On August 28, 2020 the IRS issued Notice 2020-65, providing much-anticipated guidance implementing an August 8 Presidential Memorandum directing the Treasury to use its authority to defer the withholding, deposit and payment of certain payroll tax obligations.
On June 12, 2020, the United States (“U.S.”) Secretary of Treasury issued a statement (“Statement”) requesting that the Organization for Economic Co-operation and Development (“OECD”) pause international discussions designed to address the tax challenges facing the rapidly digitalized economy.
2020 has been a year of unprecedented uncertainty for many individuals and businesses, with the coronavirus pandemic wreaking havoc on the economy, financial markets, industry segments, financial prospects for individual companies and the valuations of asset holdings. More change could be coming this fall, with an election, the prospect of a new administration on the horizon and the uncertainty of future economic conditions.
Over the past 15 years, Georgia has established itself as a go-to location for production. The coronavirus pandemic, however, has created challenges for the industry and temporarily brought production to a halt. To discuss how studios can successfully restart production in the state, Entertainment Partners and Barnes & Thornburg hosted the webinar, “Georgia on My Mind: Pushing Play on Production in Georgia.”
Today’s “gig economy” lends itself to temporary jobs, short-term contracts and flexible work arrangements between businesses and the professionals providing services. Since the beginning of the gig economy following the Great Recession, the number of contract workers has grown to more than one third of the total workforce in the U.S. With an increasingly remote labor force, this growth is expected to continually increase.
With the current COVID-19 pandemic, many businesses have applied for Paycheck Protection Program (“PPP”) loans with the intention of applying for loan forgiveness. However, companies that received PPP loans may experience a reduction in their ability to claim both federal and state Research and Development (“R&D”) tax credits.
Under pressure to audit taxpayers across all income classes more equally, the IRS has been directed by Treasury Secretary Steven Mnuchin to ramp up audits of the wealthier taxpayers. The move is in response to growing pressure on the agency after increasing audits on lower-income taxpayers and decreasing audits of high-income individuals.
The possibility of an IRS audit haunts many businesses, but what factors contribute to that risk? For example, have business processes been implemented to sufficiently capture required documentation, such as withholdings and withholding taxes? Has the business been consistent with its accounting methods?
While COVID-19 has Americans spending more time than usual in their homes, many are wondering whether “home sweet home” might actually be sweeter elsewhere. Whether for convenience, vocation or quality of life, it is important to understand that moving states may not necessarily change an individual’s state of residence for income tax purposes.
With the passage of the Tax Cuts and Jobs Act of 2017, many itemized deductions previously available to taxpayers were either limited or eliminated. Due to the significant increase in the standard deduction, many taxpayers have abandoned the task of accumulating expenses once cherished to offset taxable income as an itemized deduction. However, investors should be aware that the deduction for investment interest expense is one of the few surviving benefits still included as an itemized deduction.
The recently passed Paycheck Protection Program (PPP) Flexibility Act of 2020 provides employers with more flexibility and time to use PPP funds and qualify for loan forgiveness. The program’s lending terms are particularly beneficial to the restaurants and retailers that were forced to either delay their reopening or resume operations at a reduced level. To educate Georgia restauranteurs and franchisors about these changes, Bennett Thrasher hosted a webinar in collaboration with the Georgia Restaurant Association on the PPP Flexibility Act.
Although the major majority (92 percent) of tax returns are filed electronically, the IRS is seeking full conversion to e-filing. Two sections of The Taxpayer First Act of 2019 (TFA) extend that mandate by requiring more businesses, partnerships and nonprofit organizations to e-file.