S Corporations and PPP Loan Forgiveness

Attaining S corporation status has certain tax advantages. S corporations are treated as pass-through entities for tax purposes and the protection of shareholder assets. However, the relief acts passed in response to the COVID-19 pandemic revealed some potential problems with how income passed to individual shareholders is taxed. Two of the most relevant issues are […]

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Reporting Requirements for Health Care Providers That Received Pandemic Relief

For health care providers operating in the middle of a pandemic, profit often takes a backseat to saving lives. That’s why many providers have taken money from Uncle Sam in the past year. Some programs intended to help providers get by include Provider Relief Fund General Distributions, Targeted Distributions, Skilled Nursing Facility Infection Control Distributions […]

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Planning Ahead for Tax Credits and Deductions

Everybody wants to pay as little in taxes as possible. Most people use software or hire an accountant to help them find all the deductions they can subtract from their taxable income and all the credits they can subtract from their final bill. But most tax breaks require you, the taxpayer, to plan ahead. Even […]

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What to Know About the Restaurant Revitalization Fund

According to the Small Business Administration, the Restaurant Revitalization Fund will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later […]

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Employers Get Tax Breaks for Vaccination Leave

Small and midsize employers, and certain governmental employers, can claim refundable tax credits that reimburse them for the cost of providing paid sick and family leave to their employees due to COVID-19, including leave taken by employees to receive or recover from COVID-19 vaccinations. These credits are available to eligible employers that pay sick and […]

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Do You Need an Economic Injury Disaster Loan?

Even before the pandemic, the Small Business Administration offered Economic Injury Disaster Loans for “losses not covered by insurance or funding from the Federal Emergency Management Agency (FEMA) for both personal and business” expenses and for “business operating expenses that could have been met had the disaster not occurred.” The SBA has also been offering […]

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IRS to Recalculate Taxes for Unemployment Break

Legislation signed in March allows taxpayers who earned less than $150,000 in modified adjusted gross income to exclude unemployment compensation up to $20,400 if married filing jointly and $10,200 for all other eligible taxpayers. The legislation excludes only 2020 unemployment benefits from taxes. Because the change occurred after some people filed their taxes, the IRS […]

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American Rescue Plan Act – COBRA Subsidy

The American Rescue Plan Act of 2021 (ARPA) included a provision for a federally-financed Consolidated Omnibus Budget Reconciliation Act (COBRA) subsidy from April 1, 2021 through September 30, 2021. The subsidy is available to qualifying employees who involuntarily lost their jobs or had significantly reduced hours.  This applies to: Individuals who were previously eligible for […]

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Federal Tax Date Postponed to May 17

The filing date for the federal income tax has been postponed until May 17. The IRS has announced that individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to […]

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Repaying Deferred Payroll Taxes

IRS Notice 2020-65 allowed employers to defer withholding and payment of the employee’s Social Security taxes. This deferral applied to those with less than $4,000 in wages every two weeks, or an equivalent amount for other pay periods. It was optional for most employers, although mandatory for federal employees and military service members. It’s time […]

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