1-The biggest tax news regarding the filing of your 2020 tax return contained in the recent stimulus bill passed signed by President Biden is that up to $10,200 of unemployment benefits will not be subject to federal income tax. Unfortunately, no state has yet to follow suit. The filing of some returns maybe delayed as the tax software companies have yet implement changes to their software.
2-This bill has also expanded the businesses that qualify for and the amount of the Employee Retention Tax Credit they can receive. This is a very generous but forgotten tax break for employers. The federal government will reimburse employers up to $30,000 a year for each employee employed if they meet the criteria. We are working diligently assessing our clients’ financial situation to see it they qualify.
3-The IRS has extended the filing date for individual tax return and payment of any tax due to May 17, 2021. As this is breaking news, we haven’t heard if any states will follow suit.
4-C Corporation tax returns filing due date still remains at April 15 as does the payment of the 2021 1st quarter estimated tax for individuals.
5- A bill extending the filing of application for the 2nd draw of PPP to May 31 is making its way through Congress and is expected to be sign into law.
6-The SBA announced that they will defer the start of payments on EIDL loans for one more year.
Currently our office has been very busy trying to address our clients’ needs but due to the extraordinary demands of complying with SBA’s and IRS’ rules and regulation we have fallen slightly behind in our preparation of individual tax returns. We ask for your understanding and are working hard to remedy the situation.