Insights

Accurate and up-to-date financial records play an important part in your business’s success, but the daily tasks required to maintain these records fall to the bottom of your to-do list. That’s understandable — you didn’t go into business to become a bookkeeper. Wading through managing employees, paying bills, making long-term decisions and analyzing costs take…

President Biden presented the American Families Plan in an April 28, 2021 address to Congress, which he proposed a federal spending program to support new educational and family programs. The plan contains a number of proposals, some of which include tax increases for individual taxpayers with annual income greater than $452,700 (married couples filing jointly…

The Department of Labor recently withdrew the “Independent Contractor Status Under the Fair Labor Standards Act” final rule. According to the Society for Human Resource Management, “The DOL has traditionally analyzed a number of factors to consider whether a worker is an independent contractor or employee and looked at ‘the totality of the circumstances.’ The…

The IRS is providing some leeway to employee benefit plans offering health flexible spending accounts (FSAs) and dependent care assistance plans (DCAPs). Under the COVID-19-related Taxpayer Certainty and Disaster Tax Relief Act of 2020, these plans now have additional discretion in 2021 and 2022 to adjust their programs to help employees better meet the unanticipated…

Form 990, Return of Organization Exempt From Income Tax, is the IRS’ method of evaluation to make sure your nonprofit is financially honest and legitimate. The form is required for tax-exempt organizations to file each year to remain compliant with the regulations and requirements set by the IRS. Form 990 requires expenses to be separated…

The Consolidated Appropriations Act, 2021 contained a provision designed to give a boost to the restaurant industry: upgrading what had been a 50% meal deduction to 100% for “food or beverages provided by a restaurant, and paid or incurred before January 1, 2023.” There are no provisions right now to extend this raise beyond two…

Office Updates While BPW is categorized as an essential business due to the importance of tax filing and compliance services, our physical office is closed, but we are all successfully working hard remotely to protect you and our staff.  We are in full swing into the 2021 tax season and encourage businesses and individuals to…

The IRS and California Franchise Tax Board recently announced that the income tax filing deadline for individual 2020 tax returns and payments has been extended from April 15, 2021 to May 17, 2021. While this extension provides an additional month to pay any remaining tax liabilities for 2020, BPW will continue to uphold the original April…

The third stimulus package valued at $1.9 trillion made its debut last week after President Biden signed the relief into law on Thursday, March 11, 2021. The American Rescue Plan brings a new wave of stimulus payments, tax credits, and legislative extensions with hopes of reviving the economy after a long-winded recovery. It also delivers…

Many clients have received CP59 Notices notifying them about missing Forms 1040 for the tax year 2019. In all cases we reviewed, the 2019 Forms 1040 were timely e-filed with proof of successful electronic transmission. The IRS has issued statements acknowledging these notices erroneously went out to some taxpayers. If the taxpayer has filed their 2019 tax…