Redemption Accounting

Did you get extra Stimulus that you should not have? Evidently there have been several people that received double payments for their dependents. Specifically those dependents that collect Social Security due to a disabled parent. So far the only guidance says these payments are to be sent back. Check out the IRS Below. https://www.irs.gov//economic-impact-payment-information-c

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Expenses With PPP Money Are Tax Deductible, Congress Reverses IRS THIS IS BIG NEWS Background... There has been uniform agreement from business that allowing tax deductions should be the rule, which is hardly surprising. But the IRS position has been unmovable. From the beginning, the IRS relied on what it said were traditional tax principles, the tax agency saying that it would be an impermissible double tax benefit to have income on debt forgiveness not to taxed as income,... and then to also allow tax deductions for the expenses paid with the forgiven loan money. Some tax lawyers and academics sided with the IRS in this debate. In fact, some groups and news sources objected strongly to allowing the tax deductions, even saying that a change to allow the tax deductions would be a $100 billion tax deduction to the wealthy, or a a $120 billion windfall to the top 1%. Now that the Congress had the last word on this long-debated and highly controversial topic, it is not clear whether all the talk will stop. See more

Update on backlog of unopened checks to the IRS. The IRS is processing a backlog of mail due to COVID-19, and paper checks mailed to the IRS, either with or without a tax return, may still be unopened. Taxpayers in this situation should not cancel their checks and should make sure funds remain available so the IRS can process them to avoid potential penalties and interest. The IRS credits payments using the postmarked date on mail rather than the date they opened and proces...sed them so they will not be late if postmarked timely. The IRS will provide relief to taxpayers for bad check penalties for dishonored checks the agency received between March 1 and July 15, 2020, due to delays in IRS mail processing. See more

Have a small business with a PPP Loan? Have you begun the PPP Loan forgiveness process? Need help? Here is a tool to help simplify the process. https://www.pppforgivenesstool.com/

Supplemental Security Income (SSI) recipients who don’t file tax returns will start receiving their automatic Economic Impact Payments directly from the Treasury Department in early May.