The recently enacted American Rescue Plan includes an expanded refundable Child Tax Credit (CTC) for the 2021 tax year. Many taxpayers will receive part of their credit in 2021 before filing their 2021 tax return. This will take the form of a monthly payment of up to $300 per month for each child under age 6, and up to $250 per month for each child age 6 and above. These monthly payments will be made to approximately 39 million households, which covers about 88 percent of all children in the U.S.
The payments will be made automatically and are scheduled to begin on July 15 and continue through December. The payments will be made through direct deposit, paper check or debit cards.
For tax year 2021, families claiming the CTC will receive up to $3,000 per qualifying child between the ages of 6 and 17 at the end of 2021. They will receive $3,600 per qualifying child under age 6 at the end of 2021. Under the prior law, the amount of the CTC was up to $2,000 per qualifying child under the age of 17 at the end of the year. The increased amounts are phased out for households with incomes over $150,000 for married taxpayers filing a joint return and qualifying widows or widowers, $112,500 for heads of household, and $75,000 for all other taxpayers.
For additional information, please contact Gray, Gray & Gray at (781) 407-0300.
U.S. restaurants that have been impacted by the prolonged economic downturn due to the COVID-19 pandemic may be getting some relief in the form of a $26.8 billion Restaurant Revitalization Fund. The U.S. Small Business Administration (SBA) will open registration for the fund at restaurants.sba.gov on Friday, April 30 at 9 am EDT. Applications will open on Monday, May 3 at noon EDT, and will remain open until all funds are distributed. It is recommended that potential applicants register in advance and familiarize themselves with the eligibility requirements and necessary documentation they will need to apply.
For the first 21 days that the program is open, the SBA will prioritize applications from businesses owned and controlled by women, veterans, and socially and economically disadvantaged individuals. Following the 21 days, all eligible applications will be funded on a first-come, first-served basis.
The SBA has also created a $9.5 billion set-aside for smaller restaurants: $5 billion for applicants with 2019 gross receipts of not more than $500,000; $4 billion is set aside for applicants with 2019 gross receipts from $500,001 to $1,500,000; and $500 million for applicants with 2019 gross receipts of not more than $50,000.
The Restaurant Revitalization Fund provides a total of $28.6 billion in direct relief funds to restaurants and other hard-hit food establishments that have experienced economic distress and significant operational losses due to the COVID-19 pandemic. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Funds must be used for allowable expenses by March 11, 2023.
If you are a restaurant owner or operator and have questions about eligibility or the application process for the Restaurant Revitalization Fund, please contact Gray, Gray & Gray at (781) 407-0300.
We are pleased to announce that we have undertaken a major rebranding in response to an ongoing expansion and shift in the services provided to clients. This rebranding includes the new logo shown above, a refreshed website at www.gggllp.com and a new client-centric initiative we’re calling the “Power of More.”
What does the Power of More represent?
More attention. More expertise. More opportunity.
More solutions for your ever-changing needs.
More than you’ve asked for. More than you expect.
By John W. Cashman, Jr., CPA
Tax Manager at Gray, Gray & Gray, LLP
The ongoing economic recovery has resulted in a return of an extended bull market on Wall Street. One offshoot of this is an increase in capital gains generated by activities such as portfolio reallocation and the sale of appreciated assets. While many factors go into making a buy/sell decision, one of the most important concerns is the tax implication of any transaction that results in capital gains. Continue reading
By John W. Cashman, Jr., CPA
Tax Manager at Gray, Gray & Gray, LLP
The U.S. economic recovery has been spurred in many ways by the spirit of entrepreneurship that has led to an expansion of small businesses. The appeal of working for oneself and creating your own success is strong.
But running a small business also carries an increasing amount of scrutiny from the Internal Revenue Service (IRS). The financial controls present in a large corporation are not always so rigid in a closely held business. The IRS can come down hard on small companies that take advantage of “gray” areas in the tax code, or that get overly aggressive in claiming deductions.
The Partners and Teams of Gray, Gray & Gray, LLP and Green & Green, LLC are pleased to announce the merger of our firms – effective November 1, 2014. The combined firm will operate as Gray, Gray & Gray, LLP, with consolidated offices located in Canton, MA.
“We are very pleased to be joining forces with Green & Green, and look forward to working with their outstanding staff and clients,” said Joe Ciccarello, CPA, Managing Partner of Gray, Gray & Gray. “We have taken this step for many reasons – primary among them being our desire to provide our clients with a wider and deeper range of services. Our combined talents and abilities mean our clients will benefit from a more comprehensive scope of accounting, tax strategy, business advisory and wealth management services.”
For more details about the merging of firms, please click here to read the full press release.
The Internal Revenue Service (IRS) office is alerting financial institutions to be wary of fraudulent emails, ostensibly from the IRS, requesting personal financial data on account holders under the Foreign Account Tax Compliance Act (FACTA). The emails request data such as account holder identities, account information, and confidential passwords.
The IRS says it does not request specific account holder identity information over the phone, by fax or by email, and does not solicit FACTA passwords or other confidential account information. They report that incidents of these “phishing” scams involving FACTA have occurred in multiple countries.
The Massachusetts legislature was very busy during the last few weeks of the session just concluded, passing a fiscal year 2015 state budget of approximately $36.5 billion. Among the provisions passed and enacted were several new and expanded tax credits and incentives that offer taxpayers in the Commonwealth a number of opportunities to reduce their tax burden. Continue reading
The cash method of accounting is one that is commonly used by small and medium size business of all types. The simplicity of record keeping and reporting makes the cash method an attractive alternative.
However, a broad reaching tax reform plan recently introduced in the U.S. House of Representatives would make significant changes in which businesses would be allowed to utilize the cash method of accounting. The proposal from Representative David Camp, which is designed to simplify the rules on the cash method, would modify the gross receipts threshold that currently precludes some companies from using the cash method. Continue reading
Underscoring the need to be vigilant during tax season, the Internal Revenue Service’s Taxpayer Advocate Service (TAS) recently issued a warning about an e-mail “phishing” scam targeting taxpayers. The Taxpayer Advocate Services is the “voice of the taxpayer” at the IRS, helping to ensure taxpayers are treated fairly and understand their rights. Continue reading