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Author Archive for Thomas Zanata

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Experts: IRS Guidance Needed on American Rescue Plan

Experts: IRS Guidance Needed on American Rescue Plan The IRS needs to issue new rules and guidance to implement the American Rescue Plan, experts said on March 11 as President Joe Biden signed his COVID-19 relief measure. “I hope Treasury will say something very soon: FAQs, press release, something. IRS undoubtedly will have to write […]

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Social Security Wage Cap and Benefit Amounts Increase for 2021

Social Security Wage Cap and Benefit Amounts Increase for 2021 For 2021, the Social Security tax wage cap will be $142,800, and Social Security and Supplemental Security Income (SSI) benefits will increase by 1.3 percent. These changes reflect cost-of-living adjustments to account for inflation. 2021 Wage CapThe Federal Insurance Contributions Act (FICA) tax on wages […]

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CARES Act Provides Favorable Tax Treatment for Withdrawals from Retirement Plans, IRAs

CARES Act Provides Favorable Tax Treatment for Withdrawals from Retirement Plans, IRAs The IRS has reminded taxpayers that the Coronavirus Aid, Relief, and Economic Security (CARES) Act ( P.L. 116-136) can provide favorable tax treatment for withdrawals from retirement plans and Individual Retirement Accounts (IRAs). Under the CARES Act, individuals eligible for coronavirus-related relief may […]

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Lawmakers Continue Phase Four Economic Relief Talks; “CARES 2” in the Works

Lawmakers Continue Phase Four Economic Relief Talks; “CARES 2” in the Works Lawmakers are continuing talks on a “phase four” economic relief package in response to the COVID-19 global pandemic. To that end, the House’s “CARES 2” package is currently in the works and could see a floor vote as early as this month. “CARES 2”President Trump signed into […]

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IRS Addresses Queries on COVID-19 Economic Impact Payments; No Return Required for Certain Social Security Recipients

IRS Addresses Queries on COVID-19 Economic Impact Payments; No Return Required for Certain Social Security Recipients The IRS announced on March 30 that distribution of economic impact payments in response to the coronavirus (COVID-19) pandemic would begin in the next three weeks. On April 1, the Treasury Department clarified that Social Security and Railroad Retirement […]

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Proposed Regs to Clarify Miscellaneous Deductions of Estate, Non-Grantor Trust

Proposed Regs to Clarify Miscellaneous Deductions of Estate, Non-Grantor Trust The IRS has released proposed regulations clarifying that the following deductions allowed to an estate or non- grantor trust are not miscellaneous itemized deductions: costs paid or incurred in connection with the administration of an estate or non-grantor trust that would not have been incurred […]

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Proposed Regulations Address Deductibility of Fines and Penalties

Proposed Regulations Address Deductibility of Fines and Penalties The IRS has released proposed regulations that address changes made to Code Sec. 162(f) by the Tax Cuts and Jobs Act (TCJA) ( P.L. 115-97). The proposed regulations provide operational and definitional guidance on the deductibility of fines and penalties paid to governmental entities. TCJA ChangesUnder amended Code Sec. 162(f), businesses […]

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Simplified Procedures for Nonfilers to Receive Economic Impact Payments

Simplified Procedures for Nonfilers to Receive Economic Impact Payments Eligible individuals who are not otherwise required to file federal income tax returns for 2019 may use a new simplified return filing procedure to make sure they receive the Economic Impact Payments (EIPs) provided by the Coronavirus Aid, Relief, and Economic Security (CARES) Act ( P.L. 116-136). […]

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Treasury, SBA Release PPP Loan Forgiveness Application

Treasury, SBA Release PPP Loan Forgiveness Application Treasury and the Small Business Administration (SBA) have worked together to release the Paycheck Protection Program (PPP) Loan Forgiveness Application. According to Treasury’s May 15 press release, the application and correlating instructions inform borrowers how to apply for forgiveness of PPP loans under the Coronavirus Aid, Relief, and […]

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