IRS guidance denies ERC for most majority owners’ wages
By Dayna E. Roane, CPA/ABV, CGMA
Majority owners’ wages are not qualified wages for purposes of the employee retention credit in most cases, according to IRS guidance issued last month.
Individual tax update
By David R. Baldwin, CPA; Katherine Bowles, CPA; Robert Caplan, CPA; Mary Kay Foss, CPA; Shannon Hudson, CPA; David H. Kirk, CPA/PFS; Dana McCartney, CPA; and Darren Neuschwander, CPA
The AICPA Individual & Self-Employed Tax Technical Resource Panel provides a comprehensive update on recent federal tax developments involving individuals.
COVID’s impact on penalties and IRS services
By Edward Karl, CPA, CGMA
During a pandemic when many taxpayers and their advisers are struggling, the IRS’s liberal penalty assessments remain problematic, explains Edward Karl, AICPA vice president — Taxation.
Navigating the new Schedules K-2 and K-3
By Patrick Frayer, CPA, and Rob Hermo, CPA
Schedule K-2 will report the partnership/S corporation-level activity attached to a flowthrough return, while Schedule K-3 will be provided to each partner or shareholder and report its proportionate amount for each item.
Illinois PTE tax would provide SALT cap workaround
By Jon Cesaretti, J.D., and Josh Schulman, CPA
This item discusses Illinois Legislature’s S.B. 2531, which includes a passthrough entity tax that allows a workaround to the federal $10,000 limitation for state and local tax deductions.
Transcript Delivery System down for some Form 941 transcripts
The IRS reports that its Transcript Delivery System is down for business taxpayers who reported information related to COVID-19 employment tax relief on Form 941, Employer’s Quarterly Federal Tax Return.
Posted by Jessica Ji, Associate Editor, Wealth Strategies Journal.