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Advance Premium Tax Credit

2020- 12/18 The IRS announced that the U.S. Centers for Medicare & Medicaid Services (CMS), which verifies if an individual is eligible for payment of the advance premium tax credit (APTC), is deferring the verification process until early 2021. Individuals who are automatically re-enrolled in the Federal Health Insurance Exchange plan through HealthCare.gov will continue…

2020 Tax Planning

2020 -12/17 If you haven’t yet thought about your 2020 taxes, or considered your 2021 tax situation, don’t delay having a conversation with us. There may be actions you can still take before the end of the year to make a favorable impact on your tax bill. If you’re an owner of a pass-through entity…

Plug-In Electric Drive Motor Vehicle Credit

2020 – 12/17 Are you in the market for a new plug-in electric vehicle? If so, the IRS has recently added several new vehicles eligible for the plug-in electric drive motor vehicle credit. The credit is equal to $2,500, plus an additional amount that cannot exceed $5,000 and is based on the vehicle’s battery capacity….

Rightsizing your sales force

2020 – 12/16 With a difficult year almost over, and another one on the horizon, now may be a good time to assess the size of your sales force. Maybe the economic changes triggered by the COVID-19 pandemic led you to downsize earlier in the year. Or perhaps you’ve added to your sales team to…

Student Loan Debt Relief

2020 – 12/14 Taxpayers with student loan debt get more relief. Collection actions and wage garnishments were first suspended as of March 13, 2020 when President Trump declared a national emergency due to COVID-19. The suspension was to expire Dec. 31, 2020. Because of the ongoing economic effects of the virus, the suspension has now…

Drive more savings to your business with the heavy SUV tax break

2020 – 12/14 Are you considering replacing a car that you’re using in your business? There are several tax implications to keep in mind. A cap on deductions Cars are subject to more restrictive tax depreciation rules than those that apply to other depreciable assets. Under so-called “luxury auto” rules, depreciation deductions are artificially “capped.”…

Recovery Rebate Credit

2020 -12/11 Here’s good news for some people when they file their 2020 tax returns in 2021. A Recovery Rebate Credit is available to taxpayers who didn’t receive an Economic Impact Payment (EIP) in 2020. It’s also available to those who didn’t receive the full amount of an EIP for which they were eligible. EIPs…

Increase in 401(k) Plan Automatic Defferrals

2020 – 12/10 The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) increased the maximum amount of an employee’s compensation, from a 10% cap to a 15% cap, which can be automatically deferred to an employer’s 401(k) plan after the employee’s first plan year. In Notice 2020-86, the IRS has provided additional guidance…

Scam Alert: Text Messages and Economic Impact Payments

2020 -12/09 Beware of a new text message scam, warns the IRS and its security partners. The COVID-19-related scam tells unwary taxpayers that they qualify for a $1,200 Economic Impact Payment. Here’s how the scam works: Taxpayers get a text which states they’ve “received a direct deposit of $1,200 from COVID-19 TREAS FUND. Further action…

Should you add a technology executive to your staff?

2020 – 12/09 The COVID-19 pandemic and resulting economic impact have hurt many companies, especially small businesses. However, for others, the jarring challenges this year have created opportunities and accelerated changes that were probably going to occur all along. One particular area of speedy transformation is technology. It’s never been more important for businesses to…

Form W-2 Tax Deadline: February 1, 2021

2020 – 12/07 The IRS is reminding employers that they must file Form W-2 and other wage statements by Feb. 1, 2021, to avoid penalties and help the IRS prevent fraud. A 2015 law made it a permanent requirement that employers file copies of Form W-2, “Wage and Tax Statements” and Form W-3, “Transmittal of…

Scam Alert: W-2 Theft

2020 – 12/04 National Tax Security Awareness Week ends Dec. 4, but the IRS and its security partners urge taxpayers to remain vigilant. A common scam aimed at employers is W-2 theft, according to the IRS. The most common version of this scam is when a thief posing as a high-level manager sends an email…

Urgent Actions Needed for COVID-related Tax Relief

2020 – 12/04 A new report says “urgent actions” are needed by the IRS for COVID-related tax relief. The Government Accountability Office (GAO) notes that many people remain unemployed, temporarily or due to permanently lost jobs, and adds that the pandemic “will likely remain a significant obstacle to more robust economic activity” in the future….

IRS Identity Protection

2020 – 12/03 With federal income tax fraud continuing to be an issue, the IRS has expanded its Identity Protection (IP) PIN Opt-In program to taxpayers nationwide. Starting in mid-January, the program will be offered to all taxpayers who can properly verify their identities. The IP PIN is a six-digit number assigned to eligible taxpayers…

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