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Lessons Learned: Virtual Auditing

2021 – 01/21 If 2020 taught us anything, it was the necessity of being adaptable to unexpected circumstances and being flexible in solving problems across all aspects of our lives. In the accounting world, for example, COVID-19 public health restrictions necessitated significant changes in how financial statement audits were performed. When the COVID-19 restrictions came…

Teacher Supply Deduction Expanded

2021 – 01/15 A long-standing benefit for some educators gets an update. Eligible K-12 teachers and instructors are entitled to up to $250 annually in an “above-the-line deduction” for certain school-related expenses paid out of their own pockets. Thanks to the new Consolidated Appropriations Act, the list of qualified deductible items has expanded. Now included…

Form 1099

2021 – 01/15 Businesses that generally report payments to workers on Forms 1099-MISC will need to adapt. Beginning with the 2020 tax year, payments of at least $600 made for services performed by a non-employee must be reported on the new Form 1099-NEC (Nonemployee Compensation). Previously this information was reported on Form 1099-Misc, box 7….

Blockchain beckons businesses … still

2021 – 01/13 The term and concept known as “blockchain” is hardly new. This technology surfaced more than a decade ago. Bitcoin, the relatively well-known form of cryptocurrency, has gotten much more attention than blockchain itself, which is the platform on which Bitcoin is exchanged. One might be tempted to think that, having spent so…

FAQ: Economic Impact Payments

2021 – 01/12 Do you have questions regarding your eligibility for the second round of economic impact payments (EIPs)? These payments are being sent to help mitigate the financial effects of COVID-19. The IRS recently issued a series of FAQs on this topic. Generally, the IRS is authorized to make EIPs to individuals using their…

Deducting Business Meals

2021 – 01/11 The Consolidated Appropriations Act includes a provision that removes the 50% limit on deducting eligible business meals in 2021 and 2022. In general, the ordinary and necessary food and beverage expenses of operating a business are deductible. The new law allows a 100% deduction for these expenses for food or beverages provided…

Economic Impact Payments

2021 – 01/08 About 8 million second Economic Impact Payments (EIPs) are being sent to taxpayers via prepaid debit card this week, according to the IRS. The mailing of the cards follows the distribution of ”millions of payments already made” by direct deposit and the mailing of paper checks, the tax agency said. Those who…

Employee Retention Credit

2020 – 01/07 The Employee Retention Credit has been extended. To encourage businesses to maintain their workforces, the CARES Act created the Employee Retention Credit, a refundable credit against payroll tax for employers meeting certain requirements. The credit equaled 50% of up to $10,000 in compensation (including health care benefits) paid to an eligible employee…

Employer Tax Credits

2021 – 01/06 A valuable employer tax credit is extended, but modified, for 2021. Under the Families First Act, certain employers were obligated to provide paid sick and family leave to employees affected by COVID-19 from April through December 2020. Employers who provided such leave then qualified for refundable employment tax credits to help mitigate…

Get My Payment Tool

2021 – 01/06 As the second round of economic impact payments (EIPs) rolls out, eligible taxpayers may be able to help speed up the process. The IRS has updated its “Get My Payment” tool, which answers questions about eligibility and allows you to provide the IRS with information it needs to issue an EIP. Payments…

Charitable Donation Tax Breaks

2021 – 01/05 The new law extends and improves charitable donation tax breaks. For 2020, individuals who don’t itemize deductions could take up to a $300 above-the-line deduction for cash contributions to qualified charitable organizations. The Consolidated Appropriations Act (CAA), which was signed on Dec. 27, 2020, extends this deduction through 2021. The law increases…

Standard Mileage Rates

2021 – 01/04 The IRS has issued the 2021 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. As of Jan. 1, 2021, the standard mileage rates for the use of a vehicle are: 56 cents per mile for business use; 16 cents per…

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