IRS Provides Updated FAQS for Corporate Net Operating Loss Carrybacks

Over the past week the IRS has posted several updates to its Frequently Asked Questions spanning multiple topic areas.  One of these updates included additional information and clarification regarding Corporate Net Operating Loss carrybacks and interplay with Alternative Minimum Taxes.  The CARES Act provides C corporations with a 5 year carryback period for NOLs in…

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Employer Withholding Requirements & Income Sourcing

Employer Withholding Requirements Maryland employer withholding requirements are not affected by the current increase in teleworking because tax-ability is determined by the employee’s physical presence. Employer withholding is generally required for employees who are: Maryland residents Maryland non-residents receiving Maryland-sourced income Maryland- sourced income:  compensation for services performed in Maryland Teleworking in Maryland is Maryland-sourced…

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IRS Issues Notice Clarifying Expenses Paid with PPP Funds Are Not Deductible

As many taxpayers rushed to gain access to Paycheck Protection Program (PPP) funds to help support business operations during these unprecedented times, numerous questions surfaced over eligibility, use, and repayment requirements of funds received.  Once businesses secured this lifeline a new set of questions arose regarding both the direct and indirect tax treatment of receiving…

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IRS Tools for Economic Impact Payments

The IRS has launched two new tools for taxpayers expecting Economic Impact Payments. The first feature is for individuals who don’t normally file tax returns to get payments.  This tool can be used by someone whose income in 2018 and 2019 was below the tax return filing requirement, and veterans beneficiaries.  The IRS will use…

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IRS Extends Additional Deadlines and Payments

On April 9th the IRS announced additional deadline extensions for businesses and individuals expanding on relief issued last month.  The new relief applies to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020 and before July 15, 2020.  Individuals, trusts, estates, corporations, and other non-corporate tax filers qualify…

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2020 Recovery Refund Checks for Individuals

The CARES Act provides eligible individuals with a refund check equal to $1,200 ($2,400 for joint filers) plus $500 per qualifying child. The refund begins to phase out if the individual’s adjusted gross income (AGI) exceeds $75,000 ($150,000 for joint filers and $112,500 for head of household filers). The credit is completely phased out for…

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Coronavirus Response – CARES Act Tax Provisions

Updated March 27th – President Trump has signed the CARES Act after it passed in the House. The Senate recently introduced the CARES Act (Bill 3548), the 3rd phase of the Federal government’s response to the coronavirus pandemic. The bill contains a number of tax-related stimulus measures, in addition to providing healthcare support and general…

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IRS Now Postpones Tax Filing Deadline to July 15, 2020

On March 20, 2020, Treasury Secretary Mnunchin announced moving Tax Day from April 15 to July 15, following which the IRS issued Notice 2020-18 which automatically extends Federal income tax filing from April 2020, to July 15, 2020. As a result of the postponement the period beginning on April 15, 2020 and ending on July…

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