Sign In/Sign Up

Month: September 2021

News for Your Week Ahead: September 24, 2021

Posted on by Walter Moore

Past President Ellen Silverstein join us to tell us about the Mt. Vernon Tour on October 20. To register for the tour, click here.

Watch on YouTube.

Coming Up: On Tuesday, September 28, at 10 a.m., Matthew Pollard joins us to tell us about his upcoming seminar at The Business Builders Connection Conference.

Be sure to Like/Follow us on Facebook so you can catch MSATP TV live every week.

Retroactively Adopted Plans that Filed Form 5558 Extension 

Section 201 of the SECURE Act provides that employers that adopt a retirement plan by the due date of their 2020 tax return, including extensions, may elect to treat that plan as being effective for the employer’s 2020 tax year. In an Employee Plans News article published on August 6, 2021, the IRS clarified that plans retroactively adopted after the end of the plan year have no 2020 Form 5500 series return filing requirement.

Plan sponsors that already submitted a Form 5558, Application for Extension of Time to File Certain Employee Plan Returns, for these retroactively adopted plans will not establish a 2020 Form 5500 filing requirement.

For more information, click here.

All Taxpayers Have the Right to Appeal an IRS Decision in an Independent Forum |Tax Tip 2021-141

Taxpayers have the right to appeal an IRS decision in an independent forum. This is one of ten basic rights — known collectively as the Taxpayer Bill of Rights — that all taxpayers have when dealing with the IRS.

The IRS Independent Office of Appeals handles a taxpayer’s case must be separate from the IRS office that initially reviewed that case. Generally, this office will not discuss a case with the IRS to the extent that those communications appear to compromise the independence of Appeals.

For more information, click here.

IRS: New Contracts Awarded to Private Collection Agencies; Taxpayers May be Contacted by One of Three Groups | IR-2021-191

The Internal Revenue Service has awarded new contracts to three private-sector collection agencies for collection of overdue tax debts. The new contracts begin Thursday following today’s expiration of the old contracts.

Beginning Thursday, Sept. 23, 2021, taxpayers with unpaid tax bills may be contacted by one of the following three agencies.

For more information, click here.

News of Your Week Ahead: September 17, 2021

Posted on by Walter Moore

MSATP President Barbara Smith, CPA and Vice President Ana Barnabe, CPA joined us to discuss MSATP’s strategic leadership initiative and the steps the Society takes to best serves our members.

Watch on YouTube.

Coming Up: On Thursday, September 23, at 10 a.m., Past President Ellen Silverstein join us to tell us about the Mt. Vernon Tour on October 20. We look forward to seeing you there!

Be sure to Like/Follow us on Facebook so you can catch MSATP TV live every week.

Tax Relief Now Available to Ida Victims in Pennsylvania; October 15th Deadline, Other Dates Extended to January 3rd | IR-2021-183

Victims of Hurricane Ida in parts of Pennsylvania now have until Jan. 3, 2022, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. The IRS has also provided relief to Ida victims in Louisiana, Mississippi, New Jersey and New York.

For more information, click here.

Renewed Tax Credit Can Help Employers Hire Workers; Key Certification Requirement Applies | IR-2021-184

With many businesses facing a tight job market, the Internal Revenue Service reminds employers to check out a valuable tax credit available to them for hiring long-term unemployment recipients and other groups of workers facing significant barriers to employment.

During National Small Business Week, the IRS is highlighting tax benefits and resources designed to help new and existing small businesses. For any business now hiring, the Work Opportunity Tax Credit (WOTC) may help.

For more information, click here.

Small Business Owners Should See if They Qualify For The Home Office Deduction | Tax Tip 2021-136

Many Americans have been working from home due to the pandemic, but only certain people will qualify to claim the home office deduction. This deduction allows qualifying taxpayers to deduct certain home expenses on their tax return when they file their 2021 tax return next year.

For more information, click here.

IRS Reminds Business Owners to Correctly Identify Workers as Employees or Independent Contractors | IR-2021-186

During National Small Business Week, the Internal Revenue Service reminds business owners that it’s critical to correctly determine whether the individuals providing services are employees or independent contractors.

An employee is generally considered to be anyone who performs services, if the business can control what will be done and how it will be done. What matters is that the business has the right to control the details of how the worker’s services are performed. Independent contractors are normally people in an independent trade, business or profession in which they offer their services to the public. Doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers or auctioneers are generally independent contractors.

For more information, click here.

Understanding The Tax Responsibilities That Come With Starting a Business | Tax Tip 2021-134

Small business owners have a variety of tax responsibilities. The IRS knows that understanding and meeting tax obligations is vital to the success of all businesses, especially a new one. IRS.gov has the resources and information to help people through the process of starting a new business.

For more information, click here.

The Cloud vs. A Large Hard Drive or Server?

Posted on by Walter Moore

by Walter Moore

Many folks often run into storage issues on their personal computers and eventually have to make a decision whether to get a larger internal hard drive, look into an external hard drive or storage server or make the move to cloud storage. There are several pros and cons you should consider when making this decision.

Upgrading your Hard Drive or using a storage server:

Pros:
When upgrading your hard drive you of course are in control of your own data. No one else can access it unless you send it, it is yours and in your control. Often times you can access your data faster as you do not need any sort of internet connection at all.

Cons:
The obvious downside to a larger hard drive are the backups of your data must be done by you or if it is lost, well you lose everything. Hard drives eventually do crash and will slow down as they age which is of course inevitable. If you upgrade your internal hard drive, you are also at the mercy of your processor so as you upgrade to a new computer you will need to transfer the data.

Cloud Storage:

Pros:
Utilizing cloud storage has a huge upside being that it is only limited to your subscription level, with many places such as GMAIL or Microsoft offering free cloud storage up to a certain size. If you are like me and do a lot of photography, one place that has excellent cloud storage is Amazon. Amazon offers free unlimited cloud storage on their photos platform that has no compression even for RAW image files. If you ever need to expand your cloud storage simply purchase a bigger subscription. All backups, security, and maintenance are completed by the service so if your hard drive crashes all your documents are there. You can access your cloud from anywhere in the world and if you upgrade your computer no need to transfer files. If you want to share large files you can of course send an access link.

Cons:
The only real downside to cloud storage is cost and the need for internet access to access your files.

So if you need more storage look into both cloud and a hard drive upgrade or even both (back up your files to the cloud). If you have more questions feel free to email me walter@msatp.org or call the office.

News for Your Week Ahead: September 10, 2021

Posted on by Walter Moore

Donald Hoffman, CPA joined us to discuss his Construction Accounting seminar/webinar on November 3rd! Tune in to learn more about this NEW class.

Watch on YouTube.

Coming Up: On Thursday, September 16, at 10 a.m., MSATP President Barbara Smith, CPA and Immediate Past President Ellen Silverstein, CPA join us to give you a deeper insight into MSATP and how we best serve you our members.

Be sure to Like/Follow us on Facebook so you can catch MSATP TV live every week.

Comptroller Franchot Extends Tax Relief to Businesses Statewide in Wake of Tornadoes, Flash Floods | Comptroller of Maryland

Comptroller Franchot extended the tax relief being offered to businesses impacted by severe storms on Wednesday that caused extensive damage in parts of Anne Arundel, Charles, and Montgomery counties, as well as other parts of Maryland. The extended due dates for a variety of tax and motor fuel payments for businesses and emergency responders now applies statewide.

“Although the tornado that hit Edgewater and Annapolis received most of the attention, it’s clear the remnants of Hurricane Ida left its mark in communities throughout Maryland, so we decided to give all businesses and emergency responders across the state more time to pay their monthly taxes,” Comptroller Franchot said.

For more information, click here.

Special Per Diem Rates| N-2021-52

Notice 2021-52 announces the special per diem rates effective October 1, 2021, which taxpayers may use to substantiate the amount of expenses for lodging, meals, and incidental expenses when traveling away from home.  This notice provides the special transportation industry rate, the rate for the incidental expenses only deduction, and the rates and list of high-cost localities for purposes of the high-low substantiation method.  Notice 2021-52 also modifies Notice 2020-71, 2020-40 I.R.B. 786, to correct the portion of the year Sedona, Arizona is a high-cost locality under section 5 of Notice 2020-71.

For more information, click here.

IRS: Deadline for Third Quarter Estimated Tax Payments is September 15 | IR-2021-177

The Internal Revenue Service reminds people that Sept. 15, 2021, is the deadline for the third-quarter estimated tax payments. This generally applies to people who are self-employed and some investors, retirees, and those who may not normally have taxes withheld from their paycheck by their employers.

The U.S. tax system operates on a pay-as-you-go basis. This means taxpayers are to pay most of their tax during the year, as they earn or receive income. Therefore, individuals not subject to withholding may need to make quarterly estimated tax payments.

For more information, click here.

Guidance on Reporting Qualified Sick Leave and Family Leave Wages Paid For Leave Provided in 2021 | N-2021-53

Notice 2021-53 provides guidance to employers on the requirement to report qualified sick leave wages and qualified family leave wages paid to employees under the Families First Coronavirus Response Act, as amended by the COVID-related Tax Relief Act of 2020 and under sections 3131, 3132, and 3133 of the Internal Revenue Code for leave provided in 2021.

For more information, click here.

News For Your Week Ahead: September 2, 2021

Posted on by Walter Moore

On this week’s MSATP TV, James George, CPA gave us a full rundown on the 2021 Business Builders Connection Conference event in Bethany Beach Delaware! Click the button below to learn more about the event.

Watch on YouTube.

Coming Up: On Thursday, September 9, at 10 a.m., Donald Hoffman, CPA joins us to tell us about his Construction Accounting seminar/webinar taking place on November 3rd! Tune in to learn more about this exciting class.

Be sure to Like/Follow us on Facebook so you can catch MSATP TV live every week.

Tax Relief Now Available to Victims of Hurricane Ida; Oct. 15 Deadline, Other Dates Extended to Jan. 3 | IR-2021-175

Victims of Hurricane Ida that began on Aug. 26 now have until Jan. 3, 2022, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

The IRS is offering this relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance. Currently this includes the entire state of Louisiana, but taxpayers in Ida-impacted localities designated by FEMA in neighboring states will automatically receive the same filing and payment relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

For more information, click here.

Guidelines for The Virginia Disposable Plastic Bag Tax

Legislation enacted during the Regular Session of the 2020 General Assembly (House Bill 534 (2020 Acts of Assembly, Chapter 1022) and Senate Bill 11 (2020 Acts of Assembly, Chapter 1023) authorizes any county or city to adopt by ordinance the Virginia Disposable Plastic Bag Tax on disposable plastic bags provided to customers in grocery stores, convenience stores, and drugstores in the locality. The tax will be administered by Virginia Tax. A locality must provide a certified copy of the ordinance to the Tax Commissioner at least 3 months prior to the date the tax is to become effective.

For more information, click here.

All Taxpayers Have the Right to Challenge the IRS’s Position and Be Heard | Tax Tip 2021-129

Taxpayers have the right to challenge the IRS’s position and be heard. This is part of the Taxpayer Bill of Rights, which clearly outlines the fundamental rights every taxpayer has when working with the IRS.

Taxpayers have the right to:

  • Raise objections.
  • Provide additional documentation in response to formal or proposed IRS actions.
  • Expect the IRS to consider their timely objections.
  • Have the IRS consider any supporting documentation promptly and fairly.
  • Receive a response if the IRS does not agree with their position.

For more information, click here.

Copyright © 2024. All rights reserved.