Consolidated Appropriations Act of 2021

On 12/27, the President signed the Consolidated Appropriations Act of 2021 (the CAA) into law.

We wanted to take this opportunity to highlight critical information for our clients.  Please be aware that this law is less than two weeks old, and so we do not have all the details yet.  Please consider this a “big picture” email, and we will work diligently to get into the details as soon as they are available.  More information is coming!

PPP Expenses – These expenses are now fully deductible.

PPP Forgiveness – Loans of $150,000 or less can use the simplified application (the SBA has 24 days from 12/27 to prepare this form, but then the banks will need time to update their systems)

PPP Second Round – There is a second round of PPP available – but it is very limited.  You may be able to get more PPP funding if you can show a reduction in gross receipts.

Payroll Credits – there were quite a few changes and extensions to various coronavirus payroll credits – if you feel that you qualify for one of these, or would like to discuss further, please contact your CPA

EIDL Advance – The EIDL advance now does not reduce the amount of the PPP forgiveness, and the EIDL is not included in taxable income.

Big 1099 Changes – If you are required to issue 1099s – there are big changes here.  The 1099-MISC form for services (used to be Box 7 of Form 1099-MISC) has been replaced by a new 1099-NEC form.  The deadline for this form is Feb. 1 with no extensions.  The penalties for late filing is $110 per form if filed before 8/1, $270 per form if after 8/1, and $550 if found that the form was willfully not filed.

Form 1099 FAQ

Form 1099Form 1099 is something that most people have heard of, seen or even received.  Even those people are not 100% sure about what are they, who gets them, who needs to send them, and why? [Read more…]

Kim’s Fuss-a-Thon

Kim 200x200Kim Fourman, Certified Public Accountant, at Loggins Kern & McCombs shares some of her new year’s cheer on a recent post from her husband’s blog, Luke 1428.  Enjoy her post and get some great pointers for small businesses, here  January Fuss-a-Thon.

Thanks Kim!

QuickBooks – 1099 Printing Issue

QBPA Advanced LogoFor tax season 2013, the Internal Revenue Service has updated the 1099-MISC form layout slightly.  Anyone who prints their own 1099-MISC forms from QuickBooks, please be aware that the only QB version that will print correctly is 2014.  The IRS will not accept forms that are printed incorrectly.   [Read more…]

Form W-9 and 1099 Basics

 

Tax season is coming soon. Why not get a head start?

A vendor providing goods or services to your company that is not incorporated may require additional tax forms for the IRS called the W-9 and 1099. Generally, this occurs when hiring independent contractors to whom your business has paid over $600 to during the tax year. Failing to file these forms may lead to large penalties or a backup withholdings of 28% of reportable payments. It is important to understand and file the correct forms in order to avoid these penalties as the IRS is aggressively enforcing these rules.

Form W-9

W-9 is the IRS’ “Request for Taxpayer Identification Number and Certification”. It identifies the entity’s name, address, type of entity, and taxpayer identification number. This is either the employer identification number (company) or social security number (individual). All vendors should complete a W-9 form if over the $600 threshold. Payments to corporations as vendors generally do not require a W-9 form with the exception of attorneys and law firms.

[Read more…]

Collect Form W-9 Now!

It is  extremely important to maintain Form W-9, Request for Taxpayer Identification Number and Certification, on all people you pay to perform services for your business.  This form enables you to correctly file necessary information returns (like 1099s) during the month of January each year.  Since January is right around the corner, [Read more…]