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.
News
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.
IRS Releases Additional Guidance on PPP Loan Forgiveness
The IRS published a Revenue Procedure and a Revenue Ruling to clarify certain complex and controversial details in PPP loan forgiveness. Read further for a summary of the new IRS guidance.
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.
What is a Supplemental Unemployment Benefits (SUB) Plan?
The adverse economic impact of COVID-19 has bolstered employers’ interest in supplemental unemployment benefits (SUB) plans. which is an employer-sponsored benefit that provides severance pay to employees who involuntarily lose their jobs such as through layoff, reduction in force, or plant closing.
Foreign Financial Account Reporting and FBAR
Every year, under federal law, taxpayers must report certain foreign financial accounts to the Treasury Department. Whether the account produced taxable income has no effect on whether the account is a foreign financial account for FBAR purposes.
COVID-19 Era Compensation Planning
Compensation planning in the COVID-19 era continues to shift. How should your company handle compensation during cash flow challenges?
SSA Announces 2021 COLA and Max Earnings
The SSA published its 2021 COLA increases and new ceiling for earnings subject to OASDI. What numbers are changing and are you affected?
Restructuring Debt as a Business Strategy
Like earlier business crises, Covid-19 has forced many businesses to make hard choices regarding their future. Learn about restructuring debt and whether it is an option to consider.
IRS Final Regulations on Meals and Entertainment
The 2017 TCJA changed rules for meals and entertainment. Recent IRS guidance may clear up some confusion and Arizona business owners should consult with their CPA to make sure they are not violating any rules or leaving money on the table.
Arizona Manufacturing, Technology and COVID-19
As a result of COVID-19, the economy has taken a tremendous hit and many Arizona manufacturers are feeling an impact. Some manufacturers have pivoted to meet customer demand, and more may be able to do so if they can take advantage of technology and increased access to market trends.
Relief for Small PPP Loan Borrowers
The SBA issued a new form making it easier for smaller borrowers to qualify for loan forgiveness and clarified due dates. Is your company eligible for the simplified paperwork?
Deadline Approaching for Tax Year 2019 Filing Extension
Federal individual and calendar year corporate returns (except S Corporations) are due October 15, 2020, and calendar year fiduciary returns were due September 30, 2020.
Simplifying Life for the Arizona Nonprofit CFO
One of the most challenging responsibilities for Arizona nonprofit CFOs is managing a budget with financial constraints. Even though it may be needed, financial management software can sometimes seem like a distracting and risky problem. Benefits from cloud-based accounting may outweigh the risks.
Arizona TPT Electronic Filing and Payment Effective January 1, 2021
The transaction privilege tax (TPT) electronic filing and paying threshold lowers to $500 beginning January 1, 2021. There will be penalties for not filing and paying electronically.
Applying for PPP Forgiveness
As more banks start accepting forgiveness applications, PPP borrowers need to know what to do to obtain maximum forgiveness, including required documentation for forgiveness application forms.
IRS Announcement CCH E-Filing Outage on September 15, 2020
The IRS stated in a September 24, 2020 memorandum, it would treat September 15, 2020 returns and any elections filed on September 17, 2020, as timely if the September 15, 2020 filing was affected by a CCH e-filing system software outage.
Understanding Changes to USMCA and Mexico
In a free two part webinar on September 23 and 30, 2020, hear experts with the Arizona District Export Council (DEC) discuss exporting from the U.S. to Mexico. Learn about the tax benefits from Stephen J. Rodis, CPA, on September 30. Read further for the full agenda and registration details.
Strategizing for a New Normal
Strategizing for an uncertain future is not easy and Arizona businesses are taking a closer look at their response to COVID-19. Learn more about strategic planning in today’s environment.
Does Workers’ Compensation Cover COVID-19?
The applicability of workers’ compensation programs to COVID-19 is one of the great legal and financial issues. Does workers’ compensation cover COVID-19? There are no firm answers.
Best Practices for Managing Remote Employees
While many companies offered options to work from home before COVID-19, few had policies and procedures in place for managing employees. What are some best practices for managing employees working from home?
Deferral of Social Security Tax Withholdings
On August 8, 2020, President Trump issued an executive order offering payroll tax deferral until the end of 2020. Deferral would begin on September 1, 2020 and employers could pause collecting the 6.2% employee portion of the social security tax on an employee’s annual wages for 2020.
COVID-19 Reassessing Estate Planning
COVID-19 caused many changes in our personal and business lives, giving us time to rethink our priorities and expectations. Estate planning is one area that has received a lot of attention. Do you have an estate plan in place?
IRS Accepts E-Filings of Amended Individual Tax Returns
The IRS reached a major milestone by accepting Form 1040-X, Amended U.S. Individual Income Tax Return, electronically. Now, taxpayers can correct tax returns with fewer errors and expedite processing.
ADOR Importance of Verifying Mailing Address
The Arizona Department of Revenue (ADOR) reminds taxpayers and business owners to verify their mailing address when filing. ADOR recommends using a standardized address that is fully spelled out and uses the postal service standard abbreviations when filing electronically or registering online.
IRS Operational Processing Delays COVID-19
The IRS is experiencing delays in processing paper tax returns due to limited staffing. Taxpayers are strongly encouraged to file electronically through a CPA or accountant or tax software provider. Paper returns are processed in the order they are received.
Interpreting Financial Reports
Your financial statements can tell you what is happening in your business today and expectations for the future. Knowing how to interpret financial reports gives you insight into your business.