Tag: IRS

IRS Releases Guidance on Claiming Employee Retention Credit with PPP Loan

Filed in Economics, Tax Reform by on March 2, 2021 0 Comments
IRS Releases Guidance on Claiming Employee Retention Credit with PPP Loan

The IRS released guidance this week for taxpayers claiming the employee retention credit for tax year 2020. The IRS plans to release additional guidance in the near future for claims arising during 2021, including changes made to the employee retention credit for 2021.

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IRS, HUD Grant Texans Relief After Disaster Declaration

Filed in Disaster Response by on February 23, 2021 0 Comments
IRS, HUD Grant Texans Relief After Disaster Declaration

In response to the toll this month’s winter storms have taken on Texas and other states, the Internal Revenue Service (IRS) has extended many tax filing deadlines to June 15, 2021. Separately, the U.S. Department of Housing and Urban Development announced its own relief for mortgages insured by the Federal Housing Administration (FHA) for those living in areas affected by the severe winter storm.

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IRS Says Businesses with Forgiven PPP Loans Cannot Deduct Expenses

Filed in Disaster Response, Economics, Tax Reform by on November 19, 2020 10 Comments
IRS Says Businesses with Forgiven PPP Loans Cannot Deduct Expenses

Businesses that get their Paycheck Protection Program (PPP) loans forgiven will not qualify for some valuable deductions, according to IRS guidance that reiterates its position taken in April.  In addition, companies that have “a reasonable expectation that the government won’t require them to pay back the money can’t deduct the business expenses paid for by the loan.”

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IRS Guidance on Payroll Tax Deferral Leaves Key Question Unanswered

Filed in Economics, Tax Reform by on September 8, 2020 2 Comments
IRS Guidance on Payroll Tax Deferral Leaves Key Question Unanswered

The Internal Revenue Service (IRS) recently released Notice 2020-65 implementing the Aug. 8 presidential memorandum instructing the Department of Treasury to use its statutory authority to permit employers to defer withholding and payment of the employee’s 6.2% social security tax.

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IRS Instructs Employers on Reporting COVID Medical & Sick Leave Wages

Filed in Disaster Response, Labor by on July 9, 2020 0 Comments
IRS Instructs Employers on Reporting COVID Medical & Sick Leave Wages

The Internal Revenue Service has released Notice 2020-54, which requires employers to report the amount of qualified sick and family leave wages paid to employees under the Family First Coronavirus Response Act. 

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IRS Reverses Guidance on Employee Retention Tax Credit

Filed in Codes and Standards, Labor by on May 8, 2020 0 Comments
IRS Reverses Guidance on Employee Retention Tax Credit

In response to concerns raised by a bipartisan group of lawmakers, the IRS has reversed guidance to allow employer-paid health insurance costs to be eligible for the employee retention tax credit, even if the employer has furloughed workers and is not otherwise paying wages.

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Employee Retention Tax Credit: What You Need to Know

Filed in Advocacy, Disaster Response by on May 5, 2020 2 Comments
Employee Retention Tax Credit: What You Need to Know

The IRS has released an extensive FAQ clarifying many early questions about when the employee retention tax credit can be claimed. The tax credit is designed to support eligible employers whose businesses are disrupted due to COVID-19 and was included in the CARES Act that was recently enacted into law.

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IRS: Expenses Paid with Forgiven PPP Loans are Not Tax Deductible

Filed in Codes and Standards, Economics by on May 1, 2020 5 Comments
IRS: Expenses Paid with Forgiven PPP Loans are Not Tax Deductible

The Internal Revenue Service on April 30 issued guidance that states that employers who have loans under the Paycheck Protection Program (PPP) will not be eligible for tax deductions on expenses paid through the loan if payment of those expenses results in the loan being forgiven.

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IRS Broadens Tax Return Filing in Response to COVID-19

Filed in Codes and Standards, Disaster Response by on April 13, 2020 3 Comments
IRS Broadens Tax Return Filing in Response to COVID-19

The IRS has significantly broadened its tax return filing and payment relief in response to COVID-19. According to Notice 2020-23, nearly all taxpayers with a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020, will now have until July 15, 2020 to file returns and make payments without penalties or interest.  In a prior notice, deadlines were only extended for tax forms and payments due April 15, 2020.

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IRS App to Speed Delivery of $1,200 Relief Payments, Creates Tools for Non-Filers

Filed in Economics by on April 13, 2020 9 Comments
IRS App to Speed Delivery of $1,200 Relief Payments, Creates Tools for Non-Filers

This week, the Internal Revenue Service (IRS) will release a free app, “Get My Payment,” which will be available through its website at IRS.gov. This app will allow taxpayers who filed their tax return in 2018 or 2019 but did not provide their banking information on their return to submit direct deposit information.

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