(Accounting Today) Tax Strategy: Post-election Tax Planning. Prior to the presidential election, one of the year-end focuses for tax planning was on a possible presidential victory for Joe Biden combined with a Democratic majority in the Senate that might result in tax increases in 2021 for higher-income individuals, corporations, investors, and estates. Biden has now been declared the victor of the presidential election. However, it appears possible that the Republicans may retain control of the Senate, and the issue may not be decided until two run-off elections in Georgia in January 2021. So control of the Senate may not be decided before year-end, making year-end planning based on the election results still something of a guessing game. Read more.

(Forbes) What Does A Biden Presidency Mean For Your Tax Bill? President-elect Biden has not hidden the fact that he intends to raise taxes by nearly $3.5 trillion over the next ten years on corporations and individuals earning more than $400,000 annually. Biden has proposed a package of incentives aimed at cutting taxes for lower-income taxpayers, including refundable credits for everything from paying childcare costs to buying a home. Learn more.

(MarketWatch) Here’s What a President Joe Biden Would Mean for Americans’ Retirement Savings. Biden has promised to address a broad range of issues as president, one of which includes older Americans’ retirement security and dignity as they age. Read more.

(Tax Foundation) Details and Analysis of President-elect Joe Biden’s Tax Plan. Biden’s plan includes the following: payroll tax, individual income tax, and estate and gift tax changes. Learn more.

(Tax Foundation) Ranking Corporate Income Taxes on the 2021 State Business Tax Climate Index. The corporate tax component of the Tax Foundation’s Index measures each state’s principal tax on business activities. Most states levy a corporate income tax on a company’s profits (receipts minus most business expenses, including compensation and the cost of goods sold), while some states levy gross receipts taxes, which allow few or no deductions for a company’s expenses. Learn more.

(The New York Times) U.S. Employers Added 638,000 Jobs in October. Unemployment Fell to 6.9%. The American economy gained 638,000 jobs last month, a sign the labor market continues to heal slowly as a resurgence in the coronavirus threatens future growth. The unemployment rate fell sharply to 6.9 percent, from 7.9 percent in September, the Labor Department reported. Read more.

(Associated Builders and Contractors) U.S. Economy Expands at 33.1% annual rate in Q3 of 2020. The U.S. economy expanded at an annualized rate of 33.1% during the third quarter of 2020, helping to offset a significant share of the economic loss sustained during the second quarter, according to an Associated Builders and Contractors (ABC) analysis of data released today by the U.S. Bureau of Economic Analysis. Increases in personal consumption expenditures, private inventory investment and exports drove the partial rebound. Read more.

(Construction Drive) What's in Store for Contractors Under a Biden Presidency? From infrastructure spending and union support to immigration, taxes and regulations, the construction industry will face a new set of challenges and opportunities under a Biden administration. Learn more.

(New Jersey Business) SBA Recognizes Surety Partners, Bond Agencies. The U.S. Small Business Administration (SBA) announced today its 20 most active surety companies and agencies for fiscal year 2020. Making this year’s top ten surety agencies list was KOG International, Inc. with offices in Hammonton, Delaware and Pennsylvania. Learn more.

(Surety Bond Quarterly) Hot Topics in Construction and Surety Risk Management. NASBP Attorney Advisory Council participants share insights on hot topics in construction and surety risk management of which every bond producer and surety underwriter—and their contractors and subcontractors—should be aware. Read more.

(Accounting Today) Tax Strategy More than the Usual Year-end Tax Planning. Year-end tax planning for 2020 involves several new wrinkles, in addition to the usual strategies. The Treasury Department and the IRS continued a significant flow of guidance with respect to the Tax Cuts and Jobs Act (TCJA) in 2020. Most of the new tax legislation was related to COVID-19 relief, and frequently expires at the end of 2020. Those pesky regularly expiring provisions are also expiring once again at the end of 2020. Learn more.

(Accounting Today) SEC Saw Concern Over COVID-19-Related Fraud Skyrocket. The Securities and Exchange Commission’s Division of Enforcement has seen tips, complaints, and referrals on potential fraud skyrocket since the beginning of the COVID-19 pandemic, and has taken action to prevent fraud related to the crisis and to stop those who attempted to capitalize on it, according to the division’s annual report. Learn more.

(Accounting Web) IRS Guidance on Reporting Payroll Tax Deferral. The IRS has just posted new guidance for employers that must report payroll tax deferral for employees on their Form W-2 for 2020. In conjunction, the IRS also announced that it had updated Form 941, Employer’s Quarterly Federal Tax Return, to reflect any deferrals. Read more. The IRS has created a webpage that provides detailed guidance for both employers and employees.

(Philadelphia Business Journal) Federal Judge Orders Release of Detailed Information About PPP Loans. A federal judge ordered the U.S. Small Business Administration to release detailed information about Paycheck Protection Program (PPP) loans by Nov. 19. "(The SBA) shall release the names, addresses, and precise loan amounts of all individuals and entities that obtained COVID-related loans pursuant to the Paycheck Protection Program and Economic Injury Disaster Loans program by November 19, 2020," wrote U.S. District Judge James E. Boasberg, in the order. It's unclear if the SBA will appeal the ruling. Read more.

(Philadelphia Business Journal) SBA's New PPP Loan Forgiveness Forms Raise Red Flags With Experts. The Small Business Administration is seeking approval to send new Paycheck Protection Program (PPP) loan questionnaires to businesses that received more than $2 million, causing some experts to worry it may unfairly change the rules on forgiveness. Read more.

(Journal of Accountancy) Deducting Losses in the CARES Act’s Window. One important change under the CARES Act was to temporarily loosen restrictions on the net operating loss (NOL) deduction under Sec. 172, which creates an opportunity for some businesses to get an infusion of cash by filing an application for a tentative carryback adjustment under Sec. 6411. It is reasonable to believe that with little to no revenue coming in for months, many businesses across the nation will sustain losses this year, thus creating an NOL. It is critical for those businesses and especially their financial advisers to be updated on the current rules surrounding the NOL deduction. Read more.

We will continue to keep you updated. Please visit our COVID-19 Resource Page for more alerts.

Feel free to contact any member of our team at (610) 828-1900 (PA) or (732) 341-3893 (NJ) with questions. Rich Higgins, CPA, managing principal – New Jersey office can be contacted at Richard.Higgins@MCC-CPAs.com. I can be reached at Marty.McCarthy@MCC-CPAs.com. As always, we are happy to help.