Blog

25th ANNUAL UCCS ECONOMIC FORUM!

September 9, 2021 @ 3:07 pm

BiggsKofford is a proud sponsor of the 25th Annual UCCS Economic Forum! This is a great opportunity to get important information about the economic health and outlook of the region. The UCCS Economic Forum is the leading source of unbiased and rigorous information for the Pikes Peak region. Data is continuously updated and actively utilized in the community to inform and drive economic development and business decisions.

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IRS Sends Out 11 Million “Math Error” Notices

@ 2:24 pm

IRS Sends Out 11 Million “Math Error” Notices Many Americans are receiving Math Error notices from the IRS resulting in adjusted tax due or reduced refunds for 2020. This is more than five times as many as they sent in 2019 and more than 14 times as many as last year. This significant increase in tax liability adjustments and Math Error notices seem, for the  most part, to be triggered by errors in calculations of the Stimulus Payments. While there are a number of possible reasons, from a math error, to a missing or incomplete Social Security number to the last name of a claimed dependent not matching IRS records. However, most like reason you’re getting the letter is because of the economic stimulus payments. If your gross adjusted income exceeds $75,000 (or $150,000 if you’re married and filing jointly, or $112,500 if head of household), then you might have to pay some of that stimulus check back. If you believe the adjustment is in error, the IRS is encouraging taxpayers to call the IRS at (800) 829-8374 to review their account with a representative. You have 60 days to request an abatement for the amount owed. In that time, you can provide additional documentation …

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HHS Reporting: Final Guidance on PRF Funding

August 27, 2021 @ 4:21 pm

HHS Reporting: Final Guidance on PRF Funding HHS has finalized reporting guidance for recipients of funding from the Provider Relief Fund (PRF). The HHS PRF reporting portal has been open since July 1, 2021. Recipients of PRF funding are required to report the use of these funds via the reporting portal based on the timeframe these funds were received in. It is imperative to report on the use of PRF funding in order to remain compliant with the terms and conditions that were attested to when funding was received. If reporting becomes noncompliant you will be required to pay back these funds. HHS requires recipients of PRF funding to report when one or more payments received exceeds $10,000 in the aggregate in the following “Payment Received Period”. The following “Deadline to Use Funds” is the date you have to use PRF funds for eligible expense and lost revenues attributable to coronavirus. The “Reporting Time Period” is the timeframe in which you have to report on the use of PRF funding. Payment Received Period (Payments Exceeding $10,000 in Aggregate Received) Deadline to Use Funds Reporting Time Period April 10, 2020 – June 30, 2020 June 30, 2021 July 1 – September …

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Be on the Lookout for Third Quarter 2021 Estimated Tax Payment Voucher!

August 26, 2021 @ 3:12 pm

Be on the Lookout for Third Quarter 2021 Estimated Tax Payment Voucher!   As many of our clients are aware, we are now utilizing the cloud-based tax return delivery platform, SafeSend Returns. One great feature of this system is that it automatically delivers estimated tax payment vouchers at the appropriate times throughout the year. You should have already received, or will receive soon, the 3rd Quarter voucher for the 2021 tax season. These payments are due by September 15, 2021. If you do not receive an email from SafeSend, check your spam or junk folder. If you have any questions, don’t receive a voucher you were expecting, or need any clarification, don’t hesitate to reach out to your BiggsKofford team member! You can find more information on our website HERE or contact us HERE!

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Consider an IRS IP PIN? How to Protect Your Identity and Credit

June 24, 2021 @ 10:55 am

As fraud expands, thieves have more opportunities to steal your financial identity. The Federal Trade Commission reports that as many as half a million Americans have their identities stolen annually, costing them money and affecting their credit ratings. Identity thieves make their money by co-opting your name, Social Security number, credit card number or other piece of your personal information for their own use. Below are just a few of the ways the identity thieves operate, according to the FTC: They file fraudulent tax returns on your behalf to get a refund. They open a new credit card account, using your name, date of birth and Social Security number. When they use the credit card and don’t pay the bills, the delinquent account is reported on your credit report. They call your credit card issuer and, pretending to be you, change the mailing address on your credit card account. Then, your imposter runs up charges on your account. Because your bills are being sent to the new address, you may not immediately realize there’s a problem. They establish cellular phone service in your name. They open a bank account in your name and write bad checks on that account. Fortunately, there …

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Colorado Department of Revenue Extends Income Tax Filing and Payment Deadline

March 19, 2021 @ 2:09 pm

Colorado Department of Revenue Extends Income Tax Filing and Payment Deadline The Colorado Department of Revenue announced Thursday that it will extend the individual income tax payment and filing deadline. The new deadline will now be May 17, 2021 instead of April 15, 2021, giving individuals an additional 32 days to file and pay. This provision is in line with a recent announcement by the IRS to extend the federal filing and payment deadline for individual taxpayers. See our previous newsletter covering the IRS announcement HERE. Similar to the IRS deadline and payment extension, there are some important factors to consider as we understand them now: This does NOT extend other taxpayers such as corporations, trusts, etc. This does NOT extend the first quarter estimate payment which is still due on April 15th. This does NOT extend the extended deadline of October 15. The state tax payment and filing postponement is automatic and does not require any action on the part of individual taxpayers. If you need additional time to file, you may request an extension to October 15 to file, but must still pay by May 17th in order to avoid penalties and interest. As stated in our previous article, because of …

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Individual Taxpayer Filing and Payment Deadline Extended

March 18, 2021 @ 9:07 am

Individual Taxpayer Filing and Payment Deadline Extended But Be Cautious The IRS announced yesterday, March 17th, that they will extend the filing and payment deadline for individual federal tax returns from April 15th to May 17th. A few important points to be aware of as we understand them today: This does NOT extend other taxpayers such as corporations, trusts, etc. This does NOT extend the first quarter estimate payment which is still due on April 15th. This does NOT extend the extended deadline of October 15. This may not extend your state filing deadline. Check with your specific state(s) tax agency for further guidance. Penalties and interest will begin to accrue on May 18. Taxpayers do not need to file any forms or call the IRS to qualify for this automatic federal tax filing and payment postponement. If your return is not done by this time, you can ask for an extension until October 15th. In light of the stipulation regarding the first quarter estimated tax payment for 2021, we are advising all clients to continue under the assumption that we intend to file all individual federal tax returns by April 15th as originally planned. This is an evolving situation that we are continually monitoring. We will …

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American Rescue Plan Act of 2021

March 15, 2021 @ 8:13 am

The House of Representatives passed the American Rescue Plan Act, H.R. 1319, on Wednesday and President Biden signed it into law on Thursday. This $1.9 trillion rescue package is intended to provide additional support in the fight against the pandemic and economic stimulus. Here are some of the key provisions: Recovery Rebates The act creates a new Sec. 6428B that provides individuals with a $1,400 recovery rebate credit ($2,800 for married taxpayers filing jointly) plus $1,400 for each dependent (as defined in Sec. 152) for 2021, including college students and qualifying relatives who are claimed as dependents. This credit will be sent out as a cash advance payment, same as the first two stimulus payments. The adjusted gross income limitation phase out for this credit for single taxpayers is $75,000 with full phase out at $80,000. For joint filers the phaseout begins at $150,000 with full phase out at $160,000. The head of household phaseout begins at $112,500 through $120,000. Unemployment Benefits The supplemental unemployment benefit of $300 per week provided by the federal government is extended through September 6, 2021. There is also a taxable income exclusion on unemployment benefits for the first $10,200. Applicable for taxpayers with a household …

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Opportunity for a $10,000 Economic Injury Disaster Loan Grant

February 16, 2021 @ 4:30 pm

Opportunity for a $10,000 Economic Injury Disaster Loan Grant The SBA has announced an opportunity to get a $10,000 EIDL Grant. This new round of EIDL Grants is called the “Targeted EIDL Advance”. The eligibility for this next round of loans is based on: Didn’t already get the $10,000 EIDL advance last year. Located in a Section 45D(e) location, which is the same as the Opportunity Zone definitions. Click HERE for an interactive map to see if you’re in the Zone. Need to have a 30% reduction in revenue during some 8-week window starting after March 2, 2020, compared to 2019. Have less than 300 employees. If a company qualifies, the SBA will be sending an invitation to apply – based on your geographic location. See our Resources page HERE for an example of the letter.  If you receive this invitation and qualify – then you could obtain this $10,000 advance. If you believe you qualify, but didn’t receive an invitation, you can contact the SBA’s Customer Service Center at 800-659-2955 or emailing TargetedAdvance@sba.gov. If you have any questions or want to discuss your specific situation, contact our Team!

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The Employee Retention Credit Gets Revamped for 2021

@ 4:29 pm

More Companies May Now Qualify for the Employee Retention Credit The Consolidated Appropriations Act (CAA) was signed into law on December 27, 2020 as a continued effort to support the economy during the COVID-19 pandemic. One significant adjustment over the Coronavirus Aid, Relief, and Economic Security (CARES) Act, is an expansion to the Employee Retention Credit (ERC). Prior to the CAA, a business was not allowed to receive the Paycheck Protection Program (PPP) loan and the ERC. Most of our clients were able to qualify for, and received, the PPP loan, so we did not discuss the ERC much. However, the CAA law retroactively altered this provision and now allows for both the PPP loan and the ERC, which means that the credit can be retroactively claimed. While this is true in concept, the IRS hasn’t released the specific rules for coordinating the payroll expenses claimed for PPP forgiveness and the ERC. In addition, they haven’t indicated the exact procedure for making a retroactive ERC claim. Additional guidance is needed and expected. The CAA also made other important increases to the ERC to allow more businesses to qualify for the credit in 2021. These credits can essentially be viewed as two distinct …

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FRAUD ALERT – DID YOU RECEIVE A 1099-G BUT DID NOT FILE FOR UNEMPLOYMENT?

January 30, 2021 @ 9:06 am

DID YOU RECEIVE A 1099-G BUT DID NOT FILE FOR UNEMPLOYMENT?  Unfortunately, the Colorado Department of Labor had a large number of fraudulent unemployment claims this year.  Even after taxpayers have reported this fraud, many are still receiving Form 1099-G(s). Form 1099-G is the form used to report any income received through unemployment, similar to a W-2 for unemployment benefits. What should you do if you receive a Form 1099-G but did not file an unemployment claim? According to the Colorado Department of Labor: If you have received a 1099-G document from the Colorado Department of Labor and Employment but did not file a claim for unemployment benefits, you may be a victim of identity theft. Unfortunately, fraudsters steal or purchase private information from illicit data brokers and use that information to file fraudulent unemployment claims. While we have a sophisticated multi-factor program in place to flag suspected fraud, no system is perfect. Here’s what you should do if you’ve received a 1099-G document from the Colorado Department of Labor and Employment but did not file a claim for unemployment benefits: Report it to us using the Report Invalid 1099 form. Contact the three consumer credit bureaus and put a fraud alert on your …

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HHS Reporting Deadline Postponed

@ 9:06 am

HHS Reporting Deadline Postponed The US Department of Health and Human Services (HHS) announced on January 15, 2021 that they will postpone the CARES Act Provider Relief Fund (PRF) reporting deadline due to the passing of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021.  This was a result of the new requirements issued as a part of the relief bill and to give PRF recipients ample time to prepare and understand the guidance released on January 15, 2021.  Please note that this document supersedes the November 2, 2020 notice. They have not announced a new reporting deadline but are expected to in the near future once they have released additional guidance.  However, on January 15, 2020 HHS allowed PRF recipients to begin registering for gateway access to the PRF Reporting Portal where they will ultimately submit their information. If you have any questions regarding this, please do not hesitate to contact the BiggsKofford Team.

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Business Preparation for Stimulus #2 What you should do IMMEDIATELY to be prepared

January 4, 2021 @ 9:55 am

Business Preparation for Stimulus #2 What you should do IMMEDIATELY to be prepared The new COVID Relief bill was signed by the President on December 28th. We covered the highlights of the law in an article you can find HERE.  This Relief Act includes two significant programs that are available to closely-held businesses that are in need of financial assistance. The two primary programs available to small business are: Payroll Protection Program – Second Round (PPP-2). We expect applications for this second round to open up within the first couple weeks in January. This second round has been allocated $284 billion, which is less than the initial PPP funding level and may get claimed quickly. As a result, we recommend those in need determine their eligibility now so that prompt application can be made once available. Employee Retention Tax Credit (ERTC). These credits were originally only available for businesses that did NOT also claim the PPP loan. But, the new Relief Act changed that. You can now qualify for the ERTC and the PPP loan. To qualify for the PPP-2 loan, your business must show a 25% reduction in revenue in ANY QUARTER of 2020 – compared to the same quarter …

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Trump Signed the Relief Act: Key Provisions for BiggsKofford Clients

December 28, 2020 @ 5:51 pm

Trump Signed the Relief Act: Key Provisions for BiggsKofford Clients President Trump has finally signed the coronavirus relief package that was passed by Congress last week. Here are the important things our clients are likely interested in hearing: 1. Second Stimulus Payment A second stimulus payment will be available, the details of which are as follows: $600 for each individual filer $1,200 for married or joint filers $600 for any dependents age 16 and under In order to qualify for the full second stimulus payment, you will need to have earned less than $75,000 (for individuals) or $150,000 (for married/joint filers) in 2019. If your adjusted gross income is higher than those thresholds, then the stimulus payment is reduced by $5 for every $100 of adjusted gross income over those thresholds. As a result, a single tax filer would see no stimulus payment if their adjusted gross income is $87,000 or higher. A married couple would phase out completely with adjusted gross income of $174,000. Given both the delay in the bill being signed as well as the holiday break, it will likely be several weeks. The first people to get payments will be those that have their direct deposit …

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PPP2 – Another COVID-19 Relief Bill on Its Way!

December 23, 2020 @ 8:21 am

The House of Representatives and the U.S. Senate passed a $900 billion COVID-19 relief bill on Monday night which is expected to be signed in to law by President Trump at some point very soon. We discussed our early impressions of this news in a previous newsletter, HERE. There have been some important updates since then. This new relief bill includes different elements that are impactful to our clients: Tax law changes as well as a new PPP Loan (PPP2). Once this bill is signed and becomes law, BiggsKofford will be sending separate detailed articles to describe the PPP2 Loan details and highlighting Tax Law changes. Bill Summary: The bill has several important provisions initiated in an attempt to stimulate the economy. As summarized in an article by Jeff Drew in the Journal of Accountancy HERE, some of the key points to be aware of: $325 billion designated for struggling small businesses to include: $284 billion to fund another round of PPP loans; $20 billion to provide EIDL Grants to businesses in low income communities; $15 billion to live venues, independent movie theatres, and cultural centers. $166 billion in economic stimulus payments to individuals. $600 to each qualifying adult and dependent child of …

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PPP TAX DEDUCTIBILITY UPDATE!

December 21, 2020 @ 5:07 pm

Congress announced yesterday that a new, $900 billion, COVID relief package is coming. This will include another round of Paycheck Protection Program (PPP) loans as well as a defined answer to a burning question for many, expenses paid for with forgiven PPP funds WILL be deductible! As we discussed in an earlier article, found HERE, the PPP funds were not intended to be included in taxable income. However, the IRS stepped in and found a work around by not allowing ordinary tax deductions for expenses paid with tax free funds. This essentially resulted in the PPP loans being taxable which would have left many small businesses with a large tax bill for 2020. To the relief of many, Congress clarified that the deductions will still be recognized regardless of forgiveness, stating that was the original intent of the CARES Act. In addition to the deductibility of expenses paid for with forgiven funds, the proposed bill also states that “no deduction shall be denied or reduced, no tax attribute shall be reduced, and no basis increase shall be denied”. In short, the provision indicates that any income tax basis increase that occurs as a result of receiving the loan will not be lost upon forgiveness of that loan. Another Round of …

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COVID-19 RESOURCES