8/18/2021
Inside This Issue
Update business information with the IRS within 60 days of any change
Employer credit available for providing paid leave for COVID-19 immunization
IRS provides relief for certain employers claiming the Work Opportunity Tax Credit
Employee Retention Credit updates
Additional guidance to employers for second half of 2021
The Treasury Department and the IRS issued further guidance on the Employee Retention Credit, including guidance for employers who pay qualified wages after June 30, 2021, and before January 1, 2022, and additional guidance on miscellaneous issues that apply to the credit in both 2020 and 2021. These changes, made under the American Rescue plan, amplify prior guidance.
The guidance also responds to questions received and covers reporting qualified wages and related health insurance costs.
Gross receipts safe harbor for employers claiming the credit
The Department of the Treasury and the IRS issued a safe harbor allowing employers to exclude certain items from their gross receipts solely for determining eligibility for the Employee Retention Credit.
Update business information with the IRS within 60 days of any change
Calling it a key security issue, the IRS urged businesses, charities and other entities with an Employer Identification Numbers (EIN) to update their information when there has been a change in the responsible party or contact information, such as their address. It is critical that the IRS have accurate information in cases of identity theft or other fraud issues related to EINs or business accounts.
Employer credit available for providing paid leave for COVID-19 immunization
The IRS updated the frequently asked questions (FAQs) on the paid sick and family leave tax credits under the American Rescue Plan Act of 2021. The updates clarify that eligible employers can claim the credits for providing leave to employees to accompany a family or household member or certain other individuals to obtain immunization relating to COVID-19 or to care for a family or household member or certain other individuals recovering from the immunization. This new reason for paid sick or family leave also applies for the comparable credits for self-employed individuals.
IRS provides relief for certain employers claiming the Work Opportunity Tax Credit
The IRS announced transition relief to certain employers claiming the Work Opportunity Tax Credit (WOTC). The transition relief covers extensions to Empowerment Zone designations and guidance to certain employers who submitted a Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit.
Giving someone a work opportunity may translate into a business tax credit for a business and greater stability for a family. The WOTC is a federal tax credit available to employers for hiring individuals from certain targeted groups who have consistently faced significant barriers to employment.
Truckers: File highway use tax form by August 31
The IRS reminds those who have registered, or are required to register, large trucks and buses that it's time to file tax year 2021 Form 2290, Heavy Highway Vehicle Use Tax Return. The deadline to file and pay is August 31, 2021, for vehicles used on the road during July 2021.
The reminder includes what truckers should know about who must file, what information to gather, how to file and pay, and where to go for more information.
Note: the filing deadline is not tied to the vehicle registration date.
IRS YouTube video
Truckers: Mark Your Calendars to File Form 2290
Other tax news
The following information may be of interest to individuals and groups in or related to small businesses:
Security Summit: Tax Pros can help clients battle identity theft risk related to unemployment
IRS continues unemployment compensation adjustments, prepares another 1.5 million refunds
Security Summit: Tax pros should encourage clients to obtain IP PINs to protect against tax-related identity theft
More than 2.2 million additional Economic Impact Payments disbursed under the American Rescue Plan
Security Summit partners urge tax pros to use multi-factor authentication; critical step to boost protection against data theft
IRS improves services to taxpayers with digital authorizations and launch of new Tax Pro Account
Source: IRS e-News for Small Business Issue 2021-12