Throughout 2020, Congress released numerous pieces of legislation designed to lessen the impact of the COVID-19 disruption, particularly for organizations that struggled to maintain their headcounts. One provision involved a refundable credit that organizations could apply against qualified wages and certain health insurance costs – the Employee Retention Tax Credit (ERTC).
Topics: IRS, tax relief, tax credit, COVID19, Coronavirus, CARES Act, PPP, PPP Loan Forgiveness, Consolidated Appropriations Act, Employee Retention Tax Credit, The Act, ERTC
The Employee Retention Tax Credit (ERTC) was established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, but limitations on its availability tempered interest in the relief measure. That is about to change, thanks to significant changes made on Dec. 27, 2020, by the Consolidated Appropriations Act, 2021 (the Act). The ERTC is now available to employers that received loans under the Payroll Protection Program (PPP), so any employer meeting ERTC eligibility criteria can benefit. Because employers potentially benefit from the enhanced ERTC on a retroactive basis, employers should immediately begin analyses to identify and calculate the value of retroactive or prospective ERTC benefits.
Topics: IRS, tax relief, tax credit, COVID19, Coronavirus, CARES Act, PPP, PPP Loan Forgiveness, Consolidated Appropriations Act, Employee Retention Tax Credit, The Act, ERTC
As companies plan for 2021, driver-based analysis will be vital for proactive decision-making and managing a shifting business environment. Manufacturers commonly monitor business activities through key performance indicators (KPIs) that boil down financial and production outputs into meaningful operational insights. As you enter an accelerated recovery mode, your management teams should take inventory of your current processes to unlock data-driven decision-making on a day-to-day basis across your business.
Topics: IRS, tax relief, Business Interest Expense, COVID19, manufacturing, distribution, recovery, KPIs
Late Friday, the IRS released guidance that implements President Trump’s executive order permitting employers to defer certain employee payroll taxes. The IRS guidance provides key details on employee eligibility, the repayment period, and employer responsibilities. But the IRS guidance leaves some questions unanswered, even as the optional deferral period takes effect September 1. Importantly, the IRS guidance could cause an economic hardship for many employees while exposing employers to a new contingent liability.
Topics: IRS, tax relief, payroll taxes, COVID19, Employee Payroll Tax Deferral
Businesses that hold inventory for sale to customers are in for a bit of good news. Late last month, the IRS released final regulations on the business interest expense limitation, and eased up on proposed guidelines that would have curtailed larger deductions for business interest expense by businesses that capitalize certain expenses under Section 263A’s Uniform Capitalization rules (UNICAP).
Topics: IRS, tax relief, Business Interest Expense, COVID19, manufacturing, distribution, Uniform Capitalization rules, UNICAP
Manufacturers and distributors were among the first sectors to feel the impact of the COVID-19 pandemic. Supply chains took an immediate hit as travel restrictions and distancing guidelines went into place across the globe. Organizations may continue to feel the effects during the recovery phase as social distancing guidelines augment typical production environments and suppliers respond to the financial repercussions of the pandemic’s disruption.
Topics: tax relief, COVID19, Coronavirus, supply chain, manufacturing, distribution
The IRS has issued guidance on its current Offshore Voluntary Disclosure Program (OVDP) and tightened eligibility requirements. Good news: taxpayers with undisclosed foreign accounts and assets can “come clean” in exchange for reduced penalties and protection against criminal prosecution.
Topics: tax issues, Kristen Shepley, tax, IRS, OVDP, U.S. citizens, Offshore Voluntary Disclosure Program, tax relief
