Wallace Plese + Dreher Named Arizona 2021 Top Workplace
Wallace Plese + Dreher has been named as an Arizona 2021 Top Workplace by AZ Central. The award was based on feedback and survey results from the Firm’s employees.
News
Arizona Small Business Income (SBI) Tax
Senate Bill 1783 allows individual taxpayers to elect to have their Arizona small business adjusted gross income removed from their regular individual income tax return and taxed on a separate Arizona small business income tax return. For taxable years beginning from and after December 31, 2020, a small business taxpayer may elect to file a return for the taxable year with the Arizona Department of Revenue (ADOR) to report that small business taxpayer’s share of Arizona small business gross income.
2022 Arizona and Federal Tax Filing Deadlines
Every year, changes are made to Arizona’s tax code. Since April 15 2022 falls on a federal holiday, taxpayers have until Monday, April 18, 2022, to file their 2021 tax return. If filing an extension, the extended due date to file the income tax return is October 15, 2022. However, because October 15, 2022 falls on a Saturday, taxpayers have until Monday, October 17, 2022 to timely file their 2021 tax return.
Ensuring Company Financial Statement Assertions Are Accurate
A company’s financial statements reflect the story it tells the general public, and truth and accuracy are key. A company’s CFO is responsible for accurately reporting all of the organization’s financial activities.
Arturo N. Moreno, CPA Appointed NourishPHX Board Chair
Congratulations to Arturo N. Moreno, CPA on his appointment as Board Chair for NourishPHX. NourishPHX assists families and individuals with meeting their daily basic living needs by providing food, clothing, hygiene supplies, and household items.
Employee Retention Credit (ERC) IRS Guidance
The Infrastructure Investment and Jobs Act amended the law so that the Employee Retention Credit applies only to wages paid before October 1, 2021, in some cases. Recently, the IRS issued new guidance on how to manage this change.
Is a Private Equity Partnership Right for You?
To determine whether a private investor is right for your company, you need to understand your motivation. Is it a growth strategy or an exit strategy?
Individual and Business Tax Checklist
As 2021 comes to a close, it is a good time to create a tax checklist for items needed to file individual and business taxes.
2021 Year-End Tax Planning Tips
The end of the year always brings possible last-minute tax changes, which is especially true for 2021. New legislation may mean major changes starting in 2022, but other proposed bills, such as new capital gains and qualified dividend tax rates, may take effect retroactively.
Arizona Tax Credits for Qualifying Charitable Organizations
Arizona offers many opportunities to claim tax credits for Qualifying Charitable Organizations, including Foster Care tax credits on Arizona personal income tax. Also, there are credits for donating to public schools and Certified School Tuition Organizations.
Taxpayer Reminder Limited-Time Donation Rules
Special rules allow limited charitable deductions even for taxpayers who do not itemize. Also, there are other donation changes for individuals and businesses. Learn how to take advantage of these opportunities now.
Managing Supply Chain Risks
Managing supply chains in uncertain times means understanding the risks and finding ways to mitigate them. How do you manage some of the most common supply chain risks?
2021 Treasure House Celebrity Game Night
As a sponsor of the 4th Annual Celebrity Game Night benefiting Treasure House Phoenix, Wallace Plese + Dreher’s partners, managers, and staff attended the event on Thursday, October 7, 2021, at the Scottsdale Hangar One.
Remote and Hybrid Employees | State and Local Tax Considerations
With remote and hybrid work arrangements, employers should be very deliberate when communicating and executing policies relating to an employee’s work location. Individual taxpayers need to be familiar with tax laws in their resident state and businesses should be aware of tax laws in all states they operate.
Stephen J. Rodis, CPA Appointed to Arizona State Board of Accountancy Board
Governor Ducey appoints Stephen J. Rodis, CPA to the Board of the Arizona State Board of Accountancy.
Latest News on Vaccine Mandates
COVID-19 and its variants continue to disrupt the way we live, work, and play. The population disagrees on whether to wear masks or be vaccinated. One of the most pressing issues is whether businesses can — or should — issue a vaccine mandate for their employees.
Recognizing Revenue Under ASC 606
Before the adoption of ASC 606, there was no formal standard for the recognition of revenue across industries. Learn how this important standard has affected the construction industry.
Arizona CPA Firm Great Upward Mobility
At WP+D, employees and clients both benefit from working with an Arizona CPA firm versus a regional or national one. At larger firms, one may never meet or interact with a partner until they are a manager. This is not the case at WP+D, where the culture is centered around approachability and accessibility.
American Opportunity Tax Credit
The American Opportunity Tax Credit and the Lifetime Learning Credit can offer tax savings for higher education. Tax savings may be available for you, your spouse, or your dependents taking postsecondary coursework.
Benefits of 529 Plans
A 529 savings plan can do more than help you pay for college. Now is the best time to find out about their flexibility. Take advantage of the benefits of a 529 plan in a pandemic-affected economy.
Wayfair Case Review
The Supreme Court’s ruling in South Dakota v. Wayfair, Inc. changed the standard for when states need to collect sales tax from entities doing business in the state. Before the decision, states taxed only companies with a physical presence in the state, but they now tax all those with an economic presence.
Digital Assets, Privacy, and Estate Planning
Estate plans should address the management and distribution of digital assets, such as cryptocurrencies, electronic communications, financial accounts, and documents stored in the cloud. How can you protect digital assets upon your death or if you become incapacitated?
Estate Planning for the High-Net-Worth
President Biden’s proposed infrastructure plan would end the step-up in basis taxpayers often use to minimize tax on inherited wealth. Since assets like family businesses, homes, stocks, and art generally appreciate over time, eliminating the step-up in basis effectively raises the amount of tax on these assets.
2021 Child Tax Credit and Advance Child Tax Credit Payments
For 2021, families will begin receiving early payments from the IRS of 50 percent of the estimated amount of the Child Tax Credit. If the IRS processed your 2020 tax return or 2019 tax return, these automatic monthly payments will begin on July 15 through December 15, 2021, based on the information contained in that return.
Future of Taxes and Multinational Corporations
Countries around the globe are trying to stem the “rush to the bottom,” which has multinational companies moving their corporate headquarters to lower their tax bills. According to the International Monetary Fund, the result of this tax strategy is a loss of worldwide government revenues estimated between $500 and $600 billion annually.
Independent Contractor Rule Withdrawn by DOL
In May 2021, the Department of Labor (DOL) withdrew a rule clarifying the standard for employees versus independent contractors under the Fair Labor Standards Act. According to SHRM, the withdrawn rule would have applied a more-limited economic-reality test.
Retirement Plan Reporting Requirements
Sponsors of retirement plans are required by law to report information to the IRS, the Department of Labor (DOL), and Pension Benefit Guarantee Corporation (PBGC). Your plan type, business size, and circumstances affect the type of information, forms, and disclosure requirements.
2022 HSA Adjustments
The government made small inflation-adjusted increases for 2022 health savings accounts. Catch-up contributions for 55 and older remain the same, along with minimum deductibles.
NFTs | Non-fungible Tokens
Non-fungible tokens or NFTs, a player in the cryptocurrency world, have increasingly been making their mark. Few understand them, how they work, and risks.
401(k) Plans | Know the Rules
The benefits of retirement programs, for both companies and employees, can be substantial, but the rules are complicated. You need to figure out how to help your employees while being compliant.
Restaurant Revitalization Fund
The American Rescue Plan Act established the Restaurant Revitalization Fund to provide funding to help pandemic-affected restaurants. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.
2020 Arizona Conformity Notice
On April 14, 2021, Governor Ducey signed Senate Bill 1752, which conformed to the definition of federal adjusted gross income (federal taxable income, for corporations), including federal changes made during 2020 as well as through the 2021 American Rescue Plan.
IRS Issues Additional Guidance on Food Deduction
The IRS issued additional guidance under the Taxpayer Certainty and Disaster Relief Act of 2020 allowing businesses a 100% deduction for food or beverages from restaurants. Earlier in 2021, legislation increased the 50% deduction to 100%.
ADOR Extends Individual Income Tax Deadline to May 17
The State of Arizona has announced it has moved the deadline for filing and paying state individual income taxes from April 15 to May 17, 2021. Additionally, the deadline for first quarter tax year 2021 individual estimated tax payments remains April 15, 2021.
ADOR Monitoring Bill Extending Individual Tax Deadline to May 17
As of April 5, 2021, the Arizona State Legislature is currently considering a bill that would extend the Arizona filing deadline for individual filers to May 17. ADOR is actively monitoring the bill as it goes through the legislative process.
IRS Extends 2020 IRA and HSA Contributions to May 17
The IRS announced that individuals have until May 17, 2021 to meet certain deadlines that would normally fall on April 15, 2021. Estimated tax payments are still due on April 15, 2021.
IRS and Private Tax Collection
The IRS is using private collection contractors to assist in collecting delinquent federal taxes. Learn how taxpayer rights are protected during the collections process.
PPP Loan Program Gets Extension
Congress approved the PPP Extension Act of 2021, which extends the Payroll Protection Program (PPP). It was scheduled to expire on March 31, but the application deadline is now May 31.
New Laws Impact Retirement Plans
The IRS is reminding taxpayers about the rules for required minimum distributions (RMDs) from retirement accounts. Previous rules stated that a retirement plan account owner must begin taking an RMD annually starting the year they reach 70½ or 72, depending on the birthdate and retirement year of the plan owner.
IRS Extends 2020 Tax Deadline for Individuals
On March 17, 2021, the Treasury Department and IRS announced the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021 to May 17, 2021. This extension does not apply to estimated tax payments that are due on April 15, 2021. As of today, tax returns for corporations, trusts, and Arizona state returns are due on April 15, 2021.
Foreign Earned Income and U.S. Tax Laws
If you are a U.S. citizen or resident alien living in a foreign country, you are still subject to the same U.S. income tax laws that you would be if you lived in the United States.
IRS Update: American Rescue Plan Act – Relief Bill
The recently passed American Rescue Plan Act of 2021 is full of provisions and the IRS has started to issue guidance on key aspects.
American Rescue Plan Act of 2021
How does the American Rescue Plan Act of 2021 impact Arizona businesses, schools, and families? Here is a summary of the main provisions of the 600-page bill.
IRS Clarifies CP59 Notices
Due to confusion about the filing of 2019 returns, the IRS erroneously sent CP59 notices to many taxpayers stating they had not filed their 2019 federal tax return. The agency has now issued a clarifying statement.
Reasons Companies Should Offer a 401(k) Plan
A company-sponsored retirement plan is one of the most popular benefits a business can offer its employees, and there are many advantages and compelling employer benefits as well. Tax advantages, investing opportunities, and matching contributions are just three of the benefits of a 401(k) plan for employees.
Nonprofits and Restricted Funds
Donors have the right to set restrictions on the donations they give to a nonprofit. Grant funders want to make sure their funds are spent on agreed-upon programs. Nonprofits have to ensure these funds are spent in a way that donors support.
IRS Grants Relief on FSAs and DCAPs
The IRS is providing some accommodation to employee benefit plans offering health flexible spending accounts (FSAs) and dependent care assistance plans (DCAPs). Under the COVID-19-related Taxpayer Certainty and Disaster Tax Relief Act of 2020, these plans now have additional discretion in 2021 and 2022 to adjust their programs to help employees better meet the unanticipated consequences of the public health emergency.
Wallace Plese + Dreher | PPP Loan Forgiveness Application Assistance
Many Arizona businesses received SBA Paycheck Protection Program (PPP) loans. Our SBA Paycheck Protection Program (PPP) task force helps businesses and nonprofits navigate the forgiveness process. They are familiar with the PPP Loan Forgiveness Application, which is complex and complicated, and can answer your questions.
Managing Construction Company Cash Flow
Some Arizona construction company owners focusing on operational activities may not realize how financing purchases and selling assets make a difference. Projecting future cash flow is not easy. For construction companies, it becomes more complicated because no two projects are the same.
PPP Loan Provisions for Small Businesses
Beginning February 24, 2021, the Small Business Administration (SBA) is establishing an 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees.