Tax Law Blog

Strategies and Resources for Year End Tax Planning

In a year that has forced many to be reactionary, tax planning offers an opportunity for business owners to be proactive about the health of their business as the end of 2020 draws near.

Attorney Michael Zahrt provides tax planning strategies for year end along with updates to the CARES Act and PPP Loans in the following short video:

• https://youtu.be/8L01vzCzhmQ

The CARES Act created a number of new tax benefits that are available for one year only, and these benefits have largely been lost in the sea of various stimulus programs (and compliance with those programs).

For a more in depth look at tips for year end tax planning, visit the following article which summarizes a few tax opportunities available to your business before the end of 2020:

• 2020 Year End Tax Planning Tips

Categories: Alerts and Updates, Financing, Tax

A Guide to the Employee Retention Tax Credit: An Alternative to the PPP

For more articles from the June 2020 issue of Business & Tax Law News, click here.

The CARES Act created the Employee Retention Tax Credit (“ERTC”), which is designed to provide financial relief to employers during the COVID-19 pandemic. The ERTC is a refundable tax credit that is credited against an employer’s share of social security taxes for specific wages paid on or after March 12, 2020 and before January 1, 2021. An eligible employer can access ERTC funds by (1) immediately reducing employment tax obligations, (2) applying for an advance payment of the estimated credit, or (3) calculating the final credit amount at the end of the applicable calendar quarter, usually on Form 941.  Importantly, an employer that has received a Paycheck Protection Program (PPP) loan cannot also claim the ERTC (unless the employer has repaid its PPP loan by May 14, 2020). Read More ›

Categories: Employment, Tax

Tax Court Decision Highlights the Risks of Sending Your Tax Documents to the IRS Via Regular U.S. Mail

For businesses and individuals, preparing tax-related documents required by the Internal Revenue Service (IRS) or United States Tax Court can be a complex process, often requiring the assistance of outside advisors such as attorneys and accountants. As a recent case in the Tax Court demonstrates, the last, seemingly simple step in the process—filing a tax document —should not be taken lightly. Indeed, all of the analysis and number-crunching that goes into a tax document could be for naught if a document isn’t delivered before the relevant deadline. Read More ›

Categories: Corporate Income Tax, Income Tax, Tax, Tax Disputes

IRC §108 – Income from Discharge of Indebtedness

Section 61 of the Internal Revenue Code establishes that all income, from whatever source derived, is included in gross income. If the income arises from a sale or exchange of property that is not a capital asset or property used in a trade or business then it is taxed as ordinary income. Read More ›

Categories: Did you Know?, Income Tax, Tax