KEY ACCOUNTING INDUSTRY AND INSIGHTS UPDATES - OCTOBER 2021

1. $16B in EITC payments in 2020 may have been improper

The Internal Revenue Service’s strategy for examining claims for the Earned Income Tax Credit are falling short, with nearly one-fourth of EITC payments estimated to be wrong last year and the IRS focusing its efforts disproportionately on some Southern states. Read More

2. SBA quadruples COVID-19 EIDL limit to $2 million

The U.S. Small Business Administration (SBA) announced major modifications to the COVID-19 Economic Injury Disaster Loans (EIDL) program, including raising the loan cap from $500,000 to $2 million. Read More

3. FASB Issues 2021 Investor Outreach Report

The report highlights the expansive investor outreach completed by the FASB staff over the last year, including engaging in more than 430 investor interactions. Read More

4. Social care levy has potential to stifle growth, experts warn

Tax and business advisory experts have raised concerns over the UK government’s plans to raise national insurance contributions (NICs), arguing that the added strain on businesses could bear significant knock-on implications for the wider economy. Read More

5. National Insurance increase plus end of furlough may trigger redundanciesAndrew Snowdon, Partner and Head of Tax at UHY Hacker Young, says: “With the furlough scheme being withdrawn at the end of the month, the increase in National Insurance will have made the cost of keeping jobs that much more expensive.” Read More

6. Harris & Trotter LLP becomes BKR International’s London Member Firm

BKR International is proud to announce Harris & Trotter LLP as its exclusive London Member Firm. A dynamic firm whose reputation is founded on quality and personal relationships, Harris & Trotter LLP bring over 80 years of experience focussed on client centric solutions. Read More

7. IRS: COVID tests are eligible medical expenses

As giant retailers prepare to offer cheap at-home COVID-19 tests in the wake of President Biden’s new vaccine rules for employers, the Internal Revenue Service has sent a reminder that the cost of home testing for COVID-19 is an eligible medical expense. Read More

8. Guidance issued on 2021 qualified sick and family leave wage reporting

The IRS on Tuesday detailed how employers must report qualified sick leave wages and qualified family leave wages for leave provided to employees in 2021. Read More

9. CRI Acquires N. Carolina Accounting Firm Sharrard McGee

Top 25 nationally ranked CPA and advisory firm Carr, Riggs & Ingram, LLC (CRI) has increased its investment in the state of North Carolina, expanding its locations to serve clients there through the merger of Sharrard, McGee & Co., P.A. Read More

10. Top Senate Dems float 2% excise tax on stock buybacks

Two senior Democratic senators proposed a 2% tax on corporate stock buybacks in an effort to boost investment and reduce what they termed as tax avoidance. Read More

11. IRS hit with programming bug on COVID-19 tax relief

The Internal Revenue Service warned Thursday of a programming issue that’s affecting business taxpayers who need transcripts for requesting COVID-19 employment tax relief. Read More

12. IRS updates business travel per-diem rates

The IRS issued its annual update Friday of special per-diem rates for substantiating ordinary and necessary business expenses incurred while traveling away from home (Notice 2021-52). Read More

13. Biden’s child tax credit plan backed by House Democrats

House Democrats are seeking to extend the recently expanded child tax credit through 2025, endorsing a key component of President Joe Biden’s social safety net plan. Read More

14. AICPA recommends QBI improvements

The AICPA recommended in a letter Tuesday to Senate tax-writing leaders eight ways to improve the deduction for qualified business income (QBI) under Sec. 199A. Read More

15. House Democrats issue tax plan with top corporate rate of 26.5%

House Democrats on Monday released a package of tax increases that falls short of President Joe Biden’s ambition, an acknowledgment of how politically precarious the White House’s $3.5 trillion economic agenda is for party moderates. Read More

16. IRS hit with programming bug on COVID-19 tax relief

The Internal Revenue Service warned Thursday of a programming issue that’s affecting business taxpayers who need transcripts for requesting COVID-19 employment tax relief. Read More

17. AICPA Supports Taxpayer Penalty Protection Act

For more than a year, the American Institute of CPAs (AICPA) has advocated for penalty relief for taxpayers as they deal with the ongoing challenges brought on by the coronavirus pandemic. Read More

18. Sovos Acquires 1099 Pro

Global tax software provider Sovos has acquired California-based 1099 Pro, a leading provider of software and services for tax information reporting. Read More

19. IRS extends e-signatures on dozens of tax forms through end of 2021

The Internal Revenue Service has extended the ability to digitally sign a wide variety of tax forms through the end of year, lengthening what had been a temporary grant of relief for the pandemic. Read More

20. Baker Tilly to acquire accounting tech services company

Baker Tilly, a Top 25 Firm headquartered in Chicago, plans to acquire AcctTwo, a Houston-based technology and services company that specializes in finance and accounting transformation, effective Oct. 1. Read More

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