Claiming the Employee Retention Credit for Past Quarters Using Form 941-X
The Employee Retention Credit (ERC) is a tax credit available to employers who have seen a reduction in gross revenue due to the coronavirus pandemic. As described below, the credit, which was originally enacted in 2020, was extended, with improved terms, for 2021. Employers who mistakenly failed to take advantage Continue Reading …
IRS Excludes Cryptocurrency Exchanges From Section 1031
Cryptocurrency is cool these days. And since this Tax Blog aspires to be cool (with mixed results), allow me to examine the latest offering from the IRS regarding cryptocurrency. Under the heading of “better late than never,” in General Counsel Memorandum 202124008, published June 8, 2021 (the “Memo”) the IRS Continue Reading …
Revenue Ruling 99-6 and Section 1031: Bob and Jon’s Excellent Adventure—Part II
Bob and Jon were the members of Apartment LLC, an LLC taxed as a partnership, with Bob owning a 40% membership interest and Jon owning a 60% membership interest. Apartment LLC owned a small apartment building as its only asset. Things were going well with the apartment building.
One day Bob Continue Reading …
Revenue Ruling 99-5 and Section 1031: Bob and Jon’s Excellent Adventure—Part I
Jon was the sole member of Apartment LLC, a disregarded entity for tax purposes. Apartment LLC owned a small apartment building as its only asset. Things were going well with that apartment building.
Bob had some extra cash from golf winnings and was looking for a real estate investment. He saw Continue Reading …
Rev. Proc. 2021-20: A Safe Harbor for Missed PPP Deductions
On April 22, 2021, the IRS issued Revenue Procedure 2021-20, which provides a safe harbor allowing taxpayers who did not deduct expenses paid with forgiven PPP loans in 2020 to deduct those expenses in the next tax year. The failure to deduct those expenses was consistent with IRS guidance at Continue Reading …