Kort Redick, CPA
Erroneous notices and the latest IRS delays
The IRS acknowledges that there is a backlog of unprocessed 2019 tax returns and that it sent erroneous CP59 notices to certain taxpayers.
Phone: 907-272-2041
Fax: 907-272-6241
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CPA Insight
Information courtesy of Thomson Reuters
Kort Redick, CPA
Employee Retention Credit
The employee retention credit (ERC) may be a possible resource of government funds you should consider. Recent legislation (December 27) and recent guidance over the last few weeks has expanded eligibility to businesses that were previously unable to qualify for this credit.
Kort Redick, CPA
Second round of funding for PPP Loans
The 2nd round of funding for PPP Loans will be available this week.
Small businesses who did not receive a PPP loan on the first go around can begin to apply January 11, 2021-apply with your local bank.
Thomson Reuters
Bipartisan COVID-19 relief bills contain payroll-related provisions
On December 15, 2020, two bipartisan COVID-19 relief bills, the Bipartisan COVID-19 Emergency Relief Act of 2020 and the Bipartisan State and Local Support and Small Business Protection Act of 2020, were introduced that contain payroll-related provisions.
Thomson Reuters
Employee retention credit where stock or assets of PPP loan recipient are acquired
On its website, the IRS has updated its COVID-19 employee retention credit FAQs. One FAQ addresses how eligibility for the credit is affected if an employer acquires an entity that had received a Paycheck Protection Program (PPP) loan and, under the aggregation rules, the employers are treated as a single employer as a result of the transaction.
Thomson Reuters
Many retirement plan dollar limits increase for 2021
IRS has announced the 2021 cost-of-living adjustments (COLAs) with respect to retirement plan limits. Many limits, which are adjusted by reference to Code Sec. 415(d), are changed for 2021 since the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, others remain unchanged. Certain dollar limit changes keyed to Code Sec. 1(f)(3) have also increased.
Thomson Reuters
Taxpayer Advocate launches tool to determine eligibility for COVID-19 employer credits
The Taxpayer Advocate Service (TAS) has launched an online tool that employers can use to determine if they are eligible to receive either the employee retention credit or the paid sick or family leave credits.
Thomson Reuters
Draft 2020 Form 1065 instructions reflect change in reporting partner capital accounts
IR 2020-240, 10/22/2020
IRS has issued draft instructions for 2020 Form 1065, U.S. Return of Partnership Income, that include revised instructions for partnerships required to report capital accounts to partners on Schedule K-1 (Form 1065).
Thomson Reuters
PBGC sets 2021 premium rates
The Pension Benefit Guaranty Corporation (PBGC, a government agency that collects insurance premiums from employers that sponsor insured defined benefit plans) has released the 2021 premium rates.