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The IRS has changed the 1099 reporting requirements related to nonemployee compensation.  Nonemployee compensation will now be reported on Form 1099-NEC rather than Form 1099-MISC.  As was the case under the old rules, only payments for services of $600 or more require a 1099-NEC. If the recipient is taxed as...

The employee retention credit (ERC) was created as part of the CARES Act from March 2020. The latest COVID relief law includes important changes to the ERC and extends the credit through 6/30/2021. Employers must still meet one of two tests in 2021 to qualify for the credit: Full or...

The COVID-related Tax Relief Act of 2020 was signed by President Trump as part of the Consolidated Appropriations Act.  A second round of stimulus checks was included in this new law. Taxpayers are eligible for a rebate payment up to $600 ($1,200 for joint filers) plus $600 for each qualifying...

A new COVID-19 relief package was passed by the House and Senate on 12/21/2020 and is awaiting the President’s signature.  It includes changes to the existing PPP program and approves a second round of the PPP funding. Original PPP Loan Changes The new law includes a long-awaited fix regarding the...

The TCJA limited the state and local tax (SALT) itemized deduction to $10,000, which essentially increased the federal income tax on many small business owners operating as passthrough entities (PTE) (i.e. partnerships and S corporations).   For federal purposes, a PTE’s income is taxed on the individual income tax return and...