2021 Tax Season to begin on February 12, 2021

 

2021 tax filing season set to begin February 12

The IRS will begin accepting and processing 2020 tax year returns on Friday, Feb.12, 2021.

Please contact our office to prepare your 2020 tax return.  We can accept your tax documents either virtually or in person.  We also offer curb-side document drop off and pick up.  Call our office to schedule an appointment or drop off your tax documents at your convenience.  718-227-6035 for details. www.gosucpa.com

People who are ready to file can begin filing their tax returns as soon as they have all of their 2020 tax documents. Our office is accepting tax documents and will prepare completed tax returns now and hold them until the IRS begins processing returns on Friday, Feb.12. The quickest way for taxpayers to get a tax refund is by filing electronically and choosing direct deposit for their refund.

Most earned income tax credit or advanced child tax credit related refunds should be available in taxpayer bank accounts or on debit cards by the first week of March, if they choose direct deposit and there are no other issues with their tax return.

By law, the IRS cannot issue refunds before mid-February for tax returns that claim the earned income tax credit or ACTC. The IRS must hold the entire refund — even the portion not associated with EITC or ACTC. This helps ensure taxpayers receive the refund they deserve and gives the agency more time to detect and prevent errors and fraud.

To make filing easier, taxpayers should:

• File electronically and use direct deposit for the quickest refunds.
• Check IRS.gov for the latest tax information. There is no need to call the IRS.

Those who may have been eligible for stimulus payments should carefully review their eligibility for the recovery rebate credit. Most people received Economic Impact Payments automatically and those who received the maximum amount don’t need to include any information about their payments when they file.

They received the full amounts of both Economic Impact Payments if:

• Their first Economic Impact Payment was $1,200 for individuals; $2,400 married filing jointly for 2020, plus $500 for each qualifying child born in 2020.
• Their second Economic Impact Payment was $600 for individuals; $1,200 married filing jointly for 2020, plus $600 for each qualifying child born in 2020.

People who didn't receive the payments or only received partial payments may be eligible to claim the recovery rebate credit when they file their 2020 tax return, even if they are normally not required to file a tax return. Our tax preparation software will help taxpayers figure the amount.

Taxpayers should remember that stimulus payments they received are not taxable, and don’t reduce the amount of their refund.

Important filing season dates

Friday, Feb. 12. IRS begins 2021 tax season. Individual tax returns start being accepted, and processing begins.
Thursday, April 15. Due date for filing 2020 tax returns or requesting extension of time to file.
Thursday, April 15. Due date for paying 2020 tax owed to avoid owing interest and penalties.
Friday, Oct. 15. Due date to file for those requesting an extension on their 2020 tax returns.

Bookkeeping requirements for Tax Compliance and Other Business Needs

 

Do I need a Bookkeeper? What does a Bookkeeper do?

Bookkeepers are responsible for recording and maintaining a business’ financial transactions, such as purchases, expenses, sales revenue, deposits, credit card transactions, invoices, and payments. The bookkeeper will record financial data into general ledgers, which are used to produce the balance sheet and income statement. The bookkeeper is generally responsible for overseeing the first six steps of the Accounting Cycle, while the last two are typically taken care of by an Certified Public Accountant (CPA).

Bookkeepers lay the groundwork for accountants to analyze and prepare the financial statements. Bookkeepers use software, such as Quickbooks or Sage,  to assist with the recording of transactions and generally use built-in data processing tools to help in the preparation of the general ledger.

If you require assistance with your bookkeeping, our office can supplement your existing team.  For example, your team may want to control the bank deposits, payroll, and bill payment.  We can handle what accounting items are left.  Call today for a free consultation. 718-227-6035 ext. 301, info@gosucpa.com, or visit us at Staten Island CPA

E-Commerce CPA - Provides expert information regarding E-Commerce businesses

 E- Commerce advice from a Staten island, NY CPA

E Commerce  is defined as "commercial transactions conducted electronically on the internet."

There are four traditional types of ecommerce, including B2C (Business-to-Consumer), B2B (Business-to-Business), C2B (Consumer-to-Business) and C2C (Consumer-to-Consumer). There's also B2G (Business-to-Government), but it is often lumped in with B2B.

There are many platforms, and these are ever changing and expanding. Some include:

Ebay

Etsy

Amazon

Zuilly

Businesses also often sell direct thru their own website or platform.

Where you sell or what you sell can be equally important to your business model. Finding your target audience is as important as finding the right product or service to sell.

Concerns you may have for your e-commerce business:

Physical nexus vs Economic Nexus

Sales tax

Income Tax

State Tax

Inventory

Costs Accounting

Our Staten Island, NY office of Certified Public Accountants (CPA) is only a phone call away.

We can assist you with bookkeeping, tax preparation, business plans, and advice for business development. We work with clients at your place of business, our office, or remotely.

Goldenthal & Suss Consulting PC

David C Egan, CPA

4218 Amboy Rd

Staten Island, NY 10308

718-227-6035

www.gosucpa.com

Update from the IRS

 Eligible Paycheck Protection Program expenses now deductible

WASHINGTON – The Treasury Department and the Internal Revenue Service issued guidance today allowing deductions for the payments of eligible expenses when such payments would result (or be expected to result) in the forgiveness of a loan (covered loan) under the Paycheck Protection Program (PPP).

Today’s guidance, Revenue Ruling 2021-02, reflects changes to law contained in the COVID-related Tax Relief Act of 2020, enacted as part of the Consolidated Appropriations Act, 2021 (Act), Public Law 116-260, which was signed into law on Dec. 27, 2020.

The COVID-related Tax Relief Act of 2020 amended the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to say that no deduction is denied, no tax attribute is reduced, and no basis increase is denied by reason of the exclusion from gross income of the forgiveness of an eligible recipient’s covered loan. This change applies for taxable years ending after March 27, 2020.

Revenue Ruling 2021-02 obsoletes Notice 2020-32 and Revenue Ruling 2020-27. This obsoleted guidance disallowed deductions for the payment of eligible expenses when the payments resulted (or could be expected to result) in forgiveness of a covered loan.

For more information about this, the COVID-related Tax Relief Act of 2020, and other tax changes, visit IRS.gov

 IMPORTANT UPDATE: Status of Stimulus Package Related to PPP Loans

On December 21st, Congress passed a new COVID-19 economic stimulus bill that was signed by President Trump on December 27th. After the bill is signed into law by the President, the Treasury and the Small Business Administration will have 10 days to implement the amended law. As we head into the Holiday season, this can delay the process. At this time, the bill appears to be heading back to the house for a vote on increasing the stimulus from $600 to $2000. As we await further guidance here is what we know so far:

Authorized $325 Billion for PPP, EIDL and other small business assistance.

Eligible borrowers

Fewer than 300 employees

Must have a reduction in quarterly revenues of at least 25% compared to the same quarter in 2019

Stock not traded on the National Exchange

501 (c) (6) are eligible, but any Entity for which lobbying comprises more than 15% of receipts or activities in not eligible.

Maximum loan – 2.5 times average monthly payroll or $2 Million, whichever is less. Businesses in restaurant and hospitality industries are eligible for loan for 3.5 times average of monthly payroll.

Interest rate as term 1% 5 years

Eligible Expenses – The Bill expands the eligible expenses to include PPE expense, costs associated with outdoor dining and supply costs, but payroll expenses must still comprise no less than 60 percent of eligible expenses.

Please contact our Staten Island, NY CPA office for assistance in determining your eligibility under the 2nd round of PPP.

David C Egan, CPA

718-227-6035

www.gosucpa.com

Staten Island CPA - Offering Guidance on Small Business PPP Loan Forgiveness

 

Staten Island CPA firm - Goldenthal & Suss Consulting PC

Overview of the COVID -19 Economic Injury Disaster Loan (EIDL) & Paycheck Protection Program (PPP)

The EIDL provides economic relief to small business and nonprofit organizations that are currently experiencing a temporary loss of revenue. 

The PPP loan is an SBA loan that helps businesses keep their workforce employed during the Coronavirus (Covid-19) crisis.

More information regarding the EIDL and PPP loan can be found at sba.gov

We are pleased to offer guidance for small business that are seeking PPP (The Paycheck Protection Program )Loan Forgiveness.  

If you have received a PPP loan and / or have received an EIDL (The Economic Injury Disaster Loan) advance you may be seeking to have your PPP loan forgiven.

Our office can provide assistance regarding your PPP loan forgiveness as well as provide essential tax guidance regarding the tax consequences of both your PPP loan and EIDL advance.  We can provide this accounting services remotely or socially distant.  Our Staten Island based CPA firm can provide a free consultation regarding your PPP Loan forgiveness process as well as assist you or prepare the documents for your PPP loan forgiveness. 

David C Egan, CPA

www.gosucpa.com

718-227-6035

Stimulus Payments missing and October 15th Deadline

 Deadline September 30 for some missing stimulus payments

Some families were disappointed when they received stimulus payments that fell short of the amount they were expecting because their children were excluded.

Federal beneficiaries, such as those who receive Social Security or Veteran’s benefits, have until Wednesday, Sept. 30, to submit information on dependents under 17 to the IRS.

Extended Taxpayers

Thursday, Oct. 15, applies to C-Corporations, individuals and families who typically don’t file tax returns and still have not received stimulus checks. If you have not filed your personal return and need to file, please contact our office for assistance both in person and virtual. 718-227-6035 ext. 301 or visit us online at www.gosucpa.com