Benjamin Franklin once said, “There were only two things certain in life: death and taxes.” This quote has never been more valid than this 2020. This year has been a rough for everyone. From the richest to the poorest, COVID-19 has affected us all in more ways than one.
For businesses, staying afloat has been the number one goal. Unfortunately, the looming economic recession makes it impossible for the IRS to stop collecting. So, besides keeping your business alive, you also need to keep an eye on updates regarding tax policies that may affect you.
You can read more about why the IRS can only give so much leeway to business with this article by Alistair M. Nevius.
IRS will not postpone July 15 deadline
The IRS announced late on Monday that it will not further postpone federal tax filing and payment deadlines beyond July 15 (IR-2020-134). In response to the hardships caused by the COVID-19 pandemic, most tax deadlines between April 1 and July 15 were moved to July 15 in Notice 2020-23.
The IRS reminded taxpayers in its announcement that they can apply for an automatic extension of time to file until Oct. 15 but must pay their taxes due by the July 15 deadline. Click here to read more…
One of the few things that keep hundreds of thousands of businesses from going under is the CARES Act. Under it is the Payroll Protection Program by the Trump administration. This program aims to assist companies in paying their employees to avoid mass unemployment in the US.
However, just like with any business subsidy, beneficiaries need to consider the possible tax implication of the amounts they receive. The urgency brought about by the COVID-19 pandemic has made the clarification of some new tax policies snail-paced.
This article by Paul Bonner on the Journal of Accountancy discusses some of these uncertainties. He also discusses Annette Nellen, Esq., CPA, CGMA’s presentation “Tax Planning Considerations of Temporary TCJA Dismantling”.
Tips for untangling CARES Act tax quandaries
The global pandemic has offered many lessons in impermanence, including how parts of the tax reform legislation that seemed monumental upon its passage two and a half years ago have been temporarily rolled back to provide badly needed relief.
Nellen’s presentation is a session within the Tax Strategies for the High-Income Individual focus of ENGAGE, which is sponsored by the AICPA and the Chartered Institute of Management Accountants (CIMA) and is one of the largest accounting and finance conferences in North America. Click here to read more…
Getting through the pandemic is an effort that we, as a nation, must do together. Although paying taxes places a heavy burden on businesses like yours, it is one of the best ways we can help the country recover. An accountant is a great companion during this time of uncertainty. Here at Aldaris CPA, we pride ourselves on providing top-notch accounting services to individuals and businesses. You can rely on our advisory services to help you get back up your feet during this pandemic. We can also assist you with your tax preparation needs. Contact us now to learn more!