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 [...]
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 [...]
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 [...]
The Senate’s $2 trillion coronavirus-relief bill that passed on March 25 includes benefits for Americans whose retirement accounts have been battered by the stock-market meltdown. Hardship distributions from IRAs and 401(k)s “Hardship withdrawals” of up to $100,000 are available. The withdrawals would still be taxable, but account owners can pay the income tax due [...]
The massive coronavirus stimulus bill is expected to clear Congress today. Courtesy of the Wall Street Journal, here is a FAQ regarding the stimulus checks for individuals: How much money is it? The plan provides $1,200 for each adult and $500 for each child under 17. A married couple with two children would get [...]
Update: We have added additional blogs on key topics: FAQ re Coronavirus Stimulus Checks FAQ re Coronavirus Loans for Small Businesses Retirement Provisions of the Coronavirus Relief Bill We hope that you and your family are safe and healthy. As economic losses continue from the coronavirus pandemic, South Carolina and the federal government have [...]
Businesses have been using deep learning, neural networks, and other forms of artificial intelligence (AI) for several years to track and predict consumer behavior—so-called “big data.” The government also uses AI to identify trends in data and draw inferences from that data. For instance, Terrorist A and Terrorist B both have a close connection [...]
