IRS issues proposed regulations for TCJA’s simplified tax accounting rules for small businesses
The Internal Revenue Service today issued proposed regulations (click here) that adopt simplified tax accounting rules for small businesses. For tax years beginning in 2019 and 2020, these simplified tax accounting rules apply for taxpayers having inflation-adjusted average annual gross receipts of $26 million or less.
More information about this and other TCJA provisions is available clicking here.
IRS grants additional relief for rehabilitation credit deadlines
The Internal Revenue Service issued Notice 2020-58 (PDF) (click here) that provides additional relief to taxpayers who claim the rehabilitation credit. Rehabilitation projects must satisfy the “substantial rehabilitation test” within a 24- or 60-month period for determining whether the rehabilitation work is sufficient to qualify a building for the rehabilitation credit.
Notice 2020-58 allows taxpayers that have a measuring period under the substantial rehabilitation test to have until March 31, 2021 to satisfy the test.
Additional tax relief related to the COVID-19 pandemic is available clicking here.
Reminder: Work opportunity tax credit extended
With many businesses reopening, there is a general business credit that may help. The Work Opportunity Tax Credit is a valuable tax credit available to employers who hire long-term unemployment recipients and others certified by their state workforce agency if the individual began or begins work for the employer after December 31, 2014 and before January 1, 2021.
Businesses can find out more clicking here.
Updated FAQs: Deferral of employment tax deposits and payments through December 31
The Coronavirus, Aid, Relief and Economic Security Act (CARES Act) allows employers to defer the deposit and payment of the employer’s share of Social Security taxes and self-employed individuals to defer payment of certain self-employment taxes.
FAQs available clicking here address specific issues related to the deferral of deposit and payment of these employment taxes.
Deadline to file and pay heavy highway vehicle use tax is August 31
The deadline to file and pay heavy highway vehicle use tax is Monday, August 31. All taxpayers who file Form 2290 (click here) are encouraged to do so electronically. Those with 25 or more taxed vehicles must e-file. All the information needed to file is on the Trucking Tax Center (click here).
Taxpayers who e-file can get a stamped Schedule 1 within minutes after the IRS accepts the form. Due to COVID-19, those who choose to file on paper can expect a significant delay in receiving their IRS stamped Schedule 1.