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
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Independent Contractor Rule Withdrawn by DOL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 According to SHRM, the withdrawn rule would have applied a more-limited economic-reality test.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.
Warnings About Fraudulent Unemployment Forms
The Arizona Department of Revenue (ADOR) advises taxpayers who receive a Form 1099-G from the Arizona Department of Economic Security (DES) for unemployment benefits they did not receive to contact the Arizona Department of Economic Security for a corrected form.
Penalties for Not Filing 2020 Estimated Taxes
Last year was a challenging year. However, 2020 taxes are still due on April 15, 2021. If you underestimated the amount of tax you owe, you may be subject to a penalty.
Employee Retention Credit
The Internal Revenue Service (IRS) urges employers to take advantage of the newly-extended Employee Retention Credit (ERC), designed to make it easier for businesses that, despite challenges posed by COVID-19, choose to keep their employees on the payroll. The ERC is one of the more popular relief items for businesses and recent legislation has made it even more attractive.
Overview of the New PPP2
The new round of Paycheck Protection Program (PPP2) loans is available to both new and second-time borrowers. Who gets the money and what are the rules?
About FDAP
FDAP refers to certain income earned by some foreign persons in the U.S. It is subject to a withholding tax of up to 30 percent, although certain tax treaties offer a lower rate.
Randy G. Brammer, CPA Designated Managing Partner
Effective January 1, 2021, Wallace Plese + Dreher (WP+D) designated Randy G. Brammer, CPA as the Firm’s new Managing Partner. Mark R. Dreher, CPA, former Managing Partner, remains a partner and will continue assisting businesses with sales, purchases, mergers and acquisitions.
Consolidated Appropriations Act, 2021
The pandemic relief package (Consolidated Appropriations Act, 2021) gives a break to the hardest-hit small businesses by reopening the Paycheck Protection Program and offers them the ability to apply for a second loan. The new round of loans will be limited to those with fewer than 300 employees that have experienced drops of at least 25% in revenue during any quarter of 2020 compared with the same quarter in 2019.
Mark R. Dreher, CPA Appointed to CPAmerica’s Board of Directors
Mark R. Dreher, CPA was appointed to CPAmerica’s Board of Directors. He will work with CPAmerica’s leadership team and other Board members developing 2021 initiatives and long-term goals.
Mandatory 2020 Income Tax E-Filing for Arizona Corporations and Partnerships
Legislation signed into law initiated a multi-year phase-in period for businesses required to file income tax returns electronically. The e-file option was introduced in 2020 for tax year 2019 and is now mandatory for corporations and partnerships for tax year 2020 returns.
IRS: Eligible PPP Expenses Now Deductible
On January 6, 2021, the IRS and Treasury Department issued guidance allowing deductions for the payments of eligible expenses when such payments would result, or be expected to result, in the forgiveness of a covered loan under the Paycheck Protection Program (PPP).
Randy G. Brammer, CPA 2021 AZ Business Leader to Watch Interview
Randy G. Brammer, CPA, selected as a 2021 Arizona Business Leader to Watch, was interviewed by Michael Gossie, Editor-in-Chief, AzBigMedia, about best leadership practices during COVID-19.
Wallace Plese + Dreher Awarded Forbes America’s Best Tax and Accounting Firms 2021
Wallace Plese + Dreher has been awarded and recognized on the Forbes list of America’s Best Tax and Accounting Firms 2021. In total, 250 companies were awarded the title of America’s Best Tax Firm 2021 and 200 companies were awarded the title of America’s Best Accounting Firm 2021. Wallace Plese + Dreher was awarded titles in both accounting and tax.
Mergers and Acquisitions Tax Planning
The Tax Cuts and Jobs Act (TCJA), passed in late 2017, changed many facets of tax planning, including mergers and acquisitions (M&A). TCJA created a variety of opportunities for mergers and acquisitions and any business considering a future M&A should be aware of the changes.
2020 Business Tax Deductions
It has been a challenging year, but one thing that has not changed is taxes. Fortunately, Arizona businesses can take advantage of certain tax deductions.
Arizona Bingo and Raffles
The Arizona Department of Revenue (ADOR) issued a reminder about legalities surrounding bingo and raffles in the State of Arizona. In the State of Arizona, all forms of online gambling are illegal.
FATCA Basics and Form 8938
Americans with certain foreign financial assets have special tax reporting responsibilities. The Foreign Account Tax Compliance Act (FATCA) requires foreign financial institutions and certain other nonfinancial foreign entities report on the foreign assets held by their U.S. account holders or be subject to withholding on relevant payments.
2021 Key Adjustments | ACA | HSA | Inflation Adjustments
After a year of turmoil and surprises, what will 2021 bring? One certainty is that the federal government is changing a variety of numbers affecting the finances of businesses and individuals.
Understanding Your Financials with QuickBooks
You need current and accurate financial statements for good business decision-making. Do you understand your financials and what they say about your business? QuickBooks can help you grasp your debits and credits and take charge of your data and financial reports.
Section 179 Can Help Construction Companies
Construction companies have an opportunity to save on taxes through Section 179. The deduction can help with the rising expense of labor in light of the skilled worker shortage and contribute to training employees.