Blog Archives

PPP First Draw Forgiveness Application

The CARES Act AND the Economic Aid to Hard-Hit Small Business, Nonprofits, and Venues Act  (signed into law on 12/27/20) lists the items that can be used to calculate Payroll Costs for a new loan request and “Eligible payroll costs” and “Eligible nonpayroll costs”

Posted in IRS, Taxes

Businesses Can Deduct 100% for Food or Beverages from Restaurants Beginning 1/1/2021

The Treasury Department and the Internal Revenue Service issued Notice 2021-25 providing guidance under the Taxpayer Certainty and Disaster Relief Act of 2020. The Act added a temporary exception to the 50% limit on the amount that businesses may deduct

Posted in IRS, Taxes

IRS urges employers to choose carefully when selecting a payroll service provider

Below are highlights from IRS Issue Number:  IR-2020-186 Many employers outsource their payroll and related tax duties to third parties. This streamlines business operations by collecting and timely depositing payroll taxes on the employer’s behalf and filing required payroll tax

Posted in IRS, Tips

Tax Day for Individuals Extended to May 17

The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be

Posted in Colorado, IRS, Taxes

PPP Second Draw

The Biden administration updated PPP guidelines to help smaller businesses access emergency funds. February 24-March 9 was designated as a priority window for businesses with fewer than 20 employees. The formula for calculating loan amount eligibility has also been adjusted from

Posted in IRS

IRS Expected to Audit More Small Businesses in 2021

After years of low examination rates, the IRS announced it will increase audits of small businesses: by 50 percent. This news comes during a time when complex tax law changes and economic stimulus programs in response to COVID-19 have made

Posted in IRS, Taxes, Tips

1099-MISC and 1099-NEC Due to Recipients 2/1/2021

The revised Form 1099-MISC, Miscellaneous Income, and the new Form 1099-NEC, Nonemployee Compensation, must be furnished to most recipients by Feb. 1, 2021. Form 1099-NEC is a new form for tax year 2020 for nonemployee compensation of $600 or more

Posted in IRS

CARES Act Special $300 Deduction for People who Claim the Standard Deduction

The Coronavirus Aid, Relief and Economic Security (CARES) Act, enacted by Congress last spring, includes temporary tax changes helping charities including a special $300 deduction designed especially for people who choose to take the standard deduction, rather than itemizing their

Posted in IRS, Taxes, Tips

PPP Forgiveness Update

Although the CARES Act Payroll Protection Program’s (PPP) loan application period closed last August, businesses who received funding and now need to plan for loan forgiveness. The rules changed since the program began. On June 5, 2020, the Flexibility Act

Posted in IRS, Taxes

PPP Forgiveness for Loans $50,000 or Less

Recipients of Paycheck Protection Program (PPP) loans of $50,000 or less will be able to apply for forgiveness using a simplified application that was released Thursday by Treasury and the U.S. Small Business Administration (SBA). The new application form, SBA

Posted in IRS, Taxes