December 2021

News for Your Week Ahead: December 30, 2021

Posted on December 30, 2021March 12, 2024 by Walter Moore

On this week’s MSATP TV, Michael Ashley of Registered Agents joined us to discuss how he can help you incorporate your business in all 50 states!

Watch on YouTube.

Coming Up: On Tuesday, January 4th at 10 a.m., Sami Satouri of Quest Insurance will join us to discuss insurance options for MSATP members to cover everything from your business to your boat!

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

Frequently Asked Questions on the Maryland Pass-Through Entity Tax

This version of Frequently Asked Questions on the Maryland Pass-Through Entity Tax supersedes the previous version published September 10, 2021. The answer to Question 15 on credit for entity-level taxes paid to other states has been updated. Additionally, a clarification has been added to Question 11 regarding Form 500LU and 502LU.

For more information, click here.

MSATP’s 2022 Tax Season Kickoff Event Has Been Cancelled

Due to the increase in COVID-19 cases in Maryland, MSATP is canceling our Tax Season Kickoff scheduled for January 20, 2022. We hope you all have a safe and healthy start to the New Year and tax season.

The TaxSpeaker 1040 Tax In Depth Seminar in Frederick, MD Moved to Webinar Only

For the safety of our attendees and due to Frederick County’s pending decision to limit in-person events, the TaxSpeaker 1040 Tax In-Depth seminar at the Clarion Inn Frederick will now exclusively be offered as a webinar. You will receive webinar access information prior to the event.

News For Your Week Ahead: December 17, 2021

Posted on December 17, 2021March 12, 2024 by Walter Moore

This week, Marc Reibman of USB Payment Processing joined us to highlight the special perks his company has to offer MSATP members.

Watch on YouTube.

Coming Up: On Tuesday, December 21 at 11 a.m., Jerry Lotz of CostSeg Energy Solutions will joins us to tell us about how CostSeg can help you and your clients.

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

For Kentucky Tornado Victims, IRS Extends 2021 Tax-Filing Dealing, Other Deadlines to May 16 | IR-2021-248

Victims of this weekend’s tornadoes in Kentucky will have until May 16, 2022, to file various individual and business tax returns and make tax payments.

Following the recent disaster declaration issued by the Federal Emergency Management Agency (FEMA), the IRS is providing this relief to taxpayers affected by storms, tornadoes and flooding that took place starting on Dec. 10 in parts of Kentucky. Currently, relief is available to affected taxpayers who live or have a business in Caldwell, Fulton, Graves, Hopkins, Marshall, Muhlenberg, Taylor and Warren counties. But the IRS will provide the same relief to any other localities designated by FEMA in Kentucky or neighboring states. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

For more information, click here.

Families Will Soon Receive Their December Advance Child Tax Credit Payment | IR-2021-249

The IRS and the Treasury Department announced today that millions of American families will soon receive their final advance Child Tax Credit (CTC) payment for the month of December. Eligible families who did not receive advance payments can claim the Child Tax Credit on their 2021 federal tax return to receive missed payments and the other half of the credit.

This final batch of advance monthly payments for 2021, totaling about $16 billion, will reach more than 36 million families across the country. Most payments are being made by direct deposit.

For more information, click here.

Applicable Federal Rates | RR-2022-01

Revenue Ruling 2022-01 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274.

The rates are published monthly for purposes of sections 42, 382, 412, 642, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.

Revenue Ruling 2022-01 will be in IRB: 2022-2, dated January 10, 2022.

For more information, click here.

IRS Revising Form 1024 to Allow For Electronic Submission

As part of an ongoing effort to improve service for the tax-exempt community, the IRS is revising Form 1024, Application for Recognition of Exemption Under Section 501(a), and its instructions to allow electronic filing for the first time.

The IRS expects electronic filing to be available early in 2022, at which point applications for recognition of exemption on Form 1024 must be submitted electronically online at www.pay.gov. The IRS will provide a grace period during which it will continue to accept paper versions of Form 1024.

For more information, click here.

IRS Joins Leading Nonprofit Groups to Highlight Special Charitable Tax Benefit Available Through Dec. 31 | IR-2021-247

The IRS joined with several leading nonprofit groups to highlight a special tax provision that allows more people to deduct donations to qualifying charities on their 2021 federal income tax return.

The Independent Sector and National Council of Nonprofits joined with the IRS to highlight this pandemic-related provision where married couples filing jointly can deduct up to $600 in cash donations and individual taxpayers can deduct up to $300 in donations.

For more information, click here.

News For Your Week Ahead: December 10, 2021

Posted on December 10, 2021March 12, 2024 by Walter Moore

This week, Rob Smith of Point7Seconds discussed what to expect from his upcoming Microsoft Lists webinar on December 16, 2021.

Watch on YouTube.

Coming Up: On Thursday, December 16 at 10 a.m., Marc Reibman of USB Payment Processing will talk about the special perks the company has to offer MSATP members.

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

IRS Issues Guidance Regarding the Retroactive Termination of the Employee Retention Credit | IR-2021-242

The IRS issued guidance for employers regarding the retroactive termination of the Employee Retention Credit. The Infrastructure Investment and Jobs Act, which was enacted on Nov. 15, 2021, amended the law so that the Employee Retention Credit applies only to wages paid before October 1, 2021, unless the employer is a recovery startup business.

Notice 2021-65 applies to employers that paid wages after September 30, 2021, and received an advance payment of the Employee Retention Credit for those wages or reduced employment tax deposits in anticipation of the credit for the fourth quarter of 2021, but are now ineligible for the credit due to the change in the law. The notice also provides guidance regarding how the rules apply to recovery startup businesses during the fourth quarter of 2021.

For more information, click here.

IRS Seeks Applications for the Electronic Tax Administration Advisory Committee | IR-2021-244

The IRS is seeking qualified applicants for nomination to the Electronic Tax Administration Advisory Committee (ETAAC).

The ETAAC is an organized public forum for discussion of issues in electronic tax administration, such as prevention of identity theft and refund fraud. The committee supports the overriding goal that paperless filing should be the preferred and most convenient method of filing tax and information returns. ETAAC members work closely with the Security Summit, a joint effort of the IRS, state tax administrators and private-sector tax partners to fight electronic fraud.

For more information, click here.

Most Retirees Must Take Required Minimum Distributions by Dec. 31 | IR-2021-245

The IRS reminded retirement plan participants and individual retirement account owners that payments, called required minimum distributions, must usually be taken by Dec. 31.

Required minimum distributions (RMDs) generally are minimum amounts that retirement plan account owners must withdraw annually starting with the year they reach 72 or, if later, the year they retire. However, if the retirement plan account is an IRA or the account owner is a 5% owner of the business sponsoring the retirement plan, the RMDs must begin once the account holder is age 72, even if they’re still working. RMD amounts not timely withdrawn from accounts may be subject to penalties.

For more information, click here.

Security Tip For Tax Pros: Remember to Safeguard EFINs | Tax Tip 2021-182

Tax professionals are prime targets for criminals. These criminals not only want to steal client data, but also the professionals’ data, such as their electronic filing identification numbers.

A thief who breaches the data of just one tax return preparer can get their hands on lots of other data. In fact, they can get personal info on hundreds or even thousands of people.

For more information, click here.

News For Your Week Ahead: December 3, 2021

Posted on December 2, 2021March 12, 2024 by Walter Moore

On MSATP TV this week, Barbara J. Smith, CPA joins us to discuss her upcoming Payroll & 1099 Forms – “Are You Reporting Correctly?” seminar/webinar on December 13th in Ellicott City, MD.

Watch on YouTube.

Coming Up: On Thursday, December 9 at 10 a.m., Rob Smith of Point7Seconds to discuss his class on Microsoft Lists. Have you been struggling with workflow management in processing tax returns? Rob Smith has a solution to help you track your and your associates’ progress throughout a tax return. Give yourself the gift of proper workflow management this holiday season!

To register for the webinar, please click here.

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

What Small Business Owners Should Know About the Depreciation of Property Deduction | Tax Tip 2021-173

Depreciation is an annual tax deduction that allows small businesses to recover the cost or other basis of certain property over the time they use the property. It is an allowance for the wear and tear, deterioration or obsolescence of the property.

Small businesses can depreciate property when they place it in service for use in their trade or business or to produce income. The business stops depreciating property when they have fully recovered their cost or other basis or when they retire it from service, whichever happens first.

For more information, click here.

Safe Harbor for REITs and RICs | RP-2021-53

Rev. Proc. 2021-53 provides temporary guidance regarding the treatment of certain stock distributions by publicly offered REITs and RICs. Specifically, in recognition of the need for enhanced liquidity as a result of the impact of the COVID-19 pandemic, this Rev. Proc. modifies the safe harbor provided in Rev. Proc. 2017-45, 2017-35 I.R.B. 216, by temporarily reducing the minimum required aggregate amount of cash that distributee shareholders may receive to not less than 10 percent of the total distribution in order for § 301 of the Code, by reason of § 305(b) of the Code, to apply to such distribution. This temporary modification is effective solely with respect to distributions declared by a publicly offered REIT or publicly offered RIC on or after November 1, 2021, and on or before June 30, 2022.

For more information, click here.

Low Income Housing Credit | RR-2021-20 & RP-2021-43

Revenue Ruling 2021-20 provides guidance regarding whether the 4 percent applicable percentage (4 percent floor) under § 42(b)(3) of the Internal Revenue Code applies to the low-income buildings described in the revenue ruling. This revenue ruling holds that a draw-down bond that is issued prior to 2021 (with draws occurring in a subsequent year), a de minimis § 42(h)(4)(A) obligation issued after December 31, 2020, or a de minimis allocation of low-income housing credit dollar amount occurring after December 31, 2020, do not cause a building to be subject to the minimum 4 percent floor under § 42(b)(3).

Revenue Procedure 21-43 provides safe harbors for when an obligation described in § 42(h)(4)(A) of the Internal Revenue Code or an allocation of a low-income housing credit dollar amount is more than de minimis for purposes of the associated revenue ruling providing guidance on whether the 4 percent applicable percentage under § 42(b)(3) applies to certain low-income buildings.

For more information, click here.