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Archive for September 21st, 2021

afarrell

2021 Luxury Auto Depreciation Caps and Lease Inclusion Amounts Issued

2021 Luxury Auto Depreciation Caps and Lease Inclusion Amounts Issued The IRS has issued the luxury car depreciation limits for business vehicles placed in service in 2021 and the lease inclusion amounts for business vehicles first leased in 2021. Luxury Passenger Car Depreciation CapsThe luxury car depreciation caps for a passenger car placed in service […]

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sgrgas

Guidance for Claiming Employee Retention Credit in Third and Fourth Quarters of 2021

Guidance for Claiming Employee Retention Credit in Third and Fourth Quarters of 2021 The IRS has issued guidance for employers claiming the employee retention credit under Code Sec. 3134, enacted by section 9651 of the American Rescue Plan Act of 2021 (ARP), P.L. 117-2, which provides a credit for wages paid after June 30, 2021, and before […]

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afarrell

Gross Receipts Safe Harbor for Employers Claiming Employee Retention Credit

Gross Receipts Safe Harbor for Employers Claiming Employee Retention Credit The Treasury and IRS have provided an optional safe harbor allowing employers to exclude the following amounts from their gross receipts solely for determining eligibility for the employee retention credit: the amount of the forgiveness of a Paycheck Protection Program (PPP) Loan; the amount of […]

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afarrell

Transition Relief Guidance for Employers Claiming the WOTC

Transition Relief Guidance for Employers Claiming the WOTC The IRS issued transition relief for certain employers claiming the Work Opportunity Tax Credit (WOTC) under Code Sec. 51. This would apply for certain employees beginning work after December 31, 2020, in response to legislation permitting the designation of an Empowerment Zone under Code Sec. 1393(b) to be extended from […]

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aaguanno

PPP Direct Forgiveness Portal Created, Loan Questionnaire Discontinuance Explained

PPP Direct Forgiveness Portal Created, Loan Questionnaire Discontinuance Explained The U.S. Small Business Administration ( SBA) is launching a streamlined application portal to allow certain borrowers to apply for Paycheck Protection Program (PPP) Loan forgiveness directly through the SBA. The SBA also is explaining why it discontinued use of Loan Necessity Questionnaires for PPP borrowers. PPP Direct Forgiveness […]

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afarrell

IRS Releases Information on CTC; Update Portal for Payments

IRS Releases Information on CTC; Update Portal for Payments The IRS stated that families should use the Child Tax Credit (CTC) Update Portal to confirm their eligibility for the payments. If eligible, the tool also indicates whether taxpayers are enrolled to receive their payments by direct deposit. More information can be found at https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021. Direct DepositFor taxpayers currently […]

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afarrell

Guidance Provided on Premium Assistance for COBRA Continuation Coverage

Guidance Provided on Premium Assistance for COBRA Continuation Coverage The IRS provided additional guidance on the application of the American Rescue Plan Act of 2021 (ARP) (P.L. 117-2) relating to temporary premium assistance for Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) continuation coverage. This notice supplements Notice 2021-31, I.R.B. 2021-23, and addresses additional issues. EligibilityThe […]

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afarrell

Foreign Tax Credit Did Not Apply Against Net Investment Income Tax

Foreign Tax Credit Did Not Apply Against Net Investment Income Tax The foreign tax credit did not apply against the net investment income tax (NIIT). The structure of the Internal Revenue Code made the credit inapplicable to the NIIT, and tax treaties did not override that fact. Under Code, Foreign Tax Credit Did Not Apply […]

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afarrell

Unknown Gift Tax Return Could Be Reasonable Cause for Late Filing

Unknown Gift Tax Return Could Be Reasonable Cause for Late Filing A missing or unknown federal gift tax return could constitute reasonable cause for the late filing of an estate tax return. To understand the appropriate steps to take after the decedent’s death, the executor was in contact with the decedent’s tax preparer, a family […]

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