$2 Trillion Rescue Package to Combat Coronavirus – Coronavirus Aid, Relief, and Economic Security (CARES) ActOn March 27, 2020, President Trump signed into law the CARES Act worth more than $2 Trillion to stimulate the economy from the effects of the Coronavirus. To provide tax relief to individuals and businesses, the Act:  Makes available checks for individuals of up to $1,200 per adult and $500 per child (subject to a phase out based on prior year tax returns). The credit starts to ...  Read More...

The IRS Extends the Tax Filing and Federal Tax Payment Deadline to July 15th, Relief Provided to Illinois BusinessesOn March 20, 2020, the Treasury Department and the Internal Revenue Service extended the federal income tax filing deadline from April 15th to July 15th. This coincides with the federal tax payment deadline that was extended to July 15th earlier in the week.This new guidance does not provide a limit on the amount of income tax that can be deferred until July 15th. Previously, there...  Read More...

President Trump signed into law H.R. 6201 the Families First Coronavirus Response Act (“the Act”) on March 18, 2020. The Act provides emergency paid sick leave, expands the Family and Medical Leave Act, and provides payroll tax credits to certain employers. Emergency Sick Leave - The new law requires employers with less than 500 employees to provide paid leave to employees dealing with the impact of COVID-19 in the following situations:   Read More...

The Internal Revenue Service formally provided more information yesterday on the deferred April 15th tax payments in Notice 2020-17. The 2019 tax return filing deadline of April 15th has NOT been extended.The Notice indicates that all taxpayers are affected by the Coronavirus pandemic and have been granted a 90-day deferral for their April 15th income tax payments that include not only the 2019 tax return balance due, but also the 2020 1st quarter estimated tax payment. This defers tax payments ...  Read More...

The world has not panicked yet, but the Corona Virus is bringing us close. The news media lets us know daily the number of Corona-related deaths and illnesses. The geographic spread changes by the hour.Newscasters report that many large companies around the world will see sales and profits completely eroded.   Read More...

In a press conference yesterday, Treasury Secretary, Steven Mnuchin, announced that the IRS is giving individuals and businesses an additional 90 days to pay taxes on their 2019 tax returns without being subject to interest and penalties. The payment deadline is extended from April 15th to July 15th. Individuals can defer taxes up to $1 million while corporations can defer up to $10 million.   Read More...

The SECURE Act was signed into law by President Trump on December 20, 2019. The bill was created to help Americans save for retirement. The following are key provisions related to retirement planning.Elimination of the Maximum Age for Contributions to Traditional IRAs – Previously, contributions were only allowed for taxpayers who were under age 70½ during the year.   Read More...

The IRS recently released a completely revamped 2020 Form W-4, Employee’s Withholding Certificate. The new format requires businesses to change the way they determine the amount to withhold for Federal income taxes from an employee’s pay. These changes may significantly impact the way businesses handle payroll, including calculating withholding taxes, reporting it correctly on employee paystubs and W-2 Forms, and maintaining a dual payroll system that integrates the new withholding format alongs...  Read More...

As another tax year comes to a close, it is time to consider your tax planning opportunities. The tax law passed at the end of 2017 continues to have a major impact on your business and personal income tax returns. Year-End Planning:Owners who operate their business as a pass-through entity such as partnerships and S Corporations are entitled to a deduction of up to 20% of their qualified business income (QBI). The deduction can be maximized through salary planning and entity aggregation.20...  Read More...

As the end of the year approaches, it is a good time to think of planning moves that could help lower your tax bill for this year and possibly the next. Year-end planning for 2019 takes place against the backdrop of major changes in the rules for individuals and businesses. For individuals, these changes include lower income tax rates, a boosted standard deduction, and severely limited itemized deductions.   Read More...

The US Department of Labor (DOL) has published its final overtime rule. The final rule will become effective on January 1, 2020. The new rule affects workers who serve in white-collar exempt roles (e.g.   Read More...

Most companies know that their most important asset is their people, but many companies and organizations pay only “lip service” to proper selection, training, motivation, and management of their people. In this article we are going to focus on effective selection or hiring. Today’s very tight labor market requires extreme care in making the right hire. The cost of a bad hire is significant.   Read More...

It is hard to believe that about 18 months have passed since President Trump signed into law the Tax Cuts and Jobs Act (TCJA)—the largest major tax reform in over three decades. As the IRS continues to release guidance on the new law, the following are a few planning opportunities that could provide current and future tax savings.   Read More...

Illinois Announces a Tax Amnesty Program - Illinois enacted two tax amnesty programs that will be available from October 1, 2019 through November 15, 2019. This is the first tax amnesty Illinois has offered since 2010. Under both programs, the Illinois Department of Revenue waives applicable interest and penalties.   Read More...

Included in a flurry of late legislative session activity, Illinois just enacted a new sales tax law to expand the manufacturing machinery and equipment exemption to include production-related, tangible personal property purchased on or after July 1, 2019.Effective July 1, 2019, manufacturers will no longer have to pay sales tax on most of the tangible personal property, supplies, and consumable goods purchased for direct or indirect use in the manufacturing process.   Read More...

What we keep referring to as the new revenue recognition standard isn’t so “new” anymore, as the guidance was issued in 2014. However, considering the many amendments issued in the years following and the delay of the effective date, it is still “new” to many of us. The new revenue recognition guidance is contained in the FASB Codification, Topic 606: Revenue from Contracts with Customers.   Read More...

The world has gotten a lot smaller than it used to be, figuratively speaking of course, because travel and communication have gotten so much better and affordable during the last decade. More people than ever travel to other countries for both business and leisure and more and more companies are finding it essential to expand operations or take advantage of other benefits of doing business beyond their home country. That said, many companies make the mistake of assuming that success at home will...  Read More...

The Illinois Secure Choice program is a mandatory state run retirement plan. It will apply to your company if you meet the state mandated criteria (defined below) and if you do not currently offer a retirement plan to your employees. However, even if your company does offer a retirement plan (such as a 401-k or profit sharing plan) there is action you are required to take.   Read More...

In July, we wrote to tell you about the results of a June 2018 Supreme Court decision that will impact interstate sales for years to come. In the Wayfair case, the Supreme Court ruled that a state can require any seller to charge sales tax regardless of any physical presence in that state by the seller, as long as the seller has a defined economic presence in the state.Interstate Sellers:  Are You Ready for Sales Tax after Wayfair?   Read More...

As another tax year comes to a close, it is time to consider your tax planning opportunities. The tax law passed last December (TCJA) could have a major impact on your business and personal income tax returns.Year-End Planning:The C Corporation tax rate has been reduced to 21%. The tax rate for dividends paid from a corporation are taxed at the same rate as prior years which includes the qualified dividend rate of 15/20% plus the net investment income tax rate of 3.8. 2018 Year-End Planning...  Read More...