Understanding the Food/Beverage Tax Deduction

The IRS set out the guidelines of what is and what is not considered a restaurant, for the purposes of the 100% food and beverages deduction for certain businesses that ordered through a restaurant in 2021 and 2022. Normally, this deduction is not allowed; however, a new regulation states that this disallowance under Code Sec.… Read more »

IRS Extends Additional Tax Deadlines

After several states declared a tax filing extension, the IRS announced other tax deadline extension to be pushed to the same May 17, 2021 date. According to the IRS, the following areas with the original 4/15 deadline have been affected: Contributions to IRAs and Health Savings Accounts (HSAs) 2017 Unclaimed Refunds Foreign Trusts and Estates… Read more »

Recovery Rebate Credit Won’t Be Applied to Past-due Federal Income Tax Debts

IRS announced that the 2020 Recovery Rebate Credit (RRC) amount will no longer be applied to past due federal income tax debts. This announcement, however, does not apply to debts owed to other federal government or state agencies. Background:IRS “may credit… [an] overpayment, including any interest allowed thereon, against any liability in respect of an… Read more »

President Biden Signs PPP Loan Extension Act

“…small businesses is the backbone of our economy…” -President Joe Biden President Biden has signed the PPP Extension Act of 2021, providing some flexibility for small businesses in applying for this loan program. The Paycheck Protection Program (PPP) was created by the Small Business Administration (SBA) to alleviate at least some financial pressures off of… Read more »

Special Tax Credit Available for Those Who Adopted, Began Process in 2020

The adoption tax credit is offered to help offset some of the expensive costs that occur during the adoption process. Taxpayers who adopted or started the adoption process in 2020 should take note of the rules that are paired with the adoption tax credit. According to the IRS (irs.gov/newsroom), this special tax credit is a… Read more »

PPP Loan Extension Passed by US Senate

Nearly one of every six small business owners report they will have to close their doors if current economic conditions do not improve over the next six months. National Federation of INdebependent Businesses (NFIB) via The Business Report The COVID-19 pandemic has placed a hardship on anyone over the course of the past year; however,… Read more »

Face Masks, Other PPE to Prevent Spread of COVID-19 Are Tax Deductible

The IRS announced that the purchase of personal protective equipment (PPE), such as masks, hand sanitizer and sanitizing wipes, for the primary purpose of preventing the spread of COVID-19 are considered deductible medical expenses. The amounts paid for PPE are also eligible to be paid or reimbursed under health flexible spending arrangements (health FSAs), Archer… Read more »

Modifications Made to ARPA, 2021

The American Rescue Plan Act of 2021 (ARPA), signed by President Biden on March 11, 2021, extended and significantly modified the payroll tax credits for qualifying sick leave and family leave wages. Both Covid-19-related credits were initially provided by the Families First Coronavirus Response Act. In December 2020, the Consolidated Appropriations Act of 2021 extended… Read more »

IRS, NYS Change Tax Deadline

This past week, the Internal Revenue Service (IRS) announced that the federal personal income tax filing and payment deadline for individuals during the 2020 tax year will be extended from April 15, 2021 to May 17, 2021. This extension is applied automatically for all federal income individual tax filings. On Friday, New York State followed… Read more »

Payroll Provisions of ARPA

What to Know About ARPA The American Rescue Plan, 2021 (ARPA, 2021) was signed by President Biden on March 11, 2021 to address the continuing economic impact the COVID-19 pandemic has had on employers and employees. President Biden signed ARPA, 2021 into law on March 11. The legislation extends and expands provisions found in the… Read more »