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
IRS Readies Refunds for Unemployment Compensation Overpayments
The Internal Revenue Service announced today it will issue another round of refunds this week to nearly 4 million taxpayers who overpaid their taxes on unemployment compensation received last year. The American Rescue Plan Act of 2021, which became law in March, excluded up to $10,200 in 2020 unemployment compensation from taxable income calculations. The IRS has been reviewing the … Read More
QuickBooks Price Increase
QuickBooks has announced a new pricing structure, and we want to give you a heads up. The price increase will go into effect on July 15th for all new subscribers. If you are on a wholesale account and are billed directly from QuickBooks, you will receive a notice on July 1st with your new rate to take effect in August. If you … Read More
More PPP Confusion
The Justice Department is launching a probe into PPP lending calculations. While the program has been a lifeline for many small businesses, many of its rules were unclear. One of the many challenges was how to account for federal, state and local taxes. Some lenders under-accounted for payroll taxes leading to a leaner loan total. Others over-accounted, meaning, depending on … Read More
PPP has run out of money for most borrowers
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
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
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
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
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
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