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Author Archive for Angelica Farrell

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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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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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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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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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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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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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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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IRS Highlights Website and Online Tools

IRS Highlights Website and Online Tools The IRS reminded taxpayers that their website ( www.irs.gov) provides millions of visitors with the answers they need to fit their busy summer schedules. Taxpayers who requested an extension to October 15 or missed the May 17 deadline can still prepare and e-file tax returns for free with the IRS Free […]

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Lenders Notified to File Corrected Forms 1099-MISC to Exclude Subsidized Loan Payments

Lenders Notified to File Corrected Forms 1099-MISC to Exclude Subsidized Loan Payments The IRS has announced that lenders who had filed or furnished Form 1099-MISC, Miscellaneous Information, to a borrower, reporting certain payments on loans subsidized by the Administrator of the U.S. Small Business Administration (Administrator) as income of the borrower, must file and furnish […]

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