Bailey Scarano Blog

Starting a New Business? Know Your Tax Rules!

With the economy improving now and in the months or quarters ahead, many business owners and entrepreneurs may decide to launch new enterprises. If you’re among them, be aware that the way you handle some of your initial expenses can make a large difference in your tax bill. General rules Start-up costs include those incurred or […]

Starting a New Business? Know Your Tax Rules! Read More »

IRS Investment

Treasury Encourages More IRS Investment

The Treasury Department recently released a statement discussing investment in the IRS and improving tax compliance. While roughly 99 percent of the taxes due on wages are remitted to the IRS, compliance on other forms of income is substantially less, because the IRS has had difficulty verifying whether income from unverified sources is properly reported.

Treasury Encourages More IRS Investment Read More »

Refund for unemployment tax

Unemployment Tax Refunds on the Way

The IRS announced that it had started issuing refunds to eligible taxpayers who paid taxes on 2020 unemployment compensation that was excluded from taxable income by the recently enacted American Rescue Plan. Keep in mind that unemployment compensation is taxable, but the ARP excludes $10,200 in unemployment compensation when calculating the amount of taxes owed.

Unemployment Tax Refunds on the Way Read More »

Other Rescue Benefits Outside of Stimulus Checks

When you think back on this spring, you may recall a deposit to your bank account by the federal government (if you were eligible). Economic Impact Payments were a focal point of the American Rescue Plan Act (ARPA), but it contains many other provisions also worth remembering. Here are five highlights: The child tax credit.

Other Rescue Benefits Outside of Stimulus Checks Read More »

Amounts Paid for COVID-19 PPE Are Deductible Medical Expenses

The IRS recently issued guidance clarifying that amounts paid for personal protective equipment (PPE)—such as masks, hand sanitizer and sanitizing wipes—for the primary purpose of preventing the spread of the COVID-19 are treated as amounts paid for medical care under Code Sec. 213(d).   This means that anything you as an individual taxpayer spent for COVID-19

Amounts Paid for COVID-19 PPE Are Deductible Medical Expenses Read More »

Restaurant Revitalization Fund is Nearly Gone

One of the most talked about portions of the American Rescue Plan Act that was passed earlier this year is the $28.6 billion restaurant Revitalization Fund (RRF). It was created to help restaurants that experienced lost revenue due to mandatory COVID-19 shutdowns. Administered by the Small Business Administration (SBA) and similar to PPP loans, funds

Restaurant Revitalization Fund is Nearly Gone Read More »

Can you Benefit from the Enhanced Employee Retention Credit?

Many businesses have had to shut down or reduce operations during the COVID-19 pandemic, causing widespread furloughs and layoffs. Fortunately, employers that have managed to keep workers on payroll may be eligible for a refundable employee retention credit. Three laws have created, extended and enhanced the credit. The Original  The CARES Act created the employee retention

Can you Benefit from the Enhanced Employee Retention Credit? Read More »

How Workers are Classified is Important

It is probably no surprise to you or anyone with a pulse that many companies experienced “workforce fluctuations” in 2020. If your business has turned independent contractors to address staffing needs, you must properly classify them for federal tax purposes. Tax Obligations The question of whether a worker is an independent contractor or an employee for

How Workers are Classified is Important Read More »

Scroll to Top