Category: SR Client Questions
SR Client Question: Are theft losses deductible?
Theft losses are NOT deductible under the current law, which was enacted as part of President Trump's 2017 Tax Cuts and Jobs Act. If a person is scammed out of their retirement savings, they have to pay taxes on the...
SR Client Question: Is there a time limit on claiming a tax credit or refund?
Answer: The latest date, by law, you can claim a credit or federal income tax refund for a specific tax year is generally the later of these two dates: 3 years from the date you filed your federal income tax...
SR Client Question: What is considered a “service” for 1099 reporting purposes?
In light of the higher penalties for failure to file Form 1099s correctly, examining your business' vendor payments is more important than ever before. While many transactions will be fairly straightforward and clearly not merit a 1099-NEC, some vendor lines...
SR Client Question: Is a salary advance taxable?
Some employers offer employees the option of requesting a salary advance ahead of the standard payment date; for instance, the paycheck would be issued on the first of the month, as opposed to the standard payday of the 15th of...
SR Client Question: Do I issue a Form 1099 to a law firm collecting fees for my medical practice?
When a medical practice or other business engages, on a contingent basis, a law firm or other third party to collect outstanding fees or invoices on its behalf, there are two different tax code sections that are relevant. Assuming that...
SR Client Question: What happens if a PPP loan is defaulted upon?
A Paycheck Protection Program (PPP) loan default is treated just like any other SBA loan guaranteed by the government to a lender (under the 7A program, the government secures 85% of a loan to the bank; for PPP loans, the...
SR Client Question: Why haven’t I received my tax refund yet?
There are various factors leading to the Internal Revenue Service's delayed processing of 2020 federal income tax returns. Typically, the IRS sends most refunds within three weeks of taxpayers filing their return. But this year is complicated by several issues,...
SR Client Question: Do I owe Michigan sales tax when I buy a vehicle from a business I own?
The transfer of vehicles from a business entity to the owner of the business is addressed in Revenue Administrative Bulletin 1991-1 and makes, in most instances, the transfer or "sale" of a vehicle from a business to its owner exempt from owing State...
New year is good time to review basic rules surrounding Forms 1099-MISC and W-9
For most businesses, January means the annual completion of Forms 1099-MISC, which makes this a good time to review the basics surrounding this standard reporting procedure. In general, amounts paid in the course of your trade or business to a...
SR Client Question: Do I need to refile my unemployment claim to receive extended benefits?
The newly passed COVID-19 Relief Bill offers extended federal unemployment benefits for states like Michigan. It appears, at least at this time, that recipients currently receiving unemployment benefits do NOT need to refile to be eligible for the extension. There...