Paycheck Protection Program (PPP) loans have caused a myriad of confusion for tax practitioners, with previous IRS guidance leading to even more complexity and uncertainty. The law that authorized PPP loans mandated that their forgiveness was non-taxable. Next, the IRS proposed that expenditures paid with PPP loans were non-deductible.
With the end of the year quickly approaching, individuals should consider making proactive moves to minimize their tax liability. Tax planning has been made more complicated in 2021 by the fact that a bill is currently working its way through Congress that could result in significant changes to the tax law.
Restaurant Revitalization Fund (RRF) recipients are required to report to the Small Business Administration (SBA) through the application portal, how much of their RRF award has been used on eligible expenses no later than December 31, 2021. The RRF program rules allow recipients to include any eligible expenses incurred beginning on February 15, 2020 through to the date the report is completed.
If your business is planning to buy, build or substantially improve real property, a cost segregation study can help you accelerate depreciation deductions, reduce your taxes and boost your cash flow. Even if you invested in real property in previous years, you may still have an opportunity to perform a lookback study and catch up on the deductions you missed.
The IRS has announced several new pass-through entity reporting requirements to be introduced for the 2021 tax year. The new requirements serve to provide greater detail to partners and shareholders of pass-through entities to assist them in preparing their respective tax returns. Most notable of these requirements are the Schedules K-2, K-3 and Section 1061 Worksheet A.
The COVID-19 pandemic has caused, among many other issues, supply chain problems. We all remember seeing lumber soaring to ridiculous heights, but continued product and labor shortages, port delays and production problems will also cause significant limitations in construction.
In the Southeast Middle-Market M&A Newsletter for Q3 2021, Bennett Thrasher’s Transaction Advisory Services leaders provide data and highlights for Southeast (Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, South Carolina and Tennessee) middle-market (total transaction value < $USD 500mm) M&A transactions, including volume, value and enterprise value multiples.
Unresolved IRS tax problems only get worse over time. In addition to penalties and interest accruing, options to dispute the tax issue become fewer. Thus, it is important to respond to any IRS notice prior to the required response date.
The Coronavirus, Aid, Relief and Economic Security Act (CARES Act) allowed employers to defer the deposit and payment of the employer’s share of Social Security taxes from March 27, 2020 through December 31, 2020. This was done to provide a much-needed financial boost for Americans during the height of the coronavirus pandemic.
As it becomes increasingly difficult for companies to find workers in a tight labor market, many employers are looking to boost the corporate benefits offerings available to their employees. One of the most significant benefits that a company can provide to its employees is access to high-quality child care. Employer-provided child care (EPCC) increases employee productivity, promotes loyalty and retention and creates a better workplace environment. In addition to the improvements in these areas, EPCC can also provide businesses and their owners with substantial tax savings.