Cumulus Bookkeeping & Consulting

Good reminders about how to make sure your deductions are accepted in the face of an IRS challenge.

Keep These DOs and DON’Ts in Mind When Deducting Business Meal and Vehicle Expenses If you’re claiming deductions for business meals or auto expenses, expect the IRS to closely review them. In some cases, taxpayers have incomplete documentation or try to create records months (or years) later. In doing so, they fail

This is really great news coming out of the proposed relief bill...

“The provision, part of the year-end coronavirus relief bill expected to soon clear Congress, would ensure that PPP recipients can deduct the payroll costs and other expenses covered by forgiven loans, even though the loans themselves are tax-free income. The move would reverse a Treasury Department ruling that denied the deductions.”

PPP Borrowers Stand to Gain Tax Deductions Congress is considering countermanding Treasury by granting tax benefits worth hundreds of billions of dollars to businesses participating in the Paycheck Protection Program.

In case you were worried that you were missing a deadline for requesting forgiveness of your PPP loan, here's a helpful clarification: https://www.currentfederaltaxdevelopments.com/blog/2020/10/14/deadline-to-apply-for-forgiveness-of-ppp-loan-is-loan-maturity-date-not-october-31-2020 #:~:text=4.,in%20the%20upper%2Dright%20corner.

The expiration date in the upper right corner of the form DOES NOT mean you can't apply for forgiveness after 10/31/20. It's merely a requirement of the Paperwork Reduction Act.

Rest assured there is plenty of time to submit your applications for PPP loan forgiveness!

Some clear and updated guidance on PPP forgiveness courtesy of the good folks at Gatto McFerson CPA

www.gattomcferson.com

New (resurrected) form for reporting payments to independent contractors made in 2020. We’ll be preparing and filing lots of these for our clients come January 2021.

Form 1099-NEC | Nonemployee Compensation Reporting Guide IRS will require the use of the new 1099-NEC for reporting non-employee payments, find out everything you need to know and get filing details for the next tax season.