Employee Retention Tax Credit (ERTC), or Employee Retention Credit, is a refundable tax credit that allows employers to reduce their employment taxes. Considering the struggle many small and medium-sized businesses are facing due to the Coronavirus pandemic, this tax credit is an effort to provide some financial relief to them. Employers whose employment tax deposits…
The IRS has announced that the agency will suspend most collection activities starting March 30, 2020, till July 15, 2020. The IRS is struggling with managing many of its essential services during the coronavirus pandemic. With the tax filing extended until July 15, 2020, the IRS will need to concentrate its efforts on processing returns…
The Paycheck Protection Program (PPP) of the U.S. Small Business Association (SBA) is a loan that helps businesses retain their employees during the coronavirus pandemic. SBA is forgiving loans of those employers who keep all their employees on the payroll for eight weeks and use the money for payroll, rent, mortgage interest, or utilities. According…
Stimulus checks have reached millions of Americans and more are underway. Most people are spending this money on essentials such as food and paying bills. The question that many of those who received stimulus payments are asking is – Are these stimulus checks taxable? The answer is no. Stimulus payments you receive are not counted…
The U.S. Supreme Court agreed to hear the case of CIC Services vs. the IRS, where CIC Services had challenged the IRS notice 2016-16 on its micro-captive transactions where the IRS had identified certain micro-captive transactions as having potential for tax evasion or avoidance. The IRS had also labelled these as “transactions of interest” reportable…
Due to the coronavirus pandemic, even taxpayers who usually filed a paper return are now forced to file it digitally. Though e-filing is faster and more convenient than paper filing, those who are not aware of tax scams such as identity theft are more vulnerable than ever when filing digitally. Now that the April 15th…
The deadline to file and pay federal income taxes has been extended to July 15, 2020 due to the coronavirus outbreak. With this extension, those who have not yet filed may consider the options they have to pay their taxes. Taxpayers can pay their tax bill using debit card or credit card. However, employers’ federal…
The Economic Impact Payment, also called stimulus payments, are automatically paid to eligible US residents through direct deposit and the mail. The IRS has started to mail $1,200 stimulus checks. According to the Taxpayer Advocate Service, “The IRS is playing a central role in administering the Coronavirus Aid, Relief, and Economic Security (CARES) Act and…
The IRS announced in a notice that the optional 2020 standard mileage rate for business use will be down to 57.5 cents per mile from the earlier 58 cents per mile, from January 1, 2020. This will include costs of operating an automobile (including cars, vans, pickups, and panel trucks) for charitable, medical and moving…
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was introduced to counter the economic damage caused by the coronavirus pandemic. This $2 trillion stimulus package focuses on financially supporting individuals, businesses, state and local governments, workers, independent contractors, and hospitals. The package also includes relief for savings and retirement benefits of individuals. This section…
