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
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
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?
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
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
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
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
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
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
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