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Category: Taxation-Corporate

April 13, 2021

Some Business Meals 100% Deductible in 2021 and 2022

Restaurants have struggled mightily during the COVID-19 pandemic. Thankfully, they’re specifically targeted for a new tax relief measure found in the massive Consolidated Appropriations Act (CAA), which became law on December 27, 2020. The new provision creates a temporary but meaningful tax incentive to spend more on business-related food and beverage costs. Preexisting tax breaks for certain food and beverage and entertainment costs are available in other limited circumstances. Here are the details. Unfavorable Treatment under Tax Cuts and Jobs… Read more ›

March 25, 2021

Make the Most of the Employee Retention Credit

The Employee Retention Credit (ERC), which was created to encourage employers to keep their workforces intact during the COVID-19 pandemic, has been with us for a year. But questions about it remain for many employers. With the new American Rescue Plan Act (ARPA) extending the credit and expanding eligibility — and the credit worth as much as $28,000 per employee for 2021 — employers should brush up on the details. Credit history The CARES Act, which was enacted in March… Read more ›

March 20, 2021

Not-for-Profits Take Note: Maryland Announces Sales and Use Tax for Digital Products

Not-for-profits including trade and membership associations that charge for digital product sales should take note of the new sales and use tax on digital products passed by the Maryland General Assembly on March 14, 2021. The new law extends the existing 6% sales and use tax to digital goods. A tax tip published by the State of Maryland addresses the impact on not-for-profit organizations in this manner: There is no general exemption for all sales made by exempt organizations under… Read more ›

March 18, 2021

IRS Extends Federal Tax Deadline to May 17

The IRS has announced that the federal tax filing deadline will be extended this year from Thursday, April 15 to Monday, May 17, 2021. New legislation that passed recently, which provides economic, tax and other relief from the pandemic, has created a complex tax filing season for individuals, businesses and tax preparers, leading to the extended deadline. The extension does not impact all tax deadlines, however. First-quarter estimated tax payments are still due April 15. Deadlines for state tax returns… Read more ›

March 17, 2021

The American Rescue Plan Act (ARPA) Provides Sweeping Relief Measures for Eligible Families and Businesses

On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA). The $1.9 trillion law is intended to provide far-reaching relief from the economic and other repercussions of the ongoing COVID-19 pandemic. In addition to funding for testing, contact tracing, vaccinations, education, and state and local governments, the ARPA includes extensive relief that could directly impact your finances. Recovery rebates Under ARPA Under the ARPA, many people will receive a third round of direct payments (which… Read more ›

March 11, 2021

Maryland State Income Tax Filing Deadline Extended to July 15

The State of Maryland has extended the state income tax filing deadline from April 15 to July 15. The extension applies to individual, pass-through, fiduciary and corporate income tax returns, and is the result of economic relief-related legislation expected to impact 2020 state and federal tax filings. Read more in this March 11 press release published by the State of Maryland Comptroller’s Office. https://content.govdelivery.com/accounts/MDCOMP/bulletins/2c630db For more information, contact CBM Tax Practice Director Richard Morris using our online contact form.

March 11, 2021

The American Rescue Plan Act Has Passed: What’s In It For You?

Congress has passed and President Biden has signed into law the latest legislation aimed at providing economic and other relief from the COVID-19 pandemic that has haunted the country for the last year. The 628-page American Rescue Plan Act (ARPA) includes $1.9 trillion in funding for individuals, businesses, and state and local governments. The ARPA extends and expands some of the critical provisions in the CARES Act and the Consolidated Appropriations Act (CAA). It also includes some new provisions that… Read more ›

March 5, 2021

New IRS Notice Further Clarifies Eligibility for the Employee Retention Credit

Last month, we wrote that passage of the Consolidated Appropriations Act in December clarified that some businesses seeking pandemic relief assistance would be eligible to apply for benefits under both the Paycheck Protection Program (PPP) and the employee retention credit (ERC). This marked a break from common sentiment since it was widely assumed throughout 2020 that businesses had to choose which program to participate in. As a result, the CAA also allowed businesses that did NOT claim the ERC in… Read more ›

February 26, 2021

Paycheck Protection Program Revisions Target Smallest Businesses

The Biden administration has announced several reforms to the popular Paycheck Protection Program (PPP) to bring greater relief to the smallest and most vulnerable businesses. Among other things, the administration is imposing a two-week moratorium on loans to companies with 20 or more employees and focusing on smaller businesses. It’s also changing several program rules to expand eligibility for the 100% forgivable PPP loans. The PPP in a nutshell The CARES Act, passed in the early days of the COVID-19… Read more ›

February 22, 2021

The RELIEF Act of 2021: Tax and Stimulus Relief for Maryland Individuals and Businesses

In late February, Maryland Governor Larry Hogan signed The RELIEF Act of 2021, legislation which will provide up to $1 billion for stimulus payments, unemployment insurance, and grants and loans to individuals and small businesses in Maryland. The RELIEF Act will deliver the following in an effort to mitigate the impacts of the pandemic: One-time stimulus payments of $300 (individuals) or $500 (families) who filed for the Earned Income Credit in 2019. Qualifying Marylanders will have funds deposited directly into… Read more ›