The IRS and the Treasury department began issuing a second round of Economic Impact Payments last week as part of the Consolidated Appropriations Act. Most individuals making up to $75,000 per year will receive a direct payment of $600; married couples making up to $150,000 per year will receive $1,200; and eligible individuals with children will receive $600 for each qualifying child dependent. Dependents who are 17 and older are not eligible for the child payment.
With the election behind us, and tax season ahead of us, tax planning is at the forefront of the minds of many. Although President Elect Joe Biden has shared his proposed tax plan, much is still up in the air as we await the January runoff elections to determine control of the US Senate.
2020 has been a year to remember for so many reasons that it is easy to forget the significant legislation passed by Congress late last year that could potentially impact how you plan for retirement. The Setting Every Community Up for Retirement Enhancement (SECURE) Act is considered by many to be the most significant retirement planning legislation in a generation, and it has raised many questions.
The Financial Accounting Standard Board (FASB) recently released a new lease accounting standard, which took effect for public firms on January 1, 2020, and will take effect for private firms on January 1, 2021.
The new lease accounting standard will require companies to record operating leases as both liabilities and assets on their balance sheets to give a more complete picture of a company’s financial obligations.
The results are in, and regardless of which side you were rooting for, now is a good time to prepare for changes ahead in the new year. While President-elect Joe Biden has not yet provided concrete details on his plans to modify estate taxes, he has indicated that he supports raising estate taxes and changing the taxation of capital assets upon death.
The IRS recently announced per diem rates that can be used to substantiate the amount of business expenses incurred for travel away from home on or after October 1, 2020. Employers using these rates to set per diem allowances can treat the amount of certain categories of travel expenses as substantiated without requiring that employees prove the actual amount spent. However, employees must still substantiate the time, place and business purposes of their travel expenses.
With the extended PPP loan application deadline behind us, many borrowers are anxious to start their loan forgiveness application to ensure that their loan funds are forgiven. Currently, borrowers have until 10 months after the end of the loan’s covered period to apply for forgiveness. At that point, if forgiveness forms have not been submitted, any borrowed funds officially become a loan that needs to be repaid.
In light of the COVID-19 pandemic, the IRS has increased flexibility for 2020 midyear elections under a Sec. 125 Cafeteria Plan in regard to employer-sponsored health coverage, flexible spending arrangements (FSAs) and dependent care assistance programs.
The Small Business Administration (SBA) has announced that it has reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program to eligible applicants still struggling with the economic impact of the COVID-19 pandemic.
On April 6, 2020 Massachusetts Governor Charlie Baker and First Lady Lauren Baker announced the establishment of a COVID-19 Relief Fund to assist Massachusetts residents who have been most impacted by the Coronavirus pandemic.
