Year-End Tax Planning Utilizing R&D Tax Credits
The Research and Development (R&D) Tax Credit is a top incentive for Companies to substantially reduce their federal and state income tax liabilities. Taxpayers with qualifying research may expense these costs immediately and receive an income tax credit...
IRS Releases General Guidance for the Cannabis Industry
On September 11, 2020, the IRS released general guidance for the cannabis industry. This is likely a response to a Treasury Department internal watchdog report which was critical of the IRS’ lack of guidance towards the cannabis industry. The guidance is published on...
IRS Releases Guidance on Simplified Accounting Procedures for Small Businesses – Analyzing Impact to Cannabis Businesses
The IRS issued a set of proposed regulations on July 30, 2020 that addresses several key accounting issues for small businesses. The issues addressed uncertainties under the Tax Cuts and Jobs Act (TCJA) in connection with simplified accounting procedures covered under...
Recalculating COGS for Cannabis Companies Subject to IRC 280E
OVERVIEW OF TIGTA REPORT DATED MARCH 30, 2020 The Treasury Inspector General for Tax Administration (“TIGTA”) was established in the 1980’s to provide independent oversight of the Internal Revenue Service’s (“IRS”) activities. On March 30, 2020, TIGTA released...
IRS Clarifies Payments Made Using PPP Loan Funds May be Non-Deductible if Loan is Forgiven
The IRS announced Notice 2020-32 and clarifies that no deduction is allowed for an expense that is otherwise deductible if the payment of the expense results in forgiveness of a PPP loan pursuant to the CARES Act. The income associated with the forgiveness of the PPP...
The Silver Lining of Decreased Income During the Pandemic
While many individuals are struggling financially during the COVID-19 pandemic, there are tax planning strategies that can be implemented now for long term income tax savings. Convert IRA to ROTH IRA - If the value of your IRA has taken a dive during this volatile...
PPP Loan Calculations Guidance for Self-Employed Taxpayers and Partnerships
On April 24, 2020 the SBA issued guidelines for all entities, including self-employed taxpayers and partnerships, with regards to calculating monthly payroll costs in relation to the Paycheck Protection Program (PPP) loans. SELF-EMPLOYED INDIVIDUALS Self-employed...
Impacted by COVID-19 and exhausted relief programs? Consider the California ETP for Training Reimbursement
The California Employment Training Panel (ETP) founded in 1982, provides funding for businesses who enhance the skills of their workforce through employee training. The ETP program is funded by a special payroll tax under the California Unemployment Insurance (UI)...
PPP Guidance for Partners in Partnerships and Self-Employed Borrowers
Last week the Small Business Administration (SBA) released an updated set of Interim Final Rules for the PPP (Paycheck Protection Program). These latest rules supplement the First PPP Interim Final Rules with guidance for individuals with self-employment income who...
California’s Conformity to the Federal CARES Act
The California Franchise Tax Board (FTB) recently announced their conformity and non-conformity to the Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act. Some important highlights are: The stimulus checks from the federal government enacted under the...