TBC Information Network

Teal, Becker & Chiaramonte offering valuable insights, impressions and commentary on today’s financial and business world.

Address Correction on Paper Filed Form 1096

The Internal Revenue Service (IRS) has issued an address correction on paper filed Form 1096 – Annual Summary and Transmittal of U.S. Information Returns.  If you are paper filing your Form 1096, you must use the following address: Internal Revenue Service Austin Submission Processing Center P.O. Box 149213 Austin, TX 78714-9213 If you previously submitted… [keep reading…]

Employee Retention Tax Credit

The employee retention tax credit is now available for employers who previously received, or will receive, a Paycheck Protection Program loan.  This change in the law provides significant benefits to employers who have been negatively impacted in 2020 and 2021 due to the economic downturn related to Covid-19.  We have detailed the specifics below.   Feel… [keep reading…]

NYS PPP Deductibility

On January 13, 2021, New York State issued an update on tax conformity related to tax stimulus provisions passed by Congress throughout 2020.  One significant change is related to the taxability of the Paycheck Protection Program (PPP) loan forgiveness income and the related deductibility of expenses paid with PPP funds.  New York State has posted… [keep reading…]

COVID-19’s Impact on State and Local Governments

The pandemic has had a huge impact on the economy. The impact has been far and wide affecting individuals and businesses. State and local governments have also been severely impacted. The pandemic has created significant declines in sales and other taxes and fees because consumption of goods and services have fallen. People are staying home… [keep reading…]

Economic Aid Act – Expanded PPP Guidance

On January 6, 2021 the Small Business Administration (“SBA”) issued two interim final rules (“IFR”) related to the Paycheck Protection Program (“PPP”) and the changes to the program made under the Economic Aid Act (“the Act”).  The Act makes an additional round of PPP funding available through March 31, 2021.  Businesses and self-employed individuals who had not previously taken a PPP loan may… [keep reading…]

Congress Passes COVID-19 Relief Package And Tax Extenders

The Consolidated Appropriations Act, 2021 (the Act) was passed by Congress on December 21, 2020, and has been sent to the President for his signature. This Act, consisting of 5,593 pages, incorporated a significant number of changes and enhancements to the CARES Act and existing tax law. Among the most anticipated items in the Act… [keep reading…]

Tax Planning Ideas for Businesses & Individuals

With tax year 2020 coming to a close here are some tax planning ideas for Businesses & Individuals Business Planning Review your accounting method: Businesses typically use either an accrual method of accounting or the cash basis. Under an accrual method, income and expense is recognized when: 1) All events have occurred to deduct the… [keep reading…]

Cares Act Changes for Eligible Retirement Plans

The Coronavirus Aid, Relief, and Economic Security Act (CARES) brings changes and relief to eligible retirement plans for qualifying emergencies and adverse financial consequences related to the current pandemic. Certain highlights of the Cares Act include: The CARES Act relaxes early distribution rules allowing distributions up to $100,000, waiver of the 10% early withdrawal penalty… [keep reading…]

New York Investment Credit

One of the major benefits of being a manufacturer in New York is the various tax credits that New York offers to businesses whose primary purpose is the production of goods within the state.  Among the most beneficial of these credits is the New York Investment Tax Credit (“ITC”).  Manufacturers who place in service qualified… [keep reading…]

IRS Releases Updated PPP Guidance – No Deduction for Expenses in 2020 if Forgiveness is Expected

On November 18, 2020, the IRS issued Revenue Ruling 2020-27 and Revenue Procedure 2020-51. The revenue ruling denies a deduction for PPP qualified forgiveness expenses if the taxpayer reasonably expects to receive forgiveness of the PPP loan regardless of whether the taxpayer has submitted a forgiveness application by the end of 2020. This pertains to… [keep reading…]

Teal, Becker & Chiaramonte Certified Public Accountants