Anthony Sykes & Company

     The new COVID relief package ( Consolidated Appropriations Act, 2021 ) was signed on December 27. A Bill like this is unlikely to be changed after it has been signed. This means we have a much clearer understanding of what it will provide.      This is actually part of a larger piece of legislation that includes funding the government until September 2021. The COVID relief part of the law renews many of the programs created with the Coronavirus Relief and Economic Security ( CARES ) Act. For example, the Paycheck Protection Program ( PPP ) will continue. There is also a clarification that businesses can deduct expenses paid with funds from a forgiven PPP loan. There will be an extension of Federal Pandemic Unemployment Assistance ( FPUA ). This allows for Unemployment Insurance for Independent Contractors and those who work in the Gig Economy. This will go in effect 1 week later due to the delay in signing the Bill. Another round of Economic Impac...

     On December 20, new information about another round of COVID relief was released. This is certainly welcome news. Not everything is known at this time about the deal in Congress, but there are some details that have surfaced.      Unemployment assistance will be extended by about 11 weeks. However, it will only be at $300 per week. The Paycheck Protection Program ( PPP ) would continue and even expand to allow some businesses to apply for a second loan. It is still unclear if paying for business expenses with these loans is fully tax deductible. There would be a simplified process for those seeking a loan of less than $150,000. The Employee Retention Credit will continue. Student loan forbearance on Federal Student Loans would be extended. There is also a report of a provision to increase business meal deductions from 50% to 100%. Remember that nothing is final until it is written down and voted on, so a lot can still change.

     The Internal Revenue Service ( IRS ) is trying to make Taxpayers everywhere aware of a new COVID-19 related scam. Some are still waiting for news about their Economic Impact Payment ( EIP ), and this text message plays on those feelings. The IRS will never send a text message asking for information. This message claims that a direct deposit has been received from the “COVID-19 TREAS FUND” and more information is needed to claim the money. The included link sends you to a phishing website where your banking information will be taken.      The link will look like it comes from a state agency. The website will be an imitation of the IRS page that shows where you can track your EIP . If you are sent this text, take a screenshot and send it to phishing@irs.com . Make sure to include information like the date and time it was sent. We must all continue to remain vigilant during these challenging times.

       All Taxpayers and even Tax Professionals need to be very careful during this time of year. It is the time when scams and identity theft concerns grow to one of the highest points of the year. When you add to that holiday shopping and COVID-19 related schemes, this is a combination that has never been experienced before.      With the increase of working from home, there are new vulnerabilities that may be exposed. The Internal Revenue Service ( IRS ) along with state tax agencies to get the word out about what everyone can do to protect themselves. This is especially important since Tax Season will be upon us sooner rather than later. Some simple things to remember are to keep an eye out for phishing scams (imposter emails and texts). These are the #1 way criminals compromise security. Many of them are now related to COVID-19 and Economic Impact Payments ( EIP ). Use security programs on your phones and computers – and make sure it is updat...

     The Internal Revenue Service ( IRS ) is making a special effort to make sure that taxpayers know about a special charity deduction that is available this year. The year of 2020 has affected all of us in different ways. However, because of the unique challenges faced this year, some may feel even more motivated to give to charities. The Coronavirus Aid, Relief and Economic Security ( CARES ) Act gives extra encouragement to do so.      This special tax law allows for a $300 tax deduction without the need to itemize your Tax Return. This special deduction will allow for some extra tax savings while using the standard deduction. To qualify, these donations must be made by cash, check, debit or credit card. Good records must be kept, including having a receipt or acknowledgement letter from the charity to file with your Tax Return. Please check to make sure that the organization you choose is eligible for tax-deductible donations. Make an appointment wit...