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.

How the American Rescue Plan Act of 2021 Affects Single Audits

By THOMAS H. MARTIN

The American Rescue Plan Act of 2021 (ARPA), signed into law on March 11, 2021, not only contained provisions that affected individuals, businesses, and governmental entities, but it also had implications for accountants in regards to Single Audits.  A Single Audit is an examination of an entity that spends $750,000 or more in governmental assistance per year, through funding such as grants and awards, to ensure that the funds are being spent properly and the entity complies with laws and regulations. 

COVID-19 Effects Are a Required Financial Statement Disclosure

By MICHELLE S. MARTIN

All organizations are required to detail the effects of the COVID-19 pandemic on their organization in the financial statement notes. This disclosure requirement is for commercial entities as well as nonprofit entities.

IRS Taxpayer Relief Initiative Offers New Payment Options

By MICHELE D. SLOCUM

The COVID-19 pandemic has created challenging circumstances for many Princeton, Trenton, and New Jersey businesses. The combination of government orders, fear of virus transmission, and reopening guidelines have businesses looking for new paths to profitability under unexpected conditions. According to the New Jersey Economic Forecast, published by Rutgers Economic Advisory Service, 16.7% of the state’s total jobs were lost between February and May 2020.

IRS Announces Retirement-Related Changes for 2021

By MICHELE D. SLOCUM

On October 26, 2020, the IRS announced changes coming to various retirement plans for the tax year 2021. The cost-of-living adjustments will affect income limits for pension plans and other retirement accounts.

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