The IRS just sent NSA the following statement via email:
“The IRS is reviewing implementation plans for the newly enacted American Rescue Plan Act of 2021 [ARPA]. Additional information about a new round of Economic Impact Payments, the expanded Child Tax Credit, including advance payments of the Child Tax Credit, and other tax provisions will be made available as soon as possible on IRS.gov. The IRS strongly urges taxpayers to not file amended returns related to the new legislative provisions or take other unnecessary steps at this time.
The IRS will provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return, including the retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable. For those who haven’t filed yet, the IRS will provide a worksheet for paper filers and work with software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return. For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance.”
Dear Valued Business Clients,
Re: PPP2 and Self Employed tax credits for Covid-19 related leave
The priority deadline for the PPP round 2 applications is March 9, 2021
If your business has been affected by Covid-19, and you haven’t applied for the round 1 or round 2 PPP loans yet, there may be a forgivable loan available to you.
To qualify for the 1st forgivable loan your business needs to have payroll and have been affected by Covid-19.
To qualify for the 2nd forgivable loan your business also needs to show a 25% decrease in income when comparing a quarter in 2020 to same quarter in 2019.
Please see below link from the Small Business Administration for further details and qualifications:
Covid-19 sick and family leave tax credits under FFCRA
If you or a family member under your care has been sick with Covid-19, your self -employed business can be eligible for a tax credit. Please let our office know when processing your tax returns so we can confirm amount and eligibility. This is specifically for partnerships and Schedule Cs.
See below link from IRS for further information: