Tax Tips September 2020

Click on the links below to jump to each section in this article: IRS Form 1040-X Now Available for E-Filing The Home Office Deduction Record-keeping Tips for Individuals and Businesses What To Do If You Get a Letter From the IRS E-Signatures Temporarily Allowed for Certain Forms   IRS Form 1040-X Now Available for E-Filing Form 1040-X has been one of the last major individual tax forms that still needed to be paper-filed, but now taxpayers can quickly correct previously filed tax returns by submitting Form 1040-X, Amended U.S. Individual Income Tax Return electronically using commercial tax-filing software. Approximately 3 million Forms 1040-X are filed by taxpayers each year and taxpayers must mail a completed Form 1040-X to the IRS for processing. The new electronic...

read more

Featured Articles September 2020

Click on the links below to jump to each section in this article: Small Business Update: Payroll Tax Deferral It's Never Too Early to Check Tax Withholding Preparing for a Successful Retirement Tax Considerations When Hiring Household Help Tax Tips for Workers in the Gig Economy Small Business Update: 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 also applies to the employee portion of the Railroad Retirement Act Tier 1 tax. While employers are allowed to defer the withholding...

read more

Tax Tips August 2020

Click on the links below to jump to each section in this article: What is Form 1099-NEC? RIC Shareholder Dividends Qualify as Section 199A Temporary Relief for Retirement Plan Participants Tax Facts to Know If You're Selling Your Home This Year Small Business Tax Tips: Payroll Expenses   What is Form 1099-NEC? Starting in tax year 2020, payers must complete Form 1099-NEC, Nonemployee Compensation to report any payment of $600 or more to a payee. There is a new form that only applies to business taxpayers who pay or receive nonemployee compensation. Generally, payers must file Form 1099-NEC by January 31. For 2020 tax returns, however, the due date is February 1, 2021. Be advised that there is no automatic 30-day extension to file Form 1099-NEC although an extension to file may be...

read more

Featured Articles August 2020

Click on the links below to jump to each section in this article: Dirty Dozen Tax Scams: 2020 Edition Exiting a Business: Which Option Is Right for You? Protect Tax Records Before Disaster Strikes Filing an Amended Tax Return Tax Breaks for Teachers and Educators Dirty Dozen Tax Scams: 2020 Edition The "Dirty Dozen" is a list of common tax scams that target taxpayers. Compiled and issued annually every year by the IRS, this year it includes many aggressive and evolving schemes related to coronavirus tax relief, including Economic Impact Payments. The criminals behind these bogus schemes view everyone as potentially easy prey and everyone should be on guard, especially vulnerable populations such as the elderly. While tax-related scams usually increase at tax time, this year, scam artists...

read more

Featured Articles July 2020

Click on the links below to jump to each section in this article: Paying off Debt the Smart Way Small Business Financing: Securing a Loan July 15 Deadline for Reporting Foreign Income Here's How to Pay If You Owe Money to the IRS Q & A: Returning an Economic Impact Payment   Paying off Debt the Smart Way With a potential economic downturn in the wings due to COVID-19, being debt-free is a worthwhile goal. Unfortunately, between mortgages, car loans, credit cards, and student loans, this is unrealistic for most people - especially those of pre-retirement age. Instead, it's better to start by focusing on managing debt. When you handle debt wisely, you won't have to shell out every cent of your hard-earned money to your lender or feel like you're always on the verge of bankruptcy....

read more
Featured Articles for June 2020

Featured Articles for June 2020

Click on the links below to jump to each section in this article: Loan Forgiveness Under the Paycheck Protection Plan Pass on Wealth to Heirs Using These Strategies Preparing an Effective Business Plan Avoid These Common Errors When Filing a Tax Return Loan Forgiveness Under the Paycheck Protection Plan As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law March 27, many small business owners were able to apply for - and receive - a loan of up to $10 million under the Paycheck Protection Program (PPP). Businesses - including nonprofits, veterans' organizations, Tribal entities, self-employed individuals, sole proprietorships, and independent contractors - that were in operation on February 15 and that have 500 or fewer employees are eligible for the...

read more

PPP Loan Update: 8 Weeks Extended to 24 Weeks!

Late Wednesday night, the Senate unanimously passed the Paycheck Protection Program Flexibility Act which makes significant modifications to the provisions of the original Paycheck Projection Program (PPP). These modifications are expected to be signed into law by the President. Among the key provisions is a change in the threshold for the amount of PPP funds required to be spent on payroll costs to qualify for forgiveness to 60% of the loan amount. The following is a summary of the legislation’s main points compiled by the AICPA: PPP borrowers can choose to extend the eight-week period to 24 weeks, or they can keep the original eight-week period. This flexibility is designed to make it easier for more borrowers to reach full, or almost full, forgiveness. The payroll expenditure...

read more

Paycheck Protection Program (PPP) Loan Forgiveness Application

As of Friday, May 15, the Small Business Administration (SBA), in consultation with the Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application. The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).  SBA will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities. The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including: Options for borrowers to calculate payroll costs using an “alternative...

read more
COVID-19 Updates: Things You Should Know

COVID-19 Updates: Things You Should Know

Click on the links below to jump to each section in this article: Tax Returns & Estimated Taxes Now Due July 15 CARES Act: Information for Individual Taxpayers Tax Breaks Help Small and Medium-sized Employers The Tax-Smart Way to Loan Money to Friends & Family Relief for Other Coronavirus-related Tax Issues   Tax Returns & Estimated Taxes Now Due July 15 Due to the coronavirus pandemic, the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020. Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. In addition, the payment and return-filing requirements for gift and generation-skipping transfer taxes due April 15 are now due...

read more

Promotions

We are celebrating several promotions here at Caras & Shulman. We know that our greatest assets are the people who serve our clients everyday. Today we recognize (from left to right) Lindsey Murphy, Lead Associate, Operations, Melissa Astone, Supervisor, Accounting & Audit, Alexandra Binek, Senior Associate, Accounting & Audit, Nancy Cuneo, Lead Associate, Accounting Services, and Raffi Donabedian, Manager, Accounting & Audit. Also, missing from the photo - Danielle Shnaper, Lead Associate, Accounting & Audit, and Carollee Fallon, Lead Associate, Accounting Services. Thanks to each of you for your commitment to both your clients and careers. Message us to find out how you can become part of our winning team.

read more