In new guidance, the IRS has provided more coronavirus (COVID-19) deadline relief for employment taxes, employee benefit plan and other requirements. Notice 2020-35 postpones deadlines for certain specified time-sensitive actions with respect to certain employment taxes, employee benefit plans, exempt organizations, and Coverdell education savings accounts because of the ongoing COVID-19 pandemic. The notice also […]

The IRS and the Social Security Administration (SSA) must work together to fight employment-related identity-fraud, a report by the Government Accountability Office (GAO) warned. The report showed a key source of fraud involves individuals who use another person’s Social Security number. People may do this if they aren’t authorized to work in the United States, […]

The Paycheck Protection Program (PPP) is one way the Small Business Administration (SBA) is helping small employers keep payroll flowing during the novel coronavirus (COVID-19) crisis. The PPP lends businesses the funds to cover payroll, some employee benefit costs, and certain other expenses. Another SBA option is to apply for “employee retention credits,” but only […]

Did you receive an Economic Impact Payment (EIP) for less than you expected? EIPs are part of the tax relief intended to help mitigate the effects of the novel coronavirus (COVID-19) crisis. Generally, the EIP amounts are predictable (up to $1,200 if you’re under a certain income threshold). But amounts may be less for reasons […]

The IRS has increased the health Flexible Spending Account (FSA) carryover amount. In Notice 2020-33, the IRS stated that the FSA carryover limit (currently fixed at $500) will now be indexed for inflation. For a plan year starting in 2020, the maximum unused amount that can be carried over to the next plan year starting […]

Proposed regulations clarify estate and non-grantor trust deductions. The IRS has issued proposed reliance regs clarifying that certain deductions allowed to an estate or non-grantor trust wouldn’t be miscellaneous itemized deductions. Thus, these deductions would not be affected by the suspension of the deductibility of miscellaneous itemized deductions for tax years beginning before 2026. The […]

Taxpayers have many questions regarding Economic Impact Payments (EIPs) and the IRS is answering some of them in FAQs on its website. Specifically, individuals are wondering whether an EIP is considered taxable income. The IRS said it’s not, and taxpayers won’t owe tax on it. In addition, the payment won’t reduce taxpayers’ refunds or increase […]

To address unanticipated health care expenses due to the COVID-19 pandemic, the IRS has issued guidance to increase flexibility in employees’ cafeteria plans. The IRS has added to the situations in which a cafeteria plan may allow employees to make mid-year elections, allowed more flexibility with respect to health flexible spending accounts (FSAs) and dependent […]