Next Steps Guide for the Restaurant Revitalization Fund Grant

On March 11, the American Rescue Plan Act of 2021 created the $28.6 billion Restaurant Revitalization Fund to provide grants for restaurants sustaining financial losses due to the COVID-19 pandemic.

On April 17, the U.S. Small Business Administration (SBA) issued the necessary federal rules, regulations, and a sample application to distribute the grant funds.

The SBA was able to process approximately 72,000 priority applications, totaling $18 billion. Following the priority period, the SBA distributed funding for an additional 28,000 restaurants from both priority and nonpriority groups, leaving approximately $1.1 billion in funds left, and will continue processing grants for nonpriority groups until the funding runs dry.… Read More

A Closer Look at the President’s Proposed Budget

On May 28, 2021, President Biden’s administration unveiled its proposed budget for fiscal year 2022. The administration’s budget recommendations are, of course, only recommendations. Congress can accept, reject or modify them as part of the legislative process, as well as add other proposals. It can also choose to offset all or only a part of any spending programs it approves. As a result, we want you to be aware of the following tax proposals from the President’s budget. More information will be released as we gain clarity on these items.

Increase the Top Individual Rate on Ordinary Income

Increase the top ordinary income tax rate from 37% to 39.6%, effective for tax years beginning after 2021.… Read More

In Case You Missed It: Brinker Simpson Employee Retention Credit Webinar 6/2

Are you eligible for payroll tax credits up to $33,000 per employee?

If you haven’t explored the Employee Retention Tax Credit (ERC) yet, you may be missing out on up to $33,000 in payroll tax relief per employee—even if you had a PPP loan!

In a webinar on Wednesday, June 2nd, 2021, Bob Simpson and Kristen McCabe addressed many common questions and scenarios such as the latest guidance on applying for ERC, who is eligible for the credit, how to compute the amount of the credit, how to claim the credit, how it interacts with other benefits provided by the CARES Act, and more!… Read More

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

Unemployment Fraud Is On The Rise – Remain Vigilant!

Unemployment Compensation Fraud is a very serious matter. The Pennsylvania Department of Labor & Industry (L&I) is committed to preventing, identifying, and blocking scams and is continuing its aggressive efforts to do so, including:

  • Cross-matching data with other state agencies and across the country to detect fraud activity.
  • Working with the U.S. Department of Labor to prevent and detect fraudulent activities related to UC.

They encourage Pennsylvanians to remain vigilant and to report fraud or any potential concerns of fraud to L&I. Cashing the checks or using directly deposited funds knowing that you have not applied for PUA or any other UC program may be deemed fraud, and repayment will be required.… 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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UPCOMING WEBINAR – Employee Retention Credit: What You Need to Know

Are you eligible for payroll tax credits up to $28,000 per employee?

If you haven’t explored the Employee Retention Tax Credit (ERC) yet, you may be missing out on up to $28,000 in payroll tax relief per employee—even if you had a PPP loan!

Join Bob Simpson and Kristen McCabe for a webinar at noon on Wednesday, June 2, 2021, to learn more. They will address many common questions and scenarios such as the latest guidance on applying for ERC, who is eligible for the credit, how to compute the amount of the credit, how to claim the credit, how it interacts with other benefits provided by the CARES Act, and more!… Read More

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

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