Bailey Scarano Blog

prepare for disaster

Make Sure You Are Prepared for a Disaster

The IRS has reminded taxpayers to develop emergency preparedness plans due to an active hurricane season, the ongoing threat of wildfires in some parts of the country and other natural or man-made disasters that can occur. Taxpayers should: Secure critical documents such as tax returns, birth certificates, deeds, titles and insurance policies inside waterproof containers …

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employee v. contractor

IRS is Watching How You Classify Workers

This comes up quite frequently, but it is still important enough for the IRS to issue a reminder about correctly determining whether the individuals providing services to businesses were employees or independent contractors. Keep in mind that an employee performs services that a business controls. Independent contractors offer their services to multiple businesses or the …

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luxury car depreciation rates

IRS Issues Luxury Auto Depreciation Caps and Lease Inclusion Amounts

If your business owns or leases luxury vehicles, this could be important to your 2021 tax planning. Luxury Passenger Car Depreciation Caps The luxury car depreciation caps for passenger cars placed in service in 2021 are limited to the following annual depreciation deductions: $10,200 for the first year without bonus depreciation $18,200 for the first year …

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employee retention tax credits

How to Claim Employee Retention Credit in Q3 and Q4 of 2021

The IRS has issued guidance for employers claiming the employee retention credit. In general, eligible employers can claim a refundable employee retention credit against the employer share of Social Security tax equal to 70% of the qualified wages they pay to employees after December 31, 2020, through June 30, 2021, limited to $10,000 per employee per …

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PPP Loan Forgiveness

PPP Direct Forgiveness Portal Created & Why the Loan Questionnaire Was Discontinued

Are you still waiting to hear of your PPP loan was forgiven? You are not alone. PPP Direct Forgiveness Portal The SBA announced that it is launching a streamlined application portal to allow borrowers with PPP loans $150,000 or less through participating lenders to apply for forgiveness directly through the SBA. The new forgiveness platform …

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Infrastructure Bill Could Put an End to Employee Retention Tax Credits

The much-discussed Infrastructure Investment and Jobs Act passed by a vote of 69-30 in the Senate in mid August. The next step will happen next week when the Senate is scheduled to vote on the budget resolution that will make implementing this act possible. Like any bill of this magnitude, it contains numerous provisions. While …

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no surprises bill

Interim and Proposed Regulations for No Surprise Billing Act

No one likes to receive an unexpected bill, especially from a healthcare provider. With that in mind, the Departments of the Treasury, Labor, and Health and Human Services have issued interim final rules and identical proposed regulations to implement provisions of the No Surprises Act. On December 27, 2020, the Consolidated Appropriations Act, 2021 (CAA), …

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variety of meals

Sales Tax Benefit for Businesses that Sell Meals

Does your business sell meals? If so, you may be eligible to retain the sales tax collected on the sale of these meals due to legislation recently enacted by the Connecticut General Assembly. Who Qualifies? Businesses that sell meals in Connecticut Businesses included in Sector 72 of the North American Industrial Classification System (NAICS). Click …

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sick leave tax credits

Business Owners Can Claim Tax Credits for Employee Sick Leave

Under the American Rescue Plan Act of 2021 (ARP) ( P.L. 117-2), small and midsize employers and certain government employers are entitled to claim refundable tax credits that reimburse them for the cost of providing paid sick and family leave to their employees due to COVID-19. Keep in mind this also includes leave taken by …

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