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Category: Acct/Tax TechTips

News for Your Week Ahead: December 30, 2021

Posted on 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 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 3, 2021

Posted on 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.

News For Your Week Ahead: November 5, 2021

Posted on by Walter Moore

Join your fellow MSATP members this month for a fun-filled evening of trivia!  Stephen Walsh of Walsh Trivia joined us this week on MSATP TV to discuss this upcoming virtual event on November 18. (Register for the event here!)

Watch on YouTube.

Coming Up: On Thursday, November 11, at 10 a.m., Rob Smith of Point7Seconds will join us to discuss his upcoming new OneNote course with MSATP! Stay tuned for details and registration information.

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

IRS Issues Another 430,000 Refunds For Adjustments Related to Unemployment Compensation | IR-2021-212

The IRS recently sent approximately 430,000 refunds totaling more than $510 million to taxpayers who paid taxes on unemployment compensation excluded from income for tax year 2020.

The IRS efforts to correct unemployment compensation overpayments will help most of the affected taxpayers avoid filing an amended tax return. So far, the IRS has identified over 16 million taxpayers who may be eligible for the adjustment. Some will receive refunds, while others will have the overpayment applied to taxes due or other debts.

For more information, click here.

Deputy Comptroller Sharonne Bonardi to Take National Role | Franchot Taps BRE Director Andrew Shaufele as Successor When She Departs at End of Year

Comptroller Peter Franchot announced that Deputy Comptroller Sharonne R. Bonardi has accepted a position as executive director of the Federation of Tax Administrators (FTA). She will remain in her role with the Comptroller’s Office through the end of December.

Comptroller Franchot has named Andrew Schaufele, the current director of the Bureau of Revenue Estimates (BRE), to succeed Bonardi as deputy comptroller, effective January 3, 2022. Current BRE Chief Economist David Farkas will be the Bureau’s interim director.

For more information, click here.

Year-End Giving Reminder: Special Tax Deduction Helps Most People Give Up to $600 to Charity, Even if They Don’t Itemize | IR-2021-214

The Internal Revenue Service reminded taxpayers that a special tax provision will allow more Americans to easily deduct up to $600 in donations to qualifying charities on their 2021 federal income tax return.

Ordinarily, people who choose to take the standard deduction cannot claim a deduction for their charitable contributions. But a temporary law change now permits them to claim a limited deduction on their 2021 federal income tax returns for cash contributions made to qualifying charitable organizations. Nearly nine in 10 taxpayers now take the standard deduction and could potentially qualify.

For more information, click here.

News for Your Week Ahead: October 29, 2021

Posted on by Walter Moore

 

This week, Roy Frick of the Maryland Society of Accountants Scholarship Foundation joined us to give an update on the MSA Scholarship Foundation, including how you can help the future of the profession.

Watch on YouTube.

Coming Up: On Thursday, November 4th, at 9 a.m., Walsh Trivia joins us to tell us all about our upcoming virtual trivia night!

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

COVID Relief: IRS Helps Employers Wanting to Rehire or Retain Employees After Retirement Age |IR-2021-208

To help address COVID-related labor shortages, the Internal Revenue Service reminded employers that they generally will not jeopardize the tax status of their pension plans if they rehire retirees or permit distributions of retirement benefits to current employees who have reached age 59 ½ or the plan’s normal retirement age.

With the COVID-19 pandemic, many employers, including governmental employers (such as public school districts), are looking for ways to encourage retirees to return to the workforce to fill open positions and experienced employees to stay on the job.

For more information, click here.

IRS, Security Summit Partners Remind Families to Make Online Safety A Priority During National Cybersecurity Month | IR-2021-209

The Internal Revenue Service reminded families, teens and senior citizens about the continued importance of protecting personal and financial information (.pdf) online. Although the IRS and its Security Summit partners continue making strides in fighting identity theft and fraudulent tax returns, help is needed.

The Security Summit works to protect taxpayers from criminals that file fraudulent returns for refunds. The Summit coalition includes representatives of the software industry, tax preparation firms, payroll and tax financial product processors as well as state tax administrators and the IRS, which work together year-round to protect taxpayers.

For more information, click here.

Tips to Help Taxpayers Decide How and When to File an Amended Tax Return | COVID Tax Tip 2021-157

After filing their tax return, taxpayers may find they made an error or forgot to enter something on it. The IRS strongly recommends taxpayers use the Interactive Tax Assistant, Should I File an Amended Return? to help determine if they should correct an error or make other changes to the tax return they already filed.

For more information, click here.

Additional Hurricane Ida Relief From IRS; September 15th, October 15th Deadlines, Other Dates Further Extended to January 3rd For Other Parts of Mississippi; November 1st Deadline Still Applies to the Rest of the State | IR-2021-210

Victims of Hurricane Ida in parts of Mississippi now have additional time–until Jan. 3, 2022–to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

Following last week’s disaster declaration by the Federal Emergency Management Agency (FEMA), the IRS is offering this expanded relief to those parts of the state newly designated for either individual or public assistance. Previously, the IRS had provided special relief to the entire state of Mississippi, generally postponing various tax-filing and tax-payment deadlines until Nov. 1, 2021.

For more information, click here.

Here’s How People Can Become an IRS-Certified Volunteer | Tax Tip 2021-155

The IRS and its community partners encourage people to make a difference in communities across the country by becoming an IRS-certified volunteer. These volunteers will help taxpayers file their tax returns during the upcoming tax season.

  • Volunteer Income Tax Assistance offers free tax return preparation to eligible taxpayers who generally earn $58,000 or less, people with disabilities and limited English-speaking taxpayers.
  • Tax Counseling for the Elderly is mainly for people age 60 or older. Although the program focuses on tax issues unique to seniors, most taxpayers can usually get free assistance. Many sites in the TCE program are operated through AARP Foundation Tax-Aide.

For more information, click here.

MVLS Updates For Our Community Partners

Criminal Record Expungement Training
Community advocates should be aware of recent changes to expungement law and where criminal records are found. Watch this presentation by MVLS and the Human Trafficking Prevention Project to learn about what you need to know.

For more information, click here.

REAL ID News and Fact Sheet
MVLS’ October Access to Justice – A Legal Tip Column for Marylanders in The Baltimore Times focuses on what you need to know about renewing your driver’s license and REAL ID. The column question is: I received a notice that my driver’s license was expiring, but when I went to the MVA to try to renew it, they turned me away because my name didn’t match exactly on all my documents. What do I do? Read our answer and other helpful REAL ID tips here. MVLS also had a REAL ID factsheet you can access here.

“MVLS Has Been a Godsend to Me” Video
MVLS recently recorded a video highlighting the importance of volunteering and the big difference it can make in the life of an individual with a legal issue. Sometimes it can be hard to identify a legal issue or where to turn for help. This 5-minute video shows the good that can come of reaching out for legal help. The video is available here.

National Estate Planning Awareness Week
This week just passed but it’s not too late to share with your community members and colleagues that everyone should do their estate planning regardless of income. For those that income-qualify, free legal assistance is available through MVLS. You can also share a talk from John Kern, MVLS Advance Planning Project Coordinator, that breaks down what estate planning is and why every family should do it. Every year the University of Maryland hosts a Wills Week and John is one of their featured speakers. His presentation is available here.

Baltimore City Launches Security Deposit Assistance
The grant program, which launched earlier this month, will provide up to $2,000 toward a renter’s security deposit based on their income. The grants, which are administered by the Mayor’s Office of Children and Family Success, are available only to low-income residents on a one-time basis. To apply visit www.bmorechildren.com.

Spanish Language Community Resource Guide
The Office of People’s Counsel has released its Spanish language community resource guide. This guide includes information about your rights as a residential utility consumer, information on how to get help with your utility bill, telephone discount programs, answers to frequently asked questions about utility issues, and more. The guide can be found here.

Medicaid Open Enrollment
Medicare open enrollment ends December 7, with plans going into effect January 1, 2022. During this period, older adults can purchase, change, or drop their Medicare Advantage and Part D prescription drug programs, or switch to Original Medicare. Insurers and scammers take advantage of this period to market their services. Keep yourself safe by following these tips:

  • Insurance agents are NOT ALLOWED to contact you unless you request an appointment first.
  • There is no incentive, gift, or benefit if you sign up before December 7. Agents cannot pressure you into enrolling today.
  • Agents cannot claim that Medicare endorses their plan.
  • You can’t keep a Medigap policy and a Medicare Advantage plan at the same time – beware anyone who claims that you can.
  • Scammers can “spoof” numbers and make it look like Social Security is calling. Do not trust the caller ID. Do not give your Medicare or Social Security number over the phone, or your bank or credit card information.
  • Do your research – read the 2022 Medicare & You handbook or an insurer’s Annual Notice of Change and Explanation of Benefits to verify your coverage, benefits, and pricing.
  • Report Medicare fraud at 1-800-MEDICARE.
  • Speak to unbiased insurance counselors in your Maryland county. Click here to see a list of counselors.

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: 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.

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