IR-2021-242, Dec. 6, 2021 WASHINGTON – The Internal Revenue Service today issued guidance for employers regarding the retroactive termination of the Employee Retention Credit. The Infrastructure Investment and Jobs Act, which was enacted on Nov. 15, 2021, amended the law so that the Employee Retention Credit applies only to wages paid before October 1, 2021, unless the employer is a recovery startup business. Notice 2021-65 applies to employers that paid wages after September 30, 2021, […]

WASHINGTON — During National Small Business Week, the Internal Revenue Service reminds business owners that it’s critical to correctly determine whether the individuals providing services are employees or independent contractors. An employee is generally considered to be anyone who performs services, if the business can control what will be done and how it will be done. What matters is that the business has the right to control the details of […]

The Internal Revenue Service joins the Small Business Administration in support of its National Small Business Week. The IRS will issue numerous online materials that focus on getting small business owners the information they need to comply with filing and paying requirements. This year, as part of its ongoing effort to help eligible people access Advance Child Tax Credit payments, the IRS will be encouraging employers to help spread the […]

Taxpayers have the right to challenge the IRS’s position and be heard. This is part of the Taxpayer Bill of Rights, which clearly outlines the fundamental rights every taxpayer has when working with the IRS. Taxpayers have the right to: • Raise objections. • Provide additional documentation in response to formal or proposed IRS actions. • Expect the IRS to consider their timely objections. • Have the IRS consider any supporting documentation promptly and […]

Organizations that want to apply for recognition of tax-exempt status under Section 501(c)(3) of the tax code use a Form 1023-series application. Here are some tips to help them understand the process. • The application process on IRS.gov includes a step-by-step guide explaining how to apply for tax exempt status. • Form 1023-series applications for recognition of exemption must be submitted electronically online at www.pay.gov. The application must be complete and include […]

The arrival of summer is also the start of wedding season. Marriage changes many things and taxes is one of them. Newlyweds should know how tying the knot can affect their tax situation. Here’s a tax checklist for newly married couples: Name and address changes Name. When a name changes through marriage, it is important to report that change to the Social Security Administration. The name on a person’s tax […]

IRS issued guidance for employers claiming the employee retention credit under the Coronavirus Aid, Relief, and Economic Security Act modified by the Taxpayer Certainty and Disaster Tax Relief Act of 2020. Notice 2021-23 explains the changes for the first and second calendar quarters of 2021, including: the increase in the maximum credit amount the expansion of the category of employers that may be eligible to claim the credit modifications to […]

WASHINGTON — The American Rescue Plan Act of 2021 suspends the requirement that taxpayers increase their tax liability by all or a portion of their excess advance payments of thePremium Tax Credit (excess APTC) for tax year 2020. A taxpayer’s excess APTC is the amount by which the taxpayer’s advance payments of the Premium Tax Credit (APTC) exceed his or her Premium Tax Credit (PTC).      The Internal Revenue Service announced […]

Businesses can temporarily deduct 100% beginning Jan. 1, 2021 WASHINGTON – The Treasury Department and the Internal Revenue Service today issued Notice 2021-25 providing guidance under the Taxpayer Certainty and Disaster Relief Act of 2020. The Act added a temporary exception to the 50% limit on the amount that businesses may deduct for food or beverages. The temporary exception allows a 100% deduction for food or beverages from restaurants. Beginning […]

Inside This Issue IRS provides guidance for employers claiming the Employee Retention Credit for first two quarters of 2021 Free workshop helps small business owners understand and meet tax obligations The IRS to recalculate taxes on unemployment benefits; refunds to start in May IRS, Treasury disburse more Economic Impact Payments under the American Rescue Plan; Non-filer Social Security and other federal beneficiary stimulus payments IRS urges employers to take advantage […]