News & Insights

2022 IRS Inflation Adjustments Brackets & Rates

The Internal Revenue Service (IRS) adjusts many tax provisions for inflation annually to prevent taxpayers from being pushed into higher income tax brackets or to have a reduced value from credits and deductions due to inflation instead of any increase in real income. As of the passing of the Tax Cuts and Jobs Act of 2017 (TCJA), the IRS uses the Chained Consumer Price Index (C-CPI) to adjust income thresholds, deduction amounts, and credit values accordingly. The new inflation adjustments are for tax year 2022, for which taxpayers will file tax returns in early 2023. 2022 Federal Income Tax Brackets…

Employee Retention Credit Early End – but it’s not too late!

The Infrastructure Investment and Jobs Act was passed by Congress and signed into law today. One of the provisions of the law is that the Employee Retention Credit (ERC) concluded as of September 30, 2021. The good news is that it’s not too late for qualifying businesses to take advantage of the substantial ERC credits available on wages paid through Q3. And if you qualify as a recovery startup business, the ERC runs through the end of the year. If you haven't applied for ERC, the most important thing to note is that it's a credit the taxpayer receives in…

Good News! An Extended PPP Deadline & Simplified RRF Application

Hope you're having a great Wednesday! We’ve received some good news over the last couple of days. First, President Biden signed an extension for the deadline to file for the Paycheck Protection Program. The deadline to apply for a loan under the program was set to expire today, March 31, but the new law extends the application deadline to May 31. It gives the Small Business Administration (SBA) until June 30 to process the applications. In addition, the SBA announced on Tuesday that restaurants applying for grants under the Restaurant Revitalization Fund (RRF) do not need to register for a DUNS number,…

The $28.6B Restaurant Revitalization Fund

The SBA expects an early April roll-out The Food & Beverage industry had to make a sharp pivot to try and stay in business during the pandemic. In addition to the shelter-in-place orders, the necessary accommodations these business owners had to make were unexpected (burdensome) expenses. Last year, the National Restaurant Association pushed Congress to create a specific recovery fund due to the unique challenges restaurants faced. As a result, The American Rescue Plan Act of 2021 (ARPA) established a $28.6B Restaurant Revitalization Fund (RRF), and $5B is reserved for businesses with gross receipts of $500,000 or less in 2019. Are you eligible? The RRF is intended for…

Good News For Taxpayers!

The Schedule of New Deadlines Dates and Details On Wednesday, March 17, the IRS announced that Tax Day for taxpayers outside Texas, Louisiana, and Oklahoma is extended to May 17. Here are some key highlights of what you need to know: To minimize any confusion and avoid receiving unnecessary notices from the IRS about the timeliness of extension payments, our strategy will be to file individual extensions before the original due date of April 15 for all U.S taxpayers regardless of their state residency. BKM Sowan Horan is committed to our client's success and will keep you apprised of any further developments…

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