Year end Tax Planning 2021

As hard as it is to believe, another round of tax changes appear to be coming. And as Congress debates possible tax changes, taxpayers are left wondering what should I be expecting and what should I be doing? Without a crystal ball, it is difficult to know for sure. However, to help, we have put together this piece to highlight strategies that are worth considering.

HNW individuals: Practical planning tips for 2021

Often planning is implemented on the advice of good advisors and with the best intentions. However, many times this planning falls short because of the failure to “manage” it. Here is a list of mistakes we see so regularly that we feel compelled to point them out.

Covid-19 Special Update: New exemption from forgiveness reductions for PPP loans under $50,000

On October 8, 2020, the Treasury Department and Small Business Administration (SBA) released a simplified Payroll Protection Program (PPP) forgiveness application (Form 3508S) and instructions for loans of $50,000 or less, as well as an Interim Final Rule (IFR) which explains the changes.

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Covid-19 Special Update- IRS Notice 2020-32 PPP Loan- Deductability of expenses for federal income tax purposes

This notice provides guidance regarding the deductibility for Federal income tax purposes of certain otherwise deductible expenses incurred in a taxpayer’s trade or business when the taxpayer receives a loan (covered loan) pursuant to the Paycheck Protection Program under section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)).

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Covid-19 Special Update: Coronavirus Tax Relief and Economic Impacts Payments

IRS is offering tax help for taxpayers, businesses, tax-exempt organizations, and others – including health plans – affected by a coronavirus (COVID-19).

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Covid-19 Special Update: The Cares Act has passed. Here are the key highlights

The two parties came together, and after only a smidgen of negotiating, passed the $2 trillion coronavirus economic stimulus bill. As anticipated, President Donald Trump signed it into law on Friday, March 27, 2020.

This legislation is aimed at providing relief for individuals and businesses that have been negatively impacted by the coronavirus outbreak.

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Covid-19 Special Update: IRS unveils new People First Initiative; Covid-19 effort temporarily adjusts, suspends key compliance program

To help people facing the challenges of COVID-19 issues, the Internal Revenue Service announced today a sweeping series of steps to assist taxpayers by providing relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions.

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Covid-19 Special Update: Senate passes updated economic relief plan for businesses and individuals

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Covid-19 Special Update: Impacted by COVID-19? No collateral needed for SBA Economic Injury Disaster Loan

Certain requirements for the Small Business Administration’s Economic Injury Disaster Loan have been lifted to help assist businesses affected by COVID-19.

Covid-19 Special Update: The Families First Coronavirus Response Act

As of 3/18/2020, President Trump signed the Families First Coronavirus Response Act (the “ACT”). Employers with under 500 employees will be legally required to provide employees, who are unable to work or telework, with paid sick leave under one of the following provisions:

1. The employee is subject to a Federal, State, or local quarantine or isolation order related to COVID-19. 
2. The employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19.
3. The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis.
4. The employee is caring for an individual who is subject to a quarantine or isolation order as described in (1), above, or has been advised as described in (2), above. 
5. The employee is caring for a son or daughter whose school or place of care has been closed, or the paid child care provider is unavailable, due to COVID-19 precautions. 
6. The employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.

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Covid-19 Special Updates: IRS issues Guidance on Tax Credits for Coronovirus Paid Leave

Small and midsize employers may begin using two new refundable payroll tax credits to obtain reimbursement for the costs of providing coronavirus related leave to their employees, the U.S. Department of Labor (DOL) and Internal Revenue Service (IRS) announced on March 20, 2020.

Covid-19 Special update: Treasury, IRS, and Labor announced a plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave

Today the U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act), signed by President Trump on March 18, 2020.

The Act will help the United States combat and defeat COVID-19 by giving all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee's own health needs or to care for family members. The legislation will enable employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus.

Covid-19 Special Update: Treasury, IRS extend filing deadline and federal tax payments regardless of amount owed

The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.

Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.

Covid-19 Special Update: High Deductible Health Plans

The Internal Revenue Service today advised that high-deductible health plans (HDHPs) can pay for 2019 Novel Coronavirus (COVID-19)-related testing and treatment, without jeopardizing their status. This also means that an individual with an HDHP that covers these costs may continue to contribute to a health savings account (HSA).