IRS Tag

Looking ahead: How the American Rescue Plan affects 2021 taxes, part 1

This is the first of two tax tips providing an overview of how the American Rescue Plan may affect some individual’s 2021 taxes. Child and dependent care credit increased for 2021 only The new law increases the amount of the credit and the percentage of employment-related expenses...

25 June, 2021

As hurricane season nears, IRS reminds people to prepare for natural disasters

WASHINGTON —The Internal Revenue Service reminds everyone that May included National Hurricane Preparedness Week and was also National Wildfire Awareness Month. Now is a good time to create or review emergency preparedness plans for surviving natural disasters. In the last year, the Federal Emergency Management Agency...

04 June, 2021

IRS Updates Form 7200: Advance Payment of Employer Credits Due to COVID-19

The IRS released an updated Form 7200, Advance Payment of Employer Credits Due to COVID-19, on May 18, 2021. The form was developed so employers could get new tax credit refunds paid in advance. IRS Note: At the time Form 7200 and these instructions went to...

26 May, 2021

New Version of Form 7200 Needed to File for Second Quarter 2021 Credits

The IRS is asking employers to wait until the newest version of Form 7200 (Advance Payment of Employer Credits Due to COVID-19) is available before submitting it for the second quarter of 2021 because the existing January 2021 version of the form was not designed...

21 May, 2021

Filing season reminder: An extension to file is not an extension to pay taxes

For most individual taxpayers the tax filing and payment deadline was postponed to May 17. Those who need more time to file beyond the postponed date, can request an extension to file. Taxpayers must request an extension to file by May 17, or they may face...

14 May, 2021

Treasury Department and IRS provide safe harbor for small businesses to claim deductions relating to first-round Paycheck Protection Program loans

WASHINGTON — The Treasury Department and the Internal Revenue Service recently issued Revenue Procedure 2021-20 for certain businesses that received first-round Paycheck Protection Program (PPP) loans but did not deduct any of the original eligible expenses because they relied on guidance issued before the enactment...

07 May, 2021

IRS will recalculate taxes on 2020 unemployment benefits and start issuing refunds in May

Normally, any unemployment compensation someone receives is taxable. However, a recent law change allows some recipients to not pay tax on some 2020 unemployment compensation. The IRS will automatically refund money to eligible people who filed their tax return reporting unemployment compensation before the recent changes...

30 April, 2021

American Rescue Plan tax credits available to small employers to provide paid leave to employees receiving COVID-19 vaccines; new fact sheet outlines details

WASHINGTON − The Internal Revenue Service and the Treasury Department recently announced further details of tax credits available under the American Rescue Plan to help small businesses, including providing paid leave for employees receiving COVID-19 vaccinations. The additional details, provided in a fact sheet released today,...

23 April, 2021

Claiming the Employee Retention Credit in the First and Second Calendar Quarters 2021

IRS issued guidance for employers claiming the employee retention credit under the Coronavirus Aid, Relief, and Economic Security Act modified by the Taxpayer Certainty and Disaster Tax Relief Act of 2020. Notice 2021-23 explains the changes for the first and second calendar quarters of 2021, including: ...

16 April, 2021

IRS Extends Additional Tax Deadlines to May 17

Following the extension of the filing and payment deadline for individuals to May 17, 2021, the IRS announced other tax deadline extensions to the same date. Here’s what’s affected: Contributions to IRAs and health savings accounts People now automatically have until May 17, 2021, to make 2020 contributions to...

09 April, 2021