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Do You Have a Financial Safety Plan?

2020 – 08/13 A disaster can strike at any time whether it strikes your home, your city or a much bigger area. That’s why the IRS is encouraging taxpayers to think ahead and prepare. This may include developing an evacuation plan, assembling kit of essential supplies and putting financial safety measures in place. Here are…

Ransomware and Multi-Factor Authentication

2020 – 08/13 You’ve probably heard of a scam called ransomware. The IRS describes it as an invasive software that targets “human and technical weakness to infect a potential victim’s computer, network or server.” It may be downloaded accidently by opening a link or attachment, such as an email solicitation for a fake COVID-19 charity….

5 common accounting software mistakes to avoid

2020 – 08/12 No company can afford to operate without the right accounting software. When considering whether to buy a new product or upgrade their current solutions, however, business owners often fall prey to some common mistakes. Here are five gaffes to avoid: 1. Relying on a generic solution. Some companies rush into buying an…

Social Security and Medicare Taxes

2020 – 08/10  In an executive order, President Trump directed that Social Security and Medicare taxes be deferred from Sept. 1 through Dec. 31, 2020. There are still many questions that are unanswered about how this will work and there may be legal challenges. At this point, the taxes are just deferred, meaning they will…

Qualifying for a Home Office Deduction

2020 – 08/10 With millions of taxpayers working from home due to COVID-19, many people may be wondering about the possibility of claiming a home office deduction on their 2020 tax returns. In a tax tip, the IRS lists several points about qualifying for the home office deduction, including the fact that employees aren’t currently…

EIP: Qualifying Child

2020 – 08/07 The IRS is issuing $500 per qualifying child to some parents. These individuals used the IRS Non-Filers tool before May 17, 2020, and claimed at least one qualifying child. These individuals didn’t receive the qualifying child portion of the Economic Impact Payment (EIP) because of an error that was corrected on May…

Single-Employer Defined Benefit Pension Plans

2020 – 08/07 The IRS has issued guidance that addresses questions about the special funding and benefit limitations rules for single-employer defined benefit pension plans under the CARES Act. In a nutshell, the special rules state that a contribution that would otherwise be required to be made during the 2020 plan year must be made…

FAQ: PPP Loan Forgiveness

2020 – 08/06 The Small Business Administration (SBA), in consultation with the U.S. Treasury Dept., has issued additional FAQs regarding the forgiveness of Paycheck Protection Program (PPP) loans. In general, the new FAQs provide guidance on general loan forgiveness, payroll and nonpayroll costs, and reductions to a borrower’s forgiveness amount. More specifically, the SBA details…

Thoughtful onboarding is more important than ever

2020 – 08/05 Although many businesses have had to reduce their workforces because of the COVID-19 pandemic, others are hiring or may start adding employees in the weeks or months ahead. A thoughtful onboarding program has become more important than ever in today’s anxious environment of safety concerns and compliance challenges. Crucial opportunity Onboarding refers…

I Received a Letter from the IRS, Now What?

2020 – 08/04 Finding a letter from the IRS in your mailbox can make some people go weak in the knees. Don’t assume it means trouble, since the IRS mails letters or notices for many reasons. Here are some DOs and DON’Ts for taxpayers if a dreaded letter shows up. First, don’t ignore it. Contact…

Unexpected Deposits from the IRS

2020 – 07/31 Criminals never stop looking for ways to trick taxpayers out of their money. One scheme that made the IRS’s 2020 list of the top 12 tax scams to avoid (the “Dirty Dozen”) involves fake payments. It starts when a thief files a bogus tax return and has the related refund deposited into…

Simplified Tax Accounting Rules Proposed

2020 – 07/31 New simplified accounting rules may be available for small businesses. The IRS has issued proposed regulations that will adopt the simplified tax accounting rules that are part of the Tax Cuts and Jobs Act (TCJA). For tax years beginning in 2019 and 2020, these rules apply for taxpayers with annual inflation-adjusted gross…

Tax Fraud Alert

2020 – 07/30 A recent federal appeals court case provides a glimpse into how criminals commit tax fraud. The defendant and co-conspirators used stolen identities to fraudulently obtain tax refunds. Over the course of the scheme, he endorsed and deposited over 300 illegally obtained refund checks totaling more than $1.9 million into multiple bank accounts…

Can I Make a Withdrawal from a Retirement Plan?

2020 – 07/30 Under the CARES Act, eligible taxpayers in need may receive assistance in the form of favorable tax treatment for withdrawals from retirement plans and IRAs. The law also allows certain retirement plans to offer expanded loan options. It allows those eligible for coronavirus-related relief to be able to withdraw up to $100,000…

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