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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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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Arizona governor outlines essential personnel

On March 30, 2020, Governor Doug Ducey issued the state of Arizona a Stay home, Stay healthy, Stay connected order. He’d previously issued clearance on who is considered essential personnel during the COVID-19 crisis. Essential personnel includes those who work for: Health care and public health operations, including hospitals, public health entities, distributors of personal …

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COVID-19 expenses eligible for tax free qualified disaster assistance from employers

Now that COVID-19 has been declared a national emergency, Internal Revenue Code Section 139 allows employers to make tax-free payments or reimbursements to employees as “qualified disaster payments.” This is how it works. Qualified disaster payments are payments that wouldn’t normally be reimbursed by insurance to help an employee with expenses related to a qualified disaster …

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Federal aid package helps individuals affected by COVID-19

In response to the coronavirus pandemic, congress passed The Families First Coronavirus Response Act (H.R. 6201), which became law on March 18, 2020. The act is an emergency measure set to expire in late 2020. In a bid to help mitigate the pain individuals and companies are feeling during the pandemic, the act seeks to provide …

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