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IRS relieves penalties for personal and business 2019 and 2020 tax returns

Yesterday, the IRS announced a penalty relief program for personal and business tax returns related to 2019 and 2020 tax years. To qualify for the relief, the tax returns must be filed by September 30, 2022. We note that there is a first time abatement option granted by the IRS and this additional penalty relief

By |2022-08-25T14:16:48+00:00August 25th, 2022|Categories: Business, Individuals|Tags: , , , , |

Recovery Startup Business (ERC) up to $100,000 if business started after Feb 2020

The Recovery Startup Business shares some similarities with the Employee Retention Credit. Note that there have been numerous updates and clarifications on these refundable tax credits, but if your business meets the requirements, you can obtain up to $100k. Based on the expansion of the definition of Recovery Startup Business (Notice 2021 -49 page 7)

By |2022-06-11T17:11:50+00:00June 11th, 2022|Categories: Business|Tags: , , , , , , , |

IRS increases mileage rate to 62.5 cents per mile

In the IRS IR-2022-124 released on June 9, 2022, the IRS increased the standard mileage rate for the second half of 2022. "The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices," said IRS Commissioner Chuck Rettig. "We are aware a number of unusual factors have come into

By |2022-06-11T16:22:36+00:00June 9th, 2022|Categories: Business, Individuals|Tags: , , , |

Employee Retention credit still available – Up to $26k per employee

The Employee Retention Credit (ERC) is a fully refundable credit that targets businesses with employees (w2s) in 2020 and 2021. These businesses must have been impacted by the pandemic, mainly either 1) reduction of sales (50% reduction in 2020 quarter versus 2019 quarter or 20% reduction in 2021 quarter versus 2019 quarter) or 2) partial

By |2022-06-03T15:47:29+00:00June 1st, 2022|Categories: Business, Financial Education|Tags: , , , , , , , , , |

The IRS destroyed over 30m paper returns

According to a new report from the Treasury Inspector for Tax Administration, the IRS would have destroyed more than 30 million paper returns due to the backlog. Note that this was an intentional decision and the IRS has communicated that there should be no repercussions to the taxpayers. However, the IRS might request additional documentation

By |2022-06-01T03:26:28+00:00May 11th, 2022|Categories: Business, Individuals|Tags: , , , , |

IRS suspends mailing of additional letters and plans hiring of 10,000 full time workers

In early February, the IRS announced the suspension of more than a dozen additional letters, including the mailing of automated collection notices normally issued when a taxpayer owes additional tax, and the IRS has no record of a taxpayer filing a tax return. As the IRS goes into the 2021 tax season, there are still

By |2022-03-05T03:54:00+00:00March 4th, 2022|Categories: Business, Individuals|Tags: , , , , , , , |

IRS tips on home office deductions

In the Tax Tip 2022-10, the IRS listed some of the rules and tips to deduct your home office. Note that to claim the home office deduction, taxpayers generally must exclusively and regularly use part of their home or a separate structure on their property as their primary place of business. In some cases, if

By |2022-03-05T03:33:27+00:00February 2nd, 2022|Categories: Business|Tags: , , , , , , , , , |

2021 Required notification to employees for Philadelphia businesses

On an email reminder sent last week, the City of Philadelphia requires businesses to give notifications to their employees about a) The Federal Earned Income Tax Credit (EITC) and b) Philadelphia Wage Tax Refund Program on electronic or printed copy and no later than February 1, 2022.   The Federal Earned Income Tax Credit (EITC)

By |2022-02-23T21:25:18+00:00January 15th, 2022|Categories: Business|Tags: , , , , , , , , , |

Updates to the 2021 S Corporation forms

As you might be aware, there have been new requirements in the 2021 filings for the S Corporations. In the last few years, new tax requirements have been issued just before tax season or during tax season, giving tax preparers little time to comply with the new disclosure or tax processing for those returns. Disclosure

By |2022-01-04T12:09:42+00:00January 4th, 2022|Categories: Business|Tags: , , , , , , , , |

IRS released the standard mileage rates for 2022

In mid December 2021, the IRS released the standard mileage rates for the use of a car (also vans, pickups or panel trucks) beginning January 2022 will be: 58.5 cents per mile driven for business use, up 2.5 cents from the rate for 2021, 18 cents per mile driven for medical, or moving purposes for

By |2022-01-04T14:23:59+00:00December 20th, 2021|Categories: Business|Tags: , , , , , |
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