Unexpected Employee Retention Credit Refund Delays
The IRS is experiencing continued delays The IRS is currently backlogged with millions of unprocessed payroll tax returns due to the changes in COVID-19 safety protocols and the volume of Employee Retention Credit (ERC) refund requests. As of November 17, 2021, the...
Infrastructure Bill Terminates ERC Earlier Than Expected
On Monday, November 15th, President Biden signed into law the bipartisan Infrastructure Bill. The $1.2 trillion bill included a few tax provisions in the legislation, one significant change being the earlier end date for the Employee Retention Credit (ERC). The ERC...
IRS – Wages for R&D do not include wages for Employee Retention Credit
The IRS revises Form 6765 so in 2021 taxpayers cannot use the same wages to calculate both the R&D credit and the employee retention credit.
Guidance for Claiming Employee Retention Credit in 2021
The IRS has issued guidance for employers claiming the employee retention credit enacted by the American Rescue Plan Act of 2021 (ARP), which provides a credit for wages paid after June 30, 2021, and before January 1, 2022. The guidance amplifies previous notices...
IRS issues employee retention credit gross receipt exclusion procedure
Rev. Proc. 2021-33 allows exclusion of PPP, restaurant revitalization and shuttered venue operator grants from ERTC gross receipts test.
IRS enhances employee retention credit guidance for open questions
Notice 2021-49 provides answers on previously uncertain issues and addresses changes implemented in the American Rescue Plan Act.
IRS gives an update for COBRA under the American Rescue Plan Act of 2021
The IRS released a notice providing guidance for employers, plan administrators and health insurers regarding the new tax breaks available under the American Rescue Plan Act of 2021 for the continuation of health coverage under the Consolidated Omnibus Budget...
Guidance issued for employers claiming the Employee Retention Credit
Notice 2021-20 clarifies retroactive changes made to ERTC and PPP interaction and incorporates several previous frequently asked questions.
Employee retention credit significantly expanded for 2021
The Employee Retention Tax Credit was significantly expanded by the federal relief and stimulus package finalized Dec. 27, 2020.
Treasury issues skinny guidance on employee payroll tax deferral
Following the President’s memo on August 8, Treasury releases very short Notice 2020-65 delaying the deadline for employee FICA tax.
IRS issues FAQs on provider relief payments made under the CARES Act (authored by RSM US LLP)
Authored by RSM US LLP TAX ALERT On July 6, 2020, the IRS released FAQs providing guidance to health care providers with respect to the taxability of payments received from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Provider Relief Fund....
Paycheck Protection Program Flexibility Act Loosens Rules on Employment Tax Deferrals
Among the many relief provisions included in the Coronavirus Aid, Relief and Economic Security Act (CARES Act) is one that allows employers to defer the deposit and payment of employment taxes for the remainder of 2020. To provide businesses with much-needed...
The Case for Roth Conversions
The Case for Roth IRA Conversion At KHA, we tend to look for opportunities that can be found in challenges. With the COVID-19 crisis, we ask, “What can we learn from this situation or how can we improve our current circumstances?” The values of most retirement plans...
Business and Individual Retirement Plans and the Impact of the CARES Act
On Friday, March 27, 2020 the United States government implemented legislation that provided comprehensive relief to America in what is otherwise known as the CARES Act. The CARES Act included loans and payroll credits to businesses, cash to individuals, and funding...
Payroll Tax Provisions for Businesses in the CARES Act
NOTICE - As of April 1, the IRS has posted frequently asked questions that will answer some details not known at the time of this article. For additional information, please visit the IRS website, click here These payroll tax provisions are intertwined with many...
CARES Act Individual Tax Provisions
Individual Tax Provisions Found in the CARES Act The CARES Act provides tax relief for individuals, specifically in the form of cash rebates and generous deductibility of charitable contributions. Recovery Rebates for Individuals Amount of Assistance Subject to...
Business Tax Provisions in the CARES Act
Modifications for Net Operating Losses The net operating loss (NOL) rules applicable to individuals and C Corporations recently changed and will now change again. To avoid confusion, let’s review: Prior to 2018, NOLs could be carried back two years and carried forward...
IRS Unveils New People First Initiative
The IRS unveiled the new “People First Initiative” which intends to temporarily adjust and suspend some compliance programs. IRS has established a series of relief to assist taxpayers. Highlights of the initiatives are: Existing Installment Agreements...
Sales Tax – Texas Comptroller Relief
Client Communication - March 25, 2020 Today the Texas Comptroller of Public Accounts offered assistance with businesses struggling to pay the full amount of sales taxes collected in February. They are offering short-term payment agreements, and in most...
Notice 2020-17 – Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic
Client Communication - March 20, 2020 Secretary Steven Mnuchin announced today that the tax filing deadline will be moved from April 15th to July 15th. “Americans will have an additional three months to file their taxes…” This means that KHA will not be...