tax relief - Linkenheimer LLP CPAs & Advisors

Federal Disaster Tax Relief Act Enacted

President Biden has signed the Federal Disaster Tax Relief Act (H.R. 5863; P.L. 118-148). As we previously reported here, the bill:

Retroactively excludes from gross income qualified wildfire relief payments paid to individuals as compensation (other than insurance payments) for losses, expenses, or damages for any wildfire declared a federal disaster after December 31, 2014 (§3, H.R. 5863);
Treats disaster relief payments to victims of the East Palestine, Ohio, train derailment as excludable IRC §139(b) payments (§3, H.R. 5863); and
Allows individual victims with a net disaster loss from any taxable year to claim an enhanced personal casualty loss under IRC §165(h) for certain federally declared disasters that occurred after February 24, 2021. (§2, H.R. 5863)

We anticipate that the IRS will issue additional guidance shortly, and we will keep you posted as updates become available.

By Linkenheimer LLP|2024-12-18T16:43:58+00:00December 18th, 2024|disaster, Fire Relief Info, New Tax Laws, News|0 Comments

Tax Relief for American Families and Workers Act of 2024

The House of Representatives recently passed House Bill 7024, known as the Tax Relief for American Families and Workers Act of 2024, with significant bipartisan support. This landmark legislation aims to realign America’s tax code to bolster economic growth, support working-class families, and provide certainty for American businesses in a climate of economic recovery and innovation.

Key provisions of H.R. 7024 include an expansion of the child tax credit, significant support for American innovation through expanded Research & Development (R&D) expensing, and enhanced measures to improve the competitive stance of U.S. businesses internationally. Specifically, the bill proposes to:

Increase access to housing by providing more flexibility on bond financing requirements and increasing state tax credit allocations.
Eliminate the penalty in the child tax credit for families with more than one child, alongside increasing the refund amount and indexing these amounts to inflation starting in 2024.
Offer “time-limited and limited in scope” disaster tax relief for communities affected by recent calamities, including hurricanes and wildfires.
Ends ERC program early on January 31, 2024, adds penalties for certain COVID-ERC promoters and extends statue of limitations to 6 years.
Increases maximum amount for section 179 expensing with a slight raise in expensing limit allowance […]

By Linkenheimer LLP|2024-02-06T18:04:34+00:00February 5th, 2024|disaster, tax credit, taxpayer relief act|0 Comments

IRS Extends Relief for Physical Presence Signature Requirement

Under IRS regulations regarding electronic consents and elections, if a signature must be witnessed by a retirement plan representative or notary public, it must be witnessed “in the physical presence” of the representative or notary — unless guidance has provided an alternative procedure.

Recently, in Notice 2022-27, the IRS extended, through the end of 2022, its temporary relief from the physical presence requirement. This is good news for businesses that sponsor a qualified retirement plan.

Requirements for relief

The physical presence requirement is imposed under IRS regulations regarding electronic consents and elections for certain retirement plans — including 401(k) plans. Originally granted in the early days of the COVID-19 pandemic, the relief initially applied for 2020 and has been extended twice since then, most recently through June 30, 2022.

As set forth in the IRS notice granting the original relief, the physical presence requirement is deemed satisfied for signatures witnessed by a notary public if the electronic system for remote notarization:

Uses live audio-video technology, and
Is consistent with state law requirements for a notary public.

For signatures witnessed remotely by a plan representative, the physical presence requirement is deemed satisfied if the electronic system uses live […]

By Linkenheimer LLP|2022-07-29T15:37:50+00:00July 29th, 2022|irs, relief|0 Comments

California Tax Updates for 9/15

Post 1:

Emergency tax relief is available for business owners and feepayers directly affected by declared disasters, through the California Dept. of Tax and Fee Administration (CDTFA). “Thank you to the President for your partnership and granting this urgent Major Disaster Declaration. California is battling two of the largest fires in our history and has seen nearly 600 new fires in the last week caused by dry lightning strikes,” reported Governor Gavin Newsom, adding, “CA is strong, we will get through this.” Relief may include extension of tax return due dates, relief of penalty and interest, or replacement copies of records lost due to disasters. Here’s more: https://bit.ly/2QrTV02

Post 2:

California’s Sonoma County enacts emergency paid sick leave ordinance, for certain employers for COVID-19 related reasons. The ordinance took effect Aug. 18, 2020 and will remain in effect through 2020, unless the federal Families First Act (FFA) is extended. The ordinance now requires employers with 500 or […]

By Linkenheimer LLP|2020-09-15T20:17:59+00:00September 15th, 2020|ca, CA tax, california, disaster, employer, New Tax Laws|0 Comments

Did You Get An Economic Impact Payment That Was Less Than You Expected?

Nearly everyone has heard about the Economic Impact Payments (EIPs) that the federal government is sending to help mitigate the effects of the coronavirus (COVID-19) pandemic. The IRS reports that in the first four weeks of the program, 130 million individuals received payments worth more than $200 billion.

However, some people are still waiting for a payment. And others received an EIP but it was less than what they were expecting. Here are some answers why this might have happened.

Basic amounts

If you’re under a certain adjusted gross income (AGI) threshold, you’re generally eligible for the full $1,200 ($2,400 for married couples filing jointly). In addition, if you have a “qualifying child,” you’re eligible for an additional $500.

Here are some of the reasons why you may receive less:

Your child isn’t eligible. Only children eligible for the Child […]

By Linkenheimer LLP|2020-09-03T20:02:55+00:00May 20th, 2020|individuals, New Tax Laws, single family|0 Comments