Your Guide to State, Local, Federal, Estate + International Taxation

CARES Act restaurant tax provision

Our government rolled out the Coronavirus Aid, Relief and Economic Security Act (CARES Act) incredibly quickly to deal with the burgeoning socio-economic issues caused by the global pandemic. This post will just outline a few of the restaurant tax provisions contained in the new law. TCJA amended Section 163(j) to greatly expand limitations to the …

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Arizona tax preparer pleads guilty to preparing fraudulent tax returns

Last month Roberto De La O pleaded guilty to Fraudulent Schemes and Artifices and two counts of Preparing a False Tax Returns for fraudulently preparing around 118 tax returns for 2014-2017. To increase the taxpayer’s refunds, he’d included fake W-2s or 1099-Miscellaneous for Red Home Investments that included Arizona and federal income tax withholdings The …

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COVID-19 employee retention credit

To counteract the effects COVID-19 is having on the economy and businesses, the Internal Revenue Service recently announced the Employee Retention Credit. This refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer impacted by COVID-19. Wages between March 12, 2020 and December 31, 2020 are eligible for the …

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W-4 instructions for nonresident aliens

The IRS has completely overhauled the Form W-4 due to tax law changes from the Tax Cuts and Jobs Act (TCJA). The W-4 is the form employees complete which lets the employer know the proper amount of federal tax to withhold on their paychecks. The W-4 had to be redesigned to adapt to the removal …

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COVID-19 stimulus law – “Paycheck protection program”

The president signed into law, on Friday, March 27, 2020, the “Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to address the unprecedented public health and economic crisis related to COVID-19. The law provides relief for individuals and businesses in various ways including tax relief, increased loan funding to provide cash flow to businesses, …

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Big changes in IRAs – Expanding the definition of earned income

Recently, Congress passed and the President signed the SECURE Act “Setting Every Community Up for Retirement Enhancement”. This new legislation is the first major retirement reform since the Pension Protection Act in 2006. Don’t miss: IRA contribution and distributions to charity Many changes in the SECURE Act affect both 401k’s and IRA’s but one of …

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Consider an SBA Disaster Loan

We’ve been talking a lot about U.S. Small Business Administration (SBA) low-interest federal disaster loans lately. If your business has been adversely affected by COVID-19, an SBA disaster loan could be a viable solution. $50 billion in funding has been set aside for the program which offers up to $2 million in assistance for each …

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Wondering how the payroll tax credits work for COVID-19 related sick leave?

Under the Families First Coronavirus Response Act (Act) (H.R. 6201), employees (and the self-employed) can claim a refundable federal tax credit to recover 100% of any COVID-19 related sick time payments but confusion continues on how and when exactly employers recoup that loss. The IRS says employers can subtract the cost of the sick time …

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Taxpayers losing SALT lawsuits

Not only have states become more aggressive in collecting all sorts of taxes since the Wayfair decision passed, they have generally become more successful in their lawsuits as well.  In 2019 and 2018, taxpayers prevailed on their significant SALT cases at 38.1 percent and 36.8 percent, respectively, while in 2017 and 2016 the percentages were …

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