As the Covid-19 situation continues to change on a daily basis we are taking precautions at this time to keep our employees, families and clients healthy. Below is information covering tax updates and questions from our clients. We will closely monitor any new developments and as the landscape continues to evolve, we will keep you up-to-date. If you have any questions, pleas

The House Passes Biden’s Build Back Better Act

On November 19th, the House passed the roughly $2 trillion Build Back Better Act. The bill includes income tax changes, expansion of current tax credits, support for health care, and measures to battle climate change.

Midyear Planning

As we continue to strive toward a post COVID-19 world, we hope that you and your loved ones find yourselves safe and well. We once again navigated a postponed tax filing season, albeit a shorter one, which brought with it its unique challenges as well as some tax saving opportunities provided by continued relief legislation.

Tax Deadline for Individual (1040) Tax Returns Pushed to May 17, 2021

On Wednesday, March 17, 2021, the Treasury Department and IRS announced that the federal income tax filing due date for individuals (1040) for the 2020 tax year will be postponed from April 15, 2021 to May 17, 2021. Illinois and various other states have already followed the lead of IRS and are extending their due dates for 1040s to May 17th as well.

The American Rescue Plan Extends Relief Through 2021

President Biden signed the $1.9 trillion American Rescue Plan Act of 2021 (ARP) on March 11, 2021. The ARP provides relief funding to families and individuals, state and local governments, businesses and tax-exempt organizations.

New Act Provides Relief for Struggling Businesses

On December 27, 2020, the President signed the Consolidated Appropriation Act (Act), which includes legislation offering $900 Billion in COVID-19 Relief. Many of the Act’s provisions were designed to help business owners who are struggling with the effect of the pandemic on their businesses.

$900 Billion COVID-19 Relief Bill Passed by Congress

GREAT NEWS! As part of the federal stimulus act that was passed in Congress last night, eligible business expenses paid with forgiven PPP loans are tax-deductible. As we previously discussed, the Treasury guidance had indicated the opposite. This latest legislation reverses that and allows deductions for these business expenses.

Framework Summary of the Bipartisan COVID Relief Act of 2020

On December 9, 2020, legislators released a Framework Summary of the Bipartisan COVID Relief Act of 2020. The framework calls for an additional $300 billion to be released to the Small Business Administration, providing additional funding that would allow the hardest hit small businesses to receive a second forgivable Paycheck Protection Program (PPP) loan.