Leone, McDonnell & Roberts, PA | eNewsletter | Spring 2021
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It's tax season - one of our busiest times of year! And what a year it's been! Despite the challenges we have endured and those we continue to face, we need to pause to say thank you. Thank you for choosing our firm - we are so grateful for our continued partnerships.
We look forward to seeing you soon!
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Individual Tax Deadline Extended
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The federal tax filing due date for individuals has been extended to May 17, 2021.
We urge taxpayers to still file their 2020 tax return as soon as possible to expedite any refunds or Recovery Rebate Credits owed (see more below).
According to the IRS, individuals can also postpone federal income tax payments that may be due for the 2020 tax year from April 15 to May 17 without penalties and interest, regardless of the amount owed. This also applies to those individuals who pay self-employment tax. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17. Those needing additional time to file can request an extension until October 15th, but the extension to file does not grant an extension to pay any taxes that may be due...those are still due no later than May 17 to avoid interest and penalties.
Stay tuned for additional guidance from the IRS and any state updates.
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NEW! We Now Offer Client Accounting Services
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We are pleased to announce that we now offer a suite of wrap-around client accounting services customized to meet your needs.
Designed with small businesses in mind, we now provide personalized, comprehensive services to support the financial operations of companies across multiple verticals. The customized solutions include bookkeeping services (accounts payable, accounts receivable, month-end), payroll and QuickBooks support.
Managing Partner Evan Stowell discussed the release of the firm’s new services. "We know that all of our clients have unique needs. By partnering with our experienced staff, our clients can stay focused on their core competencies, while gaining valuable insight and understanding to their overall financial picture," he said. "Our team of experts keep our clients compliant and provide accurate and timely information they need to make data-driven decisions. From tax planning and preparation to general ledger maintenance to budgeting to year-end close, our strategic, encompassing approach streamlines everyday functions improving efficiencies and control."
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Non-Itemizers Can Deduct $300 for Cash Charitable Donations in 2020
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For the 2020 tax year, a new provision in The CARES Act allows eligible individuals and joint filers to deduct $300 of qualified charitable contributions (cash, check, credit/debit card) without having to itemize.
This provision changes slightly in 2021...couples filing jointly can deduct up to $600 in the 2021 tax year. Make those cash contributions today!
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Didn't Receive Your Expected Stimulus Check(s)? You May Be Eligible For the Recovery Rebate Credit
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The IRS states they have issued all first and second Economic Impact Payments.
If you didn’t get an Economic Impact Payment or got less than the full amount, you may be eligible for the Recovery Rebate Credit.
Individuals who were eligible but did not receive the first or second Economic Impact Payment, or did not receive the full amount expected, may be eligible to claim the Recovery Rebate Credit and must file a 2020 federal tax return, even if they do not usually file a tax return
The third Economic Impact Payments are now being sent. To check the status of your payment, use the Get My Payment tool.
You can also visit IRS website for more information about the Recovery Rebate Credit.
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What is the Employee Retention Credit?
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The Employee Retention Credit (ERC) is a refundable tax credit designed to provide financial relief and help businesses who were able to keep employees on payroll during the pandemic. Eligibility and parameters are different for 2020 and 2021.
Who is eligible?
- A business that experienced a full or partial shut down due to a government order (federal, state, city, county) because of COVID-19
OR
- In 2020, a business whose revenue significantly decreased by at least 50% in gross receipts from a quarter in 2020 as compared to the same quarter in 2019
- In 2021, a business whose revenue significantly decreased by at least 20% in gross receipts when comparing quarters from 2021 to 2019
The eligible credit is up to $5,000 per eligible employee during 2020 and $14,000 per employee during 2021.
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SBA Issues New PPP Rules for Self-Employed Individuals: Loan Amount Calculation
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Effective March 3, 2021, self-employed individuals who file Form 1040, Schedule C can use gross income instead of net profit to calculate their maximum loan amount.
This change provides the opportunity for larger loans to self-employed individuals.
The SBA is currently offering PPP loans until March 31, 2021.
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EXPLORE OUR BLOG FOR NEWS, INSIGHTS AND PERSPECTIVES!
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For other interesting and informative articles written by the experts here at Leone, McDonnell & Roberts, PA, please visit our blog often!
Some of our recent topics include:
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Tax Highlights of the American Rescue Plan Act
The American Rescue Plan Act, H.R. 1319, a $1.9 trillion COVID-19 relief bill, was passed by Congress on March 10, 2021 and signed by President Biden on March 11, 2021. What are the tax highlights?
Read more
www.lmrpa.com
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Relief for Restaurants Coming Soon!
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The American Rescue Plan Act includes much-needed financial relief for restaurants and bars by earmarking $28.6 billion in targeted grants to small businesses.
Restaurants financially impacted by COVID-19 may be eligible for a Restaurant Revitalization Grant of up to $10 million to cover eligible expenses going back to February 15, 2020 (through December 31, 2021 with possible extensions).
The SBA is expected to issue guidance and open the Restaurant Revitalization Grant program soon ( sba.gov).
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News to Share! Two LMR Employees Pass the CPA Exam and Earn CPA License
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We are pleased to announce that Kaityln Bell and Molly Burns have completed the requirements to earn their CPA licenses.
Both Kaitlyn and Molly have completed the rigorous academic requirements, passed all four components of the demanding Uniform Certified Public Accountant (CPA) examination and completed the necessary experience requirements to receive their CPA licenses in the State of New Hampshire. The CPA examination is a comprehensive assessment that covers sections in auditing and attestation, financial accounting and reporting, regulation and business environments and concepts.
Congratulations, Kaitlyn and Molly!
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We are pleased to welcome new employees to the LMR team.
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Jessica Barlevi, Staff Accountant
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Stephanie Eno, Staff Accountant
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Leslie Gordon, Administrative Assistant
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Jeni Lauder, Client Accounting Services Supervisor
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Sydney Carlisle, Intern
“We are very excited to welcome this talented group of individuals to the firm,” said Managing Partner Evan Stowell. “Each one brings a diverse set of skills, vast experience and unique talents to our team. Our employees are imperative to our success and invaluable to our clients.
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LEONE, McDONNELL & ROBERTS, PA
Dover | Wolfeboro | North Conway | Concord | Stratham
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Trusted Business Partners Since 1973
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