The IRS released additional guidance (Notice 2021-49) for the employee retention credit (ERC) on August 4th, 2021 that amplifies previous guidance issued in Notice 2021-20 and Notice 2021-23. Notice 2021-49 also clarifies some areas for both 2020 & 2021 and it also provides guidance for Q3 & Q4 2021.
Summary of Key Proposed Changes to Tax Law Under the Biden Administration [Updated]
Although there is significant uncertainty on which proposals will be enacted into law, it is expected that President Biden’s infrastructure plan will bring a variety of changes to the nation’s tax policies. Below is a summary of some of the key proposals to the tax law, and potential planning strategies for consideration.
Employee Retention Tax Credits for 2020 & 2021
Summary of Tax Provisions in the American Rescue Plan Act of 2021
Signed into law on March 11, 2021, the American Rescue Plan Act (ARPA) provides $1.9 trillion of economic relief with many provisions targeted towards the pandemic such as: direct stimulus payments of $1,400, increasing the child and dependent care credit, and extends the employee retention credit through 2021. Below is a brief summary of key provisions.
Tax Day for Individuals Extended to May 17, 2021
Tax Filing Deadlines are Coming Up Fast
Impact of ASC 606 on Common Interest Realty Associations (CIRA)
Accounting & Reporting Update: In June of 2020, the financial accounting standards board (FASB), issued accounting standards update (ASU) 2020-05, halting the implementation of ASU 2014-09, Revenue from Contracts with Customers (ASC 606) and delaying the required implementation to January 1, 2020. Entities that had not yet issued their financial statements for the fiscal year ending December 31, 2019 were eligible to push back implementation.