Posts by MitchReitman

The infrastructure bill passed by the U.S. Senate on August 10, 2021 would end the employee retention credit (ERC) early, making wages paid after Sept. 30, 2021, ineligible for the credit (except for wages paid by an eligible recovery startup business). 

The IRS collection division is recovering from pre-pandemic lockdowns and began sending out letters from the Automated Collection System function in June.  They also restarted the income tax levy program in July. In addition, responsible officers continue to work on non-filer cases and are sending out notices and billing notices; however, their focus is primarily on egregious cases, such as high-income non-filers.

After a year of coping with COVID lockdowns and reduced revenues the potential increase in business and individual tax rates may be our next challenge.  President Biden has suggested raising federal rates on businesses and the wealthy to pay for his forthcoming infrastructure bill and programs to combat inequality and climate change. Under his proposed…

Payroll taxes and withholding present a tempting source of working capital for a small business.  Payroll tax payments are easy to divert because there isn’t really an invoice (at first).  Payroll taxes and withholding are ‘voluntarily’ reported on IRS Form 941 (Employer’s Quarterly Federal Tax Return) and paid via direct deposit to the IRS.  The…