Annual year-end tax planning strategies will reflect the COVID-19 pandemic and its effects. This year’s economic impact and federal relief packages will render some year-end tax planning strategies less advisable. In addition, this presidential election could result in new federal tax legislation that could affect the current Tax Cuts and Jobs Act. Below are a few year-end tax planning issues to consider.
Which SOC 2 Report is Right for Your Business?
The time has come for your service organization to get SOC certified. Whether a client requested one, or if you have made this decision for your business, it’s important to know if you should get a SOC 2 Type 1 or Type 2 report.
Which SOC 1 Report is Best for Your Business?
So, you have either been asked to get a SOC 1 Audit by a client, or your service organization could benefit from being certified. However, then the next question is, what report should you get? A SOC 1 Type 1 or Type 2 report can be used for a variety of industries. Knowing the differences between the two are vital.
Several weeks ago the President signed a payroll tax executive order to defer certain payroll taxes. Most of us expected Congress to agree on another stimulus bill that would supersede this executive order. Because there has been no agreement, the President’s executive order for a payroll tax deferral/holiday will take effect today (September 1st).
The current economic environment resulting from the COVID-19 pandemic is constantly changing. Numbers shifted dramatically as businesses were shut down and reopened, with many stay-at-home orders still in effect across the country. The second quarter GDP numbers reflected the response to COVID-19 which decreased at an annual rate of 32.9%.
Over the past few months, we’ve had more and more clients ask us about how to take advantage of this changing landscape to get ahead on some of their financial goals. Now, more than ever, is the time to begin making smart investments. If you are considering making a large investment, acquisition, or purchase please let us know so that we can begin discussing the advantages and disadvantages well ahead of time to maximize any benefits that may come from it.
Should I reopen my business? How can I reopen my business? What’s the best way to keep operations going? How can I keep my employees and customers safe? These are questions that have been constantly clouding business owners’ minds for the past few months. For some, the first step was simple, just adopt remote work for everyone. For others however, on-site interactions or face-to-face contact is an important part of their operations. Regardless of which group you fall into, there are many important factors to keep in mind as you figure out your next play to keep your business running through this pandemic. Now is the perfect time for businesses to get ahead!
Many Businesses will be better off electing to use the old rules. Here’s why…
For businesses that cannot spend all of their PPP loan proceeds on eligible expenses by their 8 week deadline, the new PPP Flexibility Act provides a lifeline in the form of additional flexibility and extensions of deadlines for use of the funds.
However, there are some large pit-falls in the details. Some PPP recipients should consider applying for the PPP loan forgiveness under the old rules. Here’s why:
Last week, the House passed the Paycheck Protection Program Flexibility Act which will ease restrictions on the loan forgiveness under the program.
This House bill comes just after the Treasury Department issued “Interim Final Rules’ that made the PPP loan forgiveness even more complex. If these extremely harsh and complex rules stand, you will likely need a lawyer, accountant, and advanced degree in mathematics to figure out how to calculate the forgivable portion of the loan. Once again, ivory tower bureaucrats in the Treasury Department do not realize the administrative burden these rules place on business owners.
Using the financial turmoil to lock in long-term tax savings requires complex planning, but business owners and high net wealth families can use various strategies to pass on billions of tax-free dollars to their descendants in this unique environment. The pressure from low interest rates and beaten-down equity valuations make this an ideal time for estate and wealth-transfer planning as well as make it much easier to protect these fortunes from the Internal Revenue Service.
As a business owner, your Dallas-Fort Worth CPA should be someone you view as more of a financial business partner than an employee. When situations arise like an audit, your accountant should be standing by you to help your business move past it and continue to grow and prosper. They should be proactively providing you counseling and information to help save you time and money. Solid business and CPA relationships last 10+ years with little to no doubt about the value provided. When a CPA starts to drop the ball on some of these benefits, it may be time to start looking to place a new financial partner in your corner.