February 18, 2019
While we’re now two weeks removed from Punxsutawney Phil’s early spring prognostication, spring doesn’t really come for us at LBF Group until after April 15th. As we’ve fully entered tax season, I see different variations of the same two texts regularly. Loosely speaking, they ask:
1.) I saw/heard (some program, article, etc.) that said my refund this year will be either
So what should I expect?
2.) Is (insert expense) deductible for me this year?
The answer for 1.) is always varied, as it depends on a variety of factors, and usually prompts a longer phone call. This is why you’d come into the office.
The answer for 2.) is far simpler. I direct them to go to the IRS Interactive Tax Assistant website (https://www.irs.gov/help/ita ), encouraging them to use the search bar. For most categories, there’s an intuitive interactive questionnaire that should help set expectations, including hyperlinked definitions of most common terms. Most shy away from anything with an IRS label, but unlike phone calls, there’s no need to wait on hold, and at the very least this is a good resource to use as a starting point.
We'd like to draw your attention to the new 1099 forms for 2021. If you (as a business) prepare your own 1099’s, please be aware of the changes:
1099-NEC: This form reports nonemployee compensation and/or nonqualified deferred compensation (NQDC). If you are in the trade or business of catching fish, Box 1 may show cash you received for the sale...
We are pleased to announce that Congress changed some of the PPP rules over the weekend. It is important to note that several of the rules have been relaxed; those of you who were getting close to the end of your “8 week window” can now take a deep breath, as that period has been extended. As always, we are staying up-to-date as the new rules are rolled...
Many of you reading this have received, or will soon receive, the Payroll Protection Program (PPP) loan. And that’s good news. Not surprisingly, however, this distribution now shifts the focus to “what qualifies as forgiveness under this program?”
As of now if you spend at least 75% on payroll costs over an 8-week period, from the date you received the funds,...