Tax Update with Ron Cohen

Today we discuss: -A review of year end tax planning issues and strategies About The Show: Hello and welcome. This is Ron Cohen. I'm a tax partner with the firm of Greenstein, Rogoff, Olsen & Co., LLP and we're located in beautiful downtown Fremont, California. I appreciate you signing in to listen to my self-indulgent, and sometimes narcissistic comments about the tax system. No Reliance: Take no reliance on anything you hear on this podcast. This is mostly for entertainment and education. In order to get an opinion from me or my firm you have to sign an engagement letter and give us all of the facts. After we do some research about your situation we'll come back and formally give you an opinion. And only then can you use that advice for purposes of entering into any transaction or filing a tax return. Plagiarism is Okay! Everything in the tax rules is from the Internal Revenue Code, its regulations, court cases, and various internal memorandums by the Internal Revenue Service. Lots of lawyers and CPAs write very good articles that we will often attach in the show notes. They are trying to show how smart they are to the public so everyone copies from everyone else, and I certainly want to give them credit. We're not writing any novels, nor creating deep or original thoughts here. No Politics We try to stay out of general politics, however tax law is developed through legislation in Congress and anything that's legislative has its own political ups and downs. And I feel free to comment on that. How I Help: Our firm does around 1400 tax returns for various people. The demographics range from little grandmothers all the way up to high tech executives and multinational corporations. We also specialize in family office services for wealthy groups with far flung entities and we also help those groups with things such as bill paying and taking care of their day-to-day financial operations No Cheerleader for the Tax System: Our tax system is intrusive, an invasion of privacy and it's tedious. You need to look at a 12 step flowchart to figure out in some cases whether you can take your mortgage interest deduction. It is part of the technocratic Administrative State that has built up in this country since World War Two, and I don't like it. Other countries have simplified the tax system in many ways, despite this we always try to get an A+ (not an A-, or a B, or a C) in our work and make sure it is accurate. Well prepared tax returns rarely get audited, and the best tax audit, is the one that never comes! Please let us know if there are specific topics you'd like to hear about in future episodes. Ron Cohen, CPA Partner at Greenstein, Rogoff, Olsen & Co., LLP Email: rcohen@groco.com 510.797.8661 Show Notes: Year-end Tax Planning: https://www.cchwebsites.com/content/pdf/tax_brief/us/2022_Year_End_Tax_Planning_Briefing.pdf Roth Conversions – and back-door Roth IRAs. https://www.investopedia.com/roth-ira-conversion-rules-4770480 https://www.wealthyaccountant.com/2022/04/11/roth-conversion/ Health Savings Account (HSA) https://www.healthcare.gov/glossary/health-savings-account-hsa/

Today we discuss: -IRS inflation related adjustments to tax rates -Social Security inflation adjustments -The status of tax law legislation post mid-term elections About The Show: Hello and welcome. This is Ron Cohen. I'm a tax partner with the firm of Greenstein, Rogoff, Olsen & Co., LLP and we're located in beautiful downtown Fremont, California. I appreciate you signing in to listen to my self-indulgent, and sometimes narcissistic comments about the tax system. No Reliance: Take no reliance on anything you hear on this podcast. This is mostly for entertainment and education. In order to get an opinion from me or my firm you have to sign an engagement letter and give us all of the facts. After we do some research about your situation we'll come back and formally give you an opinion. And only then can you use that advice for purposes of entering into any transaction or filing a tax return. Plagiarism is Okay! Everything in the tax rules is from the Internal Revenue Code, its regulations, court cases, and various internal memorandums by the Internal Revenue Service. Lots of lawyers and CPAs write very good articles that we will often attach in the show notes. They are trying to show how smart they are to the public so everyone copies from everyone else, and I certainly want to give them credit. We're not writing any novels, nor creating deep or original thoughts here. No Politics We try to stay out of general politics, however tax law is developed through legislation in Congress and anything that's legislative has its own political ups and downs. And I feel free to comment on that. How I Help: Our firm does around 1400 tax returns for various people. The demographics range from little grandmothers all the way up to high tech executives and multinational corporations. We also specialize in family office services for wealthy groups with far flung entities and we also help those groups with things such as bill paying and taking care of their day-to-day financial operations No Cheerleader for the Tax System: Our tax system is intrusive, an invasion of privacy and it's tedious. You need to look at a 12 step flowchart to figure out in some cases whether you can take your mortgage interest deduction. It is part of the technocratic Administrative State that has built up in this country since World War Two, and I don't like it. Other countries have simplified the tax system in many ways, despite this we always try to get an A+ (not an A-, or a B, or a C) in our work and make sure it is accurate. Well prepared tax returns rarely get audited, and the best tax audit, is the one that never comes! Please let us know if there are specific topics you'd like to hear about in future episodes. Ron Cohen, CPA Partner at Greenstein, Rogoff, Olsen & Co., LLP Email: rcohen@groco.com 510.797.8661 Show Notes: A Greener Home Can Save You Green Under the Inflation Reduction Act https://www.aslcpa.com/newsletters/clean-energy-credits/#more-3347 IRS provides tax inflation adjustments for tax year 2023 https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023 Leadership changes—and challenges—dominate as lawmakers return for lame duck session https://www2.deloitte.com/content/dam/Deloitte/us/Documents/Tax/us-tax-taxnewsandviews-221118.pdf

00:00 Intro 01:47 Caveats 04:00 The IRS comments on the passage of funding under the Inflation Reduction Act 11:11 A Reminder about Unclaimed Property Report and the new tax return questions about them 12:11 AICPA issues a letter to the IRS asking for help on new forms K-1 & K-2….road map for auditors. 14:52 Be Very Careful having your tax return done by a VITA volunteer. Long history of errors. 19:32 Ed Zollars CPA very detailed analysis of the Inflation Reduction Act 20:19 Cars must have 80% US assembly to qualify for EV credit. Links: IRS Commissioner Charles P. Rettig: https://www.irs.gov/newsroom/irs-statement-by-irs-commissioner-chuck-rettig-on-the-inflation-reduction-act Escheatment: https://sco.ca.gov/upd_msg.html AICPA Urges IRS to Provide Additional Guidance on Schedule K-2 and K-3 Reporting: https://www.taxpayeradvocate.irs.gov/news/successstories-tas-assists-victims-of-vita-site-preparer-fraud/ Ed Zollars Podcast on the Inflation Reduction Act: https://podcasts.apple.com/us/podcast/2022-08-14-highlights-of-the-inflation-reduction-act-of-2022/id1114311870?i=1000576058930 EV Vehicle Credits: https://techcrunch.com/2022/09/02/a-complete-guide-to-the-new-ev-tax-credit/ About The Show: Hello and welcome. This is Ron Cohen. I'm a tax partner with the firm of Greenstein, Rogoff, Olsen & Co., LLP and we're located in beautiful downtown Fremont, California. I appreciate you signing in to listen to my self-indulgent, and sometimes narcissistic comments about the tax system. No Reliance: Take no reliance on anything you hear on this podcast. This is mostly for entertainment and education. In order to get an opinion from me or my firm you have to sign an engagement letter and give us all of the facts. After we do some research about your situation we'll come back and formally give you an opinion. And only then can you use that advice for purposes of entering into any transaction or filing a tax return. Plagiarism is Okay! Everything in the tax rules is from the Internal Revenue Code, its regulations, court cases, and various internal memorandums by the Internal Revenue Service. Lots of lawyers and CPAs write very good articles that we will often attach in the show notes. They are trying to show how smart they are to the public so everyone copies from everyone else, and I certainly want to give them credit. We're not writing any novels, nor creating deep or original thoughts here. No Politics We try to stay out of general politics, however tax law is developed through legislation in Congress and anything that's legislative has its own political ups and downs. And I feel free to comment on that. How I Help: Our firm does around 1400 tax returns for various people. The demographics range from little grandmothers all the way up to high tech executives and multinational corporations. We also specialize in family office services for wealthy groups with far flung entities and we also help those groups with things such as bill paying and taking care of their day-to-day financial operations No Cheerleader for the Tax System: Our tax system is intrusive, an invasion of privacy and it's tedious. You need to look at a 12 step flowchart to figure out in some cases whether you can take your mortgage interest deduction. It is part of the technocratic Administrative State that has built up in this country since World War Two, and I don't like it. Other countries have simplified the tax system in many ways, despite this we always try to get an A+ (not an A-, or a B, or a C) in our work and make sure it is accurate. Well prepared tax returns rarely get audited, and the best tax audit, is the one that never comes! Please let us know if there are specific topics you'd like to hear about in future episodes. Ron Cohen, CPA Partner at Greenstein, Rogoff, Olsen & Co., LLP Email: rcohen@groco.com 510.797.8661

If you didn't file your tax return during covid, the IRS is giving you a break from failure to file penalties. You may be able to take action by September 30, 2022, for certain international forms. All the domestic forms needed to be already filed in August of the following year, but you may be able to get previously assessed penalties reversed or fight back a tax notice that arrives that fits into the time periods addressed in the Notice. Ever wonder what the IRS's cafeteria looks like? Currently it's full of paperwork they still need to process. Whether this was released to justify their new budget increase or not, its still a major improvement over the semi trailers full of unopened mail parked out back that we talked about last year. IRS Cafeteria: https://www.washingtonpost.com/opinions/interactive/2022/irs-pipeline-tax-return-delays/?utm_source=morning-10&utm_medium=email&utm_campaign=20220809&utm_content=article10-readmore Widespread Penalty Waivers: https://www.irs.gov/pub/irs-drop/n-22-36.pdf About The Show: Hello and welcome. This is Ron Cohen. I'm a tax partner with the firm of Greenstein, Rogoff, Olsen & Co., LLP and we're located in beautiful downtown Fremont, California. I appreciate you signing in to listen to my self-indulgent, and sometimes narcissistic comments about the tax system. No Reliance: Take no reliance on anything you hear on this podcast. This is mostly for entertainment and education. In order to get an opinion from me or my firm you have to sign an engagement letter and give us all of the facts. After we do some research about your situation we'll come back and formally give you an opinion. And only then can you use that advice for purposes of entering into any transaction or filing a tax return. Plagiarism is Okay! Everything in the tax rules is from the Internal Revenue Code, its regulations, court cases, and various internal memorandums by the Internal Revenue Service. Lots of lawyers and CPAs write very good articles that we will often attach in the show notes. They are trying to show how smart they are to the public so everyone copies from everyone else, and I certainly want to give them credit. We're not writing any novels, nor creating deep or original thoughts here. No Politics We try to stay out of general politics, however tax law is developed through legislation in Congress and anything that's legislative has its own political ups and downs. And I feel free to comment on that. How I Help: Our firm does around 1400 tax returns for various people. The demographics range from little grandmothers all the way up to high tech executives and multinational corporations. We also specialize in family office services for wealthy groups with far flung entities and we also help those groups with things such as bill paying and taking care of their day-to-day financial operations No Cheerleader for the Tax System: Our tax system is intrusive, an invasion of privacy and it's tedious. You need to look at a 12 step flowchart to figure out in some cases whether you can take your mortgage interest deduction. It is part of the technocratic Administrative State that has built up in this country since World War Two, and I don't like it. Other countries have simplified the tax system in many ways, despite this we always try to get an A+ (not an A-, or a B, or a C) in our work and make sure it is accurate. Well prepared tax returns rarely get audited, and the best tax audit, is the one that never comes! Please let us know if there are specific topics you'd like to hear about in future episodes. Ron Cohen, CPA Partner at Greenstein, Rogoff, Olsen & Co., LLP Email: rcohen@groco.com 510.797.8661

If you've had any student loan debt cancelled as a result of President Biden's New Executive Order on Student Loan Forgiveness, be prepared when it comes time to file your tax return. That $10,000 of debt cancellation may be considered taxable income. Also the middle class in California is receiving a nice surprise… the state is calling it a tax refund? Whether you call this coming check an inflation stimulus a tax refund or simply the redistribution of wealth, California brought in more money than they expected and surprisingly they're giving it back. Forgiven Student Loans partially taxable? https://justthenews.com/government/state-houses/thirteen-states-may-tax-canceled-student-loans California middle class tax refund. https://www.ftb.ca.gov/about-ftb/newsroom/middle-class-tax-refund/index.html?WT.ac=Global_banner_MCTR About The Show: Hello and welcome. This is Ron Cohen. I'm a tax partner with the firm of Partner at Greenstein, Rogoff, Olsen & Co., LLP and we're located in beautiful downtown Fremont, California. I appreciate you signing in to listen to my self indulgent, and sometimes narcissistic comments about the tax system. No Reliance: Take no reliance and anything you hear on this podcast. This is mostly for entertainment and education. In order to get an opinion from me or me firm you have to sign an engagement and give us all of the facts. After we do some research about your situation we'll come back and formally give you an opinion. And only then can you use that advice for purposes of entering into any transaction or filing a tax return. Plagiarism is Okay! Everything in tax rule is laws are from the internal revenue codes, regulations, arrays, court cases, various internal memorandum by the Internal Revenue Service. Lots of lawyers and CPAs write very good articles that we will often attach in the show notes. And just trying to show how smart they are the public so everyone copies from everyone else and I certainly want to give credit. We're not writing any novels or original thoughts here. No Politics We try to stay out of general politics, however tax law is developed through legislation in Congress and anything that's legislative has its own political ups and downs. And I feel free to comment on that. How I Help: Our my firm does around 1400 tax returns for various people. The demographics range from little grandmothers all the way up to high tech executives and multinational corporations. We also specialize in family office services for wealthy groups with far flung entities and we also help those groups with things such as bill paying and taking care of their day to day financial operations No Cheerleader for the Tax System Our tax system is intrusive, an invasion of privacy and It's tedious. You need to look at a 12 step flowchart to figure out in some cases whether you can take your mortgage interest deduction. It is part of the technocratic administrative state that is built up in this country since World War Two, and I don't like it. Other countries have simplified the tax system in many ways, despite this we always try to get an A+ on our work and make sure it is accurate. Please let us know if there are specific topics you'd like to hear about in future episodes. Ron Cohen, CPA Partner at Greenstein, Rogoff, Olsen & Co., LLP rcohen@groco.com 510.797.8661

They will show you their badge, and they often carry firearms. The IRS has its own police force because your local police and the FBI and other Federal law enforcement DO NOTE LIKE TO GET INVOLVED with taxes. Note, not filing or paying DOES qualify as something very wrong, for large amounts or a long time. Strictly, any non-filing or non-paying is a felony, not a misdemeanor or like a traffic ticket. But even that won't get you in big trouble as long as you quickly resolve it. Always consider entering into an IRS Installment payment agreement if you get behind. So, just like dealing with a Police Officer, be very respectful, and tell them you need to get an attorney involved if it is anything more than a casual matter. …and with these fine folks, almost nothing is a casual matter. IRS CID Link: CID: https://www.irs.gov/compliance/criminal-investigation About The Show: Hello and welcome. This is Ron Cohen. I'm a tax partner with the firm of Greenstein, Rogoff, Olsen & Co., LLP and we're located in beautiful downtown Fremont, California. I appreciate you signing in to listen to my self-indulgent, and sometimes narcissistic comments about the tax system. No Reliance: Take no reliance on anything you hear on this podcast. This is mostly for entertainment and education. In order to get an opinion from me or my firm you have to sign an engagement letter and give us all of the facts. After we do some research about your situation we'll come back and formally give you an opinion. And only then can you use that advice for purposes of entering into any transaction or filing a tax return. Plagiarism is Okay! Everything in the tax rules is from the Internal Revenue Code, its regulations, court cases, and various internal memorandums by the Internal Revenue Service. Lots of lawyers and CPAs write very good articles that we will often attach in the show notes. They are trying to show how smart they are to the public so everyone copies from everyone else, and I certainly want to give them credit. We're not writing any novels, nor creating deep or original thoughts here. No Politics We try to stay out of general politics, however tax law is developed through legislation in Congress and anything that's legislative has its own political ups and downs. And I feel free to comment on that. How I Help: Our firm does around 1400 tax returns for various people. The demographics range from little grandmothers all the way up to high tech executives and multinational corporations. We also specialize in family office services for wealthy groups with far flung entities and we also help those groups with things such as bill paying and taking care of their day-to-day financial operations No Cheerleader for the Tax System: Our tax system is intrusive, an invasion of privacy and it's tedious. You need to look at a 12 step flowchart to figure out in some cases whether you can take your mortgage interest deduction. It is part of the technocratic Administrative State that has built up in this country since World War Two, and I don't like it. Other countries have simplified the tax system in many ways, despite this we always try to get an A+ (not an A-, or a B, or a C) in our work and make sure it is accurate. Well prepared tax returns rarely get audited, and the best tax audit, is the one that never comes! Please let us know if there are specific topics you'd like to hear about in future episodes. Ron Cohen, CPA Partner at Greenstein, Rogoff, Olsen & Co., LLP Email: rcohen@groco.com 510.797.8661

8/23/2022 This week we talk about: What you need to do when you close your business. (Do It right or you will receive surprise tax bill with penalties) Deolitte on various areas of the new Inflation Reduction Act The Sixteenth Amendment to the US Constitution and how it impacts you every minute of every day! https://www.irs.gov/newsroom/what-business-owners-need-to-do-when-closing-their-doors-for-good Deloitte: https://dhub.blob.core.windows.net/dhub/Newsletters/Tax/2022/TNV/220816_1.html?elqTrackId=5084e0514b8d42c9bf737d3b3d14179c&elq=e4e5be066b7749d6b921281778051bb2&elqaid=98458&elqat=1&elqCampaignId=18145 Detailed discussions of the following issues related to the new law are also available from Deloitte Tax LLP: • Book-minimum tax; • Stock buyback excise tax; • Clean-energy tax provisions; and • Financial reporting considerations. We'll provide links to additional resources as they become available. https://www.irs.gov/irs-history-timeline https://www.irs.gov/pub/irs-utl/irs-history-timeline_march-2019.pdf https://www.archives.gov/milestone-documents/16th-amendment Then, after WWII, with the Cold War and massive expansion of the federal government, the tax system exploded for everyone. See the attached for the history of U.S. tax rates: https://bradfordtaxinstitute.com/Free_Resources/Federal-Income-Tax-Rates.aspx American Dreams Podcast: www.youtube.com/channel/UC-gL-bLP0-ZI2cDfuGWbWmA My Website: groco.com Please let us know if there are specific topics you'd like to hear about in future episodes. Ron Cohen, CPA Partner at Greenstein, Rogoff, Olsen & Co., LLP rcohen@groco.com 510.797.8661

8/15/2022 This week we talk about: The Inflation Reduction Act Passed the House and Senate…POTUS to sign, soon, Excise tax on Stock buy-backs Senate: 51 to 50 with VP breaking tie House: The chamber approved the more than $430 billion package by a 220-207 margin, as all Democrats backed it and all Republicans opposed it. Seven votes out of 435 as a few seats are vacant. Inflation Reduction Act – Draft Bill Summary https://dhub.blob.core.windows.net/dhub/Newsletters/Tax/2022/TNV/220807_1.html?elqTrackId=88c70ff98972442ba266c7651fcf41f9&elq=12261bba629b44178c6fbcacad06eeac&elqaid=98265&elqat=1&elqCampaignId=18112 Text of Bill: https://www.congress.gov/bill/117th-congress/house-bill/5376/text?q=%7B%22search%22%3A%5B%22inflation+reduction+act%22%2C%22inflation%22%2C%22reduction%22%2C%22act%22%5D%7D&r=1&s=1 Summary from the Tax Foundation: https://taxfoundation.org/inflation-reduction-act/ American Dreams Podcast: https://www.youtube.com/channel/UC-gL-bLP0-ZI2cDfuGWbWmA My Website: groco.com Please let us know if there are specific topics you'd like to hear about in future episodes. Ron Cohen, CPA Partner at Greenstein, Rogoff, Olsen & Co., LLP rcohen@groco.com 510-797-8661

This week we talk about: The proposed Inflation Reduction Act, Senator Sinema & the Manchin/Schumer Build Back Better Bill & The problem with multi-variable computations! Follow up on last week's podcast: 1) I may have been wrong! Corporate Welfare? The Student teaches the teacher! 2) Taiwan is 80 miles from the China coast…not 10 as I said. Show Notes: Inflation Reduction Act – Draft Bill https://www.documentcloud.org/documents/22122279-inflation-reduction-act-of-2022 Senate Finance Committee Report saying it raises taxes at low income levels: https://www.finance.senate.gov/imo/media/doc/jct_distributional_effects_inflation_reduction_act.pdf Deloitte Report: https://www2.deloitte.com/content/dam/Deloitte/us/Documents/Tax/us-tax-taxnewsandviews-220729.pdf Sen. Sinema may be on the fence? https://www.vox.com/policy-and-politics/23282983/inflation-reduction-act-kyrsten-sinema-josh-gottheimer Sen. Manchin does not answer the question: https://www.cnn.com/2022/08/01/politics/kyrsten-sinema-democrats-big-week-for-biden-presidency/index.html Please let us know if there are specific topics you'd like to hear about in future episodes. Ron Cohen, CPA Partner at Greenstein, Rogoff, Olsen & Co., LLP rcohen@groco.com 510-797-8661

This week we discuss how Senate Democrats are pursuing a narrower “BBB” without a significant tax title, how the Senate is set to clear pared-down CHIPS bill with tax break for US semiconductor makers and the Employee Retention Credit (ERC) is a refundable tax credit for businesses that retained their employees during the COVID-19 pandemic. Additionally we look at how the IRS is finally going after the OIC mills that are dishonest and take advantage of taxpayers' lack of knowledge to make a quick buck. Show Notes: Here's what taxpayers considering an OIC should know: Individual taxpayers can use the IRS's Offer in Compromise Pre-Qualifier tool to see if they're eligible. When a taxpayer is ready to apply, they can watch an OIC video playlist that will lead them through the steps and forms to calculate an appropriate offer based on their assets, income, expenses and future earning potential. Taxpayers must make an offer based on their true ability to pay. Applying does not guarantee that the IRS will accept the taxpayer's offer. https://www2.deloitte.com/us/en/pages/tax/articles/tax-news-and-views-newsletter.html https://groco.com/american-dreams/ Please let us know if there are specific topics you'd like to hear about in future episodes. Ron Cohen, CPA Partner at Greenstein, Rogoff, Olsen & Co., LLP rcohen@groco.com 510-797-8661

In this episode we cover, how Joe Manchin blocks The Build Back Better Bill again, Hungary wants to be left alone, more proposed Low Income Housing Credits, The 3.8% tax expansion proposal is criticized by the real estate industry. Show Notes: https://www2.deloitte.com/us/en/pages/tax/articles/tax-news-and-views-newsletter.html Please let us know if there are specific topics you'd like to hear about in future episodes. Ron Cohen, CPA Partner at Greenstein Rogoff Olsen & Co. rcohen@groco.com 510-797-8661

In This episode we cover The New Retirement Bill, the Higher IRS Budget Proposal, the attempt to take away the “John Edwards” rule for S Corporations and other entities, Truckers and AB5. Show Notes: More on the Earn Act: https://www.irafinancialgroup.com/learn-more/self-directed-ira/ira-rules-regulations/earn-act-passed-through-senate/ More on IRS Funding Increases: https://dhub.blob.core.windows.net/dhub/Newsletters/Tax/2022/TNV/220624_2.html?elqTrackId=db437f746baf4557aec2592dabe4b403&elq=6962b91dc8e4455c834dd7b2d308df63&elqaid=97452&elqat=1&elqCampaignId=17896 More on Proposed Increase in owner taxes from pass-through businesses: https://www.finseca.org/wp-content/uploads/2022/07/Net-Investment-Income-Tax-Expanded-for-Pass-Through-Businesses.pdf Please let us know if there are specific topics you'd like to hear about in future episodes. Ron Cohen, CPA Partner at Greenstein Rogoff Olsen & Co. rcohen@groco.com 510-797-8661

In Today's Show: 1) Clarification: The deadline for IRA contributions for 2020 is also extended to May 17, 2021. 2) Just don't forget those Q1 Estimated Tax Payments still due 4/15/2021; But Congress is asking the IRS to also extend this to May 17, 2021. 3) Key Senator says (D)s don't have the votes to increase the U.S. Corporate Tax rate to 28% 4) California AB 80 is still unresolved – Shame, Shame, Shame. 5) Is the U.S. government in DEFAULT for not paying refunds??? Ask around. 6) Proposed changes to the International Tax Framework. Greenstein, Rogoff, Olsen & Co., LLP rcohen@groco.com 510-797-8661 www.groco.com 1) Deadline for IRA Deductions also Extended to May 17, 2021 https://www.taxpracticeadvisor.com/individual-income-taxes/news/21216368/deadline-for-ira-deductions-also-extended-to-may-17-2021 The IRS clarified Taxpayers may be able to claim a deduction on their tax return (2020 tax returns are due by May 17, 2021) for contributions to their Individual Retirement Arrangement (IRA) made through May 17, 2021. That is, they have beyond April 15, 2021 to make contributions for the 2020 tax year. There is no longer a maximum age for making IRA contributions. There are still income limitations and issues if you are covered by a retirement plan at work!! 2) Members of Congress request estimated tax deadline postponement (for the 2021, Q1 Estimated Tax Payment due April 15, 2021): https://www.journalofaccountancy.com/news/2021/apr/member-of-congress-request-estimated-tax-deadline-postponement.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=02Apr2021 3) Joe Manchin Says Senate Democrats Do Not Have Votes to Raise Corporate Taxes to 28 Percent https://www.breitbart.com/politics/2021/04/05/joe-manchin-says-senate-democrats-do-not-have-votes-to-raise-corporate-taxes-to-28-percent/ Sen. Joe Manchin (D-WV) conveyed Monday there are not enough votes in the Senate to pass President Joe Biden's $2.25 trillion infrastructure proposal due to six or seven Democrats who oppose raising the corporate tax rate to 28 percent. “Senator Joe Manchin just said Democrats do not have the votes to pass the American Jobs Plan in the U.S. Senate. Manchin says he knows of 6 or 7 Democrats who agree hiking the corporate tax rate to 28% would put the country's competitiveness at risk,” according to a Fox Business reporter. If Manchin's vote count is accurate, it indicates Biden may have a tough time raising corporate taxes above the 25 percent rate … China charges American businesses. The United States' current corporate tax rate, set by former President Trump, stands at 21 percent.” You Decide whose right…I'm just telling you what they are saying…. 3) California AB 80 is STILL unresolved for PPP related deductions. Shame, Shame, Shame…. 4) https://www.journalofaccountancy.com/news/2021/apr/member-of-congress-request-estimated-tax-deadline-postponement.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=02Apr2021 Now: Going into Rocket Science…one of my favorite issues, International Tax From Deloitte: “Senator Wyden unveils international tax ‘framework” https://dhub.blob.core.windows.net/dhub/Newsletters/Tax/2021/TNV/210405_1.html?elqTrackId=37561fc6eb2140589f12a22e007273ef&elq=1f967a2d5ebb4a309ce99a2600277d59&elqaid=83401&elqat=1&elqCampaignId=15521

In Today's Podcast: 1) The Biden Administration Corporate Tax Proposal and History of the Corporate Tax Rate 2) More on the $10,200 Exemption for Unemployment Benefits. Some states don't conform. 3) May 17th just for individuals and NOT for the 2021 1st Quarterly Estimated Tax payment. 4) People have been getting letters asking for a completed Form 15111 from the IRS to prove Earned Income Tax Credits. The form was not included in the letter. It was not on the IRS website. That seems to have been fixed as I found it. Credit to Tax Mama in L.A. on Twitter https://www.irs.gov/pub/irs-pdf/f15111.pdf 5) FTB Form 3853 on California Health Insurance Penalty. The instructions are 18 pages!!! Shame, Shame, Shame!!! https://drive.google.com/file/d/1OyVFSB3LgCK_vNBnVnSeghjwdD0cVTSn/view?usp=sharing Greenstein Rogoff Olsen & Co rcohen@groco.com 510-797-8661 www.groco.com Details: 1) Tax revenue by source history “The first federal income tax was enacted in 1861, and expired in 1872, amid constitutional challenges. The constitution did not allow the taxation of income. George Washington was very clear that income should not be taxed A corporate income tax was enacted in 1894, but a key aspect of it was shortly held unconstitutional. In 1909, Congress enacted an excise tax on corporations based on income. After ratification of the Sixteenth amendment to the U.S. Constitution, this became the corporate provisions of the federal income tax.[13] Amendments to various provisions affecting corporations have been in most or all revenue acts since. Corporate tax provisions are incorporated in Title 26 of the United States Code, known as the Internal Revenue Code. In 2010, corporate tax revenue constituted about 9% of all federal revenues or 1.3% of GDP.[15] The corporate income tax raised $230.2 billion in fiscal 2019 which accounted for 6.6 percent of total federal revenue and had seen a change from 9 percent in 2017. [16] President Reagan and others: The corporate tax is not borne by the corporation. It is passed-on in the form of higher prices to consumers and/or to shareholders in the form of lower dividends. It is a dead drag on the economy. Others say: Corporations have so much power and influence over the political system and technology that they are entities on to themselves, in some cases more powerful than governments. They have to be taxed. You decide! Plus, it is not that simple…if you have a high rate, but allow a lot of deductions and special exemptions and subsidies for foreign activity, the effective cash rate of taxes is lower. What is the TAX BASE the rate is applied to??? In all things, WHAT IS THE COMPARABLE??? China's rate (before how they compute the tax base the rate is applied to) is 25%. Average Africa: 27.46% Average Asia: 21.55% Average EU: 20.271% Average Europe: 18.98% Mexico: 30% with lots of deductions and exclusions and inflation adjustments. When your tax rate is higher than others, business is sucked right out of your country. That's a fact! Just as Ross Perot said in the 1990's: https://www.youtube.com/watch?v=xQ7kn2-GEmM California Corporate Tax Rate is 8.84% AND has World Wide unitary rules….it got so bad, we went to a Single Sales Factor and a Waters' Edge Election….that's a whole different podcast day. 28%, if enacted, is still way lower than 35%, but not as good as the 21% current flat rate. I've sat in the Board Room meetings. NOTHING impacts economic growth like a lower tax rate. Some disagree. 2) More on Unemployment Benefits: 13 States are not conforming to the Federal exemption of $10,200 of Unemployment Benefits: https://www.cnbc.com/2021/03/30/10200-unemployment-tax-break-american-rescue-plan-states-giving-the-exclusion.html Thankfully, California has always 100% exempted Unemployment benefits from taxation. ID, CO, MN, KY, MS, GA, SC, NC, WV NY and Maryland tax them. Yikes!

Show Notes: 1) The IRS is messing with taxation of unemployment benefits 2) High-Income folks and tax evasion issues 3) Extensions and the rules 4) File for free with income up to $72,000. Greenstein Rogoff Olsen & Co rcohen@groco.com 510-797-8661 www.groco.com 1) The IRS is messing with taxation of unemployment benefits The #IRS will automatically process #tax refunds for individuals who paid #taxes on their unemployment benefits before Congress passed a law making those payments tax-free, IRS Commissioner Chuck Rettig told lawmakers. https://trib.al/8ycM6oa - A $10,200 per individual unemployment insurance exclusion for the 2020 taxable year, only for households with modified AGI of $150,000 or less. Taxpayers who have already filed returns reporting 100% of their unemployment will need to supersede or amend their returns to get a refund; https://www.accountingtoday.com/articles/irs-to-automatically-process-refunds-on-jobless-benefit-payments?utm_campaign=accountingtoday-tw&utm_content=socialflow&utm_medium=social&utm_source=twitter https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemployment-compensation 2) High-Income folks and tax evasion issues High Income Tax Avoidance Far Larger Than Thought https://www.marketscreener.com/news/latest/High-Income-Tax-Avoidance-Far-Larger-Than-Thought-New-Paper-Estimates--32748559/ 3) Extensions and Rules: https://www.irs.gov/businesses/small-businesses-self-employed/understanding-penalties-and-interest 4) File for free with income up to $72,000: IRS.gov is always available and has tools to help people file and pay taxes, find information about their account, and get answers to tax questions. Here are a few things that people can do with a visit to IRS.gov. File a tax return Taxpayers who earned $72,000 or less in 2020 can file free using brand-name tax software with IRS Free File. People who earned more and want to do their own taxes can use Free File Fillable Forms. These are the electronic versions of IRS paper forms. Either way, everyone has a free electronic filing option. The IRS has extended the federal income tax filing due date for individuals for the 2020 tax year from April 15, 2021, to May 17, 2021. Individual taxpayers have until May 17 to file and pay 2020 federal income taxes. If individual taxpayers need more time to file, they can use IRS Free File through May 17 to electronically request an extension to file until Oct. 15. Taxpayers should remember that an extension of time to file is not an extension of time to pay. Penalties and interest may apply to taxes not paid by May 17. Individual taxpayers can get an extension by paying all or part of their estimated income tax due using Direct Pay, the Electronic Federal Tax Payment System or a credit or debit card, and indicating that the payment is for an extension. This way they won't have to file a separate extension form and will receive a confirmation number for their records.

Today's Subjects: 1) April 15th is now May 15th 2) California still won't conform on PPP Loans 3) The American Rescue Plan 4) The IRS? There is an APP for That! Greenstein Rogoff Olsen & Co rcohen@groco.com 510-797-8661 www.groco.com Tax Day for individuals extended to May 17: Treasury, IRS extend filing and payment deadline https://www.irs.gov/newsroom/tax-day-for-individuals-extended-to-may-17-treasury-irs-extend-filing-and-payment-deadline April 15th is now May 15th...News outlets are reporting https://www.wcpo.com/news/national/irs-to-delay-tax-filing-deadline-to-mid-may-says-reports California AB 80 in limbo: Now what? (03-15-21) Spidell PPP Loan conformity: On Friday, the Governor's office announced that AB 80 has been put on hold. AB 80, as initially drafted, would provide at least partial conformity to the federal provision allowing Paycheck Protection Program (PPP) loan borrowers to deduct expenses paid with PPP forgiven loan amounts. The state is awaiting additional guidance from the U.S. Treasury Department to see if AB 80 can be enacted. At issue is a provision in the American Rescue Plan Act that bans states who are receiving additional funding through the Act from using these funds to enact state income tax cuts. What this prohibition encompasses is a wide open question and the Governor and Legislature are waiting for guidance to see if AB 80 can actually be enacted. As an alternative, our sources report that the state might provide additional grants or other ways to help small businesses. (People are working on there tax returns right now!) We will keep you posted as soon as there are any further developments. In the meantime, we highly recommend that, unless we get guidance in time, you plan to send extension payments on the appropriate voucher to the FTB and pay an amount due based on the assumption that legislation will not be enacted. The Governor's press release can be found here: www.gov.ca.gov/2021/03/12/governor-newsom-legislative-leaders-issue-statement-on-additional-covid-relief-for-businesses-and-employees/ Individual tax provisions: Spidell • A $10,200 per individual unemployment insurance exclusion for the 2020 taxable year, only for households with modified AGI of $150,000 or less. Taxpayers who have already filed returns reporting 100% of their unemployment will need to supersede or amend their returns to get a refund; • A third round of Economic Impact Payments of $1,400 per individual and dependent (including dependents over age 17); • Extension of Pandemic Unemployment Assistance until September 6 with the $300 boost; • Increased and fully refundable Child Tax Credits and Dependent Care Assistance Credits for the 2021 taxable year; • An increased employer-provided dependent care assistance exclusion; • A five-year COD exclusion for student loan forgiveness; • An expansion and increase of the Earned Income Tax Credit; • Tax relief for excess advanced Premium Tax Credits received in 2020, and an increase in the Premium Tax Credit for 2021 and 2022; and • Six months of free COBRA benefits. Business tax provisions • Extension and expansion of the Employee Retention Credit; • Extension and expansion of the employer credits for paid sick and family leave benefits; • Credits for providing subsidized COBRA benefits; and • Restaurant revitalization grants to cover restaurant business losses. • To access the full text of the bill, go to: • www.congress.gov/bill/117th-congress/house-bill/1319/text Deloitte: Tax News & Views: https://dhub.blob.core.windows.net/dhub/Newsletters/Tax/2021/TNV/210310_1.html IRS2Go is the official mobile app of the IRS Check your refund status, make a payment, find free tax preparation assistance, sign up for helpful tax tips, and more! IRS2Go is available in both English and Spanish. https://www.irs.gov/newsroom/irs2goapp

Make a Decision, Already!!! Ways and Means Chair Joins In Calling for the IRS to Push Back the April 15 due Date: https://www.currentfederaltaxdevelopments.com/blog/2021/3/9/ways-and-means-chair-joins-in-calling-for-the-irs-to-push-back-the-april-15-due-date https://waysandmeans.house.gov/media-center/press-releases/unprecedented-conditions-neal-pascrell-urgently-demand-irs-extend-2021 Passed House on first draft on 2/27/2021 by 219 to 212… by about 7 votes out of 431 voting (about 1.6%). Senate passed their revised version by 50 to 49 (One (R) Senator was absent for a funeral) on March 6th. That is about as close as close can be. Now the House will vote soon on the version revised by the Senate…if there are no big hick-ups it will go to the President to sign (who has said he will). “The House will take a procedural vote later Tuesday before moving to final passage of the plan, expected Wednesday, House Majority Leader Steny Hoyer's office said. Mr. Biden would then have the measure on his desk before key unemployment programs expire March 14.” https://www.cbsnews.com/news/covid-relief-package-american-rescue-plan-house-vote/ “The COVID-19 relief package provides $1,400 direct payments to individuals making up to $75,000 annually, $350 billion in aid to state and local governments — a sticking point in past negotiations between Republicans and Democrats — and $14 billion for vaccine distribution. The measure also includes an additional $300 in weekly jobless benefits through September and a child allowance of up to $3,600 per family.” Deloitte: Tax News & Views Capital Hill Briefing: $1.9 trillion COVID relief package clears Senate https://dhub.blob.core.windows.net/dhub/Newsletters/Tax/2021/TNV/210306_1.html?elqTrackId=eb7a78c6448a437198219578c2325ff3&elq=b22afc96a01349768c313e9144e26731&elqaid=82042&elqat=1&elqCampaignId=15338 Greenstein Rogoff Olsen & Co rcohen@groco.com 510-797-8661

1) IRS Still Processing 6.7 Million Returns from Last Year, Could Extend Tax Deadline for 2021 https://www.taxpracticeadvisor.com/individual-income-taxes/news/21212072/irs-still-processing-67-million-returns-from-last-year-could-extend-tax-deadline-for-2021 2) Tax Provisions in the American Rescue Plan Act: https://www.journalofaccountancy.com/news/2021/feb/tax-provisions-american-rescue-plan-act.html?utm_source=mnl:alerts&utm_medium=email&utm_campaign=27Feb2021&utm_content=button 3) Revenue Ruling 2021-06 provides the rates for interest determined under Section 6621 of the code for the calendar quarter beginning April 1, 2021, will be 3 percent for overpayments (2 percent in the case of a corporation), 3 percent for underpayments, and 5 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 0.5 percent. Revenue Ruling 2021-06 will be in IRB: 2021-12, dated March 22, 2021. 4) Form 1099 NEC California Issues: We discovered the IRS is not forwarding the Forms 1099-NEC to most states…as it has for Forms 1099-MISC in past years. This is because the form is new and, oddly, the normal document sharing process between the I.R.S. and state tax authorities has not been established for this particular form. For California filing purposes, I have attached the link to California FTB 1099 info sheet for your reference. https://www.ftb.ca.gov/file/business/information-returns.html The 1099-NECs are due to California 2/28/21 per the attachment. Since that date is a Sunday, it is extended to Monday, 3/1/21. If you used a service to process your 1099s, please check with them to see if they can (or did) e-file the state copy for you. If you did them manually, you can mail the paper form. The address to file the paper forms is: Franchise Tax Board PO Box 942840 Sacramento, CA 94240-6090 As an additional option, GROCO does have an FTB Swift e-filing account. To use this, we will need to input your company information and details from your Tax Year 2020 IRS Form 1099s in our system before we can e-file them. Please let us know if you would like this option. If you are located in a different state and need assistance with that state's requirements, please contact us: Greenstein Rogoff Olsen & Co rcohen@groco.com 510-797-8661

1) Form 1099 NEC for California – We discovered the IRS is not forwarding the Forms 1099-NEC to most states…as it has for Forms 1099-MISC in past years. This is because the form is new and, oddly, the normal document sharing process between the I.R.S. and state tax authorities has not been established for this particular form. For California filing purposes, I have attached the link to California FTB 1099 info sheet for your reference. https://www.ftb.ca.gov/file/business/information-returns.html The 1099-NECs are due to California 2/28/21 per the attachment. Since that date is a Sunday, it is extended to Monday, 3/1/21. If you used a service to process your 1099s, please check with them to see if they can (or did) e-file the state copy for you. If you did them manually, you can mail the paper form. The address to file the paper forms is: Franchise Tax Board PO Box 942840 Sacramento, CA 94240-6090 As an additional option, GROCO does have an FTB Swift e-filing account. To use this, we will need to input your company information and details from your Tax Year 2020 IRS Form 1099s in our system before we can e-file them. Please let us know if you would like this option. If you are located in a different state and need assistance with that state's requirements, please contact us. 2) IRS Apology regarding Notices for unfiled returns: https://www.irs.gov/newsroom/irs-statement-about-cp59-notices 3) Economic Impact Payments: IRS Website Information: https://www.irs.gov/newsroom/as-required-by-law-all-first-and-second-economic-impact-payments-issued-eligible-people-can-claim-recovery-rebate-credit Forbes Article: https://www.forbes.com/sites/anthonynitti/2021/02/09/democrats-propose-round-three-of-covid-related-stimulus-checks-what-you-need-to-know/?sh=425638de27f9 4) Educator Deductions for COVID protective supplies: https://www.irs.gov/newsroom/educators-can-now-deduct-out-of-pocket-expenses-for-covid-19-protective-items 5) PPP forgiveness: One step closer for California businesses (02-18-21) “Governor Gavin Newsom, Senate President pro tempore Toni G. Atkins, and Assembly Speaker Anthony Rendon announced that they have reached an agreement on a package of immediate actions that will speed needed relief to individuals, families, and businesses suffering the most significant economic hardship from the COVID-19 recession. Included in the agreement is partial conformity to new federal tax treatment for loans provided through the Paycheck Protection Program, allowing companies to deduct up to $150,000 in expenses covered by the PPP loan. All businesses that took out loans of $150,000 or less would be able to maximize their deduction for state purposes. Firms that took out higher loans would still be subject to the same ceiling of $150,000 in deductibility. This tax treatment would also extend to the Economic Injury Disaster Loans as well. The proposal also includes stimulus payments to individuals, fee waivers for bars and restaurants, and continued grants of up to $25,000 for California businesses. Do not start filing returns and excluding up to $150,000 from clients' PPP loan forgiveness, as this is not law yet.” (Spidell Publishing, Inc.) News Release: Office of Governor Gaving Newsom: https://www.gov.ca.gov/2021/02/17/governor-newsom-legislative-leaders-announce-immediate-action-agreement-for-relief-to-californians-experiencing-pandemic-hardship/

Possible PPP Legislation: https://www.bloomberg.com/news/articles/2020-05-26/hoyer-says-house-and-senate-close-on-ppp-loan-extension Form W-4P https://www.irs.gov/pub/irs-pdf/fw4p.pdf IRS Notice 2020-3 https://www.irs.gov/pub/irs-drop/n-20-03.pdf

Deloitte Newsletter of House $3 Trillion tax bill: https://newsletters.usdbriefs.com/2020/Tax/TNV/200515_1.html?elqTrackId=6edc9867a07b496ca7fdcb97303b8367&elq=05e746544b3b4082a88ef1de99816883&elqaid=70867&elqat=1&elqCampaignId=13526 The House Bill: https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-116hr6800ih.pdf Paycheck Protection Program Loan Forgiveness Application: https://www.sba.gov/sites/default/files/2020-05/3245-0407%20SBA%20Form%203508%20PPP%20Forgiveness%20Application%20FINAL_Fillable.pdf Forbes article reviewing the Application: Very detailed analysis of the history of PPP loans and how to apply for forgiveness. https://www.forbes.com/sites/anthonynitti/2020/05/16/sba-releases-paycheck-protection-program-loan-forgiveness-application-a-deep-dive/#13dd1ee1b2f5

Forbes: The IRS Wants Its Money Back - Stimulus Checks Made To Dead Taxpayers Must Be Returned https://www.forbes.com/sites/ryanguina/2020/05/06/stimulus-checks-made-to-dead-taxpayers-must-be-returned/#49ae3c3b2d97 How to spend PPP loan proceeds: https://steinsperling.com/tips-for-how-to-spend-ppp-loan-proceeds-and-maximizing-loan-forgiveness/ U.S. House Postpones new $1T coronavirus relief vote until Friday: https://www.upi.com/Top_News/US/2020/05/11/US-House-postpones-new-1T-coronavirus-relief-vote-until-Friday/6701589221677/ Deductibility of PPP Loan related expenses: https://newsletters.usdbriefs.com/2020/Tax/TNV/200508_1.html?elqTrackId=3b6ae4d217c74cf192a8001f946740d5&elq=c4044dbfe68d4bf0abd78e7aed4de94e&elqaid=70570&elqat=1&elqCampaignId=13484 https://www.finance.senate.gov/imo/media/doc/2020-05-05%20CEG,%20RW,%20RN%20to%20Treasury%20(PPP%20Business%20Deductions).pdf State of California Budget – This all has to updated for the COVID-19 Catastrophe: http://www.ebudget.ca.gov/2020-21/pdf/BudgetSummary/FullBudgetSummary.pdf

California Health Insurance Penalty: https://www.coveredca.com/individuals-and-families/getting-covered/penalty-and-exemptions/ Guidance addresses deductibility of expenses related to Paycheck Protection Program loans: https://newsletters.usdbriefs.com/2020/Tax/TNV/200501_1.pdf $3.7 Trillion Deficit: https://newsletters.usdbriefs.com/2020/Tax/TNV/200501_3.pdf Fewer People filed by April 15th: https://www.cpapracticeadvisor.com/tax-compliance/news/21135618/21-million-taxpayers-delayed-filing-past-april-15 Payroll Tax Holiday https://www.washingtonexaminer.com/news/white-house-strongly-considering-demand-to-include-payroll-tax-cuts-in-next-relief-package

Rev. Proc. 2020-17 on Foreign Pension Trusts and summary from attorney Andrew Mitchell: https://intltax.typepad.com/intltax_blog/2020/03/rev-proc-2020-17-exemption-from-filing-forms-3520-and-3520-a-for-applicable-tax-favored-foreign-trus.html President Trump's letter to taxpayers getting Impact Payments: https://www.usatoday.com/story/news/politics/2020/04/28/coronavirus-trump-letter-stimulus-check-recipients-causes-stir/3040031001/ Info on IRS Form 7200 for Advance Payment of Employer Credits due to COVID-19: https://www.irs.gov/forms-pubs/about-form-7200 Supplemental funds for Paycheck Protection Program plus new money for hospitals, coronavirus testing signed into law: https://www2.deloitte.com/content/dam/Deloitte/us/Documents/Tax/us-tax-taxnewsandviews-200424.pdf

Small Business Administration report on status of Payroll Protection Loans https://home.treasury.gov/system/files/136/SBA%20PPP%20Loan%20Report%20Deck.pdf Deloitte Tax News & Views: https://newsletters.usdbriefs.com/2020/Tax/TNV/200417_1.html?elqTrackId=1de90fec2e754e678955489faf724238&elq=e22f66ba32e54313b577f2d67644bd48&elqaid=69971&elqat=1&elqCampaignId=13345 Get My Payment for Economic Impact Payment https://www.irs.gov/coronavirus/economic-impact-payment-information-center#locked Employment Development Department – Unemployment Assistance for Self-Employed workers. https://www.edd.ca.gov/about_edd/coronavirus-2019/pandemic-unemployment-assistance.htm

Non-Filers: Enter Payment Info Here https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here Economic Impact Payments https://www.irs.gov/coronavirus/economic-impact-payments Deloitte Update on Phase 4 Covid-19 bill: https://newsletters.usdbriefs.com/2020/Tax/ALS/200413_1.html?elqTrackId=22d5d793306e4f02950504730022a362&elq=79d172a9e23e48ccaae51a8e4d3f2c26&elqaid=69713&elqat=1&elqCampaignId=13291

‘Phase 4' stimulus wish lists floated https://newsletters.usdbriefs.com/2020/Tax/TNV/200403_2.html?elqTrackId=6e9dc0831e234fbb852445add1ad3b21&elq=f288114b18834cf9b76e2880f0d7df36&elqaid=69563&elqat=1&elqCampaignId=13246 Two-year suspension of SALT deduction cap clears House https://newsletters.usdbriefs.com/2019/Tax/TNV/191220_1.html Governor Newsom Signs Executive Order Providing Relief to California Small Businesses https://www.gov.ca.gov/2020/03/30/governor-newsom-signs-executive-order-providing-relief-to-california-small-businesses/ “Mark Koziel, CPA, CGMA, the AICPA's executive vice president of firm services, added, “Based upon statements from members of Congress, it appears that the intent of the PPP was to base the salary calculation on gross wages with no adjustment for federal taxes. This ensures that payroll tax expenses are not passed on to the small businesses in need. In a program of this magnitude, it's expected that guidance will evolve and terms will be clarified.” https://www.aicpa.org/content/aicpa/press/pressreleases/2020/aicpa-coalition-recommends-ppp-applicants-use-gross-payroll-approach-in-calculations.html?j=269729&sfmc_sub=124900764&l=2078_HTML&u=8847730&mid=7306387&jb=612&utm_medium=email&SubscriberID=124900764&utm_source=NewsUp_A20Mar225&Site=aicpa&LinkID=8847730&utm_campaign=Newsupdate&cid=email:NewsUp_A20Mar225:Newsupdate:o+discuss+the+appropriate+method+for+calculating+Average+Monthly+Salary:aicpa&SendID=269729&utm_content=Special Dave Ramsey, well-known author and radio financial advisor https://www.daveramsey.com/ (whom I am not endorsing, but I like his “no debt” approach) had a very strong message to listeners: Paraphrasing: “Don't take these loans. Don't believe the government. They will change the rules later.” That seems harsh, but I wanted to pass that thought along. April 5, 2020: Excellent Forbes article about the confusion in computing the amount of PPP loans: https://www.forbes.com/sites/anthonynitti/2020/04/05/paycheck-protection-program-loans-three-things-the-sba-and-banks-need-to-agree-on-now/

Today we're talking all about the Corona Virus Relief (The Cares Act) Tax and loan issues summary article from Forbes: https://www.forbes.com/sites/anthonynitti/2020/03/25/congress-reaches-agreement-on-a-coronavirus-relief-package-tax-aspects-of-the-cares-act/#3d3a762f5f99 Other issues article from Forbes: https://www.forbes.com/sites/kellyphillipserb/2020/03/25/senate-passes-coronavirus-stimulus-bill-house-expected-to-follow-suit/#29cd2bb94475 Here is an article on how Enhanced Unemployment Benefits will work: https://www.americanactionforum.org/insight/enhanced-unemployment-benefits-in-the-coronavirus-aid-relief-and-economic-security-cares-act/ More detailed information on the Paycheck Protection Program: https://bench.co/blog/operations/paycheck-protection-program/ Text of Bill (Scroll down in the link) https://www.congress.gov/bill/116th-congress/house-bill/748/text SBA rules for PPP loans (4/4/2020) https://www.sba.gov/sites/default/files/2020-04/PPP--IFRN%20FINAL_0.pdf

House Committee Hearing on Wayfair Tax Compliance by Ron Cohen

A Discussion on Virtual Game Currencies, Tax Exempt Organization Applications & More on Independent Contractor Rules in California

A discussion on the tax history of LLC entities in California as well as information on the IRS's Fraud Reporting Division

Today we talk about common problems people run into with Foreign Bank Accounts, Trusts or Foreign Pension Plans. Also how, if you so desire, can make a charitable gift to the U.S. Federal Government. For questions regarding these or other tax issues you may have please contact me at 510-797-8661

Join us this week as we discuss how the IRS is treating Cryptocurrency, Why the US actually has over $200 Trillion in national debt and how to know if a phone call from the IRS is real or a scam. For questions regarding these or other tax issues you may have please contact me at 510-797-8661