BHT&D Certified Public Accountants Blog

Corporate Transparency Act – Beneficial Ownership Reporting

Posted by Joe Turnes on Tue, Jan 16, 2024 @ 12:04 PM

Beginning in 2024, the Corporate Transparency Act created a new beneficial ownership (25% or more) reporting requirement as part of the U.S. government’s efforts to make it harder for corrupt or dangerous individuals from hiding or benefitting (i.e. money laundering) through shell companies or other opaque ownership structures.

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Tags: Business Entity, FinCEN, Corporate Transparency Act

Virtual Currency and Crowdfunding: How Do They Affect Your Income Tax Filing?

Posted by Joe Turnes on Sat, Apr 02, 2022 @ 07:00 AM

The 2021 1040 tax return includes a question regarding virtual currency transactions during the calendar year. This question must be answered either yes or no. If the return is filed leaving the box blank, the return will be rejected and a new one must be filed.

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Tags: Individual Tax Return, Tax Planning, Small Business, Crowdfunding, VirtualCurrency

IRS Focuses On Internet Small Business And Side Hustle Income

Posted by BHT&D CPAs on Mon, Mar 14, 2022 @ 06:00 AM

In an effort to capture unreported income flowing through third-party settlement organizations (TPSOs) such as Amazon, PayPal/Venmo, card payment processors and other marketplaces, the IRS requires these organizations to report payments made to sellers through their platforms on Form 1099-K.

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Tags: Tax Planning, Small Business, Form 1099-K, Income Tax

Advance Child Tax Credit and EIP Must Be Reconciled on 2021 Return

Posted by BHT&D CPAs on Wed, Feb 09, 2022 @ 06:00 AM

Early in 2021, Congress passed the American Rescue Plan, which included a provision that increased the child tax credit amount and upped the age limit of eligible children. Historically, the credit was $2,000 per eligible child under age 17. For the 2021 tax year the American Rescue Plan increased the credit to $3,000 for each child under age 18 and to $3,600 for children under age 6 at the end of the year.

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Tags: Individual Tax Return, Tax Planning, Tax Credit, Tax Liability, Child Tax Credit

American Rescue Plan Act Increases Child Tax Credit

Posted by Andrew Holesinger on Fri, May 28, 2021 @ 03:15 PM

The American Rescue Plan Act (ARPA) expanded the Child Tax Credit for tax year 2021 only, allowing families to receive advance payments instead of taking the full credit on their 2021 tax return. The goal of increasing the credit, along with monthly payments, is to help families that have struggled during the COVID-19 pandemic and lessen child poverty in the U.S.

Beginning July 15, the IRS will start issuing monthly advance payments to families based on their 2020 or 2019 tax return. 

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Tags: Tax Planning, Individual Tax, Child Tax Credit, ARPA

Employee Retention Credit Extended Through December 2021

Posted by Joe Turnes on Fri, Mar 12, 2021 @ 07:00 AM

To help trades and businesses retain employees and keep them employed during the COVID-19 crisis, the Coronavirus Aid, Relief, and Economic Security (CARES) Act created the Employee Retention Credit for 2020. As part of the Consolidated Appropriations Act, 2021 (CCA), the credit has been extended through December 2021.

The credit is actually a government-sponsored program to keep workers employed and is funded by providing qualifying employers with a refundable credit against certain employment taxes equal to 70% (up from 50% prior to 2021) of the qualified wages that an eligible employer pays to employees after March 12, 2020, and before January 1, 2022. (Before the extension, the credit ended on December 31, 2020.)

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Tags: Payroll Tax, CARES ACT, Employee Retention Credit

Our Current Safety Protocols for Appointments and Communication

Posted by BHT&D CPAs on Tue, Feb 09, 2021 @ 12:46 PM

While it is our desire to meet face-to-face, we must follow necessary safety protocols.  As Federal or State guidelines change, we will adjust accordingly, in the best interest of the health our staff and visitors.

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Year End Employer Updates: W-2s, 1099s, and Michigan Minimum Wage

Posted by Lori Shepard on Mon, Dec 28, 2020 @ 12:00 PM

Here are a couple quick updates on changes to 1099 non-employee compensation reporting and delay of Michigan minimum wage increase.  Please note important filing dates and related penalties:

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Tags: Small Business Accounting, Michigan Minimum Wage, Compensation, Independent Contractors

Section 139 Qualified Disaster Relief Payments Excludable From Gross Income

Posted by Lori Shepard on Thu, Dec 03, 2020 @ 07:00 AM

Section 139 of the Internal Revenue Code excludes from a taxpayer’s gross income certain payment to individuals to reimburse or pay for expenses related to a “qualified disaster”.  Covid-19 is a federally declared disaster.

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Tags: Tax Planning, Small Business, Individual Tax, COVID-19, Work From Home

New IRS Form 941: Employment Tax Credits And Other Tax Relief

Posted by Karly Morris on Thu, Jul 02, 2020 @ 12:00 PM

On June 19th, 2020 the IRS published the final revised Form 941 that will be used for the remainder of 2020. The purpose of filing this quarterly form is to report to the IRS the wages subject to social security, Medicare and federal income tax withholding. This new revised form takes into account changes made by the Families First Act and the CARES Act that provided various types of payroll tax relief for employers.

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Tags: Small Business, Employment Tax, Family First Legislation, CARES ACT