IRS Announces Interest Rate Increases Set To Begin This October

Ferrone & Associates CPAsBlog

On August 15, 2022 The Internal Revenue Service announced that interest rates will increase for the calendar quarter beginning Oct. 1, 2022. For individuals, the rate for overpayments and underpayments will be 6% per year, compounded daily, up from 5% for the quarter that began on July 1. Here is a complete list of the new rates: 6% for overpayments … Read More

Preview of the Inflation Reduction Act of 2022

Ferrone & Associates CPAsBlog

Aims to lower energy costs, increase cleaner production and reduce carbon emissions by roughly 40% by 2030 and; Lowers ACA health care premiums for millions of Americans while extending the expanded ACA coverage through 2025 Introduces a 15% corporate minimum tax and closes the carried interest loophole to make the biggest corporations and the ultra-wealthy pay their “fair share” Funds … Read More

Hey Educators! Did You Know You Can Now Claim More On Your Classroom Expenses?

Ferrone & Associates CPAsBlog

New school year reminder to educators; maximum educator expense deduction rises to $300 in 2022 As the new school year begins, the Internal Revenue Service reminds teachers and other educators that they’ll be able to deduct up to $300 of out-of-pocket classroom expenses for 2022 when they file their federal income tax return next year. This is the first time … Read More

The IRS Has A New Roadmap To Help Taxpayers

Ferrone & Associates CPAsBlog

New IRS Strategic Plan:Agency issues five-year plan with goal to help taxpayers The Internal Revenue Service today released a new five-year Strategic Plan that outlines its goals to improve taxpayer service and tax administration. The IRS Strategic Plan FY2022-2026 will serve as a roadmap to help guide the agency’s programs and operations. The plan will also help meet the changing needs of … Read More

IRS Back Logs Causing Major Delays For Taxpayers

Ferrone & Associates CPAsBlog

The IRS has worked hard over the last few years to move taxpayers to electronic filing, and 90% of individual taxpayers e-filed last year. Unfortunately, that still left some 17 million taxpayers to file paper returns. The IRS had processed 5 million taxpayer responses to proposed tax return adjustments. It took an average of more than eight months for a … Read More

How To Know If It’s Really The IRS Contacting You

Ferrone & Associates CPAsBlog

Scammers often pose as the IRS to steal taxpayers’ personal information. They may reach out through fraudulent phone calls, emails, texts or social media messages. It’s important for taxpayers to understand how the IRS contacts people, so they don’t fall victim to identity thieves. Generally, the IRS will mail a notice or letter to a taxpayer first. Taxpayers can search … Read More

New IRS Fingerprint Program

Ferrone & Associates CPAsBlog

In an effort to prevent false tax returns from being e-filed the IRS is starting a new registration program for unlicensed tax preparers.  Licensed professionals such as CPAs, & attorneys, are not required to register with the IRS for the new electronic fingerprinting process.   Unlicensed preparers must schedule an appointment with an IRS authorized vendor for fingerprinting. You can schedule your appointment … Read More

Know What To Include In Your Retirement Toolbox

Ferrone & Associates CPAsBlog

There are many ways people plan for retirement. Individual Retirement Arrangements, or IRAs, are a common one. IRAs provide tax incentives for people to make investments that can provide financial security when they retire. These accounts can be with a bank or other financial institution, a life insurance company, mutual fund, or stockbroker. Here are some things to know about a … Read More

Items To Consider During A Market Downturn

Ferrone & Associates CPAsBlog

In today’s economy it is crucial to stay up to date on best practices. Here are two strategies to stay ahead during a market downturn. 1. By a large margin: Convert your IRA to a Roth IRA. If you make the conversion when the market is down, the portfolio conversions aren’t as high in a down market. Two other advantages are that Roth … Read More

Here’s What Business Owners Need To Know About Traveling

Ferrone & Associates CPAsBlog

Business travel can be costly. Hotel bills, airfare or train tickets, cab fare, public transportation – it can all add up fast. The good news is business travelers may be able off-set some of those cost by claiming business travel deductions when they file their taxes. Here are some details about these valuable deductions that all business travels should know.Business … Read More

Stay Clean Against These Dirty Dozen Scams Listed By The IRS

Ferrone & Associates CPAsBlog

Compiled annually, the Dirty Dozen lists a variety of common scams that taxpayers can encounter anytime. The IRS warns taxpayers, tax professionals and financial institutions to beware of these scams. This year’s list is divided into five groups. Here’s an overview of the top twelve tax scams of 2022. Potentially abusive arrangementsThe 2022 Dirty Dozen begins with four transactions that … Read More

New Announcement for Tax Returns!

Ferrone & Associates CPAsBlog

Some good news on IRS tax return processing. The IRS has dedicated the past several months on processing a key group of 2020 individual tax returns filed during the 2021 and anticipate having them completed by the end of this week. As of June 10, more than 4.5 million of the 4.7 million individual paper tax returns had been processed.  … Read More

Virtual Bots Are Increasing In Hopes To Decrease Phone Wait Times

Ferrone & Associates CPAsBlog

WASHINGTON – The Internal Revenue Service today announced expanded voice bot options to help eligible taxpayers easily verify their identity to set up or modify a payment plan while avoiding long wait times. “This is part of a wider effort at the IRS to help improve the experience of taxpayers,” said IRS Commissioner Chuck Rettig. “We continue to look for … Read More

As Gas Prices Skyrocket The IRS Increases The Standard Mileage Rate

Ferrone & Associates CPAsBlog

WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rate for the final 6 months of 2022. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes. For the final 6 months of 2022, the standard mileage rate for business travel … Read More

IRS Uses Their Annual Dirty Dozen List To Warn Taxpayers Of Common Scams

Ferrone & Associates CPAsBlog

Suspicious communications in all its forms designed to either trick, surprise or scare someone into responding before thinking is No. 7 on the 2022 “Dirty Dozen” scams warning list, the Internal Revenue Service announced today, warning everyone to be on the lookout for bogus calls, texts, emails and posts online to gain trust or steal. Criminals have used these methods … Read More

IRS Is Ramping Up Retirement Plan Examinations

Ferrone & Associates CPAsBlog

The Internal Revenue Service’s Employee Retirement Plans is pilot-testing a new pre-examination retirement plan compliance program, starting in June of this year. The goal of the pilot program is to shorten the length of time needed for exams. In an email issued last Friday, it said the IRS would notify plan sponsors by letter if their retirement plan was selected … Read More

IRS Urges Taxpayers To Continue To Watch Out For Pandemic-Related Scams

Ferrone & Associates CPAsBlog

The Internal Revenue Service today kicked off the week with the 5th item on its 2022 annual “Dirty Dozen” scams warning list, with a sad reminder that criminals still use the COVID-19 pandemic to steal people’s money and identity with bogus emails, social media posts and unexpected phone calls, among other things. These scams can take a variety of forms, … Read More

The Summer Is Quickly Approaching But Tax Planning Is Year-Round

Ferrone & Associates CPAsBlog

Now that the April filing deadline has passed, most people are spending more time thinking about summer vacations than taxes. However, summer is a great time to review withholding and see if summer plans will affect next year’s tax return. Below are some common summertime tax situations and tips to help taxpayers figure out if they apply to their tax … Read More

Ready to Sell Your Home? 8 Key Points To Think About

Ferrone & Associates CPAsBlog

A lot of families move during the summer. Taxpayers who are selling their home may qualify to exclude all or part of any gain from the sale from their income when filing their tax return. Here are some things that homeowners should think about when selling a home: 1. Ownership and useTo claim the exclusion, the taxpayer must meet ownership and use … Read More

New Corporate Tax Rates

Ferrone & Associates CPAsBlog

This month a major proposal was announced by Treasury Secretary Janet Yellen at the Brussels Economic Forum. The idea calls on the European Union and the United States to enforce the global corporate minimum tax at 15% in all territories. 137 countries have signed the international tax reform agreement supported by the Organization for Economic Co-operation and Development. The plans … Read More

Important Financial Steps to Protect Yourself When Natural Disasters Occur

Ferrone & Associates CPAsBlog

Ahead of hurricane season, IRS offers tips on ways to prepare for natural disasters WASHINGTON —The Internal Revenue Service reminded taxpayers today that May includes National Hurricane Preparedness Week and is National Wildfire Awareness Month. This is a good time to create or review an emergency preparedness plan, including steps to protect important tax-related information. In 2021, the Federal Emergency Management Agency (FEMA) … Read More

It’s National Small Business Week! Here Are Some Free Resources Offered To You From The IRS

Ferrone & Associates CPAsBlog

IRS YouTube Video:IRS Small Business Self-Employed Tax Center  WASHINGTON – During National Small Business Week, May 1 to 7, the IRS is highlighting tax benefits and resources tied to the Small Business Administration theme for this year’s celebration: “Building a Better America through Entrepreneurship.” During National Small Business Week, the Internal Revenue Service wants taxpayers to know there are free resources … Read More

Ever Wondered If Your Tax Withholding From Your Paycheck Is Correct? Here’s How To Find Out

Ferrone & Associates CPAsBlog

All taxpayers should review their federal withholding each year to make sure they’re not having too little or too much tax withheld. Doing this now can help protect against facing an unexpected tax bill or penalty in 2023. The sooner taxpayers check their withholding, the easier it is to get the right amount of tax withheld. Taxpayers whose employers withhold … Read More

You’ve Heard of The Bill of Rights But Have You Ever Heard of Taxpayer Bill Of Rights?

Ferrone & Associates CPAsBlog

Every taxpayer has a set of fundamental rights when working with the IRS which are known collectively as the Taxpayer Bill of Rights. One of these is the right to challenge the IRS’s position and be heard. Here are some details about what this right means for taxpayers. Taxpayers have the right to: Raise objections. Provide additional documentation in response to … Read More

Tax Tips: Extension, Credits, and Tracking Your Refund

Ferrone & Associates CPAsBlog

Taxpayers with an extension can file when they are ready but most should file by October 17, 2022. Special deadline exceptions may apply for some disaster victims, certain military service members and eligible support personnel in combat zones. Reconciling advance child tax credit or claiming recovery rebate creditPeople who need to reconcile advance child tax credit payments or claim the recovery rebate credit will need additional information about … Read More

2022 IRS Nationwide Tax Forum for Tax Professionals

Ferrone & Associates CPAsBlog

WASHINGTON — The Internal Revenue Service today announced the 2022 IRS Nationwide Tax Forum will be held virtually over five weeks starting July 19, with a series of live-streamed webinars every Tuesday, Wednesday and Thursday. Held each summer for more than 30 years, the IRS Nationwide Tax Forum is the IRS’s marquee outreach event to the tax professional community. Even … Read More

Who Qualifies For Tax Extensions? Quick Facts for 2021 Filing

Ferrone & Associates CPAsBlog

WASHINGTON — Taxpayers requesting an extension will have until Monday, Oct. 17, 2022, to file a return. Not everyone has to ask for more time, however. Disaster victims, taxpayers serving in combat zones and those living abroad automatically have longer to file. An extension of time to file will also automatically process when taxpayers pay all or part of their taxes electronically … Read More

The IRS Shares Important Information Correcting Common Myths

Ferrone & Associates CPAsBlog

WASHINGTON – With the April 18 tax-filing deadline closing in for most taxpayers, the Internal Revenue Service wants to dispel some new and common myths about getting refund details or speeding up tax refunds. A number of these myths circulate on social media every tax season. The IRS continues to process 2021 tax returns and deliver refunds, with nine out of 10 … Read More

What Does It Mean? A Guide To Common Tax Forms

Ferrone & Associates CPAsBlog

There are several tax forms issued by the IRS. It can be difficult to keep up with what’s what but don’t worry, in the table below you will find an overview of frequently used forms and what purpose they serve.  Acronyms:  IRA (Individual Retirement Account)  HSA (Health Savings Account)  MSA (Medical Savings Account)  Form Number Form Name & Purpose W-2 … Read More

For those who make estimated federal tax payments, the first quarter deadline is Monday, April 18

Ferrone & Associates CPAsBlog

WASHINGTON — The Internal Revenue Service today reminds those who make estimated tax payments such as self-employed individuals, retirees, investors, businesses, corporations and others that the payment for the first quarter of 2022 is due Monday, April 18. The 2022 Form 1040-ES, Estimated Tax for Individuals, can help taxpayers estimate their first quarterly tax payment. Income taxes are a pay-as-you-go process. This means, … Read More

IRS Reminds Holders of Foreign Bank and Financial Accounts of April FBAR Deadline

Ferrone & Associates CPAsBlog

WASHINGTON – The Internal Revenue Service today reminded U.S. citizens, resident aliens and any domestic legal entity that the deadline to file their annual Report of Foreign Bank and Financial Accounts (FBAR) is April 15. For additional information about filing deadlines, filers should look to Financial Crimes Enforcement Network’s (FinCEN) website PDF for further information. Filers missing the April deadlines will receive an automatic extension … Read More

The IRS Has Advice for Taxpayers Who Did Not Receive The Full Amount of Stimulus Money

Ferrone & Associates CPAsBlog

WASHINGTON — With the completion of special mailings of all Letters 6475 to recipients of the third-round of Economic Impact Payments, the Internal Revenue Service reminds people to accurately claim any remaining third-round stimulus payment on their 2021 income tax return as the 2021 Recovery Rebate Credit. Through December 31, 2021, the IRS issued more than 175 million third-round payments … Read More

Frustrated trying to contact the IRS?? Of course you are, everyone is! You may want to try this; IRS to Use Voice and Chat Bots

Ferrone & Associates CPAsBlog

The Internal Revenue Service is relying on technology to help it keep up with its growing need for taxpayer support. The agency has begun using voice and chat bots on a pair of specialized telephone assistance lines and on its website. These new features are expected to help taxpayers get answers to simple payment or collection notice questions quickly, while … Read More

Artificial Intelligence May Be Helping Cut Down On Long Phone Wait Times

Ferrone & Associates CPAsBlog

As the IRS is continuing to navigate through an unprecedented amount of influx calls they are improving methods in order to provide taxpayers with guidance this tax season. The IRS has enacted artificial intelligence in hopes of expanding options taxpayers have to get their questions answered. They are introducing virtual bots capable of voice and text chat features. These bots … Read More

IRS Warns Tax Pros About Spear-Phishing Scams

Ferrone & Associates CPAsBlog

Scammers are increasingly on the rise. They have a variety of ways to draw your personal information and wreak havoc. One avenue scammers may take is phishing, specifically spear phishing. Spear phishing is when scammers target a specific group of people. The IRS and the Security Summit have issued a warning noting that scammers are now targeting tax professionals.  Scammers … Read More

Potential Scam Threats That Could Effect You and Your Taxes

Ferrone & Associates CPAsBlog

The IRS has issued a reminder for taxpayers to keep a close eye on potential scams. They are urging taxpayers to be aware of these dangers and to report any suspicious activity.  Text and email  Last year the IRS observed an increase in text message scams. Scams can also take place through emails, social media, and phone calls. Typically, the … Read More

Third Round Stimulus Check – Is It Taxable?

Ferrone & Associates CPAsBlog

You may be wondering how will COVID-19 relief payments affect my tax return? Taxpayers who did not receive their full third stimulus check may be able to claim this money on their tax return. Typically you must report all income when filing taxes, however the third stimulus check is a little different.  Who Is Eligible for the Recovery Rebate Credit? … Read More

The IRS Is Urging Taxpayers To Check If They Qualify For A Tax Credit

Ferrone & Associates CPAsBlog

The IRS has established a national Earned Income Tax Credit awareness day (EITC). The pandemic has brought several efforts to ease financial hardships. In lieu of the Child Tax Credit given to families with children, some taxpayers without children may be wondering what resources are available for financial tax assistance? The great news is an increasing number of people are … Read More

RMDs May Soon Start Even Later for Retirement Plan Savers

Ferrone & Associates CPAsBlog, Uncategorized

Investors may soon be able to preserve their retirement war chest for longer. The Securing a Strong Retirement Act, a bill originally pushed in 2021 but which may finally pass this year, would push the starting point for required minimum distributions (RMDs) to 74 and 75 years of age. That means retirees could stave off being required to tap into their tax-deferred … Read More

2022 Tax Filing Deadlines

Ferrone & Associates CPAsBlog

Did you know the last day to file federal income tax returns is a little different this year? Tax return deadlines are not allowed to fall on a holiday or weekend. The last day to file federal taxes this year will be April 18th. Deadline Extension Additionally, states struck by natural disasters this year have an extended deadline. These include … Read More

The IRS Issued Inaccurate Child Tax Credit Tax Forms

Ferrone & Associates CPAsBlog, Uncategorized

Approximately 36 million families received the advance Child Tax Credit (CTC) payments last year, the tax form documenting those payments could contain errors. While the agency has yet to identify how many people were mailed inaccurate letters, the mistake is understood to be limited to a small subset of taxpayers who recently relocated or changed bank accounts in December. The … Read More

Transfer Tax Update

Ferrone & Associates CPAsBlog

Due to inflation, the steady rise of prices, transfer tax exemptions have increased this year. The transfer tax is a tax on the transfer of ownership of property or money. Types of transfer tax transactions include: estate tax, gift tax, and generational skipping tax. The increase in transfer tax exemptions will remain in effect until December 31, 2025. Reminder: Gift tax … Read More

IRS Announces Changes To Filing For Tax-Exempt Status

Ferrone & Associates CPAsBlog

The IRS announced changes to the process of applying for tax exempt recognition. Their revisions apply to Form 1024. The changes are part of an effort to move toward a more digitized process. Starting January 3, 2022 tax exemption filers must submit their applications online. However, The IRS will accept paper applications and letters within a 90-day grace period. The … Read More

Lenders Should Not Report Student Loans Discharged Under ARPA

Ferrone & Associates CPAsUncategorized

 Lenders and services of most student loans should not file Form 1099-C, Cancellation of Debt, for loans in 2021 through 2025. On Tuesday, The IRS stated that borrowers do not have to include these forgiven amounts as income for tax purposes. Additionally, the guidance in Notice 2022-1 (https://www.irs.gov/pub/irs-drop/n-22-01.pdf) pertains to a provision of the American Rescue Plan Act (ARPA), … Read More

Changes To Earned Income Credit

Ferrone & Associates CPAsBlog

The Earned Income Credit (EIC) changes every year.   In 2020 the Maximum Earned Income Credit for families with 4 or more children was $6,660. In 2021 the Maximum Earned Income Credit for families with 4 or more children is $6,728. If you have 3 or fewer children the credit is reduced. In either case, the tax credit is worth … Read More

What Can You Deduct? IRS Gives 2022 Standard Mileage Rates

Ferrone & Associates CPAsBlog

On December 17th the IRS updated its 2022 standard mileage rates used for tax deductibles. They include cars, vans, pickup trucks, or panel trucks used for business, charity, medical, or moving (within the Armed Forces). Taxpayers have the option of using the provided standard rates or calculating their actual expenses. The 2022 rates began on January 1st.  Some rates have … Read More

Prices Are Steady On The Rise

Ferrone & Associates CPAsBlog

Inflation is a hot topic in the news today as prices go up and the value of the dollar goes down.  The continuation of this pandemic has surely impacted our economy and day to day finances. Inflation today is the highest it has been since 1982 and rapidly increasing. We have seen a decrease in supply leading to multiple shortages. … Read More

Tax Filing Season Is Quickly Approaching and The IRS Wants You To Be Prepared

Theresa FerroneBlog

The IRS has a few reminders for taxpayers this year. They are urging people to take the steps to make sure they are ready to file their 2022 tax returns. Child Tax Credit, Stimulus Checks (Economic Impact Payment), and charitable donations. Child tax credits and the Child and Dependent Care Credit have changed. The changes include ages, and amounts. Please … Read More

IRS Reminds Taxpayers of Online Features During National Tax Security Awareness Week

Ferrone & Associates CPAsBlog

The IRS observed National Tax Security Awareness Week this month. They highlighted key details for protecting your online IRS account and documents. The IRS is taking new measures for taxpayers to use digital signatures for online forms. With online accounts comes the risk for theft and data breaches. They are working on strengthening online security to protect taxpayers. There are … Read More

Social Security COLA takes a Hit – Medicare premiums

Ferrone & Associates CPAsUncategorized

Seniors get the biggest Social Security raise in years and it’s already eaten up by a 14.5% increase in the Medicare premium Premium Increases With a 14.5% increase, the Part B premium for a single individual — with income less than $91,000 — is slated to rise from $148.50 in 2021 to $170.10 in 2022. Since Medicare premiums increase with … Read More

Make Your Money Work For You with Year-end Planning

Ferrone & Associates CPAsBlog

The end of the year gives us the chance to make the most of our financial gains and prepare for the upcoming year. Remember to keep your long term goals in the forefront as you plan. Here are 7 year-end financial moves. Be sure to check with your financial and tax advisors to optimize your planning.  1 How Is Your … Read More

Student Loans Are Back But Don’t Worry You Have Options

Ferrone & Associates CPAsBlog

The pandemic has changed so much of our daily lives, including our financial situations. In 2020 The federal government suspended student loan payments. However, payments will begin again January 31, 2022. Here are some options you have when it comes to paying for your student loans again. Income-driven Payment Plan One option is an income-driven payment plan based on your … Read More

A New Way To Protect Your Identity: IRS Implements Sign-In Changes

Ferrone & Associates CPAsBlog

The IRS has a new sign in process to protect the privacy of taxpayers. The new technology will provide taxpayers with more ways to verify their identity. It will offer increased security when using IRS tools. Government agencies and tax professionals will also use the updated sign in process. Taxpayers will use the new technology, ID.me. You can continue to … Read More

Strategize To Reach Your Goals

Ferrone & Associates CPAsBlog

Financial planning is key to reaching your goals. You may be asking, what does it mean to create a financial plan? It is outlining a plan of action that will benefit you presently as well as long-term. This may seem like a daunting task but resources and professionals in the field can help tremendously.  Employer Benefits This year may have … Read More

Cryptocurrency Tax Regulations

Ferrone & Associates CPAsBlog

Cryptocurrency is new and ever changing. If you invest in cryptocurrency it is essential to stay up to date on the associated tax regulations. Businesses and individuals use cryptocurrency for a variety of reasons. For example, Investing in cryptocurrency generates returns that can be used to boost your portfolio, make payments, or save through investing.  The IRS calls cryptocurrency “convertible … Read More

How To Use Your Finances To Bring Holiday Cheer

Ferrone & Associates CPAsBlog

As the holidays approach there are a variety of thoughts and emotions that may come up. Discussing financial achievements this holiday season can bring some comfort and cheer. The end of the year is a great time to reflect, express gratitude and set future intentions. The holidays can be a quick way to spend a lot of money in a … Read More

How COVID-19 Impacted Tax Refunds

Ferrone & Associates CPAsBlog

2020 was a year that greatly contrasted from years prior. COVID-19 added more complexities to our daily lives as well as our taxes. According to the IRS, 2021 tax refunds were higher than usual. Contributing factors were COVID relief payments and other measures under the American Rescue Plan. Under the 2020 American Cares Act,  taxpayers received two COVID relief payments. … Read More

Inflation Causes Changes in 2022 Retirement Plans

Ferrone & Associates CPAsUncategorized

As we enter a new year it is important to note some of the changes you may see in terms of Individual Retirement Account (IRA) and 401(k) contributions. Inflation is the primary contributing factor to these changes. During inflation, prices and the value of the dollar fluctuate. Contribution limits refer to the amount of money that you can put towards … Read More

PPP has run out of money for most borrowers

Ferrone & Associates CPAsBlog

The Paycheck Protection Program has run out of money for most borrowers before its planned May 31 end, the Small Business Administration said. Going forward, the program will only accept new applications from community financial institutions, which typically serve minority borrowers, as about $8 billion in funding was set aside for such businesses. The SBA will continue to fund outstanding … Read More

7 Ways to Handle Difficult Conversations at Work

Ferrone & Associates CPAsBlog

A few tips to help you navigate relationships with clients and coworkers alike: 1. Have a Direct Approach When having a conversation with a client, be direct and clear from the start. If possible, layout a plan of next steps instead of dancing around the subject or making excuses. People will appreciate an honest and direct approach about what happened … Read More

5 Business investment ideas for unused stimulus checks

Ferrone & Associates CPAsBlog

Since the beginning of the coronavirus pandemic, the government has sent out a few rounds of stimulus checks. Here’s a breakdown of the COVID-19 legislation and stimulus check amounts: CARES Act: $1,200/person maximum Consolidated Appropriations Act: $600/person maximum American Rescue Plan: $1,400/person maximum Not all taxpayers received checks each round, as they were based on an individual’s adjusted gross income. … Read More

IRS offers safe harbor for claiming PPP loan deductions

Ferrone & Associates CPAsBlog

The IRS and the Treasury Department are giving small businesses that received Paycheck Protection Program loans in the first round a way to deduct expenses they couldn’t claim last year. The Internal Revenue Service and the Treasury released Revenue Procedure 2021-20 on Thursday, which provides a safe harbor in accordance with a provision in last December’s COVID-19 relief package. Under … Read More

IRS and COVID vaccine email scams proliferating this tax season

Ferrone & Associates CPAsBlog

Security experts are seeing a rise this tax season in phishing schemes and malware tied to hot-button subjects like tax refunds, stimulus payments and COVID-19 vaccines. The Internal Revenue Service recently warned about an ongoing IRS-impersonation scam that mainly targets educational institutions, including students and staff who have “.edu” email addresses. The emails show the IRS logo and use subject … Read More

Form 1099-K Update

Ferrone & Associates CPAsBlog

The IRS is planning to bring important changes to Form 1099-K filings. Prior to this update, the IRS required each payment settlement entity (PSE), aka credit card processing companies, to send Form 1099-K to both the IRS and the recipient (or customer) if the PSE has processed payments amounting to at least $20,000 and at least 200 transactions per customer … Read More

How the American Rescue Plan Affects Families

Ferrone & Associates CPAsBlog

The American Rescue Plan Act (ARPA)  went into effect in March 2021. This bill introduced a $1.9 trillion COVID-19 relief package designed to help boost the economy amidst the effects of the pandemic. Among other things, the act affects tax planning for individuals who are unemployed and for people who have children. It also authorized the sending of a third … Read More

New Paycheck Protection Information!

Ferrone & Associates CPAsBlog

The Paycheck Protection Program Extension Act passed overwhelmingly in the Senate, following a similar passage in the House. The PPP Extension Act will allow small businesses to continue applying for aid through the end of May and the SBA to process applications through June. The bill has been sent to President Biden for signing. There is nearly $79 billion left … Read More

First Some Good News from the IRS:

Ferrone & Associates CPAsBlog

The IRS will Handle Unemployment Returns, Don’t Amend Returns that reported unemployment benefits prior to the $10,200 exclusion enactment should not be amended. The IRS has indicated it will refigure taxes on these returns and adjust the taxpayer’s account accordingly. The IRS will then send any refund amount directly to the taxpayer. And now the not so good news; The IRS … Read More

Probably not a good year for do-it-yourselfers

Ferrone & Associates CPAsBlog

Federal filing and payment deadlines have been delayed. Will the states delay filing deadlines also? New security concerns about scammers that are after the/your Economic Impact Payments (EIP). New EIP & Child Tax tax credits and payments are taking effect. (How much & when are you entitled to receive?)  Retroactive unemployment payments face problems sorting out the reporting requirements. AND … Read More

Tax deadline delayed until May 17

Ferrone & Associates CPAsBlog

The Internal Revenue Service has pushed back the tax-filing deadline until May 17 after heavy pressure from Congress and tax and accounting groups. The move will give taxpayers and tax professionals an extra month after the original deadline of April 15. May 15 falls on a Saturday, so the date was moved up until Monday, May 17. Last year, the … Read More

Big News for Unemployment Compensation

Ferrone & Associates CPAsBlog

Extra Extra! Read all about it! New Exclusion of up to $10,200 of Unemployment Compensation If your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020, which means you don’t have to pay tax on unemployment compensation of up … Read More

Momentum builds for delaying tax deadline

Ferrone & Associates CPAsBlog

Leaders of the House Ways and Means Committee and accounting groups are calling for extending the tax deadline to give the IRS, taxpayers and tax professionals an extra three months. On Monday, the House Ways and Means Committee urged the IRS to extend the 2021 tax filing season until July 15, noting that the COVID-19 pandemic is continuing to impose … Read More

Resolving Workplace Disputes

Ferrone & Associates CPAsBlog

It is inevitable that conflicts and disagreements with coworkers will crop up no matter if you work from home or in an office.  Whether conflicts stem from miscommunication, clashing priorities, or personality differences, it’s important for your sake, your team members’ sake, and the sake of the company that you resolve the issue professionally and courteously. Here are a few … Read More

10 Smart Ways to Use Your IRS Stimulus Check

Ferrone & Associates CPAsBlog

Many Americans will soon be receiving additional stimulus checks from the federal government sometime in 2021. Here are some suggestions to use your stimulus check in the most efficient way.  1. Use the money to pay essential expenses. This is why the government is making these payments. Rent and mortgage payments top the list. Car payments too. Feeding your family. … Read More

Erroneous notices and the latest IRS delays

Ferrone & Associates CPAsBlog

The IRS acknowledges that there is a backlog of unprocessed 2019 tax returns and that it sent erroneous CP59 notices to certain taxpayers. Those who filed their 2019 return but nevertheless received the CP59 should disregard the notice and do not need to take any action. COVID-19 continues to cause delays in live phone support and answers to notice responses. … Read More

IRS warns of ghost tax preparers

Ferrone & Associates CPAsBlog

The Internal Revenue Service issued a warning to taxpayers to beware of unethical “ghost” tax preparers who don’t sign tax returns for clients. A ghost preparer may prepare and print out the return, but ask the client to sign it and mail it to the IRS. For electronically filed returns, the ghost will prepare but refuse to digitally sign the … Read More

5 Tips and Tricks to Emerge a Winner After COVID-19

Ferrone & Associates CPAsBlog

Although the COVID-19 pandemic is still raging, business owners have started to turn their minds to what will happen after most of the vaccines have been administered and the world is able to return to some semblance of normality.  With all the changes thrown your way due to covid-19 here are some tips and tricks for avoiding “zoom fatigue” and … Read More

Living on the Edge

Ferrone & Associates CPAsBlog

Much of today’s accounting world revolves around technology. As more and more firms work remotely and use technology to exchange information with their clients, security is becoming a large issue. With things changing so quickly, firms must always be up-to-date with the newest and best technology so we can have an edge up.  At Ferrone and Associates CPAs, the security … Read More

Yet another scam to be aware of: Fraudulent 1099-G filings

Ferrone & Associates CPAsBlog

On January 28, the Internal Revenue Service (IRS) issued a notice urging taxpayers who receive Forms 1099-G for unemployment benefits they did not actually get because of identify theft to contact their appropriate state agency for a corrected form. Scammers took advantage of the pandemic by filing fraudulent claims for unemployment compensation using stolen personal information of individuals who had not filed … Read More

Recent PPP loan forgiveness news for Utah business owners

Ferrone & Associates CPAsBlog

If your PPP loan was forgiven, it may still generate taxable income on your state tax return. As of recent news, the federal government waived taxes on PPP loans, but Utah is requiring businesses to pay taxes on any portions of PPP loans that have been forgiven.  As part of the CARES Act, Congress implemented the Paycheck Protection Program (PPP).  … Read More

When will the IRS begin processing returns?

Ferrone & Associates CPAsBlog

The IRS will begin accepting and processing returns Friday, February 12, 2021. Returns sent by preparers before this date are being held in a queue and will be transmitted to the IRS as soon as the IRS is ready to process.When the IRS starts processing returns, acknowledgments may be unpredictable due to the high volume of returns being processed. Sooner is always … Read More

PPP Loan Expense Deductions Now Approved

Ferrone & Associates CPAsBlog

The new economic relief law enacted late last year—the Consolidated Appropriations Act—clarified that expenses paid by business entities relating to loans made through the PPP are in fact tax-deductible. In doing so, the new law rendered previous IRS guidance in the form of Notice 2020-32 and Revenue Ruling 2020-27 obsolete. Background: Under the Coronavirus Aid, Relief, and Economic Security (CARES) … Read More

4 predictions for accounting in 2021

Ferrone & Associates CPAsBlog

If 2020 was a lesson in anything, it was to expect the unexpected. Who could have predicted a year of such unprecedented worldwide disruption? So, here are four predictions from the experts about what 2021 will look like in the world of accounting. 1. Increased focus on company culture, especially in dispersed teams Without a doubt, COVID-19 has accelerated the … Read More

Will stimulus payments affect tax returns? What tax pros need to know

Ferrone & Associates CPAsBlog

2020 introduced a number of unprecedented situations that have required some massive adjustments. And now, with the tax filing season upon us, a raft of brand new challenges await ahead of the April 15 deadline. Chief among them: uncertainty around the economic stimulus given to American taxpayers as part of the Coronavirus Aid, Relief and Economic Security, or CARES Act. … Read More

How to Make Money by Paying Your Kids

Ferrone & Associates CPAsBlog

As you help clients fill out their 1040 form, you’re always looking for additional write-offs they can take advantage of. Don’t forget parents who employ their children are allowed to deduct these wages. Three previous columns discussed a frequently-overlooked tax break for freelancers and other self-employed persons. The tax code allows parents to deduct wages they pay their sons and … Read More

IRS blesses tax breaks on forgiven PPP loans after law change

Ferrone & Associates CPAsBlog

The Internal Revenue Service will allow businesses that got their Paycheck Protection Program loans forgiven to write off expenses paid for with that money, shifting policy after Congress passed new legislation last month. IRS guidance issued on Wednesday overrides previous rules that recipients of PPP loans that had been forgiven couldn’t claim deductions for the wages, rent, utilities, and other … Read More

New IRS Stimulus Tax Breaks and Economic Relief

Ferrone & Associates CPAsBlog, Uncategorized

The new economic relief law passed by Congress at the end of 2020 provides a bevy of tax breaks for individuals and businesses. This includes several extensions and modifications of provisions in the Coronavirus Aid, Relief and Economic Security Act (CARES) Act. The changes in the economic relief law are many, so the following is just a brief overview of … Read More

Financial Planning Lessons Learned in 2020

Ferrone & Associates CPAsBlog

Looking back over a tumultuous year, we learned the value of cool heads and steady hands. After dealing with the ups and downs of the pandemic, the economy, the election, and political and civil unrest, we’ve learned some broader lessons that can be implemented in our financial planning for 2021. Here are the four biggest lessons we’re encouraging you to … Read More

Tax Savings Tips

Ferrone & Associates CPAsBlog

With COVID incomes down in 2020, there may be an opportunity for good tax planning to help. For example, if you hold an asset for one year and one day it is taxed at 15 percent or 20 percent, depending on adjusted gross income (AGI). Any asset that you sell that has been held less than a year and a … Read More

Planning for Year-End

Ferrone & Associates CPAsBlog

Review the CARES act changes for 2020 In March 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law and included relief provisions focused on IRAs and qualified retirement plans. These changes impact the processing and tax reporting of certain transactions in these accounts. Consider making a 2020 IRA contribution, and create or refresh your … Read More

Gifting and taxes: The sooner the better

Ferrone & Associates CPAsBlog

While festivities may be somewhat dampened this year due to the coronavirus, the holiday season seems to foster a spirit of giving. This year might be a good time to indulge the spirit, according to wealth planners. Right now is a very good time to gift. It’s a good idea to get any appreciation out of their potential estate and … Read More

The Importance of Cybersecurity

Ferrone & Associates CPAsBlog

Ransomware attacks pose as a threat for any business owner, CPA, or EA. If you suffered a data breach from a ransomware cyberattack you will most likely be forced to pay exorbitant fees as the attackers exchange money for you and your client’s personal information. Since 2016 approximately 4,000 of these types of ransomware attacks have been happening every day … Read More

The New Form 1099-NEC

Ferrone & Associates CPAsBlog

In case you have not heard: The IRS has revived Form 1099-NEC, which was last used in 1982. This form will be used in 2021 to report 2020 non-employee compensation. Corresponding changes were made to the 1099-MISC form. In recent years, non-employee compensation was reported in Box 7 of the 1099-MISC form, that box now goes away. Instead, the 1099-NEC … Read More

Creating a Foundation for Enduring Success Next Year

Ferrone & Associates CPAsBlog

As 2020 draws to a close, the topic of advisory services remains relevant to the accounting profession. At the recent Accounting & Finance Show USA, Intuit’s Jasen Stine explained how offering these services will make both you and your clients more successful in the face of the changes that resulted from the COVID-19 pandemic. Over the last year, one major … Read More

IRS Issues Tax Guidance on PPP Loans

Ferrone & Associates CPAsBlog

The Treasury Department and the IRS have just released additional guidance on the tax treatment of forgiveness of Paycheck Protection Program (PPP) loans authorized by the Coronavirus Aid, Relief and Economic Security (CARES) Act. But is it enough? The CARES Act says PPP loans may be forgiven without any tax consequences. The new ruling and accompanying revenue procedure follow up … Read More

Get ready for the next merger wave in accounting

Ferrone & Associates CPAsBlog

Between the pandemic, aging CPA firm owners, and staffing tensions, many in the accounting profession anticipate a huge uptick in firm mergers and acquisitions over the next 24 months. If the predictions and emerging trends are right, it’s important for firm leaders to plan accordingly. M&A is a profoundly serious matter, and you need to be prepared. Do not schedule … Read More

3 tips to break up your workday and improve your mental wellbeing

Ferrone & Associates CPAsBlog

If you’re working from home, things can start to feel repetitive. This is a feeling that is being shared by millions, as people all around the world deal with working in the same place as they sleep, eat and raise their family. And it can be detrimental to your mental wellbeing. Columbia University neuropsychologist Sanam Hafeez says: “When our day … Read More

End-of-Year Tax Strategies for Investors

Ferrone & Associates CPAsBlog

Busy season for accountants also, unfortunately, coincides with end-of-year tax planning. As you’re working on this with your clients, here are a few investment strategies from that may delight and help your clients save money next year.   It’s none too soon to review investment strategies that will keep money in your pocket and out of the IRS’s till, which is, … Read More

How to Avoid Scams and Phishing

Ferrone & Associates CPAsBlog

On Wednesday, November 4 the Security Summit reported that taxpayers are being targeted by a new series of text-message scams that impersonate state departments of revenue and tax relief organizations.  In an Internal Revenue Service press release, the Security Summit explains that identity thieves are asking taxpayers to provide bank account information finalize a transfer of Economic Impact Payment funds. … Read More

IRS Announces Taxpayer Relief Initiative

Ferrone & Associates CPAsBlog

The IRS announced a new program, the Taxpayer Relief Initiative, to help taxpayers who are unable to pay their taxes because of the pandemic.  Taxpayers who owe taxes and could not pay have always had options such as installment agreements and offers in compromise, but now they have more options. The highlights of the Taxpayer Relief Initiative, according to the … Read More

Answering an Important Question from a Client

Ferrone & Associates CPAsBlog

Andrew writes:  “Hello Richard, What do you think a “safe” number for my company would be?” My answer: Three months of operating capital is a reasonable amount. It gives you time to react. You can obtain financing, implement operational changes, cut costs, react to market trends and conditions, and a whole host of other uncertainties. (COVID restrictions, changes in tax … Read More

Ignore the Hype! Read this before you apply for your PPP Loan Forgiveness

Ferrone & Associates CPAsBlog

There are issues that have not been dealt with, perhaps the most important of which is the tax effect of loan forgiveness.  The IRS has taken the position, and rightfully so, that if a PPP loan is forgiven, it is considered to be cancellation of debt, which is taxable.  At issue is whether or not Congress passes legislation that will … Read More

Advice for Issues Businesses Owners Face Going Virtual

Ferrone & Associates CPAsBlog

Reopenings begin with masks, conference rooms have gone Zoom, and businesses face a load of new questions — but for many, the future comes down to one: “How am I going to survive?” We all know that virtual does not replace face-to-face and many small businesses have been hurt. But how can we help these businesses transitioning to virtual? A … Read More

13 Tips if You Haven’t Saved for Retirement

Ferrone & Associates CPAsBlog

According to research, most Americans don’t have enough money saved to retire. Fortunately, by taking these steps as early as possible, you can help change that.  Here are 13 tips to help you afford the retirement you deserve. Work Longer: Assuming your employer permits it, it’s the obvious choice. Each additional year shortens retirement while adding a year for additional … Read More

SBA has simplified the loan forgiveness process

Ferrone & Associates CPAsBlog

Good news for borrowers with PPP loans of $50,000 or less: The SBA has simplified the loan forgiveness application process. Now you just need to fill out a 1-page application, provide supporting documentation, and certify that funds were used for approved purposes in order to qualify for forgiveness. Documents Required: 3rd Party payroll reports (Gusto, ADP, Paychex, etc.) or self-generated … Read More

How Firms Can Take Advantage of New Technology and Resources

Ferrone & Associates CPAsBlog

During this last year, we have learned so much about managing our remote workforce, rethinking the scope and delivery of our services, and about new and new-to-us resources and tools that have helped us transition and adapt. There is no argument that established, virtual firms had a leg up on the competition. Although it may seem that we have made … Read More

Remote workers may provide tax savings for employers

Ferrone & Associates CPAsBlog

Working remotely during the pandemic may become routine, as both companies and workers come to appreciate the convenience and savings available.  There are also many opportunities to save on taxes imposed by local jurisdictions on the business entity. A number of local jurisdictions — and the list is growing — impose local taxes on business entities. In some cases, such … Read More

4 ways to overcome resistance towards a new process or tool at your firm

Ferrone & Associates CPAsBlog

New ideas can help you and your firm save time, money, and increase the number of clients you serve. But any idea — whether it’s a tool, system, process, or just a new way to do things — requires change. And people resist change. If you’re part of a firm, and you’ve identified a need for change, how do you … Read More

Q&A: Tax Code Changes for Individuals in 2020

Ferrone & Associates CPAsBlog

The year 2020 has been filled with change, and the tax code is no exception to this. Recently, yet another occurred: Taxpayers are now temporarily allowed to deduct charitable contributions. The tax code allows individuals to deduct donations to charities only if they itemize on Form 1040’s Schedule A. They can’t claim contributions when they use the standard deduction amounts … Read More

Why Automation Will Change the Way Your Firm Does Business

Ferrone & Associates CPAsBlog

You must prepare for the future — today. Automation isn’t about replacing people with machines. It’s simply the next step in the accounting evolution. Automation is: Fast. It allows accountants to spend their time using data to create a value-focused firm. More accurate. No more transposition errors or other costly human errors. Automation is a cut-and-paste action rather than transposing. … Read More

Turning off the always-on economy: How to take back control of your time, work, and sanity.

Ferrone & Associates CPAsBlog

Just a few years ago, people saw technology as exciting and filled with possibilities.  But the constant notifications, alerts, and reminders are taking a serious toll on our productivity, our social lives, and our mental health. You can see this epidemic first-hand in coffee shops worldwide. Workers have one eye on Slack, one eye on email, and no eyes left … Read More

Form 1099-NEC Officially Replaces 1099-MISC for Reporting Payments to Nonemployees

Ferrone & Associates CPAsBlog

In case you haven’t heard, there’s a new tax form on the block for business filers for the 2020 tax year. Form 1099-NEC, Nonemployee Compensation, will be used instead of Form 1099-MISC to report amounts paid by businesses to independent contractors and others who provide services. In actuality, the new Form 1099-NEC isn’t entirely “new.” It’s an updated version of … Read More

Your Best Defense Against Ransomware

Ferrone & Associates CPAsBlog

Not too long ago, the WannaCry ransomware attack was all over the news, infecting over 400,000 computers. The threat was fairly straightforward: Pay us or we’ll erase your files. Ransomware, like the WannaCry attack, works by encrypting your files to prevent you from using or accessing them. After your files are compromised, the hackers behind the attack then pop up … Read More

How Does the Medicare Surcharge Affect Self-Employed Individuals?

Ferrone & Associates CPAsBlog

In his latest column on Medicare surtaxes, financial guru Julian Block addresses what your self-employed clients need to know about this complex area of tax law. Julian Block has devoted several previous columns to the Medicare surtax of 0.9 percent on earned income. It applies to high-income individuals when their salaries, other kinds of employee compensation, such as severance arrangements … Read More

Emphasis on Divorce Negotiations: a message from a CPA

Ferrone & Associates CPAsBlog

I would encourage anyone involved in a divorce to have their CPA involved in the divorce negotiations. Our recent article about the divorce process includes 8 tax factors to be considered. These are good factors to be aware of and they are seldom included in a divorce decree.  It is important to have a CPA during tax negotiations because these … Read More

8 Tax Areas to Factor into Divorce Negotiations

Ferrone & Associates CPAsBlog

This article addresses eight tactics that may be used to affect your spouse’s net worth, which will directly affect your final financial settlement. You need to be aware of these so that you can gain assurance that all aspects of your spouse’s financial assets are fairly and accurately valued and disclosed on their net worth statement. This will enable your … Read More

IRS urged to stop sending notices for unpaid taxes until it catches up on mail backlog

Ferrone & Associates CPAsBlog

The House Ways and Means Committee is asking the Internal Revenue Service to quit mailing notices for unpaid taxes to taxpayers who may have been affected by the mail backlog at the agency due to the COVID-19 pandemic. Many taxpayers have been receiving balance-due notices from the IRS even though they sent in their tax payments to the IRS months … Read More

Is your password strong enough?

Ferrone & Associates CPAsBlog, Uncategorized

A weak password is still one of the most common ways hackers break-in. Thanks to sophisticated brute-force-attack software readily available online, hackers can try tens of millions of possible password combinations per second. For example, hacking software can guess a five-character password in under three hours. If you only use lowercase letters, it’s 11.9 seconds. You need to have a … Read More

One more IRS refund

Ferrone & Associates CPAsBlog

13.9M taxpayers will get interest on their refunds The IRS is required to add interest to tax refunds on timely filed refund claims issued more than 45 days after the return due date.  The Internal Revenue Service plans to send interest payments averaging $18 to approximately 13.9 million individual taxpayers who filed their 2019 federal income tax returns on time … Read More

Traps to Avoid with Mergers

Ferrone & Associates CPAsBlog

If you are a business owner who is considering a merger at some point, it is vital to learn more about this process early in the game. Any business owner understands the difficulty of starting a new business and keeping the business alive. In most cases, crucial decisions must be made in order for the business to move forward, including … Read More

What you need to know about the Payroll Tax Deferral

Ferrone & Associates CPAsBlog

Recently, Donald Trump included a payroll tax deferral in his executive orders and it is leaving people unsure about what to do. CPAs, attorneys, and payroll programmers are all eagerly anticipating guidelines from the Internal Revenue Service and the Treasury Department on how to handle the payroll tax deferral that President Trump included in his executive orders. The IRS is … Read More

How working from home may change your taxes

Ferrone & Associates CPAsBlog

A large percentage of the workforce is now working from home, and company offices may be a thing of the past.  For companies that have gone remote, a new development of work-from-home is state tax nexus. Working in one municipality and living in another is nothing new. But now a large chunk of the workforce is working in one state … Read More

Ferrone and Associates picked as one of the 11 best accountants of SLC!

Theresa FerroneBlog

Expertise scored 48 accountants in the Salt Lake area and picked the top 11 for their “Best Accountants in Salt Lake City” of 2020.  Expertise’s goal was to “connect people with the best local experts” so they scored accountants on more than 25 different variables across five categories to pick out the best of the best accountants in Salt Lake … Read More

NCCPAP urges Congress to consider automatic forgiveness for smaller PPP loans

Theresa FerroneBlog

The National Conference of CPA Practitioners (NCCPAP) is urging Congress to automatically forgive smaller loans under the Paycheck Protection Program, and to make business expenses paid for with forgiven PPP funds are deductible. In a letter written to Congress by the NCCPAP it states that businesses with loans under $150,000 were often those hit hardest by the pandemic, and at … Read More

Planning Beyond COVID-19: the Main Street Lending Program

Theresa FerroneBlog, Uncategorized

Small-to-midsized companies in need of capital need to leave no stone unturned. Now that the Federal Reserve Bank is buying Main Street Loans, should you or your clients consider applying for loans through the Main Street Lending Program (MSLP)? With each interim financial statement release, accountants gain greater visibility into the COVID-19 impact on company balance sheets and the need … Read More

6 productivity hacks for remote CPAs

Theresa FerroneBlog

As the brick-and-mortar economy flirts with reopening, working from home is becoming the new normal. CPAs have no need to return to crowded offices, especially not in states where COVID-19 is having a second wind. Even if CPAs could resume their usual office rituals, their clients (or colleagues), may not be eager to meet in person. It seems that accounting … Read More

Big Jumps seen in Tax Prep Fees

Theresa FerroneBlog

The average fee nationwide to prepare a non-itemized 1040 and a state return jumped almost 26 percent in the last two years, according to a recent survey. That represents a rise of $45. Responses showed that the average cost to prepare an itemized 1040 and a state return rose almost 11 percent from 2018. The average nationwide price for doing … Read More

Many Firms Commit to Permanently Working from Home, Including Ferrone and Associates CPAs

Theresa FerroneBlog

According to a new study, two-thirds of accounting firm leaders reported a drop in staff productivity during the coronavirus pandemic, but they’re still committed to allowing employees to work from home even after they reopen their offices. Accountants at firms of all sizes across the U.S., as well as leaders from a range of financial services and professional services companies,  … Read More

Tax-related COVID-19 News You May Not Have Heard

Theresa FerroneBlog

Here’s a COVID -19 retirement-related easing that hasn’t got much attention: the 10% fine on pre-age-59 ½ payouts from retirement accounts is waived on up to 4100,000 of coronavirus-related distributions in 2020 from 401(k)s, 403(b)s and IRAs. A coronavirus-related distribution is defined as a payout to an individual who experiences financial difficulties from being diagnosed with COVID-19; who has a … Read More

Good News for Small Business Owners Regarding the PPP

Theresa FerroneBlog

On Friday, June 5, the new Paycheck Protection Program Flexibility Act of 2020 was signed. This new legislation amends the Small Business Act and the CARES Act. The Paycheck Protection Program Flexibility provides PPP borrowers with more flexibility on PPP loan forgiveness. Here are some of the highlights: Gives borrowers the option to extend the “covered period” for loan forgiveness from … Read More

When to Expect your Paper Stimulus Check

Theresa FerroneBlog

Some people expecting paper stimulus checks may have to wait months before seeing the payment in their mailbox. IRS is sending paper checks to individuals who qualify for the economic impact payment but didn’t get it directly deposited into their bank accounts. Some checks have already been mailed out to taxpayers. For the rest, the Service will send out approximately … Read More

Tax Rebates and Stimulus Checks

Theresa FerroneBlog

Dead people are not eligible to receive an economic impact payment. The IRS says that if you got a stimulus payment for someone who died, you must return it. If the payment was made to joint filers and one spouse is still alive, you need to return only the decedent’s portion and can keep the remainder. See www.kiplinger.com/linke/deceased on how … Read More

Multiple Cash Flow Scenario That Helps Adjust for Uncertainty

Theresa FerroneBlog

COVID-19 and the associated shelter-in-place orders around the country have impacted business leaders enormously. Everyone is waiting for the dust to settle to see how deeply the economic downturn may go. The crucible of the post-COVID marketplace will ramp up urgency; business owners need to understand and respond with increasingly accurate and effective strategies. COVID-19 has not changed the reality … Read More

Tax News that has been overlooked during COVID-19

Theresa FerroneBlog

With COVID-19 dominating the news cycle, other issues are being overlooked. A prime example is the fate of Obamacare, which is before the Supreme Court. In late 2019, an appeals court ruled that the individual mandate is unconstitutional because the tax reform law eliminated the penalty tax for noncompliance. In March, the high court agreed to hear the case, including … Read More

Obligations for Gig Economy Workers

Theresa FerroneBlog

Educating gig economy workers on their obligations is a goal of the IRS. Many individuals who take on freelance gigs from online sites or rent out their homes or rooms through a website or app do not receive a W -2 or 1099 for their work. Some are unaware that their income is taxable or, depending on the circumstances, that … Read More

Bad News for Small Businesses that take out PPP Loans

Theresa FerroneBlog

The IRS has recently released some bad news for small business firms: the businesses can’t deduct expenses that result in forgiveness of the loan. The stimulus law says that loans forgiven under the Paycheck Protection Program are nontaxable. But the legislation is silent on whether expenses that are funded by the PPP loan proceeds, such as payroll costs, utilities, and … Read More

Just released: SBA “Paycheck Protection Program Loan Forgiveness Application” Form and Instructions

Theresa FerroneBlog

It has become clear that the SBA requirements for loan forgiveness will require detailed records and supporting documents.  Navigating a lengthy and detailed application can be tricky, but the good news is that you will be rewarded for your hard work.  To make sure everything is done correctly you will want a qualified CPA in your corner to help you … Read More

SBA slashes disaster-loan limit from $2 million to $150,000, shuts out nearly all new applicants

Theresa FerroneBlog

An emergency disaster lending program for small businesses has been so overwhelmed by demand that it has significantly limited the size of loans it issues, while blocking nearly all new applications from small businesses, according to people familiar with the situation. After initially telling businesses that individual disaster loans could be as high as $2 million, SBA has now imposed … Read More

What Now? Next Steps for Phase 4 Relief

Theresa FerroneBlog

Among other tax changes, the CARES Act loosened rules governing net operating loss deductions (NOLs). These modifications provided much-needed relief for businesses, and there is an opportunity to build upon them in upcoming “Phase 4” economic relief legislation. Contrary to some of the rhetoric surrounding the changes to NOL deductions in the CARES Act, the provisions are a step forward … Read More

No PPP Loan? Then you may qualify for a Credit.

Theresa FerroneBlog

If you weren’t able to get a PPP Loan… this one is you.The Internal Revenue Service is reminding employers who have been impacted by the Coronavirus pandemic that three new credits are available for them. The first of these, the Employee Retention Credit, is intended to encourage businesses to keep employees on the payroll. The ERC is a refundable tax … Read More

SBA provides a safe harbor for PPP loans under $2 million

Theresa FerroneBlog

“Businesses that together with their affiliates accepted Paycheck Protection Program (PPP) funds of less than $2 million will be assumed to have performed the required certification concerning the necessity of their loan requests in good faith, according to guidance posted by the U.S. Small Business Administration (SBA) on Wednesday. According to the SBA, borrowers with loans below the $2 million … Read More

Are PPP Loans going to be Taxable Income?

Theresa FerroneBlog

A bipartisan group of lawmakers introduced legislation on May 6 to enable small businesses to deduct their expenses even if they have received a loan from the federal government’s Paycheck Protection Protection Program that was later forgiven. On April 30, the IRS issued a notice that said small businesses couldn’t deduct these expenses and that no tax deduction is allowed … Read More

IRS UPDATE: 2nd QUARTERLY ESTIMATED TAX PAYMENT POSTPONED

Theresa FerroneBlog

On March 21, the IRS officially announced that it was extending the deadline for filing 2019 tax returns and paying any required tax from April 15 to July 15, along with the due date for the first quarterly installment of estimated tax for 2020. But it didn’t say anything about the second quarter, until now.  The IRS is setting the … Read More

The big mistake newly remote businesses are making

Theresa FerroneBlog

There is one all-too-common mistake that firms are making right now: trying to replicate their existing communication practices across their newly distributed team. A video conferencing solution such as Zoom is brilliant for replacing in-person meetings, and instant messaging tools like Slack or Microsoft Teams can be useful for hashing something out quickly or as a virtual ‘water-cooler’. However, these … Read More

Common Mistakes Taxpayers are making and how to avoid them

Theresa FerroneBlog

It’s no surprise that many taxpayers are making mistakes including missing or inaccurate Social Security numbers, misspelled names, wrong filing statuses, math errors, and incorrect bank account numbers when giving their information to their preparer. Outside of Utah, clients still misunderstand that although they might not be able to itemize deductions for IRS purposes, they still might be able to … Read More

PPP Loans – How to Track Your Finances After Filing

Theresa FerroneBlog

Now that you’ve wrapped up your Paycheck Protection Program (PPP) loan application, it’s time to move on to the next step. As you likely noticed, there is a precise list of approved uses for your government-granted funds, so you and your business must keep detailed records of your expenses to avoid needing to pay it all back.  Approved Uses for … Read More

IRS Introduces Get My Payment to Track Stimulus Payments

Theresa FerroneBlog

The Internal Revenue Service, working with the Treasury Department, announced the new tool Get My Payment, enabling taxpayers to check on their Economic Impact Payment date and update direct deposit information. Get My Payment will help taxpayers track the Economic Impact Payments as they start to hit bank accounts, and will answer common questions. It will also show the projected … Read More

IRS not processing paper tax returns due to coronavirus

Theresa FerroneBlog

The Internal Revenue Service has stopped processing paper tax returns, with much of its staff now working remotely because of the novel coronavirus pandemic, and is encouraging taxpayers to file their taxes electronically during the three-month extension period for this year’s tax season. The IRS said Friday that to protect the public and its own employees, and in compliance with … Read More