December 2020 Tax & Accounting Insight

Newsletter

Dear Clients, Colleagues and Friends,

As 2020 comes to a close, please know there are a few things we would like to make you aware of:

Paycheck Projection Program (PPP) Loan Forgiveness – Many lenders are urging those who received PPP loan funds earlier this year to start filing for forgiveness, but guidance is still changing daily and nothing definitive has been released. We have heard people discuss the deductibility of PPP expenses and alternate routes to take on your return, but then also hear that the IRS may reverse their stance on the non-deductibility of PPP expenses. Our advice is PATIENCE IS A VIRTUE.

Annual Tax Organizers – Included in this package you will find familiar items, our Engagement Letter and a Tax Questionnaire. We know this is a lot of paper, however we want you to know, that we don’t take this lightly. Our transparency in the Engagement Letter is meant to help you understand the scope of the engagement and the fees associated with our services. The questionnaire is meant to help you, by helping us to save with your tax preparation fee and provide you with the “A+” service you deserve. With all the changes and uncertainty that 2020 has presented us with, our Tax Organizers which are normally distributed in December, may experience a delay for 2020 as we want to make sure we are requesting the most accurate information from you. Please stay tuned for additional details.

Form 1099 & W-9 – The end of the year is fast approaching and before you know it, the January 31, 2021 deadline for your Forms 1099 will be here! Now is the time to make sure you have Form W-9s and correct information for all the vendors and independent contractors you may need to issue 2020 Form 1099s for. Click here to download the Form W-9 and get started today!

Holiday Hours – Our entire team would like to wish you and your family a very Happy Holidays! We have had so much to be thankful for this year and are looking forward to what 2021 may bring us. May you enjoy good food, family, friends, and fun this holiday season. So that our staff may do the same, our offices will be closed from Monday, December 21st through Friday January 1st. We will reopen at our normal business hours on Monday, January 4th. If you have an emergency, please feel free to reach out to staff via email.

Thank you and Happy Holidays from Shilts CPA!

Josh Shilts, CPA/ABV/CFF/CGMA, CFE

Some of the articles and content we want to make you aware of are

  • Individual Taxpayers: Recap for 2020 – As we close out the year and get ready for tax season, here’s what individuals and families need to know about tax provisions for 2020.
  • Business Tax Provisions: The Year in Review – Here’s what business owners need to know about tax changes for 2020.
  • Working Remotely Could Affect Your Taxes – If you’re working remotely from a location in a different state (or country) from that of your office, then you may be wondering if you will have to pay income tax in multiple jurisdictions or whether you will need to file income tax returns in both states.
  • Small Business: Deductions for Charitable Giving – Tax breaks for charitable giving aren’t limited to individuals, your small business can benefit as well. If you own a small to medium-size business and are committed to giving back to the community through charitable giving, here’s what you should know.

Tax Due Dates

  • December 10 – Employees Who Work for Tips – If you received $20 or more in tips during November, report them to your employer. You can use Form 4070.
  • December 15 – Corporations – Deposit the fourth installment of estimated income tax for 2020. A worksheet, Form 1120-W, is available to help you estimate your tax for the year.
  • December 15 – Employers Social Security, Medicare, and withheld income tax – If the monthly deposit rule applies, deposit the tax for payments in November.
  • December 15 – Employers Nonpayroll withholding – If the monthly deposit rule applies, deposit the tax for payments in November.

Any advice contained in this article, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.