Recent guidance from the IRS has granted additional relief to taxpayers impacted by California wildfires and created uncertainty for the implementation of one of President Trump’s August 8th Executive Actions. (more…)
US Tax News August 2020
Below is a summary of the Federal COVID-19 related updates from August 2020. (more…)
2020 Required Minimum Distributions (RMDs) - Waived Under the CARES Act
By Angel Nevis, CPA, Senior Tax Manager; Anu Joshi, CPA, Senior Tax Manager; Chris Madrid, CPA, Tax Director, ASL Family Wealth & Individual Tax Planning Group
ACTION REQUIRED BY AUGUST 31, 2020
If you have taken required minimum distributions from a retirement account in 2020 or are planning to, don’t miss this relief provision and potential tax-saving opportunity.
For the 2020 tax year only, RMDs from retirement accounts are not required. This includes distributions from traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, 457(b) plans, and profit-sharing plans. The waiver was recently expanded to include distributions from inherited IRAs, and also applies to certain taxpayers who reached RMD age in 2019. (more…)
COVID-19 Recovery - How the Employee Retention Credit Could Improve Cash Flow
As post-COVID recovery efforts gain momentum, many businesses are taking a fresh look at some federal stimulus and tax relief programs they had not previously considered. One such program, the employee retention credit contained in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, could be especially useful in helping companies bring back furloughed or laid-off employees.
In addition to helping reduce employment tax obligations, it could also help cash-strapped companies of any size improve cash flow during times of reduced revenue. (more…)