Since earlier this year, the Biden Administration has been pursuing a legislative agenda that focuses on COVID-19 economic recovery and re-energizing the American economy. It started with the American Rescue Plan Act and has continued with several other proposals culminating in the Build Back Better Act (the Act). The Act is designed to reduce costs, create new jobs, and cut taxes for working families. There are proposed investments in health and childcare, higher education, workforce training, and teachers and schools.

As federal COVID-19 relief programs continue to diminish, New Jersey and Pennsylvania-area businesses are searching for other funding opportunities. Several companies have not yet fully recovered from the pandemic’s devastating fallout, while others are concerned about the potential impact of COVID variants. There has been a reported 30% increase in COVID hospitalizations in New Jersey, while Pennsylvania reported triple-digit growth in the number of new cases. 

Recently, the IRS announced that victims of Hurricane Ida in various parts of New Jersey, New York, and Pennsylvania now have until January 3, 2022, to file individual and business tax returns and make certain tax payments.  The tax relief is being offered to taxpayers in any areas designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance.

When the COVID-19 pandemic hit New Jersey in March 2020, many businesses were forced to close for a time, causing unemployment claims to spike.  More than 2 million state residents have filed for unemployment since the start of the pandemic, and over $33B in state and federal benefits have been paid out.  As a result, the state’s Unemployment Trust Fund (UT Fund) has been severely depleted, and the state was forced to borrow from the federal government to keep paying claims.

On August 10, 2021, the IRS and the Department of the Treasury provided new guidelines regarding the Employee Retention Credit (ERC) via a safe harbor, allowing employers to exclude specific items from their gross receipts only when determining if the qualifications for the ERC are met.

Whether you are an insurance agency shareholder, partner, employee, or independent agent, you need to be aware of the tax treatment of reimbursed and unreimbursed business expenses. Like most businesses, agencies typically reimburse employees for ordinary and necessary business expenses. Depending on the circumstances, expense reimbursements may be treated as taxable income subject to federal income and employment taxes.

Among the many provisions of the American Rescue Plan Act (ARPA), enacted in March 2021, was one regarding the Consolidated Omnibus Budget Reconciliation Act of 1985, more commonly known as COBRA.  COBRA is a program that provides certain employees (and their spouses and dependents) the right to temporarily continue group health coverage at the group rate if they have lost it.  It generally applies to private-sector employers of 20 or more employees, employee organizations, and government workers at the federal, state, and local levels.

Several businesses (including some in New Jersey and Pennsylvania), individuals, families, and others dealing with estates and trusts have reported significant delays when dealing with the IRS. Not only does this include issues with receiving timely refunds, but also with communications and other services. This has many asking the question, “How are things going at the IRS?” According to recent research findings, not well.

When Congress passed the American Rescue Plan Act (ARPA)  in March 2021, it included expansions of the existing child and dependent care credit and the paid sick and family leave credit.  The IRS recently released some guidance on the expanded tax credits here and here.  Keep reading for a brief overview of what taxpayers and employers need to know about the expanded tax credits, why they’re important, and how they could affect you.

Cryptocurrency activity is everywhere, and it’s no longer just for the investment elite or bitcoin miners. Whether you’re investing in cryptocurrency or spending it, trading in digital currency can often feel like you’re not dealing with “real” money. But, this isn’t the case. Trading in cryptocurrency can have real federal income tax implications. This article will look at the six most effective ways to reduce taxes on your cryptocurrency gains. First, it’s worth looking at exactly how the IRS taxes cryptocurrencies so you can better understand your potential liabilities.