Blog | VEB CPA - Part 21

Tool Reimbursement, Rental Arrangements Were Abusive Tax Schemes

Tool plans that claimed to pay employer reimbursements or rental fees to employees who used their own tools in their jobs were abusive tax schemes. The Tax Court imposed civil penalties on two executives of CMS, the company that developed the arrangements and falsely marketed them as accountable plans to reimburse employee expenses. Why Mischaracterize […]

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Coronavirus Distributions and Adverse Financial Consequences

IRS, Reporting Requirements

People whose adverse financial consequences count for getting a coronavirus-related distribution now include spouses and other household members. The IRS has also clarified with lots of examples the thorny intersection between recontributions, taxes, and amended returns. The new IRS guidance presents the rules set out in Act Sec. 2202 of the Coronavirus Aid, Relief, and

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Home Office Deduction Doesn’t Benefit Everyone Who Works from Home

Bookkeeping, Self-Employment tax

People who are working from home in response to the coronavirus pandemic may be looking forward to claiming a home office tax deduction. However, most will be disappointed.

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Coronavirus Insurance and Coverage Changes for HDHPs, HSAs, FSAs and HRAs

Medical Insurance, Reporting Requirements

The Coronavirus Aid, Relief and Economic Security (CARES) Act was intended to provide relief in response to the COVID-19 (Coronavirus) crisis. However, some non-COVID related items were also buried in the bill. These include temporary and permanent changes to:

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SECURE Act: Lifetime Income Stream Disclosure

Retirement Planning

The Setting Every Community Up for Retirement Enhancement (SECURE) Act requires 401(k) and other account-based plans to disclose the lifetime income stream employees can expect at retirement. Most employees under save, so this information should be a wake-up call for them. More diligent savers can learn if they are on the right track.

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New Legislative & Regulatory Changes Affect Retirement Planning

IRS

SECURE Act, CARES Act & IRS COVID-19 responses impact many taxpayers Many legislative and regulatory changes enacted in the past several months directly impact qualified retirement plans and are most helpful to many taxpayers but not all.

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Keep Economic Impact Payment Notice with Tax Records

IRS

People who receive an Economic Impact Payment this year should keep Notice 1444, Your Economic Impact Payment, with their tax records. This notice provides information about the amount of their payment, how the payment was made and how to report any payment that wasn’t received.

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Gig Economy Tips Taxpayers Should Remember

Self-Employment tax

The gig economy, also called sharing or access economy, is an activity where taxpayers earn income providing on-demand work, services or goods. Often, it’s through a digital platform like an app or website. While there are many types of sharing economy businesses, ride-sharing and home rentals are two of the most popular.

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Taxpayers Affected by COVID-19 Who Take Distributions or Loans From Retirement Plans

IRS, Retirement Planning, Tax Penalty

The Internal Revenue Service released Notice 2020-50 (PDF) to help retirement plan participants affected by the COVID-19 coronavirus take advantage of the CARES Act provisions providing enhanced access to plan distributions and plan loans. This includes expanding the categories of individuals eligible for these types of distributions and loans (referred to as “qualified individuals”) and providing

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