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Category: COVID-19

News For Your Week Ahead: March 11, 2022

Posted on by Walter Moore

On this week’s episode of MSATP TV, Rob Smith of Liscio will joined us for the 3rd episode of his Lunch & Learn series where he will discuss how to manage tasks in Outlook, Microsoft To Do and OneNote. Rob tells you how to better keep track of tasks to completion and streamline your workflow, tune in to learn more!

Watch on YouTube.

Coming Up: On Thursday, March 24th at 12 p.m. Rob Smith of Liscio will join us for the 4th episode of his Lunch & Learn series where he will discuss Microsoft Teams and how to better set it up to fit your business. In this Lunch & Learn series, you can now view our episodes live on LinkedIn, Facebook, YouTube, and Twitter! If you have questions for the speaker, you can ask them directly in the comments section of the stream on all platforms. Be sure to follow us on all of our social media to enjoy our upcoming events and stay up to date on the latest news!

IRS Revised 2021 Child Tax Credit and Advance Child Tax Credit Payments FAQs | IR-2022-53

The IRS updated its frequently asked questions (FAQs) (FS-2022-17) PDF on the 2021 Child Tax Credit and Advance Child Tax Credit Payments. These updates are to help eligible families properly claim the credit when they prepare and file their 2021 tax return.

These changes reflect that Publication 972, Child Tax Credit, has become obsolete. Taxpayers should refer to Schedule 8812 (Form 1040). Schedule 8812 (Form 1040) is now used to calculate child tax credits and to report advance child tax credit payments received in 2021, and to figure any additional tax owed if excess advance child tax credit payments were received during 2021.

For more information, click here..

E-Filing Options Make Tax Time Easier on Member of the Military and Their Families | COVID Tax TIp 2022-36

Active-duty military personnel have options for free federal tax preparation. One is IRS Free File. This program offers, online tax preparation, electronic filing, and direct deposit of refunds, at no cost.

Members of the military and their families who have an income of $73,000 or less in 2021 may choose from any of the IRS Free File tax software companies to help them prepare their tax returns online.

For more information, click here.

Two Tax Credits That Can Help Cover the Cost of Higher Education | Tax Tip 2022-38

Higher education is important to many people and it’s often expensive. Whether it’s specialized job training or an advanced degree, there are a lot of costs associated with higher education. There are two education tax credits designed to help offset these costs – the American opportunity tax credit and the lifetime learning credit.

Taxpayers who paid for higher education in 2021 can see these tax savings when they file their tax return. If taxpayers, their spouses, or their dependents take post-high school coursework, they may be eligible for a tax benefit. To claim either credit, taxpayers complete Form 8863, Education Credits, and file it with their tax return.

For more information, click here.

News For Your Week Ahead: February 25, 2022

Posted on by Walter Moore

On this week’s episode of MSATP TV, Rob Smith of Liscio joined us again for another Lunch & Learn episode where he taught us about how to use OneNote with Outlook. Rob explains how the common problem with Outlook is you can’t add or consolidate items and you can’t share items with others. Basically Outlook is an information prison. Tune in to learn how to use OneNote to liberate the items in Outlook – emails, contacts, and meetings.

Watch on YouTube.

Coming Up: On Thursday, March 3rd at 12 p.m. Jonathan Pocius of Payroll Services will join us to give a full rundown of the new Mandatory Retirement Pilot Program, how it can affect your business and what he can do to help. In this Lunch & Learn series, you can now view our episodes live on LinkedIn, Facebook, YouTube, and Twitter! If you have questions for the speaker, you can ask them directly in the comments section of the stream on all platforms. Be sure to follow us on all of our social media to enjoy our upcoming events and stay up to date on the latest news!

Comptroller Franchot Extends Filing and Payment Deadline for Quarterly Estimated Tax Filers to July 15 – Action Aligns with Earlier Three-Month Extension for State Individual Income Tax Returns | Comptroller of Maryland

Comptroller Peter Franchot announced that Maryland individual taxpayers who pay estimated quarterly taxes may defer those payments for the first and second quarters of tax year 2022 until Friday, July 15, 2022.

The extension only applies to individuals, not pass-through entities (PTE) or corporate estimated tax filers. Individual estimated tax filers are strongly encouraged to file electronically.

For more information, click here.

Important Information Regarding 2021 Virginia Income Tax Returns: Virginia’s Conformity to the Internal Revenue Code Advanced to Dec. 31, 2021 | Virginia Tax Bulletin 22-1

Under legislation enacted by the 2022 General Assembly, Virginia’s date of conformity to the Internal Revenue Code will advance from December 31, 2020 to December 31, 2021. This allows Virginia to generally conform to the American Rescue Plan Act of 2021 (ARPA) and provides additional benefits to recipients of certain COVID-19 business assistance programs during Tax Years 2021 and 2019. No changes have been made to the Virginia income tax treatment for recipients of COVID-19 business assistance for Tax Year 2020.

For more information, click here.

Interest Rates | RR-2022-05

Revenue Ruling 2022-05 containing the interest rates: underpayments and overpayments. The rates for interest determined under Section 6621 of the code for the calendar quarter beginning April 1, 2022, will be 4 percent for overpayments (3 percent in the case of a corporation), 4 percent for underpayments, and 6 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 1.5 percent.

For more information, click here.

IRS Updates FAQs for the Premium Tax Credit | RR-2022-44

The Internal Revenue Service updated its frequently asked questions (FAQs) on the Premium Tax Credit. FS-2022-13 PDF includes the following FAQ revisions and additions:

  • Updated The Basics FAQs: Q1, Q3, Q4
  • Updated Eligibility FAQs: Q5, Q7, Q8, Q9, Q11
  • Updated Reporting, Claiming and Reconciling FAQs: Q24, Q26, Q27
  • Updated Suspension of Repayment of Excess Advance Payments of the Premium Tax Credit (Excess APTC) for Tax Year 2020 FAQs: Q33, Q36
  • New Unemployment Compensation 2020 and 2021 FAQs: Q38 through Q45

These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. More information about reliance is available.

For more information, click here.

Filing Season Reminder for Teachers: Some Educator Expenses May be Tax Deductible | COVID Tax Tip 2022-30

The educator expense deduction allows eligible teachers and administrators to deduct part of the cost of technology, supplies and training from their taxes. They can only claim this deduction for expenses that were not reimbursed by their employer, a grant or other source.

For more information, click here.

Tips for Parents Who Share Custody or Alternate Tax Benefits | COVID Tax Tip 2022-29

Some parents who have a legal agreement with their child’s other parent about who claims the child on their taxes may have some questions this tax season about the child tax credit and the 2021 recovery rebate credit. Here’s what people in this situation need to know before filing their 2021 federal tax return.

For more information, click here.

News For Your Week Ahead: February 4, 2022

Posted on by Walter Moore

On this week’s MSATP TV, Bob Jennings of TaxSpeaker and MSATP President Barbara J. Smith, CPA discussed our exciting member benefit, Talking With TaxSpeaker.

MSATP Members get access to this tax expert Q&A video service at a discounted rate! Subscribers have access to 15-20 minute video segments in which TaxSpeaker’s experts answer hot topic tax-related questions. Subscribers will also be able to submit any of their questions so they can be answered in the next Talking With TaxSpeaker episode! As an added bonus Bob Jennings gives special episodes for any new tax changes affecting the accounting industry.

This discounted subscription is only available to MSATP members for $162* — that’s 20% off the original price! Click here to register for the service now.

Watch on YouTube.

On next week’s MSATP TV, Rob Smith will be presenting a special Lunch & Learn on how to use OneNote to streamline your workflow. The examples given in this class will show how a small to mid-sized accounting firm would set up its firm notebooks and employee individual notebooks. Join us on Facebook live at 12 p.m. on Thursday, February 10 for this exciting episode!

Hearing All Voices February 10, 2022 

The IRS cordially invites you and your small business owner/self-employed members and clients to join us for our annual 2022 Hearing All Voices Small Business event on February 10, 2022, 11:00 a.m. – 1:00 p.m.

Hear directly from IRS Executives on topics to help small businesses succeed. Join the conversation on how the IRS can better serve small businesses. Tell us about issues and concerns regarding preparing and paying taxes.

For more information, click here.

IRS Revised FAQs for 2021 Child Tax Credit and Advance Child Tax Credit Payments | IR-2022-22

The IRS updated its frequently asked questions (FAQs) for the 2021 Child Tax Credit and Advance Child Tax Credit Payments.

This updated FAQ modifies a question and adds a new question (FS-2022-07) PDF:

  • Question 4, Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return
  • Question 10, Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return

For more information, click here.

IRS Free File Now Accepting 2021 Tax Returns | COVID Tax Tip 2022-16

IRS Free File, available only through IRS.gov, is now accepting 2021 tax returns.

IRS Free File is available to any person or family with an adjusted gross income of $73,000 or less in 2021. The fastest way to get a refund is by filing an accurate return electronically and selecting direct deposit. This year, there are eight Free File products in English and two in Spanish.

For more information, click here.

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 10, 2021

Posted on 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: November 19, 2021

Posted on by Walter Moore

On MSATP TV this week, Julie Weaver from the Maryland Council on Economic Education (MCEE) joined us to discuss the organization’s financial literacy initiatives.

Watch on YouTube.

Later this week, Tammy Nickels from Wolters Kluwer joined us on MSATP TV to highlight the CCH TaxAware program for MSATP members.

Watch on YouTube.

Interested in becoming an MSATP member to take advantage of this perk and other exciting benefits? Click here to join today.

Coming Up: On Tuesday, November 23 at 10 a.m., we have a special pre-Thanksgiving episode with 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!

IRS Provides Guidance on Per Diem Rates and The Temporary 100% Deduction for Food or Beverages From Restaurants | IR-2021-225

The IRS issued Notice 2021-63 to make clear how the temporary 100% business deduction for food or beverages from restaurants applies to taxpayers properly applying the rules of Revenue Procedure 2019-48 for using per diem rates.

Previously, the IRS issued Notice 2021-25 providing guidance under the Taxpayer Certainty and Disaster Relief Act of 2020, which added a temporary exception to the 50% limit on the amount that businesses may deduct for food or beverages. The temporary exception allows a 100% deduction for food or beverages from restaurants, as long as the expense is paid or incurred in 2021 or 2022.

For more information, click here.

IRS Announces New Online Tool to Help U.S. Withholding Agents Validate Their 1042-S Data Prior to Filing | IR-2021-223

The IRS launched a new online tool designed to help U.S. withholding agents comply with their reporting and withholding responsibilities with respect to IRS Form 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding).

The tool performs a quality review of data before submission to the IRS. Use of the tool does not change a withholding agent’s obligations to file Forms 1042-S with the IRS and furnish a copy of the Form 1042-S to the payee.

For more information, click here.

IRS Advisory Council Issues 2021 Annual Report | IR-2021-227

The Internal Revenue Service Advisory Council today issued its annual report for 2021, including recommendations to the IRS on new and continuing issues in tax administration.

The IRSAC is a federal advisory committee that provides an organized public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public. IRSAC members offer constructive observations regarding current or proposed IRS policies, programs and procedures.

For more information, click here.

Resources to Make Tax Time Easier for U.S. Service Members and Veterans | COVID Tax Tip 2021-171

The IRS has a variety of resources to help members of the military, veterans and their families navigate the unique and complex circumstances that come with filing taxes while in the military. Reviewing these resources is a good way to get ready for the upcoming tax filing season.

For more information, click here.

Teachers Can Deduct Out-of-Pocket Classroom Expenses Including COVID-19 Protective Items | COVID Tax Tip 2021-169

Fall is here and another school year is in full swing. Many teachers are already dipping into their own pockets to buy classroom supplies that will help set their students up for success. Doing this all year long can add up fast. Fortunately, eligible educators may be able to offset qualified expenses they paid in 2021 when they file their tax return in 2022.

Educators who work in schools may qualify to deduct up to $250 of unreimbursed expenses. That amount goes up to $500 if two qualified educators are married and file a joint return. However, neither spouse can deduct more than $250 of their qualified expenses when they file their federal tax return.

For more information, click here.

IRS Criminal Investigation Releases Annual Report Highlighting 2,500+ Investigations, Law Enforcement Partnerships | IR-2021-232

Over 2,500 criminal investigations, the identification of more than $10 billion from tax fraud and financial crimes, and a nearly 90% conviction rate are just a few highlights from the IRS-Criminal Investigation (IRS-CI) Fiscal Year 2021 Annual Report. The report, released Thursday, details statistics, important partnerships and significant criminal enforcement actions from IRS-CI, the criminal investigative arm of the IRS, for the past fiscal year, which began Oct. 1, 2020 and ended Sept. 30, 2021.

“IRS-CI agents are the only federal law enforcement officers with the authority to investigate criminal violations of the U.S. tax code. Their work reinforces the backbone of our voluntary compliance tax system — a system that funds services and benefits for our nation, including defense, infrastructure and education,” said IRS Commissioner Chuck Rettig.

For more information, click here.

IRS Provides Answers to States and Local Governments on Taxability and Reporting of Payments from Coronavirus State and Local Fiscal Recovery Funds | IR-2021-231

The IRS provided answers regarding Coronavirus State and Local Fiscal Recovery Funds (SLFR Funds). These funds give eligible state and local governments a substantial infusion of resources to meet pandemic response needs.

The answers are in FAQs (FS-2021-16) and detail the tax consequences for individual recipients and the reporting requirements for the states and local governments and employers, as applicable.

For more information, click here.

Tax Professionals Can Now Order More Transcripts from the IRS | IR-2021-226

The Internal Revenue Service today announced that, effective Nov. 15, 2021, tax professionals are able to order up to 30 Transcript Delivery System (TDS) transcripts per client through the Practitioner Priority Service® line. This is an increase from the previous 10 transcripts per client limit.

“Increasing the number of transcripts a caller can receive addresses the concerns the IRS has received from PPS callers. This is another example of addressing concerns from our partners and stakeholders,” said Ken Corbin, the Wage and Investment Commissioner and the IRS Taxpayer Experience Officer.

For more information, click here.

IRS Announces Changes to Retirement Plans for 2022 | Tax Tip 2021-170

Next year taxpayers can put an extra $1,000 into their 401(k) plans. The IRS recently announced that the 2022 contribution limit for 401(k) plans will increase to $20,500. The agency also announced cost of living adjustments that may affect pension plan and other retirement-related savings next year.

For more information, click here.

IRS Unveils New Online Identity Verification Process for Accessing Self-Help Tools | IR-2021-228

The IRS announced the launch of an improved identity verification and sign-in process that enables more people to securely access and use IRS online tools and applications.

Taxpayers using the new mobile-friendly verification procedure can gain entry to existing IRS online services such as the Child Tax Credit Update Portal, Online Account, Get Transcript Online, Get an Identity Protection PIN (IP PIN) and Online Payment Agreement. Additional IRS applications will transition to the new method over the next year.

For more information, click here.

IRS: Families Will Soon Receive November Advance Child Tax Credit Payments; Time Running Out to Sign Up Online to Get an Advance Payment in December | IR-2021-222

The Internal Revenue Service and the Treasury Department announced today that millions of American families will soon receive their advance Child Tax Credit (CTC) payment for the month of November. Low-income families who are not getting payments and have not filed a tax return can still get one, but they must sign up on IRS.gov by 11:59 pm Eastern Time on Monday, Nov. 15.

This fifth batch of advance monthly payments, totaling about $15 billion, will reach about 36 million families across the country. The majority of payments are being made by direct deposit.

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.

News for Your Week Ahead: August 12, 2021

Posted on by Walter Moore

MSATP President Barbara joined us to tell us about her upcoming seminar and webinar, Payroll and 1099 Forms on December 13, 2021.

Watch on YouTube.

Coming Up: On Wednesday, August 18 at 10 a.m., Bob Jennings will join us to tell us about the upcoming TaxSpeaker classes during the fall seminar season.

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

Employee Retention Credit – The Latest Guidance | TaxSpeaker

The IRS has released Notice 2021-49 regarding the application of the rules for the Employee Retention Credit under the American Rescue Plan which extended the credit for wages paid before January 1, 2022, and answering some questions that practitioners have asked with regard to the application of the credit. However, the ERC does not have a large utilization, so Congress is looking at ending the credit as of September 30, 2021, as part of the infrastructure legislation for all employers other than Recovery Startup businesses.

For more information, click here.

Security Summit Warns Tax Pros to be Wary of Pandemic-Related Email Schemes | IR-2021-166

In a continuing twist on a common scam, the IRS, state tax agencies, and tax industry today warned tax professionals to beware of evolving phishing scams that use various pandemic-related themes to steal client data.

The Security Summit partners continue to see instances where tax professionals, especially those who engage in remote transactions, have been vulnerable this year to identity thieves posing as potential clients. The criminals then trick practitioners into opening email links or attachments that infect computer systems.

For more information, click here.

Treasury, IRS Provide Gross Receipts Safe Harbor for Employers Claiming the Employee Retention Credit | IR-2021-167

The Department of the Treasury and the IRS issued a safe harbor allowing employers to exclude certain items from their gross receipts solely for determining eligibility for the Employee Retention Credit (ERC).

Revenue Procedure 2021-33 provides a safe harbor permitting employers to exclude certain amounts from gross receipts solely for determining eligibility for the ERC. These amounts are:

  • The amount of the forgiveness of a Paycheck Protection Program (PPP) Loan;
  • Shuttered Venue Operators Grants under the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act; and
  • Restaurant Revitalization Grants under the American Rescue Plan Act of 2021.

For more information, click here.

Work Opportunity Tax Credit (WOTC) Transition Relief Under Internal Revenue Code § 51 | N-2021-43

Notice 2021-43 provides transition relief for employers that hire or hired certain individuals residing in empowerment zones and who begin work on or after January 1, 2021, and before the date that is 60 days from the date of publication of the notice. Section 51 of the Code provides employers with a work opportunity credit for hiring certain individuals certified by a Designated Local Agency (DLA) to be a member of a targeted group listed in section 51(d). Employers must receive, on or before the day on which such individual begins work for the employer, a certification from a DLA that such individual is a member of a targeted group or must request certification that the individual is a member of a targeted group by submitting Form 8850 (Pre-Screening Notification and Certification Request for the Work Opportunity Credit) to a DLA within 28 days of that individual beginning work.

For more information, click here.

Tax Security Tip: Get an IP PIN to Help Stop Identity Thieves | Tax Tip 2021-116

The IRS and its Security Summit partners recently kicked off their annual summer campaign. This year’s theme, Boost Security Immunity: Fight Against Identity Theft, urges tax pros to step up their efforts to protect client data. An IP PIN is a valuable tool that can help in this effort and it is now available to anyone who can verify their identity.

An Identity Protection PIN is six-digit number eligible taxpayers get to help prevent their Social Security number or Individual Taxpayer Identification Number from being used to file fraudulent federal income tax returns. This number helps the IRS verify a taxpayer’s identity and accept their tax return. The Get An IP PIN tool enables anyone who has an SSN or ITIN to get an IP PIN after they verify their identity through a rigorous authentication process. Taxpayers should review the Secure Access requirements before they try to use the Get An IP PIN tool.

For more information, click here.

News for Your Week Ahead: July 22, 2021

Posted on by Walter Moore

We’re excited to announce a new member benefit: MSATP members can now access Talking With TaxSpeaker, a tax expert Q&A video service, at a discounted rate! 

Subscribers will have access to 15-20 minute video segments in which TaxSpeaker’s experts answer hot topic tax-related questions. Subscribers will also be able to submit any of their questions so they can be answered in the next Talking With TaxSpeaker episode!

This discounted subscription is only available to MSATP members for $162* — that’s 20% off the original price! Click the button below to register for the service now.

Want to learn more about the subscription? Bob Jennings joined us on MSATP TV this week to discuss what members can expect when subscribing.

Watch on YouTube.

*If you are a current Talking With TaxSpeaker subscriber through TaxSpeaker, you must call (812) 288-1513 and cancel your current subscription. Then, sign up for the MSATP discounted subscription using our website, or call (800) 922-9672. You must be an MSATP member to enjoy this member benefit. To become an MSATP member please click here.

Coming Up: On Tuesday, July 27 at 10 a.m., Connie Hess of USB Payment Processing joins us to tell us about their new Merchant as Service cashflow management program that can help you and your clients. On Wednesday, July 28 at 10 a.m., Jonathan Rivlin will join us to tell us about his upcoming class, Firm of the Future on October 21. To register for the seminar, please click here.

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

Fraudulent Unemployment Claims

Our Second Vice President Donya Oneto recently encountered an issue with a client regarding a fraudulent unemployment claim. The state provided the following statement and advice which she was kind enough to pass onto you

There has been no breach in our Unemployment System. Fraudsters are using identities and personal identifiable information stolen from prior data breaches that have taken place such as (EQUIFAX, TARGET, Office of Personnel Management) to file fraudulent Unemployment Insurance Claims. We are also working in conjunction with the Office of the Inspector General to investigate these fraudulent claims.

In an attempt to protect yourself from any future fraud attacks:

  • Request your free credit reports via www.annualcreditreport.com and review them for other fraudulent activities.
  • Notify all three credit bureaus that you have been a victim of identity theft: Experian, Equifax, and Transunion.
  • File a police report with the local authorities.
  • You may file a complaint with the Federal Trade Commission at:ftc.gov/complaint.
  • You may file a complaint with the National Center for Disaster Fraud (NCDF).

Updated IRS Correction Principles and Changes to VCP Outlined in EPCRS Revenue Procedure 2021-30

The IRS Employee Plans Compliance Resolution System (EPCRS) permits any plan sponsor of a retirement plan (including SEP and SIMPLE IRA plans) to correct plan failures. EPCRS offers three correction programs:

  • Self-Correction Program (SCP) – Correct certain plan failures without contacting the IRS or paying a user fee
  • Voluntary Correction Program (VCP) – Correct failures not eligible for SCP and to get the approval of the IRS that the failures were properly corrected
  • Audit CAP – Resolve failures discovered during an IRS audit that can’t be corrected using SCP

For more information, click here.

A Tip for Teachers: Some Educator Expenses may be Tax Deductible | Tax Tip 2021-104

The educator expense deduction allows eligible teachers and administrators to deduct part of the cost of technology, supplies, and training from their taxes. They can only claim this deduction for expenses that were not reimbursed by their employer, a grant, or other source.

Who is an eligible educator:

The taxpayer must be a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide. They must also work at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law.

 For more information, click here.

Security Summit Partners Urge Tax Pros to Use Multi-Factor Authentication; Critical Step to Boost Protection Against Data Theft | IR-2021-155

With security incidents on the rise, the Internal Revenue Service, state tax agencies and the tax industry urged tax professionals and taxpayers to use a special feature – multi-factor authentication – available on tax software products to help protect against identity and data theft.

The Security Summit partners kicked off the annual 2021 “Protect Your Clients; Protect Yourself” summer campaign aimed at tax professionals. This year’s theme is “Boost Security Immunity: Fighting Against Identity Theft” to urge tax professionals to step up their efforts to protect client data amid the pandemic and its aftermath.

Multi-factor authentication, also known as two-factor authentication, provides more security. It allows the tax professional or taxpayer to use another feature such as a security code sent to a mobile device, a pin number, or a fingerprint in addition to the username and password. A thief may steal usernames and passwords but cannot access accounts without the additional multifactor feature.

For more information, please click here.

News for Your Week Ahead: July 15, 2021

Posted on by Walter Moore

Jim Dawson of Miles & Stockbridge joins us to discuss SDAT’s elimination of fees related to filing the articles of dissolution of a business, how it affects reinstating businesses, and what effect it will have on forfeitures.

Watch on YouTube.

Coming Up: On Wednesday, July 21 at 2 p.m., Bob Jennings of TaxSpeaker will join us to talk about an exciting new benefit he will be offering to MSATP members!

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

IRS Readies Nearly 4 Million Refunds for Unemployment Compensation | IR-2021-151

The Internal Revenue Service announced it will issue another round of refunds this week to nearly 4 million taxpayers who overpaid their taxes on unemployment compensation received last year.

The American Rescue Plan Act of 2021, which became law in March, excludes up to $10,200 in 2020 unemployment compensation from taxable income calculations. The exclusion applied to individuals and married couples whose modified adjusted gross income was less than $150,000.

For more information, please click here.

IRS Provides Guidance for Multiemployer Retirement Plans Receiving Assistance from the PBGC | IR-2021-148

The Internal Revenue Service provided guidance for multiemployer qualified retirement plans that receive special financial assistance from the Pension Benefit Guaranty Corporation (PBGC) and for participants and beneficiaries in those plans.

Notice 2021-38 provides guidance under provisions of the American Rescue Plan Act of 2021 regarding special financial assistance paid by the PBGC to eligible multiemployer defined benefit pension plans that are financially at risk.

For more information, click here.

Making Payment for Deferred Tax Reported by Third-Party Payers | COVID Tax Tip 2021-99

The Coronavirus, Aid, Relief and Economic Security Act – CARES Act – allowed employers to defer the deposit and payment of the employer’s share of Social Security taxes and self-employed individuals to defer payment of certain self-employment taxes.

Here are some important dates for people to know:

  • The deferral applies to those taxes for the period March 27, 2020, through December 31, 2020.
  • Employers must pay 50% of the amount eligible to be deferred by December 31, 2021, and the remaining deferred tax by December 31, 2022.
  • If any portion of the employer’s share of Social Security tax is not deposited or paid by the applicable date, penalties and interest will apply.

For more information, click here.

Renting Your Vacation Home

The IRS has released tax tips about renting your vacation home. To watch please click here.

 

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