CAPATA

Although it is no secret that California has yet to release information on whether or not it will partially conform state tax code to the current federal tax rules regarding forgiven Paycheck Protection Program (PPP) loans, CalCPA has shared why the delay is taking place.

IRS and Treasury Department announced today the 2020 tax year federal income tax filing due date for individuals has been automatically extended from April 15, 2021 to May 17, 2021. Just like last year, taxpayers do not need to file additional forms for the May 17, 2021 deadline. Formal guidance will be coming from the IRS soon.

If you plan to retire or change jobs soon, it’s very important to have a plan for your balance in your current employer’s 401(k) plan. You could keep your savings where it is, roll them over into and IRA, or transfer the balance over to your new employer’s 401(k) plan. You do not need to rush your decision if you have more than $5,000 in your current employer’s plan, but it will be subject to the minimum distributions requirement after you reach age 72.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was an economic stimulus bill that was signed into law on March 27, 2020. One of the provisions of the CARES Act was the Employee Retention Credit, which provides payroll tax credits available for employers, including tax exempt organizations who retained employees during the COVID-19 pandemic. The goal is to help and provide financial assistance to employers during this time where business operations were disrupted and are not able to operate at full capacity.