Kevin S. Hughes, CPA

To continue to allow employers to take immediate advantage of various credits enacted in response to the COVID-19 pandemic, the IRS is permitting eligible employers who pay qualifying wages to retain an amount of the payroll taxes equal to the amount of qualifying wages that they paid, rather than deposit them with the IRS. Monday’s guidance (Notice 2021-24) amplifies guidance issued last year (Notice 2020-22) and provides for penalty relief under Sec. 6656 for an employer’s failure to timely deposit certain employment taxes with the IRS.

U.S. News & World Report looks at how you might correct a Social Security Earnings Record. More @ https://bit.ly/3fKmiEn

Plan your business trips to ensure your miles are deductible. Commuting miles to and from work are not deductible. However, if you stop off at a supplier first, then the mileage from the supplier to your workplace is a deductible expense.

An enhanced child tax credit is in place this year. This is what you need to know.

Despite the individual tax filing due date being delayed until May 17, 2021, there is no delay in paying first quarter estimated tax payments for the 2021 tax year. So it is time to review your tax situation for the 2021 tax year and make an estimated quarterly tax payment using Form 1040-ES.

Home prices are on the rise, hitting levels not seen since 2014. Fox Business has the story @ has the https://fxn.ws/2PaQUEp

One of the main benefits of turning your hobby into a business is deducting all your qualified business expenses, even if it results in a loss. However, if you don’t properly transition your hobby into a business in the eyes of the IRS, you could be waving a red flag that reads, Audit Me! The agency uses several criteria to distinguish whether an activity is a hobby or a business.

Scam Alert: Fraudulent e-mails were sent out as correspondence from the U.S. Small Business Administration telling you that you could apply for a small business disaster assistance grant. You are instructed to sign an attached document and upload it to the SBA’s website. When the attachment is downloaded, a remote access trojan was installed on your computer or other electronic device.

The Alternative Minimum Tax: The AMT is a separate tax calculation that disallows many of the deductions and credits used to calculate regular income tax. It also adds back certain income that is not normally taxed. The most common AMT adjustments are for certain itemized deductions and adjustments, such as state and local taxes. Also, if you exercise incentive stock options, sell investments with large long-term capital gains, or take depreciation on business property, you may be hit with the AMT.

You may have seen news of a recent hedge fund failure. Yahoo Finance discusses the implications and how this may rippled across the markets @ https://yhoo.it/3m2rPHv

Time to make an estimated quarterly tax payment!

To know what you know and what you do not know, that is true knowledge. Confucius

The Safe Harbor Rule is a Concept in statutes and regulations whereby a person who meets listed requirements will be preserved from adverse legal action. Frequently, safe harbors are used where a legal requirement is somewhat ambiguous and carries a risk of punishment for an unintended violation.