Category: Federal Page 2 of 14

SBA Administrator Issues Statement on the Closure of Paycheck Protection Program

Today, U.S. Small Business Administrator Isabella Casillas Guzman issued the following statement on the closure of the Paycheck Protection Program (PPP) to new loan guaranty applications, which has provided over $798 billion in economic relief to small businesses and nonprofits across the nation, keeping employees employed and helping businesses come back stronger than ever.

“The Paycheck Protection Program provided over 8.5 million small businesses and nonprofits the lifeline they needed to survive during a once-in-generation economic crisis. I’ve heard story after story from small business owners across the country about how PPP funds helped them keep the lights on, pay their employees — and gave them hope,” said SBA Administrator Isabella Casillas Guzman.… Read More

Payments for the New $3,000 Child Tax Credit Start July 15. Here’s What You Should Know.

The IRS is set to begin advanced payments of the enhanced child tax credit (CTC) on July 15, and 88% of families with children in the U.S. will get the benefit automatically, the agency recently announced.

The enhanced credit, a component of President Joe Biden’s American Rescue Plan (ARP), increases the existing tax benefit eligible families can receive from $2,000 up to $3,000 for kids between the ages of 6 and 17 and up to $3,600 for kids under 6.

The Biden administration says these credits and other parts of the ARP will help lift more than 5 million children out of poverty this year, reducing child poverty by half.… Read More

What You Need to Know About Unemployment Tax Refund, IRS Payment Schedule, and More

If you received unemployment benefits in 2020 due to the pandemic and paid taxes on those funds, you may qualify for a refund from the IRS. The agency began sending out refund checks earlier in May and will continue through the summer months.

Unemployed workers can’t be taxed on that benefit money due to new rules under the American Rescue Plan. The new law came into effect after millions had already filed their income tax returns, however, so taxpayers are now eligible for an IRS tax refund for the first $10,200 of single filers’ income. Those refunds started going out earlier in May, but they’re not being sent out as quickly as the third stimulus checks.… Read More

What Should I Do If I Receive an IRS Identity Verification Letter?

Did you receive an IRS identity verification letter? There is no need to panic; this is not a scam.

If you received a 5071C, 4883C, 5747C, 6331C, or 5447C letter, the IRS needs to verify your identity.

  • For those who have filed, the IRS suggests you visit the website, access the secure Identity Verification Service, and follow the prompts as they simply need more information to verify your identity and process your return.
  • If you have not filed, this is a protective measure as someone may have attempted to file a return in your name, and the IRS is seeking to identify your SSN or ITIN to protect your identity.
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COBRA Premium Assistance Credit Under ARPA Clarified

In much-anticipated guidance, the Internal Revenue Service has offered its insight on the implementation of the COBRA temporary premium subsidy provisions of the American Rescue Plan Act of 2021 (ARPA) in Notice 2021-31.

Spanning more than 40 pages, the IRS-answered frequently asked questions (FAQs) finally resolve many issues relating to temporary premium assistance for COBRA continuation coverage left unanswered in the Department of Labor’s publication of model notices, election forms, and FAQs.

The practical implications of the guidance for employers are many. Significantly, employers must take action prior to May 31, 2021, to ensure compliance with some of the requirements under ARPA and related agency guidance.… Read More

Last Call: Final Push for Restaurant Revitalization Fund Applications

Administrator Isabella Casillas Guzman announced that eligible eating establishments have until Monday, May 24, 8 p.m. ET, to submit applications to the Restaurant Revitalization Fund.

“If our nation’s food and beverage industry is going to fully recover, we must ensure as many of the hardest-hit businesses get the economic aid they need,” said Administrator Guzman. “We are committed to creating easy to navigate programs and removing barriers that have kept many of our nation’s smallest businesses from accessing these crucial economic lifelines. The SBA will continue to be as entrepreneurial as the small businesses we serve, and we will continue to work as fast as possible to deliver the relief our businesses need so urgently.”… Read More

Virtual Workshops Available Ahead of Transition to New Unemployment System

Virtual workshops are available this week for Pennsylvanians preparing for the transition to the new unemployment system.

Four virtual workshops will be held by the Pennsylvania Department of Labor & Industry. They are designed to help individuals, employers and third-party administrators prepare for next month’s transition.

The 40-year-old legacy system will transition to a new modern computer system beginning on May 30. The Department of Labor says once the transition is complete, the new system will enable quicker and easier filing of UC claims.

The four virtual workshops being offered this week are part of a series of 24 workshops.

This Week’s Workshop Dates are:

  • Monday, May 17 at 1:00 PM for Employers (English)
  • Tuesday, May 18 at 10:00 AM for Claimants (English)
  • Saturday, May 22 at 2:00 PM for Claimants (Spanish)
  • Saturday, May 22 at 3:30 PM for Claimants (English)

A full list of scheduled workshops and the links to connect to them are available here.… Read More

IRS To Start Monthly Payments of Child Tax Credit July 15

The Internal Revenue Service and the U.S. Department of the Treasury announced today that the first monthly payment of the expanded and newly-advanceable Child Tax Credit (CTC) from the American Rescue Plan will be made on July 15. Roughly 39 million households — covering 88% of children in the United States — are slated to begin receiving monthly payments without any further action required.

IRS and Treasury also announced the increased CTC payments will be made on the 15th of each month unless the 15th falls on a weekend or holiday. Families who receive the credit by direct deposit can plan their budgets around receipt of the benefit.… Read More

IRS issues guidance on taxability of dependent care assistance programs for 2021, 2022

The Internal Revenue Service issued guidance on Monday regarding the taxability of dependent care assistance programs for 2021 and 2022, clarifying that amounts attributable to carryovers or an extended period for incurring claims generally are not taxable. The guidance also illustrates the interaction of this standard with the one-year increase in the exclusion for employer-provided dependent care benefits from $5,000 to $10,500 for the 2021 taxable year under the American Rescue Plan Act.

Because of the pandemic, many people were unable to use the money they set aside in their dependent care assistance programs in 2020 and 2021. Generally, under these plans, an employer allows its employees to set aside a certain amount of pre-tax wages to pay for dependent care expenses.… Read More

The SBA Funds 16,000 Restaurant Revitalization Fund Awards

Today, the U.S. Small Business Administration will begin delivering economic relief from the Restaurant Revitalization Fund, established by the American Rescue Plan and signed into law by President Joe Biden, to more than 16,000 approved applicants. This first round of funding represents over $2 billion of relief awarded since last Monday’s successful program launch. Restaurants and other food and beverage businesses across the nation will begin to see funds in bank accounts as early as Tuesday, May 11.

“Just one week after launching the $28.6 billion Restaurant Revitalization Fund, the SBA has begun to fund applications and that more than 16,000 restaurants and other food and beverage business owners will get much-needed relief in their hands,” said SBA Administrator Isabella Casillas Guzman.… Read More

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