The Inflation Reduction Act of 2022 (IRA) passed in both the Senate (August 7, 2022) and the House (August 12, 2022). IRA is a much scaled-back version of President Biden’s Build Back Better Plan (BBB), blocked by Senators Joe Manchin, Krysten Sinema, and all 50 Republican Senators.

This article is a follow-up to our article regarding the Pass-Through Entity Election located here https://drehermartin.com/2022/06/north-carolinas-new-pass-through-entity-tax-election/. 

On November 18, 2021 North Carolina governor Signed Senate bill 105 which includes a new elective Pass–Through Entity Tax (“PTET”).  This law, first effective in 2022, has the potential to save federal income taxes by making NC income taxes on pass-through entities (“PTEs”) income deductible when they may have not been in the past.  This is a so called state and local income tax (“SALT”) Cap workaround.   Eligible PTEs defined as S-Corporations, and certain Partnerships may make this election. Partnerships excluded from making this election are those with partners that are corporations, other partnerships, and certain trusts.

Recently, the U.S. Senate and House passed a $3.5 trillion FY2022 Budget Resolution Framework. The Framework, which is only nine pages, will be used as a template to write the budget legislation that will become 1000’s of pages of text. On page three of this document, it has the words “SALT cap relief.” What does this mean?

On February 25, 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842).  The new lease standard will take effect for fiscal years beginning after December 15, 2021.

In the continually changing landscape of 2020, we can add a new form for 1099 Reporting.  All payments for Contract Labor previously reported in Box 7 of the 1099-MISC will now be reported on the new 1099-NEC.

When I think of my favorite brewery, it is an image of laughter with friends, a relaxed atmosphere, and a great IPA. Unfortunately, the picture gets destroyed when I look at the Alcohol and Tobacco Tax and Trade Bureau website…

If 2020 hasn’t been challenging enough, the cherry on top of this year – your annual audit!

Since 2020 has been like no other, why should your audit be any different? If you participated in a COVID relief program, your audit will be impacted…

As we head into the end of the year, specific questions need to be asked to ensure that you are prepared for 2020 taxes…

After 2020, no one gets to claim that they cannot change. Being forced to change is a very revealing process that allows you to see how scrappy you are…

For your business, is the PPP program a loan or income? As 2020 is coming to a close, organizations are starting the PPP loan forgiveness process…

As businesses reopen, spend PPP and EIDL funds, and create their new normal, the impact of COVID-19 on our businesses is not limited to our day-to-day operations and financials. The impact extends forward and backward when it comes to tax impact…

COVID-19 has impacted our businesses in almost countless ways. Our businesses have closed down temporarily, reduced hours, worked remotely, and changed operations in other ways. If we add in the PPP and EIDL funding requirements and usage, we see the most obvious aspects of what we need to consider when preparing for the taxman next year…

The Paycheck Protection Program is providing small businesses with the resources they need to maintain their payroll, hire back employees who may have been laid off, and cover applicable overhead…