Charles E Marchese CPA

At this time, business owners with payroll may be receiving IAS surcharge letters in the mail regarding their NYS unemployment interest assessment surcharge.

New York State borrowed funds from the federal government to maintain UI (unemployment) and pandemic benefits while the pandemic programs were in effect. NYS law requires contributing employers to pay an annual Interest Assessment Surcharge, or IAS.

The rate is 0.18% on subject wages from Q4 2021 to Q3 2022.

Your required amount can be paid by check, or you can forward the letter to your payroll company to include on your NYS-45 filing for the second quarter.

If you are in need of payroll services don't hesitate to give us a call!

IRS provides broad-based penalty relief for certain 2019 and 2020 returns due to the pandemic 💸

COVID tax relief: IRS provides broad-based penalty relief for certain 2019 and 2020 returns due to the pandemic; $1.2 billion in penalties being refunded to 1.6 million taxpayers | Internal Revenue Service IR-2022-155, August 24, 2022 — To help struggling taxpayers affected by the COVID-19 pandemic, the IRS today issued Notice 2022-36, which provides penalty relief to most people and businesses who file certain 2019 or 2020 returns late.

North Carolina says it will tax Biden's student loan forgiveness and more states are likely to follow suit. According to the Tax Foundation, 13 states could treat Biden’s student loan forgiveness initiative as taxable income to borrowers. The states are Arkansas, Hawaii, Idaho, Kentucky, Massachusetts, Minnesota, Mississippi, New York, Pennsylvania, South Carolina, Virginia, West Virginia, and Wisconsin.

Biden’s Student Loan Forgiveness Could Be Taxable In Some States The Biden administration has confirmed that student loan forgiveness won’t be a taxable event at the federal level. But at the state level, things get a bit more complicated. Here’s what you need to know.

Income tax withholding

What people new to the workforce need to know about income tax withholding | Internal Revenue Service Tax Tip 2022-94, June 21, 2022 — For many new grads and other people entering the workforce for the first time, filling out new hire paperwork can be confusing — what’s a W-4, anyway? New employees should ensure they understand their tax situation and do some planning now, so they’re in good...

🆕 In order to opt-out of the advance child tax credit, you will need to sign in or create an account with the IRS. If you don’t have an existing IRS username or ID.me account, have your photo identification ready.

Child Tax Credit Update Portal | Internal Revenue Service Unenroll if you don’t want to get advance Child Tax Credit payments or check if you’re enrolled.

⭐️ Important changes to the Child Tax Credit will be starting this summer. The IRS will pay half the total credit amount in advance monthly payments beginning in July & you will claim the other half when you file your 2021 income tax return. At some point in the near future you will have the option to opt-out of this credit. Taxpayers, please keep in mind that receiving this credit in advance will reduce your federal refund by the same amount since you will have already received it during the year ⭐️

The IRS will begin issuing refunds this week to taxpayers who paid taxes on 2020 unemployment compensation & filed their tax return before the American Rescue Plan was recently enacted! 💸

IRS begins correcting tax returns for unemployment compensation income exclusion; periodic payments to be made May through summer | Internal Revenue Service IR-2021-111, May 14, 2021 — The Internal Revenue Service will begin issuing refunds this week to eligible taxpayers who paid taxes on 2020 unemployment compensation that the recently-enacted American Rescue Plan later excluded from taxable income.

A group of 250 CEOs and business leaders sent a letter to New York’s governor and legislators expressing “alarm” at what they say could become the largest spending and tax increase in the state’s history.

250 CEOs and execs express 'alarm' over what could become the largest tax hike in New York history They urged politicians to postpone any tax increases until after the state and New York City have more fully recovered from the pandemic and workers return.

💸 Taxpayers who received unemployment benefits in 2020 with adjusted gross income less than $150,000, don’t have to pay tax on the first $10,200 in unemployment compensation.

💲 For those who received unemployment benefits last year and
have already filed their tax return, the IRS emphasizes they should NOT file an amended return at this time, until the IRS issues additional guidance.

IRS offers guidance on unemployment benefits exclusion The Internal Revenue Service posted information about how to correctly compute the new exclusion on a portion of unemployment income as Congress pushes the IRS for further tax-filing relief.

10 Tax Tips For Filing Your 2020 Tax Return 📑

IRS Warns Of Delays And Challenging 2021 Tax Season: 10 Tax Tips For Filing Your 2020 Tax Return The Internal Revenue Service says taxpayers should expect limited face-to-face operations, heavy call volume and paper-processing delays.

If you're a small business owner and your sales have decreased 25% in any quarter from 2019 to 2020, you may qualify for a second round of funds from the Payroll Protection Program ‼

What Small Business Owners Need To Know About The New Round Of PPP Loans The SBA and the U. S. Treasury Department, which oversee the PPP plan to open the program to all small businesses soon, and while the exact date is still not confirmed, it is likely to be sometime during the week of Jan. 18, 2021.

The IRS has announced that they will not officially open tax season on their end until February 12th 📣

IRS to delay tax season until Feb. 12 The Internal Revenue Service plans to open filing season on Feb. 12, although it is making its Free File program available starting Friday.

Due to the current state of the pandemic, we have made the very difficult decision to not accept in-office appointments this year. Please know that this was a very difficult decision & is being made for the health and safety of all of you as well as our staff. This does not change the quality of service that you have grown accustomed to in the past & will continue to receive. All lines of communication will continue to be open, including email, telephone, and fax. To assure the confidentiality of all our clients, please give us a call before dropping off or picking up any tax documents! 📑

As we get closer to the 2020 tax filing season, there have been a lot of questions regarding the second stimulus check going out, also known as EIP payments 💸 Within 15 days of receiving your check, you should receive a notice in the mail from the IRS regarding your payment. It would be great to keep that handy with your tax records! When filing this year, there will be a Recovery Rebate Credit that we will reconcile on your tax return. Having that notice handy will provide us with the exact amounts you received that way we can figure out if you should have received more (or in some cases less)! This is also great if you did NOT receive a stimulus check and you were entitled to.

According to the WSJ, more than 70% of Americans don’t know that telecommuting from another state can affect a worker’s state-tax for 2020. If you’ve worked from home this year due to COVID-19, and that home is in a different state from your office, now is the time to think about your taxes immediately. Acting now could help avoid surprise bills, interest and penalties when filing state taxes next year.

For Remote Workers, Time Is Running Out to Fix State-Tax Messes Act now if you’ve worked remotely from another state in 2020—or else.

🔑 Key changes that may or may not help you when it comes time to prepare your 2020 tax return! We knowwww, tax season just ended, but the new year is quickly approaching and before you know it the time will be here to file for 2020!

💵 Stimulus checks: if you did not receive yours, you will be able to apply for the credit on your 2020 return

💸 Required Minimum Distributions: waived for 2020

🩺 If you took money out of a 401(k) you may be waived of the 10% penalty if the withdrawal was related to COVID-19. Certain requirements must be met.

👩‍🏫 The standard deductions will be increasing, along with changes to tax brackets

📓 Employers are eligible to pay down up to $5,250 in employees college loans in 2020. The payments are excluded from the employees wages for federal tax purposes

👵 Lifetime estate and gift tax exemption for 2020 jumps from $11.4 million to $11.58 million

And more!

Tax Changes and Key Amounts for the 2020 Tax Year | Kiplinger Americans are facing a long list of tax changes for the 2020 tax year...and it's never too early to start thinking about next year's return.

We are approaching that time where banks will officially open the PPP loan forgiveness application process! Each bank is unique in their own process but keep in mind that you will receive a notification when the application is available - we are here to help!

Fun fact! 👩‍💼 If your funding was $50,000 or less, you will have the opportunity to apply for forgiveness using a simplified application. The 3508EZ and the 3508S are shortened versions of the application for borrowers who meet specific requirements. Under this new process, borrowers will be exempted from penalties for reduction of full-time employees or employees’ salary or wages.

Why You Shouldn’t Worry About PPP Loan Forgiveness Yet Since the launch of the Paycheck Protection Program, lenders, accountants, loan marketplaces, and other experts have been hearing the same question from borrowers: What do I do about loan forgiveness?

The September 15th deadline is quickly approaching! If your partnership or S-Corp is due in the upcoming weeks, do not wait until the last minute. We are here Monday-Friday (9am-5pm), get us your info!!

As we approach the upcoming election, I'm sure a lot of you are wondering what could potentially change for us as taxpayers. Crowe LLP has put together the 2020 presidential candidates’ proposals for us to decide who has the better stance on individual tax policy. 👩‍⚖️

Election 2020: Trump vs. Biden on tax policy Top 10 Firm Crowe has put together an at-a-glance guide to the candidates' positions on individual taxes.

We have been getting a lot of questions regarding unemployment benefits that a lot of you are collecting due to the pandemic. Please keep in mind these benefits are taxable just like any other income. You can request to have taxes withheld, if you have not done so already! The default amounts are 10% federal and 2.5% state. At the end of the year you will be issued Form 1099-G to report on your tax return.

Are Your Unemployment Benefits Taxable? Are your unemployment benefits considered taxable income?

Not sure how much tax you should pay in throughout the year? Or if you will be underpaid/overpaid for 2020? Now that we are more than halfway through the year, it's a perfect time to see where you stand! Use the attached Tax Withholding Estimator tool to find out 💰

apps.irs.gov

Meet the newest addition to our team, Coco! 🐻

According to a 2016 study by Banfield Pet Hospital, pet-friendly workplaces offer several benefits, including boosting employee morale & reducing employee stress. We couldn't agree more!

A quirk of the IRS deadline extension means government interest payments to taxpayers on many refunds started accruing April 15!

IRS Will Pay Interest on Late Refunds—Even for Those Who Haven’t Filed Yet A quirk of the IRS tax deadline extension means government interest payments to taxpayers on many refunds started accruing on April 15.

A friendly reminder that the July 15th deadline is upon us! The WSJ provides us with some tips and tax-law twists to keep in mind as you put together your documents.

What Late Tax Filers Need to Know As the July 15 filing deadline approaches, here are tips and tax-law twists to keep in mind.

NYS is currently in the process of reopening 🤞 For all the businesses that have been considered essential throughout this pandemic, you are now required to develop a Safety Plan that will outline how your work environment will prevent the spread of COVID-19. Although your plan does not need to be submitted to a state agency for approval, the Department of Health has put together a template for you to use.

www.governor.ny.gov

NYS has provided us with a tax due date calendar for anyone questioning when their tax payments and filings are due! Please check out their site for constant updates that are always changing during this time.

- Corporation franchise tax
- Personal income tax
- Sales tax
- Withholding tax
- MCTMT tax

Tax filing calendar

The IRS announced Monday it is hiring 3,500 new phone operators to answer taxpayers’ questions about economic impact payments, also known as stimulus checks. If you have concerns as to why you have not received an economic impact payment, or any additional questions, please reach out to them at 800-919-9835.

IRS mobilizing 3,500 phone operators to answer stimulus questions With many taxpayers still having problems using the Internal Revenue Service’s “Get My Payment” website, the IRS announced that it is mobilizing 3,500 telephone representatives to answer some of the most common questions about economic impact payments.

Fun fact! If you are delinquent in filing prior years tax returns, right now may be the best time to do so. You have three years to file a return and claim your refund! 💸 Once that time frame expires, even after you file and bring your status current, the IRS is entitled to keep your money. Returns for the year 2016 would have been due on April 15th - but due to the current circumstances, you now have until July 15th! Don't wait until the last minute. We may not be able to have face-to-face appointments at this time, but we are still here to assist you!

Looking for some guidance on the PPP Loan? Forbes provides us with a deep dive, answering a lot of your questions!

SBA Releases Paycheck Protection Program Loan Forgiveness Application: A Deep Dive On Friday, the SBA released an application for borrowers of a PPP loan to request forgiveness. How does it work?

We can't control the forces of nature, but we can control how we respond. Businesses all over are facing a time of uncertainty. If you need assistance applying for any of the SBA loans, such as the Payroll Protection Program, do not hesitate to reach out.

Have questions about your stimulus check? If you are looking to track your payment or have your stimulus check direct deposited, use the appropriate IRS tool to do so!

Economic Impact Payments | Internal Revenue Service We’re committed to helping you get your economic impact, or stimulus, payment as soon as possible. See if you are eligible for an Economic Impact Payment.