A recently extended tax credit could make it easier for some businesses to expand their payrolls again after the COVID-19 pandemic. The Taxpayer Certainty and Disaster Tax Relief Act, part of the 2021 appropriations bill that was signed into law on December 27, 2020, includes a five-year extension of the Work Opportunity Tax Credit (WOTC).
The time has come to start thinking about those 2020 taxes. At this point, tax documents have probably started showing up in your mailbox. While it may seem like there is plenty of time, the sooner and more organized you can make your documents, the smoother the process will be.
Just like last year, we thought it might be helpful to create a checklist for easy organizing of your documents that will help to streamline the process for your accountant:
- Make sure to fill out the questionnaire located towards the front of the organizer at a minimum.
- Update your address, phone and email address as necessary.
- Original tax documents are preferred to copies or photos.
- Provide one copy of your 1099's. You can keep any duplicate copies.
- Do not use highlighters on your tax documents.
- No need to tear apart tax documents if they are perforated, just keep them together.
- Avoid post it notes. Write notes and questions on a separate piece of paper or on the tax organizer.
- If you are grouping documents together, avoid stapling and taping them; this will make it easier when your documents are being scanned.
- For charitable deductions, make sure to send us the thank you letters and donation receipts for donations over $250. You can summarize donations less than $250.
- If you are summarizing your medical expenses, do not send us the receipts, just keep them in your files.
- If you are summarizing your expenses for Schedule C or your rental, do not send us the receipts.
- Stack all supporting documents behind the organizer. They do not need to be organized within the organizer.
- When in doubt, send us the document. Your accountant will review and determine if it needs to be included in your tax return.
- Last but not least, please contact us if you have any questions.
Congress has passed new COVID relief including stimulus payments and tax relief. The bill awaits the President’s signature, which is expected shortly. We’re providing some highlights here, but details of many of these provisions are not yet known since the bill is over 5,500 pages in length and will take time to digest.
One of the changes businesses will see during the upcoming tax season is a redesign of the 1099 series of information reporting forms. This year, taxpayers must use a new Form 1099-NEC (Nonemployee Compensation) to report payments to nonemployees such as independent contractors, freelancers, and other service providers, rather than reporting them on Form 1099-MISC as they did in years past.
(Kirkland, WA) This week Sweeney Conrad, PS, has announced their fall promotions. This year 20 employees have been promoted:
In the report below, we lay out the tax policies of both of the major presidential candidates. This report was intended to be factual*, nonpartisan, and unbiased. As both candidates’ campaigns evolve, proposed policies may change from what is documented below.
As post-COVID recovery efforts gain momentum, many businesses are taking a fresh look at some federal stimulus and tax relief programs they had not previously considered. One such program, the employee retention credit contained in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, could be especially useful in helping companies bring back furloughed or laid-off employees.
Domestic violence is often a silent issue. With the rise of COVID-19, survivors are struggling at an even greater rate. This week we caught up with Kelly Becker, Development Director of LifeWire, to learn more about their mission to end domestic violence, how COVID-19 has affected their efforts, and how the community can help.
While stimulus checks and forgivable loans have received a lot of attention during the COVID-19 shutdown, businesses should not overlook other available relief provisions that could help them reduce taxes and improve cash flow. Several of these measures could enable a business to file amended federal tax returns to recover taxes paid in previous years and request a refund.
The IRS recently announced expanded required minimum distribution (RMD) relief under the CARES (Coronavirus Aid, Relief, and Economic Security) Act. Here is what has changed for investors: