Internal Revenue Service Alerts (IRS)
What Taxpayers Need to Know About the Child Tax Credit
As part of the American Rescue Plan Act of 2021, the IRS increased the amount of the Child Tax Credit and plans to issue up to 50% of the credit in the form of monthly advanced payments beginning July 15, 2021. Taxpayers may claim the remaining credit when they file their 2021 income tax return. […]
IRS Guidance Issued on Change in Useful Life for 2020 Tax Returns
AAFCPAs would like to make clients aware that the IRS recently released long awaited guidance detailing how a taxpayer must change the method of computing depreciation to provide a 30-year recovery period under the alternative depreciation system (ADS) for some properties controlled by a business that started renting before 2018. Rev. Proc. 2021-28 explains how […]
How and When to Make Quarterly Estimated Tax Payments, Pay Online
As a reminder, the U.S. tax system operates on a pay-as-you-go basis. For estimated tax purposes, a year has four payment periods. Taxpayers must make a payment each quarter. For most people, the due date for the first quarterly payment is April 15. The following payments are due June 15 and Sept. 15, with the […]
IRS Offers Safe Harbor for Claiming PPP Loan Deductions
AAFCPAs would like to make clients aware that the IRS has recently released a revenue procedure (Rev. Proc. 2021-20) that provides a safe harbor for certain businesses claiming Paycheck Protection Program (PPP) loan deductions. The Rev Proc is applicable for taxpayers that received a PPP loan but did not deduct certain otherwise deductible expenses paid […]
You Snooze, You Lose. Preserve Wealth Before Legislation Eliminates Opportunities
As you know, AAFCPAs anticipated changes on the horizon to the Estate Tax Exemption. On March 25, 2021, Senator Bernie Sanders introduced legislation called “For the 99.5% Act,” which, if passed, would establish a new progressive estate tax rate structure on the top 0.5% of Americans who inherit over $3.5 million in wealth. It is […]
IRS Extends Federal Income Tax Filing Deadline for Individuals
AAFCPAs would like to make clients aware that the Treasury Department and the IRS recently announced that the federal income tax filing deadline for individuals will be postponed to May 17, 2021 from April 15, 2021. It is still AAFCPAs’ intention to complete individual filings by April 15th, unless you have heard otherwise from your AAFCPAs tax professional. What You Need […]
Self-Employed Individuals to Claim COVID-19 Sick & Family Leave Tax Credits on IRS Form 7202
AAFCPAs would like to make clients aware that the IRS recently released Form 7202 for eligible self-employed individuals to determine their qualified sick and family leave equivalent tax credits. As a reminder, the Families First Coronavirus Response Act (FFCRA) provides small and midsize companies—as well as self-employed individuals—with refundable tax credits that reimburse them, dollar-for-dollar, […]
Deduction Limit Increased for Corporate Cash Contributions for Disaster Relief; IRS Provides Recordkeeping Relief
AAFCPAs would like to make clients aware that the IRS recently announced how corporations may qualify for the new 100% limit for disaster relief contributions and offered a temporary waiver of the recordkeeping requirement for corporations otherwise qualifying for the increased limit. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 (TCDTRA of 2020), […]
IRS Provides Clarity on Paid Sick Leave & Family Leave Credits
AAFCPAs reminds clients that the COVID-related Tax Relief Act of 2020, enacted on December 27, 2020, extends the availability of the tax credits created by the Families First Coronavirus Response Act (FFCRA) to eligible employers for paid sick and family leave provided through March 31, 2021, as well as other amendments to the credits. The […]