How are Expense Reimbursements Taxed by the IRS? If your business reimburses you or your employees for out-of-pocket expenses, the IRS treats such reimbursements as being made under either an accountable plan or a non-accountable plan. If reimbursements are made under a non-accountable plan, they are taxed as income to the employee and the business
On May 11, 2022 the Georgia Department of Revenue began issuing one-time tax refunds as authorized by House Bill 1302. This legislation allows for an additional refund of income taxes from 2020, due to the state experiencing a revenue surplus. Single filers and married individuals who file separately were able to receive a maximum refund
Every year the Internal Revenue Service (“IRS”) announces a list of twelve of the worst tax scams that taxpayer may encounter that year, it is referred to as the Dirty Dozen. This year’s list focuses on abusive transactions, deceitful tax companies, pandemic-related scams, and personal information scams. Taxpayers are encouraged to look out for these
During April 2021, the Internal Revenue Service (“IRS”) issued updated guidance for employers regarding the Employee Retention Credit (“ERC”) and credits for paid sick and family leave (“Paid Leave”). Employee Retention Credit On April 2nd, 2021 the IRS published Notice 2021-23, which explains the changes to the Employee Retention Credit for the first two calendar
COVID-19 Relief Included in the Consolidated Appropriations Act of 2021 A new stimulus package has been released under the Consolidated Appropriations Act of 2021 (the “Act”). This second round of relief will provide much-needed aid for small businesses and unemployed Americans. The primary changes between the Act and the first relief package, the CARES Act,
Under the Consolidated Appropriations Act of 2021, which was signed into law by President Trump on December 27, 2020 (the “Act”), significant changes were made the employee retention tax credit (“ERC”) enacted under the CARES Act. Originally, companies were forced to choose between receiving a PPP loan or taking the ERC. As a result, the
The Internal Revenue Service (“IRS”) has recently released guidance regarding methods for reporting partnership tax capital accounts. Partnerships & limited liability companies filing Form 1065 for tax year 2020 must calculate partner capital accounts using the transactional approach for the tax-basis method. According to IRS data, most partnerships already use the tax basis method, but
Taxpayers who reasonably expect their Paycheck Protection Program (PPP) Loans to be forgiven cannot deduct otherwise eligible expenses in 2020 if they used their PPP loan to pay the expenses. Background & More Information On April 30, 2020, the Internal Revenue Service (IRS) issued Notice 2020-32, providing that a taxpayer that receives a PPP Loan
This year has been an unprecedented year for us all, and we have faced unforeseen challenges in the wake of the pandemic. To attempt to alleviate a portion of the financial impact from the pandemic, the government passed the Coronavirus Aid, Relief & Security Act (the “CARES Act”) and continued to implement the taxpayer friendly
