We have just completed the second tax year of heavily pandemic-influenced tax and business legislation, which included some highly unusual provisions that impacted both individuals and businesses. Although the “Infrastructure Investment and Jobs Act,” which passed in November, and the Build Back Better Act, which was not enacted, once included significant sweeping tax law change…
Recently, we’ve been hearing questions from our clients about whether they qualify for the Employee Retention Tax Credit. Employers eligible for this tax credit must have been in business in 2020 or 2021, and meet one of the following benchmarks: The Government Order: The employer must have experienced “a calendar quarter in which the trade…
The Background The American Rescue Plan Act of 2021 was signed into law by President Biden on March 11, 2021. Embedded in the act is an expansion of the child tax credit, and more notably, a new method of delivery. The IRS will use its methodology for delivering stimulus money to millions of Americans to…
The recently passed American Rescue Plan included a stipulation that allows certain employers to claim refundable tax credits that will reimburse them for the cost of providing paid sick leave if their employees suffer from Covid–19 or need to take time off for Covid–19 vaccinations. These tax credits are available from April 1 through September…
IRS Announces Extended Filing Deadline The Internal Revenue Service announced that the April 15, 2021 tax filing deadline has been extended until May 17, 2021 for Form 1040 filings. This delay of the filing deadline only applies to Form 1040 filings. Corporations, trusts, and first quarter estimated tax payments for individuals remain due at April…
It’s hard to believe that one year ago the SBA PPP program did not exist. Now it is a prominent part of our business vocabulary. Your trusted advisors at Eaton, Babb & Smith have spent countless hours studying the legislation that brought it into being and the interim final rules that have changed it multiple…
In December, Congress passed a large economic stimulus package that President Trump signed into law on December 27, 2020. This package contains several tax and business provisions aimed at stimulating the economy as we navigate the pandemic. As much of this information is pertinent to our clients, we’ve broken down some of the key points…