Consolidated Appropriations Act, 2021 – latest pandemic relief bill

The Consolidated Appropriations Act, 2021 (the CAA, 2021), signed into law on December 27, 2020, is a further legislative response to the pandemic. The tax provisions are found in two of the several acts included in the CAA, 2021, specifically, (1) the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (the TCDTR) and (2) the COVID-related Tax Relief Act of 2020 (the COVIDTRA). Following is information on some of…

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Year-end tax planning for calendar year 2020

Now, as year-end approaches, is a good time to think about planning moves that may help lower your tax bill for this year and possibly next. Year-end planning for 2020 takes place against the backdrop of a difficult year with the challenges of the pandemic. New tax rules have been enacted to help mitigate the financial impact of the pandemic, some of which should be considered as part of this…

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Economic Injury Disaster Loan (EIDL) Program and Paycheck Protection Program (PPP)

The CARES Act expanded the Economic Injury Disaster Loan (EIDL) Program, and additionally created the Paycheck Protection Program. Note that you cannot receive both loans – but you can apply for both and decide which one to take if you qualify for both. EIDL Program – This program is administered directly by the SBA. Key features of this program: Loans of up to $2 million. Favorable interest rates Available to…

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Coronavirus Aid, Relief, and Economic Security (CARES) Act

Following is information on the tax-related provisions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Congress’s gigantic economic stimulus package that the President signed into law on March 27, 2020. Recovery rebates for individuals   Please find our separate blog post on the recovery rebates here. Waiver of 10% early distribution penalty The additional 10% tax on early distributions from IRAs and defined contribution plans (such as 401(k) plans)…

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Families First Coronavirus Response Act

On March 18, President Trump signed into law the Families First Coronavirus Response Act which eased the compliance burden on businesses. The Act includes the four tax credits and one tax exemption discussed below. Payroll tax credit for required paid sick leave (the payroll sick leave credit) The Emergency Paid Sick Leave Act (EPSLA) division of the Act generally requires private employers with fewer than 500 employees to provide 80…

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Recovery Rebate (also known as the Economic Impact Payment)

To help individuals stay afloat during this time of economic uncertainty, the federal government will send payments of up to $1,200 to eligible taxpayers and $2,400 for married couples filing joints returns. An additional $500 payment will be sent to taxpayers for each qualifying child dependent under age 17 (using the Child Tax Credit qualification rules). Rebates are gradually phased out, at a rate of 5% of the individual’s adjusted…

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U.S. Tax and Economic Resources related to the Coronavirus

We hope you and your loved ones are managing well during this difficult time. In addition to health concerns, there are also economic concerns. The U.S. federal government has enacted legislation in order to help alleviate some of the economic impact created by COVID-19 and the related restrictions. We have prepared a number of blog posts with some information on the various laws and provisions which may be of benefit…

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COVID-19 virus outbreak & the U.S. federal tax payment extension

This message comes at an unsettling time, as we navigate through unchartered waters with the COVID-19 pandemic virus outbreak and the related efforts to contain the spread. There is much turmoil in society related to the public health concern and the weakened economy of battered industries and lost jobs. To ease the pain to taxpayers, the U.S. Treasury Department announced they are extending the U.S. federal income tax payment deadline…

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2018 Year-end tax planning

By Kyle Lodder, CPA As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next. Year-end planning for 2018 takes place against the backdrop of a new tax law—the Tax Cuts and Jobs Act—that make major changes in the tax rules for individuals and businesses. For individuals, there are new,…

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Next major international tax provision coming into effect soon (Hint: “GILTI”)

By Kyle Lodder, CPA In December 2017, Congress passed into law sweeping tax reform with the Tax Cuts and Jobs Act. There are a few provisions that impact international taxation quite significantly. One major change went into effect immediately during the 2017 tax year – the Section 965 repatriation tax. We’ve previously written on this topic. You can read more about this law here. It’s a one-time transition tax that…

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