17th March 2023
After the winter storms, many California counties have been granted disaster relief. Deadlines are extended until the 16th of October, 2023 for certain filings normally due between the 9th of March and 15th of October, 2023, including individual income tax returns for counties in the disaster area. Full information on the IRS website. The FTB has also granted filing and payment relief for affected counties. Full information is on their Emergency Tax Relief page.
Friday, 2nd December, 2022
Employer Retention Tax Credit: note that expenses used toward PPP forgiveness are not includible in wages used toward the tax credit. The tax credit will also trigger decreased payroll expense (increasing net profit) for the payroll period, not when the credit is issued, which would necessitate filing amended income tax returns -- let us know if you plan to claim the credit. We also recommend working with your current payroll provider instead of an external consultant to file Forms 941x if you plan to claim the credit.
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Monday, 21st June 2021
We are back open for meetings by appointment! We are still maintaining 6 feet of distance and ask that those who are not fully vaccinated wear a face mask.
Friday, 30th October 2020
Even if you've never done end-of-year tax planning, you may want to this year due to the four tax bills passed since December 2019, and the complexity of the IRS withholding calculator, which may have resulted in gross under or over payment. If you took out a PPP loan, it's imperative to plan your loan forgiveness amount.
Don't forget: California assesses a shared responsibility penalty for not having health insurance. There is a premium credit for some taxpayers that may create a refund or balance due.
Tuesday, 8th September, 2020
IRS Notice 2020-65 provides guidance on the Presidential Memorandum to defer Q4 2020 employee payroll tax withholding and payment to Q1 2021. This deferment is optional, and because the taxes won't be forgiven, employers must still withhold and pay the deferred taxes with Q1 payrolls. Most sources recommend NOT participating in the deferral and continuing to withhold and pay taxes as usual.
If you received a PPP loan, watch for forgiveness applications from your lenders. In the meantime, organize your information. You will need payroll amounts and hours for different periods as well as expenses during your covered period. The SBA has all versions of the application here on its website, and they list the information you need.
MONDAY, 30th March, 2020
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) includes stimulus payments of $1,200 for each individual and $500 for each dependent child, defined by the child tax credit rules as under age 17. The IRS will deposit the calculated amount into your bank account or mail a check if there is no bank information on your return using information on your 2019 (or 2018) tax return.
2020 Tax Return: the stimulus rebate is a 2020 refundable tax credit, and the payment received is an advance on that credit. If your 2020 income is less than 2019 because of layoffs, reduced hours and closed businesses, and your rebate payment was reduced by the income threshold, you'll receive a credit for the difference on your 2020 return. If for some reason, you receive too much of an advanced payment, you don't have to pay back the excess.
Non-Filers: if you did not meet the filing threshold for 2018, you may still be eligible to receive an economic impact payment. See the IRS page for more information.
FTB has implemented tax relief. Please see their FAQ Page for information and links to specific information.
Small business owners can apply for payroll protection or EIDL loans modified for COVID-19 relief. Go the the SBA's Corona Virus Relief Page for information and links.
675 Mariners Island Blvd
San Mateo, CA 94404