The Bottom Line
The Bottom Line is where Klatzkin’s advisors provide analysis and insight into key developments in taxation, accounting, and other issues and how they affect businesses and individual taxpayers.

IRS Announces Temporary Business Deductions for Food and Beverages from Restaurants

By JOHN BLAKE

On April 8, 2021, the IRS issued Notice 2021-25 in conjunction with the Taxpayer Certainty and Disaster Relief Act of 2020.  This Act grants a temporary exception to the 50% deduction limit for businesses on food and beverages provided by restaurants.

IRS Issues Guidance on Unemployment Benefit Exclusion on 2020 Tax Returns

By MICHELLE ROBB

When the American Rescue Plan Act of 2021 was signed into law on March 11, 2021, it included a provision that allows taxpayers that earned less than $150,000 in modified adjusted gross income to exclude up to $10,200 of unemployment compensation claimed in 2020 on their 2020 individual tax returns (up to $20,400 for married couples filing jointly if both received benefits).

What Businesses Need to Know About the American Rescue Plan

By JOHN BLAKE

On March 12, 2021, President Biden signed the American Rescue Plan (ARP) Act of 2021. The fourth piece of COVID-19 relief legislation passed since the pandemic started, the ARP provides over $1.9T in relief for individuals, families, and businesses.

New Jersey Tax Credit for COVID-19 Building Improvements

By CHRISTOPHER S. MAYNARD

The fallout from the COVID-19 pandemic created by forced business closures and other government orders continues to challenge New Jersey businesses. Despite the drop in new cases, partially due to vaccination efforts, many have just started the journey back to profitability.

Individual Provisions of the American Rescue Plan Act

By MICHELLE ROBB

The $1.9T relief legislation provides several provisions to benefit individuals. These include economic stimulus payments, extended unemployment, new subsidies, and increased tax savings through the expanded child tax credit, and more. While the benefit depends on meeting certain income thresholds, it is expected families will now receive the financial boost to carry them to the end of the pandemic.

Recent Updates to the Employee Retention Credit

By JOHN BLAKE

As vaccinations for COVID-19 continue to be administered, businesses throughout New Jersey and Pennsylvania are excited to see certain government orders slowly rolling back. While this is certainly a promising step towards returning to “normal,” the reality is the damage suffered over the last year is almost impossible. That is why the recently enacted the American Rescue Plan Act of 2021 (ARPA), signed by President Biden on March 11, 2021, provides over $1.9T in relief for struggling individuals, families, and businesses.

What the $1.9 Trillion American Rescue Plan Means for Taxpayers

By JOHN BLAKE

President Biden signed the American Rescue Plan (ARP) Act of 2021, the newest economic relief package into law, on Thursday, March 11, 2021. The 242 page, $1.9T bill brings a surge of new stimulus funds and legislation to revive the economy after a slow recovery due to the COVID-19 pandemic, which happened a year ago this month.

New Jersey Economic Recovery Act of 2020

By MICHELE D. SLOCUM

The challenges arising from the COVID-19 pandemic have been difficult to manage for many New Jersey-area businesses. The hardest-hit industries include food service, hospitality, entertainment, and recreation, as demand has plummeted since the pandemic began.

State Tax Conformity with the CARES Act

By JOHN BLAKE

The arrival of the COVID-19 pandemic last March sharply impacted both businesses and individuals as significant changes to everyday life were mandated to limit the virus’s spread. The combination of stay-at-home orders and forced business closures left many reeling from the almost overnight shifts. Given the magnitude of the situation, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide comprehensive economic relief.

2021 Employee Retention Tax Credit Means More Savings

By JOHN BLAKE

The financial and operational challenges presented by the COVID-19 pandemic continue to persist into another year. The seemingly endless number of government orders has forced many to operate in a limited capacity, or in some cases, close altogether.

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