Roger H. St Germain, CPA, MST

02/11/2022

The IRS has confirmed what I've speculated as a number of clients have unresolved issues, including 2020 refunds not yet received.

IR-2022-31, February 9, 2022 — As part of ongoing efforts to provide additional help for people during this period, the IRS announced today the suspension of more than a dozen additional letters, including the mailing of automated collection notices normally issued when a taxpayer owes additional ...

05/06/2021

I hope that businesses that needed it were able to apply in time.

The SBA has informed lenders that it is no longer accepting new applications from most lenders for the Paycheck Protection Program because the $292 billion program’s general fund is nearly exhausted.

03/25/2021

Thank goodness for this. Too many small businesses were in danger of losing out on this help due to shifting documentation requirements from the SBA.

The PPP Extension Act of 2021 shifts the PPP application deadline from March 31 to May 31 and provides an additional 30 days for processing applications received by May.

03/18/2021

IRS postpones tax deadline to May 17. At best, it's a half measure, because they have not extended the deadline for estimated tax: we need 2020 tax information to properly calculate 2021 estimates.
We also need the states to follow suit, because state tax calculations flow from the federal return. Without state cooperation, any federal extension is meaningless for folks living in states with income tax.

The IRS announced that it is postponing the April 15 deadline for individual tax returns and payments. The postponement applies only to individual taxpayers. Formal guidance is expected in the near future.

02/25/2021

Nasty Rhode Island Surprise for Some!

Some Rhode Islanders are in for a nasty surprise at tax time. That's because, in response to the federal government repealing the penalty for failing to have adequate health insurance, Rhode Island politicians swung into action, enacting their own penatly provision for 2020 and forward. The penalty....

02/05/2021

The IRS issued guidance providing a safe harbor under which eligible educators who have unreimbursed expenses for personal protective equipment, disinfectant, and other supplies used to prevent the spread of COVID-19 in the classroom can deduct those expenses as educator expenses.

02/04/2021

If you didn't get your first and/or second stimulus check, you are not out of luck.

If your second stimulus check never made its way to you, you can file for a Recovery Rebate Credit on your 2020 tax return. Here's how.

01/20/2021

You might want to consider this before you file your next tax returns

The Internal Revenue Service (IRS) has now opened up enrollment in the Identity Protection PIN (IP PIN) program to anyone who has a Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) and is able to verify his or her identity.

01/13/2021

How COVID-19 Legislation May Affect Your Taxes

The Consolidated Appropriations Act (CAA), signed into law Dec. 27, 2020, provides relief in response to the COVID-19 pandemic, such as another round of “recovery rebate” payments to individuals and an expansion of the Paycheck Protection Program (PPP) for businesses and other employers. The legislation includes some tax relief as well.

Here’s a brief overview of some of the tax-related provisions that may affect you or your business:

Individuals:

Permanent reduction of adjusted gross income (AGI) floor to 7.5% for medical expense deductions
Extended nonitemizer deduction for up to $300 of cash donations ($600 for married couples filing jointly) to qualified charities through 2021
Extended 100% of AGI deduction limit for cash donations to qualified charities through 2021
Extended exclusion for certain employer payments of student loans through 2025

Businesses and other employers:

Clarification of tax treatment for PPP loans, certain loan forgiveness and other financial assistance under COVID-19 legislation
Extended payroll tax credits for paid leave required under the Families First Coronavirus Response Act (FFCRA) through March 2021
Extended and expanded tax credits for retaining employees under the Coronavirus Aid, Relief and Economic Security (CARES) Act through June 2021
100% business meals deduction for food and beverages provided by restaurants in 2021 and 2022
Extended Work Opportunity credit through 2025
Extended New Markets credit through 2025
Extended family medical leave credit through 2025

This is just a brief look at some of the most significant tax-related provisions in this 5,500+ page legislation. Contact us for more details on how the CAA may affect you.

12/09/2020

Just a reminder that the deadline for applying for this grant is Friday, December 11

Taxation

12/04/2020

Just a reminder that you can take a deduction for charitable contributions up to $300 for 2020, even if you don't itemize.

IR-2020-264, November 25, 2020 — The Internal Revenue Service today reminded taxpayers of a special new provision that will allow more people to easily deduct up to $300 in donations to qualifying charities this year.