Tax Alerts from CCH

You may recently have received a letter from the IRS stating that on July 15, 2021 the IRS will begin issuing advance Child Tax Credit payments for those with qualifying dependents. As you prepare to receive these payments, it is important to understand a few issues.

April 23, 2021 - California Bill AB-80 was recently amended and includes some significant changes as it pertains to PPP Loan Forgiveness for California Tax purposes.

While we are extremely grateful for the economic impact payments (i.e. stimulus checks) that have been issued, these payments cause complications in the preparation of individual tax returns. If you have any questions or concerns, please do not hesitate to contact us.

To Our Valued Clients and Friends, In recent years we have noticed an uptick in IRS and FTB notices. The #1 cause of these notices are incorrect estimated tax payment amounts being reported on individual taxpayer returns.

You may have read one of the many headlines which represent the forgiveness of the Payroll Protection Program (PPP) loans is not taxable. While this statement is technically truthful, it is not the whole story. We have received more information in the last few months that the Internal Revenue Service (IRS) will be interpreting the law such that PPP loan forgiveness is taxable.

It is possible that additional COVID-19-related tax changes may be implemented as the year progresses. As always, we are paying close attention to the ever-changing tax environment to discover tax planning opportunities that may put more cash in your pocket. In the meantime, here are some ideas to evaluate this fall.

All taxpayers who have taken a required minimum distribution (RMD) in 2020 (including those taken in January and February), from an eligible retirement account, now have the opportunity to roll those funds back into a retirement account by August 31, 2020. (IRS Notice 2020-51)

Yes, you have heard correctly! The IRS has automatically extended all 2019 tax returns, whose original filing dates were April 15, 2020, until July 15, 2020.

Over the past several months, we have digested the many tax law changes brought by the Tax Cuts and Jobs Act (TCJA). From a significantly lower corporate tax rate to a new deduction for qualified business income, the TCJA brings a host of planning opportunities for your business. This letter presents some tax planning ideas under the TCJA for you to think about while there is time left in 2018 to take tax-saving actions.

Over the past several months, we have digested the many tax law changes brought by the Tax Cuts and Jobs Act (TCJA). These changes bring a host of uncertainties as well as planning opportunities. From lower tax rates to a new deduction for pass-through income, the new tax law may mean more cash in your pocket.