New Alabama Legislation to Exempt Federal COVID Benefits from Alabama Income Tax
Yesterday, Alabama House Bill 231 and Alabama Senate Bill 152 were forwarded to Governor Kay Ivey for signature. This legislation, when signed, will effectively exempt from state income taxes certain federal benefits that taxpayers received from the American Rescue Plan Act last year, a coronavirus relief bill passed by Congress. The exemption applies to the…
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Cryptocurrency Reporting
Perhaps it’s just a generational thing, but to be honest I don’t understand cryptocurrencies. I’ve read various articles and can spout off definitions of blockchain, bitcoin and a host of other cool tech-sounding words and phrases. It does make me feel a little better when I read what the IRS has published over the past couple of years on the subject. It appears to me they are trying to catch up as well.
FEMA is Reimbursing Up To $9,000 For Each COVID-19 Related Funeral
Under the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 and the American Rescue Plan Act of 2021, FEMA is providing financial assistance for COVID-19 related funeral costs. The benefit is a maximum of $9,000 per deceased individual or $35,500 per applicant for multiple deaths. As of January 3, 2022, FEMA received 9,077 applications…
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New 1099 Rules
Section 9674 of the American Rescue Plan (HR 1319) added a requirement that payment processors and online marketplaces send sellers a form 1099K if their annual activity exceeds $600. The idea is to provide additional information to the IRS to allow them to catch tax cheats in the gig economy. Sounds reasonable. The problem is…
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Records Retention – What Should You Keep and How Long
Many use the beginning of the new year to clear old records. Businesses and individuals should give careful consideration to what documents to retain in the event of an IRS audit prior to tossing them in the shred bin. When you e-file your tax return, you’re generally not required to send in any of your…
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Top Individual and Business Tax Planning Strategies
Over the weekend, Democratic Sen. Joe Manchin of West Virginia said no to the Build Better Act, ending negotiations on this version of the legislation. Manchin withheld support requesting Democrats to pare down several provisions of the estimated $1.9 trillion package. This likely means Build back Better is dead for 2021. Whether we’ll see another…
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1099 Season
1099 Season is short, for the most part as it is only the month of January. Now is a good time to refresh your understanding and begin gathering information. This is the second year for the new 1099-NEC to report non-employee compensation. The 1099-NEC is used to report only non-employee compensation and associated withholding when…
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Ad Valorem Tax – The Sleepy Tax
When we ask clients and friends for feedback on our blog posts, the most frequent comment is “Tell me more about how I can save on income tax?” This is closely followed by “How can I save on estate tax?” We love these questions and we will always try to respond, but today we want to discuss a…
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New Legislative Draft- Build Back Better Act
While many components of the Build Back Better Act are still in limbo, last Thursday, October 28th, the House Rules Committee released a draft of the Act. If you don’t want to comb through the 1600+ pages we’ve provided a summary below. No surprise that many of the original provisions of the bill have been modified,…
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A Better Way to Make Federal and State Tax Payments?
By: Lane Hooper, CPA, Senior Accountant Since the pandemic began, the Internal Revenue Service has struggled to process returns, payments and correspondence. See our July 13th post (link here) if you’d like to read more in depth about the current state of affairs at the IRS. If one of our clients experiences an IRS issue,…
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