This page is where you will find major updates to small business, payroll, and individual news.
WASHINGTON — The Internal Revenue Service today issued the 2022 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
To continue to allow employers to take immediate advantage of various credits enacted in response to the COVID-19 pandemic, the IRS is permitting eligible employers who pay qualifying wages to retain an amount of the payroll taxes equal to the amount of qualifying wages that they paid, rather than deposit them with the IRS. Monday’s guidance (Notice 2021-24) amplifies guidance issued last year (Notice 2020-22) and provides for penalty relief under Sec. 6656 for an employer’s failure to timely deposit certain employment taxes with the IRS.
The relief applies to employers who are required to pay qualified sick leave wages and qualified family leave wages, and qualified health plan expenses allocable to these wages, under the Families First Coronavirus Response Act (FFCRA), P.L. 116-127, as amended by the Consolidated Appropriations Act, 2021 (CAA), P.L. 116-260, and the American Rescue Plan Act, P.L. 117-2.
WASHINGTON — The Internal Revenue Service announced today that it will issue information letters to Advance Child Tax Credit recipients starting in December and to recipients of the third round of the Economic Impact Payments at the end of January. Using this information when preparing a tax return can reduce errors and delays in processing.
The IRS urged people receiving these letters to make sure they hold onto them to assist them in preparing their 2021 federal tax returns in 2022.