Holt & Patterson, LLC

05/29/2020

On May 28th, 2020 the House overwhelmingly passed a bill proposing extending the time in which businesses must use their PPP funds, amending the 75/25 rule, pushing back the deadline to rehire workers, and extending the two-year term for loans among other provisions. This House bill, known as the Paycheck Protection Program Flexibility Act, now heads to the Senate for a vote and must be passed then signed by the President to become law.

The first recipients of PPP loans are nearing the end of their eight-week period and are trying to spend the funds using the original guidelines to achieve the requirements for forgiveness. It has proven difficult under the current guidelines with mandated shutdowns and restrictions involved in operating, as many businesses are not fully open or operating at normal capacity. We are hopeful this bipartisan measure, or some form of it, will pass and become law to offer businesses further necessary relief. We will keep you updated as this Act progresses.

03/17/2020

IRS Extends Tax Deadline in Response to COVID-19

The United States Treasury announced March 17, 2020, an effort to help mitigate the effects caused by the spread of the Coronavirus (COVID-19) pandemic, the April 15 tax payment deadline will be extended by 90 days.

The relief is available for Federal income tax payments, including payments of tax on self-employment income, otherwise due on April 15, 2020. Thus, it applies to the payment of Federal income taxes for the 2019 tax year, as well estimated income tax payments for the 2020 tax year that are due on April 15, 2020.

This extension will allow for up to $1 million dollars in taxes for individuals and $10 million in taxes for corporations to be deferred for 90 days. This payment extension is automatic, and will provide relief for individuals and corporations who are having trouble paying tax obligations, or experiencing other complications due to the spread of COVID-19.

At this time, the IRS has not yet extended the time to file, only to pay. An extension of the filing due date may be forthcoming in the days ahead and we will update this post at that time.

Previously, any extensions filed with Form 4868 required tax obligations to still be paid by the April 15 deadline, regardless of the fact the deadline to file the return had been extended. Under these new requirements, the tax payments are not due until the new deadline.

The specific details of how such a policy will be carried out have not yet been provided by Treasury, and the states have not had a chance to consider whether to conform. We will continue to provide updated information as it is received.

Those who can still file and pay any tax obligations by April 15th are encouraged to do so. Our clients can share documents with the firm using H&P's secure website-based portal. If we can provide information about this resource for you, please contact us.

These technological capabilities will allow us to help our clients complete as much 2019 work as possible in advance of the traditional April 15th deadline and we encourage clients to take advantage of these resources where possible. Our commitment to help navigate our clients through a complex financial world has never been more important, and we will continue to focus on issues affecting you and your business in the weeks and months ahead.

If you have any questions or concerns, please contact your Holt & Patterson accountant to determine how this relief may impact your specific situation.

03/13/2020

https://apnews.com/95b0a0bcf0d27e7fa018951b122cf1ec

Recognizing that this is a rapidly evolving situation, we are dedicated to regularly reviewing any updates provided by the IRS and federal government. If you have any questions regarding these updates please do not hesitate to call us at (636)530-1040.

WASHINGTON (AP) — President Donald Trump announced Wednesday night that he will instruct the Treasury Department to allow individuals and businesses negatively affected by the coronavirus to defer...

03/06/2020

*Timely Filing of Partnership and S Corporation Returns and Extensions*

To be considered timely, your return or extension must be filed before midnight CDT on Monday, March 16, 2020. If the IRS rejects your return, you have 10 calendar days to resubmit the return and obtain approval from the IRS. If your extension is rejected, you have five calendar days to resubmit the extension and obtain approval from the IRS

02/28/2020

https://time.com/5770130/tax-law-changes-2020/

This year is bringing its share of new rules

02/24/2020

It hides in every single paycheck you get. It quietly takes a bite out of every dollar you earn. What the heck is withholding?

02/21/2020

If you've had debt canceled, you could be in for a surprise: a tax bill on that debt.

02/19/2020

2019 personal income tax return organizers have been mailed out. Please let us know if you have not received yours (636)530-1040.

02/13/2020

*Small Businesses May Claim Minimum Wage Credit Starting January 1, 2020*

For corporate and personal income tax purposes, Illinois Department of Revenue reminds businesses about Minimum Wage Credit designed to help offset the state's minimum wage rate, which gradually increases to $15 an hour over the next six years. Starting January 1, 2020, businesses may claim the credit on their quarterly Illinois withholding income tax returns. Businesses and nonprofits with 50 full-time equivalent employees or less are eligible to offset a portion of the minimum wage increase cost from their withholding income taxes. The maximum credit amount allowed is 25 percent of the difference between the new minimum wage and what each employee was paid previously.

The percentage allowed each proceeding year will decrease before sunsetting in 2026 for most small businesses. Eligible businesses may claim this credit by filing Form IL-941, Illinois Withholding Income Tax Return, and a new schedule.

01/02/2020

**$9.45 Missouri Minimum Wage in Effect for Private Employers for 2020**

The minimum wage rate will increase 85 cents each year through 2023 for all private, non-exempt businesses. Missouri Minimum Wage law does not apply to public employers, nor does it allow the state's minimum wage rate to be lower than the federal minimum wage rate.

12/28/2019

Read for more information five powerful business tax deduction strategies you can easily understand and implement before the end of 2019: http://holtpatterson.com/2019-tax-planning/ #

Of course, the IRS is not likely to cut you a check for this money (although in the right circumstances, that will happen), but you will realize the cash when you pay less in taxes.

12/11/2019

On September 24, 2019, the U.S. Department of Labor announced a final rule to make 1.3 million American workers newly eligible for overtime pay.

The final rule updates the earnings thresholds necessary to exempt executive, administrative and professional employees from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime pay requirements, and allows employers to count a portion of certain bonuses/commissions towards meeting the salary level. The new thresholds account for growth in employee earnings since the thresholds were last updated in 2004.

In the final rule, the Department is:

• raising the “standard salary level” from the currently enforced level of $455 per week to $684 per week (equivalent to $35,568 per year for a full-year worker);
• raising the total annual compensation requirement for “highly compensated employees” from the currently enforced level of $100,000 per year to $107,432 per year;
• allowing employers to use nondiscretionary bonuses and incentive payments (including commissions) paid at least annually to satisfy up to 10% of the standard salary level, in recognition of evolving pay practices; and
• revising the special salary levels for workers in U.S. territories and the motion picture industry.

The final rule is effective on January 1, 2020.