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San Francisco Tax Preparation / CPA: Empowerment Zone Designations Automatically Extended Through 2025

Filed in CCH NEWS FEED by on May 5, 2021

The termination date for an empowerment zone designation under Code Sec. 1391 is generally deemed to extend until December 31, 2025. However, the state or local government that nominated the zone may decline the deemed extension. Empowerment Zone Designation Termination DatesEmpowerment zone designations generally continue until the termination date selected by the government that nominated the zone […]

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San Francisco Tax Preparation / CPA: Split-Dollar Insurance Benefits Were Compensation, Not Distribution

Filed in CCH NEWS FEED by on May 5, 2021

Death benefits that an S corporation provided to its sole shareholder under a split-dollar life insurance arrangement were employee compensation rather than a corporate distribution. In reaching this decision, the Tax Court firmly rejected the contrary conclusion reached by the Sixth Circuit Court of Appeals in J.J. Machacek, CA-6, 2018-2 U.S.T.C. 50,447. BackgroundThe taxpayers were a medical doctor […]

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San Francisco Tax Preparation / CPA: Individuals Experiencing Homelessness Can Receive EIPs

Filed in CCH NEWS FEED by on May 5, 2021

Continuing an ongoing effort to help those experiencing homelessness during the pandemic, the IRS has reminded people who do not have a permanent address or a bank account that may still qualify for Economic Impact Payments (EIP) and other tax benefits. While EIPs are made automatically to most people, payments cannot be issued to eligible […]

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San Francisco Tax Preparation / CPA: Deposit Penalty Relief Extended for COVID-19 Employer Credits

Filed in CCH NEWS FEED by on May 5, 2021

The IRS has extended the penalty relief provided in Notice 2020-22, I.R.B. 2020-17, 664, for failure to deposit employment taxes, to eligible employers that reduce their required deposits in anticipation of the following credits: the paid sick and family leave credits under the Families First Coronavirus Response Act (Families First Act) ( P.L. 116-127), as amended by […]

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San Francisco Tax Preparation / CPA: Suspension of Excess Advance Premium Tax Credit Repayment

Filed in CCH NEWS FEED by on May 5, 2021

The IRS has announced that, under the American Rescue Plan Act of 2021 (ARP) ( P.L. 117-2), the requirement that taxpayers increase their tax liability by all or a portion of their excess advance payments of the Premium Tax Credit (excess APTC) is suspended for tax year (TY) 2020. A taxpayer’s excess APTC is the amount by which […]

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San Francisco Tax Preparation / CPA: COBRA Premium Assistance Guidance

Filed in CCH NEWS FEED by on May 5, 2021

The U.S. Department of Labor has published a new webpage with guidance implementing the Continuation of Health Coverage premium assistance provisions of the American Rescue Plan (ARP), to provide full COBRA premium assistance to certain individuals who experienced a reduction in hours or involuntary termination of employment. This guidance, from the Labor Department’s Employee Benefits Security […]

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San Francisco Tax Preparation / CPA: Amounts Paid for COVID-19 PPE Are Deductible Medical Expenses

Filed in CCH NEWS FEED by on May 5, 2021

The IRS has issued guidance clarifying that amounts paid for personal protective equipment—such as masks, hand sanitizer and sanitizing wipes—for the primary purpose of preventing the spread of the Coronavirus Disease 2019 (COVID-19 PPE) are treated as amounts paid for medical care under Code Sec. 213(d). Therefore, amounts paid by an individual taxpayer for COVID-19 PPE […]

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San Francisco Tax Preparation / CPA: Guidance for Claiming Employee Retention Credit for First and Second Quarters in 2021

Filed in CCH NEWS FEED by on May 5, 2021

The IRS has issued guidance for employers claiming the employee retention credit under Act Sec. 2301 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) ( P.L. 116-136), as modified by Act Secs. 206 and 207 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act) (Division EE of P.L. 116-260), for […]

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San Francisco Tax Preparation / CPA: Guidance on Temporary Full Deduction for Business Meals

Filed in CCH NEWS FEED by on May 5, 2021

The IRS has provided guidance related to the temporary 100-percent deduction for business meals provided by a restaurant. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 ( P.L. 116-260) temporarily increased the deduction from 50 percent to 100 percent for a business’s restaurant food and beverage expenses for 2021 and 2022. All other food […]

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San Francisco Tax Preparation / CPA: IRS Extends Federal Tax Filing and Payment Deadlines for Certain Taxpayers Affected by COVID-19

Filed in CCH NEWS FEED by on May 5, 2021

The IRS has postponed the federal tax filing and payment deadlines, and associated interest, penalties, and additions to tax, for certain taxpayers who have been adversely affected by the Coronavirus Disease 2019 (COVID-19) pandemic. For individual taxpayers, the notice postpones to May 17, 2021, certain deadlines that would normally fall on April 15, 2021, such […]

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