Updated Guidance and Resources from the IRS

IRS provides guidance for employers claiming the Employee Retention Credit for first two quarters of 2021

The Internal Revenue Service issued guidance for employers (click here) claiming the Employee Retention Credit under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) modified by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act).

To review these changes, see Notice 2021-23.  Click here.

Additional coronavirus relief information for businesses is available on IRS.gov clicking here. 

Free workshop helps small business owners understand and meet tax obligations

The Small Business Virtual Tax Workshop (click here) helps educate small business owners about their taxes. It’s free and available online 24/7.

The updated chapters contain direct links to more specific topics within each lesson, like chapters in a book. Viewers can choose the lessons that apply to their small business. They can also pause and bookmark lessons so they can review information later.

Face masks and other COVID-19 personal protective equipment to prevent the spread of COVID-19 are tax deductible

The IRS issued Announcement 2021-7 (click here) clarifying that the purchase of personal protective equipment for the primary purpose of preventing the spread of coronavirus are deductible medical expenses. In addition to masks, this includes times such as hand sanitizer and sanitizing wipes.  Click here for more.

The amounts paid for personal protective equipment are also eligible to be paid or reimbursed under health flexible spending arrangements (health FSAs), Archer medical savings accounts (Archer MSAs), health reimbursement arrangements (HRAs), or health savings accounts (HSAs).

IRS Criminal Investigation pledges continued commitment to investigating COVID-19 fraud

The IRS Criminal Investigation Division (IRS-CI) marks the one-year anniversary of the Coronavirus Aid, Relief and Economic Security Act by pledging its continued commitment to investigating COVID-19 fraud (click here).

This includes fraud related to:

  • Economic Impact Payments
  • Paycheck Protection Program
  • Employee Retention Credit

IRS-CI encourages the public to share information regarding known or suspected fraud attempts against any of the programs offered through the CARES Act. To report a suspected crime and learn more about this, click here.