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Author: Walter Moore

News for Your Week Ahead: October 22, 2021

Posted on by Walter Moore

This week, Janice Shih discussed the MSATP and MVLS partnership, as well as our upcoming events!

Watch on YouTube.

Coming Up: On Thursday, October 28, at 9 a.m., Roy Frick will give an update on the MSA Scholarship Foundation, including how you can help the future of the profession.

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

MSATP Receives Maryland Volunteer Lawyers Services Partnership Award

MSATP is the proud recipient of the 2021 MVLS Partnership Award! Thanks to the continued generosity of our members who give back by taking on various pro bono tax cases!

To see pictures from the event, click here.

Here’s What Taxpayers Should Know About Backup Withholding | Tax Tip 2021-156

Backup withholding ensures that the government is paid the correct amount of taxes on specific types of payments reported on certain Forms 1099 and W-2G. Here are some facts about backup withholding. Backup withholding is required on certain non-payroll amounts when certain conditions apply. The payer making such payments to the payees does not generally withhold taxes, and the payees report and pay taxes on this income when they file their federal tax returns. There are, however, situations when the payer is required to withhold a certain percentage of tax to make sure the IRS receives the tax due on this income.

For more information, click here.

The Tax Responsibilities That Come With Shutting Down a Business | Tax Tip 2021-153

There are many reasons a business owner may choose to close their doors, and there are many things that must be done to go out of business. Two important steps all business owners must take are fulfilling their federal tax responsibilities and informing the IRS of their plans. The closing a business page of IRS.gov is designed to help owners navigate the process of shutting down.

For more information, click here.

IRS Joins International Organizations in Fighting Charity Fraud During Special Awareness Week | IR-2021-205

The Internal Revenue Service is joining international organizations and other regulators in highlighting Charity Fraud Awareness Week, Oct. 18-22.

The campaign is run by a partnership of charities, regulators, law enforcers and other not-for-profit stakeholders from across the world. The purpose of the week is to raise awareness of fraud and cybercrime affecting organizations and to create a safe space for charities and their supporters to talk about fraud and share good practice.

For more information, click here.

IRS Sets Forth Information For a Valid Research Credit Claim for Refund | IR-2021-203

The IRS has set forth the information that taxpayers will be required to include for a research credit claim for refund to be considered valid. Existing Treasury Regulations require that for a refund claim to be valid, it must set forth sufficient facts to apprise IRS of the basis of the claim. The Chief Counsel memorandum will be used to improve tax administration with clearer instructions for eligible taxpayers to claim the credit while reducing the number of disputes over such claims.

For more information, click here.

News For Your Week Ahead: October 8, 2021

Posted on by Walter Moore

This week, Jonathan Rivlin, CPA gave us a full rundown of his upcoming seminar/webinar on October 21, including some new and exciting updates to the course. If you have not thought about what your firm should look like given the new electronic payment thresholds like Venmo and PayPal, don’t miss this course! Check out the details below.

Watch on YouTube.

Coming Up: On Thursday, October 14, at 10 a.m., Allen Ayers, CPA, CFP will be joining us to discuss his upcoming seminar and webinar, Mergers & Contingency Planning on October 21, 2021.

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

Farmers and Ranchers Affected by Drought Have Additional Time to Replace Livestock | Tax Tip 2021-146

Farmers and ranchers who were forced to sell livestock due to drought may get extra time to replace the livestock and defer tax on any gains from the forced sales. Here are some facts about this to help farmers understand how the deferral works and if they are eligible.

  • The one-year extension gives eligible farmers and ranchers until the end of the tax year after the first drought-free year to replace the sold livestock.
  • The farmer or rancher must be in an applicable region. An applicable region is a county designated as eligible for federal assistance, as well as counties contiguous to that county.

For more information, click here.

N-2021-58: Extension Timeframes for Elections and Payments of COBRA Premiums | N-2021-58

Notice 2021-58 clarifies the application of the extension of timeframes by the Joint Notice (85 FR 26351, May 4, 2020) and EBSA Disaster Notice 2021-01 (Feb. 26, 2021) (Emergency Relief Notices) to elections and payments of COBRA premiums during the COVID-19 National Emergency. This notice clarifies that the disregarded period for an individual to elect COBRA continuation coverage and the disregarded period for the individual to make initial and subsequent COBRA premium payments generally run concurrently. This notice also addresses the interaction of these rules with the ARP COBRA premium assistance and Notice 2021-31, 2021-23 IRB 1173 (June 7, 2021).

For more information, click here.

ABLE Accounts: A Valuable Financial Solution For People with Disabilities | Tax Tip 2021-148

Achieving a Better Life Experience or ABLE accounts are tax-advantaged savings accounts for individuals with disabilities and their families. These accounts help disabled people pay qualified disability-related expenses without affecting their eligibility for government assistance programs.

For more information, click here.

Here’s How A Taxpayer’s Custody Situation May Affect Their Advance Child Tax Credit Payments | COVID Tax Tip 2021-147

Parents who share custody of their children should be aware of how the advance child tax credit payments are distributed. It is important to remember that these are advance payments of a tax credit that taxpayers expect to claim on their 2021 tax return. Understanding how the payments work will parents to unenroll, if they choose, and possibly avoid a possible tax bill when they file next year.

For more information, click here.

McDaniel College: Accounting Interviewing Day 2021 saw 84 Interviews Over 3 Hours

Posted on by Walter Moore

Credit: McDaniel College

Nine accounting firms conducted over 84 virtual interviews with 26 Accounting majors during McDaniel College’s annual Interviewing Day on Sept. 30. Three hours. 26 Accounting majors. 84 virtual interviews.

Although not the traditional in-person Interviewing Day at McDaniel College, 26 Accounting majors had the opportunity to meet virtually with nine accounting firms for internships or jobs. Over 84 interviews were conducted in a three-hour time period.

Most of the students involved during the Sept. 30 event were juniors, although a few seniors and sophomores also participated.

Even if the students were not looking to gain immediate employment, this experience allows them to practice interview skills and make connections. Many of the companies that take part each year are represented by McDaniel alumni — and many of these alumni were hired after participating as a student in Interviewing Day.

Charess Thompson, an Accounting and Business Administration major from Randallstown, Md., who interviewed with CliftonLarsonAllen, Gross, Mendelsohn & Associates, and Withum, said, “I enjoyed speaking with the recruiters and some McDaniel alumni who work there now. I loved learning more about the company and I am excited to learn more and gain more experience.”

Other accounting firms represented were Bounds Accounting & Tax Services, E. Cohen & Company, Gorfine, Schiller & Gardyn P.A., KatzAbosch, RSM, and Sturgill.

News For Your Week Ahead: October 1, 2021

Posted on by Walter Moore

Matthew Pollard joined us for a sneak peek into his seminar at the Business Builders Connection Conference! Matthew is an internationally recognized consultant, speaker, blogger, author, mentor, coach, and serial entrepreneur with five multi-million dollar business success stories under his belt, all before the age of 30. He is the founder and CEO of Rapid Growth, LLC, dedicated to achieving maximum ROI for businesses of all sizes. Check out the information below to save your seat at the Conference!

Watch on YouTube.

Coming Up: On Thursday, October 7, at 10 a.m., Jonathan Rivlin will be joining us to tell us about his upcoming seminar and webinar, Firm of the Future on October 21, 2021.

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

IRS Selects 7 New Members For The Electronic Tax Administration Advisory Committee | IR-2021-195

The Internal Revenue Service has selected seven new members for the Electronic Tax Administration Advisory Committee (ETAAC).

Established by statute in 1998, the ETAAC is a public forum for the discussion of issues in electronic tax administration. The committee’s primary goal is to promote paperless filing of tax and information returns. ETAAC members work closely with the Security Summit, a joint effort of the IRS, state tax administrators and the nation’s tax industry to fight identity theft and refund fraud.

For more information, click here.

Here’s What Tax Professionals Should Do After A Data Theft or Loss | Tax TIp 2021-145

If a tax pro or their firm is the victim of data or information theft, they must deal with it thoroughly and efficiently. Here are some actions they should take immediately to help minimize damage and protect against future data and theft or losses.

For more information, click here.

Expanded Tax Benefits Help Individuals and Business Give To Charity in 2021 | COVID Tax Tip 2021-143

Recent legislation includes several provisions to help individuals and businesses who give to charity. The new law generally extends four temporary tax changes through the end of 2021. Here’s an overview of these changes.

Deduction for individuals who don’t itemize
Usually taxpayers who take the standard deduction cannot deduct their charitable contributions. The law now permits taxpayers to claim a limited deduction on their 2021 federal income tax returns for cash contributions they made to certain qualifying charitable organizations.

For more information, click here.

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.

News For Your Week Ahead: August 26, 2021

Posted on by Walter Moore

On this week’s MSATP TV, Education Committee Chair Bob Medbery gave us insight into the upcoming seminar season. Click the button below to learn about the exciting events you should attend this fall!

Watch on YouTube.

Coming Up: On Wednesday, September 1, at 10 a.m., James George will join us for a full rundown of this year’s Business Builders Connection Conference in Bethany Beach, DE. Check out the event details below and get registered today!

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

Interest Rates Remain The Same for the Fourth Quarter, 2021 | IR-2021-173

The Internal Revenue Service announced that interest rates will remain the same for the calendar quarter beginning Oct. 1, 2021.  The rates will be:

  • 3% for overpayments [2% in the case of a corporation];
  • 0.5 % for the portion of a corporate overpayment exceeding $10,000;
  • 3% percent for underpayments; and
  • 5% percent for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

For more information, click here.

Here’s How Taxpayers Can Rebuild Records After A Natural Disaster| Tax Tip 2021-125

After a natural disaster, taxpayers need records to help them prove and recover disaster-related losses. This may be for tax purposes, getting support from federal assistance program or for insurance claims.

While personal or business property may have been destroyed, all hope is not lost. Here are some steps that can help people reconstruct important records.

Tax records

  • Get free tax return transcripts immediately using Get Transcript on IRS.gov.
  • Order transcripts by calling 800-908-9946 and following the prompts.

For more information, click here.

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