Category: Tax

State Pass-Through Entity Tax law changes allow owners to mitigate SALT deduction limits

Recently several states have enacted legislation for a pass through entity (PTE) tax, including states with high income tax rates like California and New York. A PTE tax provides for a state income tax deduction for owners at the entity...

Taxpayers should obtain Identity Protection PIN each year for tax filing security

In an effort to provide enhanced security to federal income taxpayers, the IRS is offering a voluntary, opt-in Identity Protection (IP) program for taxpayers. The PIN is a six-digit number known only to the taxpayer and the IRS and prevents someone else...

SR Client Question: How do I handle taxes for my Health Savings Account (HSA)?

If you have a high deductible health insurance plan (HDHP), then you qualify to make contributions to an HSA up to the maximum limit for the year.  Many times, an employer will also fund some of an HSA as well,...

New online portal for opting out of advance Child Tax Credit payments

The IRS has opened an online site to enable taxpayers to unenroll from receiving advance payments of the 2021 child tax credit (CTC). The new “Child Tax Credit Update Portal” allows parents to view their eligibility, view their expected CTC...

IRS offers ways to determine Reasonable Compensation in Not-for-Profit and For-Profit entities

The IRS, as part of their audit programs, regularly encounters contentious issues in a tax audit of a business.  One of theses is determining the appropriateness of an amount of compensation paid to owner/employees. For instance: Businesses that pay compensation...

Online tool to register for monthly Child Tax Credit payments is now available

  • June 21, 2021
  • Maria Montie, CPA, MST, CVA, MAFF

The Treasury Department and the Internal Revenue Service have unveiled an online Non-filer Sign-up tool designed to help eligible families who don’t normally file tax returns register for the monthly Advance Child Tax Credit payments, scheduled to begin July 15....

HHS issued revised reporting requirements for recipients of Provider Relief Fund (PRF) payments (effective June 11, 2021)

HHS recently revised the Post-Payment Notice of Reporting Requirements, which increases the amount of time to report and extends the deadline for spending for recipients of Provider Relief Fund (PRF) payments.  This includes increasing the amount of time providers will have to report...

Michigan unclaimed property reports are due soon

Michigan unclaimed property reports are due to be filed by July 1, 2021 for any property that reached its dormancy period by March 31, 2021. Most types of property have a three-year dormancy period, but there are others. This manual...

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,...

IRS clarifies changes to the rules regarding dependent care programs

Recent updates to IRS guidance has clarified taxability questions surrounding dependent care assistance programs for 2021 and 2022. Two new federal laws—the Consolidated Appropriations Act (CAA) and the American Rescue Plan Act (ARPA)—have created new opportunities for participants in flexible spending...