clarifies that 100% of the PPP loan is now automatically forgiven for self-employed individuals with no employees. Consequently, we have deleted the prior blog on this subject.
Businesses that have been impacted financially by COVID-19 may be able to take advantage of a new, refundable tax credit called the Employee Retention Credit. The credit is designed to encourage businesses to keep employees on their payroll and is worth 50 percent of qualifying wages up to $10,000 that are paid by an [...]
An unprecedented "triple whammy" tax deadline is fast approaching. July 15 is the due date for the following: Individual income tax returns (Form 1040) and trust income tax returns (Form 1041); First quarter 2020 estimated tax payments; and Second quarter 2020 estimated tax payments Although an extension is available until October 15 to file [...]
Good news! Congress has passed, and the President is expected to sign, a bill that adds considerable flexibility to the rules for PPP loan forgiveness. Under the previous rules, forgiveness required that at least 75% of business expenses in the 8-week period after the loan closing be used for payroll expenses. The new rules [...]
Update 4/8/2020: The roll out of this program has been rocky, to say the least. Some banks (Wells Fargo being one) have announced that they are not participating. If you are having difficulty applying through your bank, we encourage you to contact a local community bank and ask if it will let you apply [...]