The IRS Has 3 Million Unopened Pieces of Mail!

The Biden Administration Corporate Tax Proposal

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/

Top Tips for Becoming More Productive

Top Tips for Becoming More Productive

Top Tips for Becoming More Productive Unless you happen to be a sloth, everyone wants to be more productive. Productivity is one of the keys to personal and career success. The problem is, many people just aren’t willing to do what it takes to become more productive. Thus, being productive is easier said than done.…

Where Do Most Americans Fall With Proposed Tax Reform?

Where Do Most Americans Fall With Proposed Tax Reform?

Where Do Most Americans Fall With Proposed Tax Reform? Tax reform is coming. At least that’s what we’ve been led to believe for the better part of a year now. Ever since Donald Trump won the election last November, most of the nation has been expecting tax reform. Here we are a year later and…

What’s the Biggest Mistake By People Who Work a Side Job?

What’s the Biggest Mistake By People Who Work a Side Job?

What’s the Biggest Mistake By People Who Work a Side Job? Everyone wants to make more money. For many that mean picking up a side job to earn a little more cash. There are literally hundreds of side jobs out there but most are only good for a few extra dollars. However, there is a…

Senate’s Tax Bill Would Raise Taxes on Stock Sales

Senate’s Tax Bill Would Raise Taxes on Stock Sales

Senate’s Tax Bill Would Raise Taxes on Stock Sales Capital gains have long been a controversy when it comes to taxes. Many high net worth individuals use capital gains to make the majority of their money. Because the tax rate on gains from stock sales are much lower than taxes on personal income, this is…