Category: Uncategorized

Rob Smith of Point7Seconds joins us to tell us about his upcoming OneNote classes on December 6 and 16th. Save the dates as we will announce further details soon!

Watch on YouTube.

Coming Up: We have two special MSATP TV episodes airing next week. On Tuesday, November 16 at 10 a.m., Julie Weaver of the Maryland Council on Economic Education joins us to discuss their initiatives on financial literacy. On Thursday November 18 at 10 a.m., Tammy Nickels from Wolters Klower will join us to tell us about CCH TaxAware which is a benefit for all MSATP members!

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

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IRS Provides Tax Inflation Adjustments for Tax Year 2022 |IR-2021-219

The IRS announced the tax year 2022 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2021-45 provides details about these annual adjustments.

For more information, click here.

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Homeowners Assistance Fund Payments | Rev. Proc. 2021-47

Rev. Proc. 2021-47 provides guidance on the income tax treatment and information reporting requirements for payments made to or on behalf of financially distressed individual homeowners by certain entities with funds allocated from the Homeowner Assistance Fund (HAF), which was established under section 3206 of the American Rescue Plan Act of 2021, Pub. L. No. 117-2, 135 Stat. 4 (March 11, 2021) (ARP), in response to the coronavirus disease (COVID-19) pandemic.

For more information, click here.

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The IRS Financial Report Available on IRS.gov | IR-2021-220

The IRS  published its Financial Report on IRS.gov. This new report provides the American people with a comprehensive view of the IRS’s financial activities as well as the accomplishments of its finance management community.

In fiscal year 2021, the IRS managed more than $4.1 trillion in tax revenue, $1.1 trillion in refunds and $658 billion in unpaid assessments, as well as the resources that support its mission. In addition, Congress and both Administrations entrusted the IRS with $2.4 billion in supplemental funding to support the nation’s recovery from the COVID-19 pandemic.

For more information, click here.

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Families Can Now Report Income Changes Using the Child Tax Credit Update Portal | COVID Tax Tip 2021-167

The IRS recently launched a new feature in its Child Tax Credit Update Portal, allowing families receiving monthly advance child tax credit payments to update their income.

Families should enter changes by November 29, so the changes are reflected in the December payment. Once the update is made, the IRS will adjust the payment amount to ensure people receive their total advance payment for the year. For married couples, if one spouse makes the income update, it will apply to both spouses and could impact both spouses’ future monthly advance payments of the child tax credit.

For more information, click here.

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Here’s How Businesses Can Deduct Startup Costs from Their Federal Taxes | Tax Tip 2021-166

When starting a business, owners should treat all eligible costs incurred before beginning to operate the business as capital expenditures that are part of their basis in the business. Generally, the business can recover costs for assets through depreciation deductions.

For costs paid or incurred after September 8, 2008, the business can deduct a limited amount of start-up and organizational costs. They can recover the costs they cannot deduct currently over a 180-month period. This recovery period starts with the month the business begins to operate active trade or as a business.

For more information, click here.

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Get Ready for Taxes: Easy Steps Taxpayers Can Take Now to Make Tax Filing Easier in 2022 | IR-2021-217

The IRS encouraged taxpayers, including those who received stimulus payments or advance Child Tax Credit payments, to take important steps this fall to help themselves file their federal tax returns in 2022.

Planning ahead can help people file an accurate return and avoid processing delays that can slow tax refunds.

For more information, click here.

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IRS Updates 2021 Child Tax Credit and Advance Child Tax Credit Payments Frequently Asked Questions | IR-2021-218

The IRS updated frequently-asked-questions (FAQs) for the 2021 Child Tax Credit and Advance Child Tax Credit Payments to describe how taxpayers can now provide the IRS an estimate of your 2021 income using the Child Tax Credit Update Portal (CTC UP).

These FAQs update the Advance Child Tax Credit Topic A FAQs by adding a new question, question 17 and Topic F FAQs by adding new questions, questions 2 through 6.

For more information, click here.

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.

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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.

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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.

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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.

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.

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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.

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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.

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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.

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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.

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.

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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.

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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.

Michael Ashley of Registered Agents joins Bill Feehley to talk about how he can help you incorporate a business, form a limited liability company, and handle your incorporation needs in all 50 states.

Watch on YouTube.

Coming Up: On Thursday, July 1st at 10 a.m., Jonathan Pocius of Payroll Services will be joining us to talk about how he help you with all your payroll needs including helping claim your employee retention credits!

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

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Businesses Must Report Nonemployee Compensation and Backup Witholding

By law, business taxpayers who pay or receive nonemployee compensation of $600 or more must report these payments to the IRS. They do this using Form 1099-NEC, Nonemployee Compensation.

Generally, payers must file Form 1099-NEC by January 31. For 2021 tax returns. There is no automatic 30-day extension to file Form 1099-NEC. However, an extension to file may be available under certain hardship conditions.

For more information, click here.

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Draft PTE Forms and Administrative Release 6

The Comptroller’s Office has published guidance on the impact of SB 496 and SB 787 on Maryland’s pass-through entity tax.

Additionally, the Comptroller has published DRAFTs of revised Form 510, and new Form 511. These forms are still in draft format, and have been published for information only. They should not be filed until the Comptroller posts the final forms on June 29. The DRAFT forms can be found here: Draft 2020 Forms – Pass-Through Entity (marylandtaxes.gov).

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Fed Raises Inflation Forecast, Shifts Timeline for Rate Increase | NFIB

NBC News (6/16) reported on its website that the Federal Reserve kept interest rates steady Wednesday “but dramatically raised its forecast for inflation and shifted up the timeline for a rate hike.” In a statement, Fed officials “acknowledged rising inflation, hiking their expectation for inflation to 3.4 percent from a March projection of 2.4 percent.” In what NBC News calls “a significant shift,” a “number of Fed officials indicated that two rate hikes could come as soon as 2023.” On its website, CNBC (6/16, Cox) reported that in March, the Federal Open Market Committee said “that it saw no increases until at least 2024.”

For more information, click here.

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IRS Releases Data Book for Fiscal 2020 Describing Agency’s Activities During Pandemic | IR-2021-134

The Internal Revenue Service issued the Data Book detailing the agency’s activities during fiscal year 2020 (Oct. 1, 2019 – Sept. 30, 2020).

“This year’s Data Book describes the important work that IRS employees accomplish on behalf of the public,” said IRS Commissioner Chuck Rettig. “The IRS accounts for approximately 96% of the funding that supports the federal government’s operations, while proudly serving and interacting with more Americans than any other public or private organization.”

“The 2020 Data Book also details the extraordinary measures the IRS took to protect the health and safety of taxpayers and IRS employees during the COVID-19 pandemic while implementing critical economic relief legislation – the largest economic rescue packages in US history,” Rettig added.

For more information, click here.

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Extension of Temporary Relief from the Physical Presence Requirement | N-2021-40

Notice 2021-40 provides a 12-month extension of the relief provided in Notice 2020-42, as extended by Notice 2021-3. For the period from July 1, 2021, through June 30, 2022, this notice extends two types of relief from the physical presence requirement in § 1.401(a)-21(d)(6)(i) for participant elections required to be witnessed by a plan representative or a notary public: (1) temporary relief from the physical presence requirement for any participant election witnessed by a notary public in a state that permits remote notarization (either by law or through an executive order), and (2) temporary relief from the physical presence requirement for any participant election witnessed by a plan representative. This notice also solicits comments on whether permanent guidance modifying the physical presence requirement in § 1.401(a)(21)-1(d)(6)(i) should be issued.

Notice 2021-40 will be in IRB: 2021-28, dated July 12, 2021.

For more information, click here.

While the past year was rather difficult, all of us here at MSATP were very excited and happy for all those who joined us both in-person and virtually for our Annual Convention and Banquet. This years’ event offered 15 hours of CPE from John Kennedy, Bob Jennings, Ryan Jennings, Bill Leonard and Rob Smith! We were excited to see old faces and new that were able to enjoy their time with us in Ocean City, MD.

At the convention we handed out many awards and would like to congratulate all for their excellence and achievement.

The Phyllis Burlage Award, is awarded to the winner of our Capstone Project in the Young Professionals Leadership Program. Abbey was also on our episode of MSATP TV, please check out the episode by clicking here.

Bob Jennings was awarded the 2020 Board of Trustees Award – awarded by the Board of Trustees to a trustee, or any other member/individual whom the Board of Trustees see fit to honor, who has done an outstanding job for the Society and the accounting profession in the past year.

2020 President’s Award – given to a member or non–member of the Society who assists the Society, especially the President, during his or her term has been awarded to Donya Oneto.

2020 Sidney Weinberg Award – given to a Society member who has provided outstanding leadership to the Society and the accounting profession in the past year has been awarded to Bob Boehner.

2020 Golden Quill Award – given in recognition of an outstanding article submitted for publication, either in print or on-line in the past year has been awarded to Jonathan Rivlin.

2021 Board of Directors Service Award – given to Board Members who have not been re-elected or re-appointed to the MSATP Board of Directors has been awarded to Bob Boehner.

2021 Board of Trustees Award – awarded by the Board of Trustees to a trustee, or any other member/individual whom the Board of Trustees see fit to honor, who has done an outstanding job for the Society and the accounting profession in the past year has been awarded to Ellen Silverstein.

2021 President’s Award – given to a member or non –member of the Society who assists the Society, especially the President, during his or her term has been awarded to Bob Medberry.

2021 Media Award – given in recognition for the development and use of any type of media for a literary or artistic purpose in the past year has been awarded to Jim Arnie.

2021 Donald R. Hull Performance Award – given to a member or non-member who has made a specified outstanding contribution to the Society and the accounting profession in the past year (more than one may be awarded in any given year) has been awarded to Christopher Williams and Ana Barnabe.

2021 Outstanding Young Professional Award – given to a member under the age of 40 who has shown exemplary evidence of professional and ethical conduct in the profession in the past year has been awarded to Michael Mcllhargey

2021 Sidney Weinberg Award – given to a Society member who has provided outstanding leadership to the Society and the accounting profession in the past year has been awarded to Ellen Silverstein

2021 Donald R. Hull Performance Award – given to a member or non-member who has made a specified outstanding contribution to the Society and the accounting profession in the past year (more than one may be awarded in any given year has been awarded to Heather Shipley

Our Fellow Awards were awarded to the following for 60 or more hours of education with the Society. The winners were:

Alverta Steinwedel
Joyce Obear
Karen Simpson
Michelle Hudgins
Ana Barnabe
Ron Grafman
Robert Medbery
Donya Oneto
David Rivlin
Ellen Silverstein

New for 2021 we awarded membership pins for their years of membership to the Society. These awards are handed out based on every 10 years of membership. To view the full list of those who have been recognized, please click here.

Our new Officers for 2021 -2022:
President – Barbara Smith
First Vice President – Ana Barnabe
Second Vice President – Donya Oneto
Treasurer – Ann Elliot
Secretary – Jonathan Rivlin
Delegate – Michael Kohler
Delegate – Michael Mcllhargey
Delegate – Hannah Coyle
Delegate – Dan Shaughnessy
Delegate – Robert Medbery
Immediate Past President – Ellen Silverstein
Board of Trustees Delegate – Ron Grafman
Executive Director – Bill Feehley

To watch the full awards ceremony, please click here.

On this weeks’ episode of MSATP TV President Babara Smith joins Executive Director Bill Feehley to tell us about the Employee to Entrepreneur Signature Program.

Watch on YouTube.

Coming Up: On Thursday, May 27th at 2 p.m., Cliff Reiter of National Accounting Sales will join Bill Feehley on MSATP TV to tell us how his company can help you with buying or selling your accounting practice.Tune in on Facebook for this episode and more!

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IRS Provides Guidance on Premium Assistance and Tax Credit for Continuation Health Coverage | IR-2021-115

The Internal Revenue Service today provided guidance on tax breaks under the American Rescue Plan Act of 2021 for continuation health coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).

Notice 2021-31 provides guidance for employers, plan administrators, and health insurers regarding the new credit available to them for providing continuation health coverage to certain individuals under COBRA.

The American Rescue Plan provides a temporary 100% reduction in the premium that individuals would have to pay when they elect COBRA continuation health coverage following a reduction in hours or an involuntary termination of employment. The new law provides a corresponding tax credit for the entities that maintain group health plans, such as employers, multiemployer plans, and insurers. The 100% reduction in the premium and the credit are also available with respect to continuation coverage provided for those events under comparable State laws, sometimes referred to as “mini-COBRA.”

For more information, please click here.

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Comptroller Franchot Says bFile Ready for RELIEF Act Sales and Use Tax Credit | To Qualify, Vendors Must File Timely Returns and Sales Tax Collections for March, April and May Cannot Exceed $6,000

Comptroller Peter Franchot announced Tuesday that the agency’s bFile system is now available for qualified business owners to claim a Sales and Use Tax Credit under the RELIEF Act of 2021.

“The RELIEF Act included many complicated tax provisions that were difficult to implement immediately,” Comptroller Franchot said. “Our agency has worked tirelessly to make it easy for business taxpayers to understand the different types of relief they may be eligible for and to simplify the process so the aid can quickly get to those who need it most.”

The legislation authorizes eligible vendors to claim an increased tax credit ONLY for the three consecutive sales periods of March, April and May – which typically are filed in April, May and June. However, taxpayers should note that filing deadlines for those months have been extended to July 15, 2021 and will be considered “timely filed” if filed by the July 15th deadline.

For more information, click here.

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Here’s How TaxPayer Can Check The Status of Their Federal Tax Return | Tax Tip 2021-70

The most convenient way to check on a tax refund is by using the Where’s My Refund? tool. Taxpayers can start checking their refund status within 24 hours after an e-filed return is received. The tool also provides a personalized refund date after the return is processed and a refund is approved.

Taxpayers can access the Where’s My Refund? tool two ways:

• Visiting IRS.gov
• Downloading the IRS2Go app

To use the tool, taxpayers will need:

• Their Social Security number or Individual Taxpayer Identification number
• Tax filing status
• The exact amount of the refund claimed on their tax return

The tool displays progress in three phases:

• Return received
• Refund approved
• Refund sent

When the status changes to approved, this means the IRS is preparing to send the refund as a direct deposit to the taxpayer’s bank account or directly to the taxpayer in the mail, by check, to the address used on their tax return.

The IRS updates the Where’s My Refund? tool once a day, usually overnight, so taxpayers don’t need to check the status more often.

Taxpayers should allow time for their financial institution to post the refund to their account or for it to be delivered by mail. Calling the IRS won’t speed up a tax refund. The information available on Where’s My Refund? is the same information available to IRS telephone assistors.

To use the where’s my refund tool, click here.

 

On this weeks’ episode of MSATP TV Ellen Silverstein joins Executive Director Bill Feehley for an update on MSATP’s Annual Convention & Banquet in Ocean City, MD!

Watch on YouTube.

Coming Up: On Thursday, May 13th at 10 a.m., Marc Reibman of USB Payment Procession will join Bill Feehley on MSATP TV to tell us more about USB Payment Processing services.Tune in on Facebook for this episode and more!

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Enrolled Agent Inactivation/Termination Letters

Letters have begun going out to Enrolled Agents (EAs) with SSNs ending in 7, 8, 9, or no SSN, who did not renew during this year’s renewal cycle.

Those who did not renew during the 2018 and 2021 cycles will be moved to terminated status. (2,400+). Those who did not renew during the 2021 cycle will be moved to inactive status. (5,400+). Anyone in inactive status can still submit a late renewal for approval; with proof of CE. Anyone in terminated status must re-take the SEE to apply for re-enrollment.

If an EA disagrees and has a record of previously renewing their EA status, they should contact the number on the letter, which is 855-472-5540.

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Maryland Chamber Foundation Releases Q1 Economic Report | Maryland Chamber Foundation

We continue to recover from the devastating losses brought about by the COVID-19 pandemic but see increased signs of Maryland’s economy steadily improving. In the first quarter of 2021, Maryland’s year-over-year growth in private sector average hourly earnings was 6.7%, in contrast to 3.6% growth at the national level and significantly above the 3.4% growth the state experienced a year earlier in March 2020. The state’s unemployment rate remains high at 6.0% but is slowly receding, indicating we are heading in the right direction.

For more information, click here.

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Draft Schedules K-2 and K-3 Released to Enhance Reporting of International Tax Matters by Pass-Through Entities | IR-2021-998

The Treasury and the IRS released today updated early drafts of new Schedules K-2 and K-3 for Forms 1065, 1120-S, and 8865 for tax year 2021 (filing season 2022). The schedules are designed to provide greater clarity for partners and shareholders on how to compute their U.S. income tax liability with respect to items of international tax relevance, including claiming deductions and credits.

The early release drafts of the schedules are intended to give a preview of the changes before final versions are released.  The release of an early draft of the instructions for the schedules is planned for this summer.

The redesigned forms and instructions will also give useful guidance to partnerships, S corporations and U.S persons who are required to file Form 8865 with respect to controlled foreign partnerships on how to provide international tax information.  The updated forms will apply to any persons required to file Form 1065, 1120-S or 8865, but only if the entity for which the form is being filed has items of international tax relevance (generally foreign activities or foreign partners).

For more information, click here.

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Annapolis Data Center Announcement | New Mainframe Password Rule Changes to be Implemented on May 10th

In response to an IRS audit finding, the Annapolis Data Center is implementing a more secure set of password rules to protect sensitive data.  The following 2 security rules will be operational on May 10, 2021:

Consecutive characters from your name: Using 4 or more consecutive characters from your name will generate an error when establishing a new password.

Consecutive characters from previous password:  Using 3 or more consecutive characters, in the same position in your last password, is considered too similar and will generate an error when establishing a new password.

While this change will go into production on May 10, 2021, it will not impact you until your next required password change.  In the meantime, your old password will still work.

If you encounter any issues, please open a Help Desk ticket (servicedesk@marylandtaxes.gov) or call 410-260-7400, and select option 4.

On this weeks’ episode of MSATP TV Jim Arnie joins Executive Director Bill Feehley to give us a final update on the legislative session in Annapolis.

Watch on YouTube.

Coming Up: On Thursday, May 6th at 10 a.m., Ellen Silverstein will join Bill Feehley on MSATP TV to tell us more about the Annual Convention & Banquet taking place June 1-4 in Ocean City, MD. Tune in on Facebook for this episode and more!

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Comptroller Franchot Offers Guidance to Businesses on Sales and Use Tax Credit

Comptroller Peter Franchot has issued a reminder and further guidance to business owners who may be eligible for a Sales and Use Tax Credit under the RELIEF Act of 2021.

“While the RELIEF Act provides much-needed help to many Marylanders affected by the COVID-19 pandemic, it also includes many complicated tax provisions for our businesses that are difficult to implement,” Comptroller Franchot said. “Our agency is determined to make it easy for business taxpayers to understand the different types of relief they may be eligible for and to simplify the process by which they receive state aid.”

The legislation authorizes eligible vendors to claim an increased tax credit ONLY for the three consecutive sales periods of March, April and May – which are typically filed in April, May and June. However, taxpayers should note that filing deadlines for those months have been extended to July 15, 2021 and will be considered “timely filed” if filed by the July 15th deadline.

For more information, click here.

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IRS Suspends Requirement to Repay Excess Advance Payments of the 2020 Premium Tax Credit | 2021-55

The premium tax credit helps pay for health insurance coverage bought from the Health Insurance Marketplace. Eligible people can choose to have all, some, or none of the estimated credit paid in advance directly to their insurance company on their behalf. These payments – which are called advance payments of the premium tax credit, advance credit payments, or APTC – lower what taxpayers pay out-of-pocket for their monthly premiums.

Alternatively, people can choose not to get APTC, pay the full amount of their monthly premium, and claim all the benefit of the PTC that they are allowed when they file their tax return. This will increase their refund or lower the amount of tax they owe. Taxpayers use Form 8962, Premium Tax Credit to figure the amount of their PTC and reconcile it with their APTC.

The American Rescue Plan Act of 2021 suspends the requirement that taxpayers repay their excess advance payments of the premium tax credit for tax year 2020. Excess APTC is the amount by which the taxpayer’s advance payments of the premium tax credit exceed their premium tax credit.

For more information, click here.

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IRS Office of Chief Counsel’s First National Virtual Settlement Month Successful in Resolving Almost 150 Tax Court Cases | IR-2021-93

Building on the success of Settlement Days and Virtual Settlement Days, the Internal Revenue Service Office of Chief Counsel hosted its first National Virtual Settlement Month in March 2021. The results are impressive.

Settlement Days events are coordinated efforts to resolve cases in the United States Tax Court by providing taxpayers who are not represented by counsel the opportunity to receive free tax advice from Low Income Taxpayer Clinics (LITCs), American Bar Association (ABA) volunteer attorneys and other pro bono organizations.

“The March Settlement Days campaign yielded great results with well over half of participating taxpayers settling their cases on a basis agreeable to them without having to represent themselves in Tax Court,” said IRS Commissioner Chuck Rettig. “These strong results could not be achieved without the dedication and support of our partner groups–the LITCs, ABA and other pro bono organizations.”

For more information, click here.

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Comptroller Announces More Than 2 Million Returns Processed | Franchot Warns Fake Collection Agency is Using Public Lien Information to Target Taxpayers

Comptroller Peter Franchot today announced the agency has processed more than two millions state tax returns in the current tax season with 1.4 million taxpayers receiving refunds totaling $1.4 billion. He also released details of another tax scam in which a fake collections agency attempts to steal Marylanders’ money.

Scammers have taken advantage of public lien information to target taxpayers. Taxpayers have received letters – correctly addressed to them – with public record lien information from an entity claiming they are a collections agency operating on behalf of the Comptroller of Maryland. The letter is not legitimate. If any individual or business taxpayer, in Maryland or out of state, receives such a letter, please contact our office immediately.

For more information, click here.

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Here’s Why Some People Got More Than One Notice About Their Economic Impact Payments

After each of the three Economic Impact Payments is issued, the IRS is required to mail a notice to each recipient’s last known address. The notice provides information about the amount of the payment, how it was made and how to report any payment that wasn’t received. Some people may receive multiple notices about each payment. Most people will simply file the notice with their tax records and won’t need to contact the IRS or take any further action.

Here are some details about each notice and what action some people may need to take.

• Notice 1444, Your Economic Impact Payment. The IRS mailed this notice within 15 days after the first payment was issued in 2020. Some people received another Notice 1444 if the IRS corrected or issued more than one payment in the first round. Taxpayers who received a Notice 1444 but did not receive their first payment should review the frequently asked questions for instructions on what to do if their first payment is lost, stolen, destroyed or has not been received. People should keep this letter with tax year 2020 records.
• Notice 1444-A, You May Need to Act to Claim Your Payment. The IRS mailed this letter last year to people who typically aren’t required to file federal income tax returns but may have been eligible for the first Economic Impact Payment. People who didn’t get a first and second Economic Impact Payment or got less than the full amounts, may be eligible to claim the 2020 Recovery Rebate Credit and must file a 2020 tax return even if they don’t usually file a tax return.
• Notice 1444-B, Your Second Economic Impact Payment. The law that authorized the second payment gave the IRS more time to mail Notice 1444-B after the second payments were issued. This means people likely received their second payment several weeks before Notice 1444-B arrived. Taxpayers who received Notice 1444-B but didn’t receive the second payment should read the FAQs about what to do if their second payment is lost, stolen, destroyed or has not been received. People should keep this letter with tax year 2020 records.
• Notice 1444-C, Your 2021 Economic Impact Payment. The IRS is mailing this letter to people who received a third Economic Impact Payment. People should keep this letter with tax year 2021 records.

People should keep any IRS notices they receive about Economic Impact Payments with other tax records. The IRS cannot issue replacement copies of these notices. Taxpayers who don’t have their notices can view the amounts of their Economic Impact Payments through their online account.

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