January 2021 Updates
Smart business, accounting, tax, and planning ideas from your MMKR CPAs!
2021 Tax Filing Season Tips
The IRS has announced that they will begin accepting and processing individual tax returns for the 2020 tax year on February 12, 2021. This delayed start is to ensure they have properly implemented all changes from the second round of Economic Impact Payments and other related benefits. Returns can still be prepared prior to this date, so do not delay in getting us your information. 

Over the past year, the IRS has been substantially behind in processing paper returns and refunds. Already understaffed heading into last tax season, COVID has further limited their capacity to process items. They are emphasizing that taxpayers file returns electronically and use direct deposit for any refunds this year. 

The Economic Impact Payments, commonly called stimulus payments, will not be taxed but they will still need to be reported on your tax return. There were two payments, the original back in April 2020 (typically the week of April 13th) and most recently a payment at the end of December 2020. While these are not taxable, they need to be reported to properly determine if you qualify for a larger payment. Additionally, if you did not receive a payment that you were eligible for, you will receive an increased tax refund when filing your 2020 tax return. 

Tips to expedite your refund processing...
Single Audits of Federal Awards for Governmental Entities
The rules and regulations around the completion of a single audit have changed dramatically over the past several months, mainly due to changes brought on by COVID-19.  

Here are a few items to consider when it comes to preparing for a single audit of federal awards within a governmental entity this year:

  • To provide additional oversight, recipients and subrecipients must separately identify the “COVID-19” expenditures on the Schedule of Expenditures of Federal Awards in the current year audit reports.

  • The 2020 Compliance Supplement was issued in two parts. The first part was developed prior to COVID-19 and contains limited information related to the COVID-19 pandemic, including a summary of new COVID-19 programs. The second part of the Compliance Supplement was issued as an addendum and addresses the new COVID-19 programs in detail.

  • Governmental entity staff should familiarize themselves with the new COVID-19-related programs and programs generated by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. New COVID-19 programs may be high-risk programs in the current year because they have not been previously audited. Auditors will be modifying procedures to address changes in both internal controls and potential fraud frisks. Programs tested in the past will not be assessed automatically as high-risk, solely due to COVID-19 funding. These programs may be changed to high-risk if it is determined that changes in personnel, internal controls, or programming due to COVID-19 significantly increased program risk...
What's New at MMKR?

New year, new team.

We are pleased to welcome all of these talented individuals into the MMKR family!

Dom Barcelon (top left), Tax Specialist with a love for the culinary arts. When off the clock, Dom indulges in his passions of cooking, playing basketball, brewery hopping, and spending time with family and friends.

Morgan Gloe (top right), Staff Accountant and water sports enthusiast. In her free time, you can find Morgan out in the wild paddle boarding, kayaking, jet-skiing, or binging Netflix with her two dogs, Baxter & Gus.

Raissa Toure (bottom left), Staff Accountant and native French speaker. During her time off, Raissa can be found alongside family and friends, watching good movies, or experimenting with her natural cooking skills.

Tessa Skradde (bottom right), Small Business Consultant with an appetite for adventure. When she isn’t working, Tessa can be spotted hiking under the summer sun, by the fire with a good book in hand, or exploring new restaurants, breweries, and wineries.

In Case You Missed It...
Educate yourself about the revised tax benefits for higher education
Attending college is one of the biggest investments that parents and students ever make. If you or your child (or grandchild) attends (or plans to attend) an institution of higher learning, you may be eligible for tax breaks to help foot the bill.
Forecasting for 2021
 Forecasting your company’s financial statements can help you manage inventory and other working capital accounts, offer competitive prices, identify impending cash flow shortages and keep your business on solid financial footing.
Prevent and detect insider cyberattacks
In one recent cybercrime scheme, a mortgage company employee accessed his employer’s records without authorization, then used stolen customer lists to start his own mortgage business.
Do you have questions about your specific goals or strategies?

Each of our clients is unique; therefore, we provide solid, forward-thinking business strategies, expertise, and advice along with traditional accounting, audit, and tax consulting services tailored to their needs.