This has obviously been anything but an ordinary year and tax guidance has been issued to provide some relief. In 2020, Congress passed the CARES Acts, in response to the pandemic, and many of these provisions will help mitigate the financial impact of the disease, which should be considered as part of your yearend planning to take advantage of them and the effects of the Secure Act to decrease 2020 income tax liabilities for individuals and businesses. Many of these provisions are quite complicated and probably require the expertise of our tax professionals, but there are steps which can be taken prior to yearend to minimize your tax liability.
IRS Notice 2020-75 (‘the Notice”) was issued on November 9, 2020 and announced that the Department of the Treasury and the Internal Revenue Service intend to issue Proposed Regulations to clarify that State and local income taxes imposed on and paid by a partnership or an S corporation on its income are allowed as a deduction by the partnership or S corporation in computing its non-separately stated taxable income or loss for the taxable year of payment. Furthermore, the Proposed Regulations will provide certainty to individual owners of partnerships and S corporations in calculating their state and local tax deduction payments.
The 2020 Q2 estimated tax payment date for businesses and individuals is extended from June 15th to July 15th under IRS Notice 2020-23. The relief applies to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020 and before July 15, 2020, including individuals, trusts, estates, corporations and other noncorporate filers.
As of March 19, 2020, there are different programs available to taxpayers as a response to COVID-19. Below are summaries of the programs available:
During a press briefing on March 17, Treasury Secretary Steven Mnuchin announced that certain 2019 tax payments can be deferred until July 15th.
Planning on making charitable gifts in 2020 and want to be tax efficient when doing so? There are many ways but below are a few common options...
The passing of the Tax Cuts and Jobs Act led to many questions about your bottom line last tax season. With one year behind us, we look forward to moving into this tax season with more clarity and confidence to manage the effects of the reform for both individuals and businesses.
Have you ever found yourself scrambling during the last week of January to track down a Federal Identification Number or addresses of 1099 recipients?
The IRS recently issued new increases to tax deduction and contribution limits for tax year 2020. These increases are from the annual inflation adjustment that the IRS makes towards multiple tax schedules.