KEY ACCOUNTING INDUSTRY INSIGHTS & UPDATES IN 5 MINUTES - MARCH 2021

05 Apr 2021  |  3045
KEY ACCOUNTING INDUSTRY INSIGHTS &  UPDATES IN 5 MINUTES - MARCH 2021

Here are the quick updates on the accounting industry for the month of March 2021.

  1. IRS expands unemployment tax exclusion to more taxpayers: The Internal Revenue Service has changed the calculation for determining the $10,200 exclusion on unemployment benefits in the new pandemic relief package, allowing more taxpayers to qualify, but forcing tax software developers to update their programs. Read More
  2. Plug Power rocked by accounting errors after 1400% surge: Plug Power Inc.’s accounting errors sent shares of the fuel-cell maker plunging on Wednesday, dragging down its peers. The Latham, a New York-based company, which soared more than 1,400 percent in the past year through Tuesday, tumbled 14 percent. Its industry counterparts Ballard Power Systems Inc. and FuelCell Energy Inc. also slipped, with the latter posting a first-quarter revenue miss this week. Read More
  3. PPP borrowers can use gross income, SBA rules: The U.S. Small Business Administration (SBA) issued new Paycheck Protection Program (PPP) rules that allow self-employed individuals who file Form 1040, Schedule C, Profit or Loss From Business, to calculate their maximum loan amount using gross income instead of net profit. Read More
  4. IRS failed to collect $2.4B in taxes from millionaires: The Internal Revenue Service has failed to collect more than $2.4 billion from wealthy individuals who owe the federal government back taxes. Auditors were only able to recoup about 39 percent of the more than $4 billion in unpaid taxes owed by a group of rich taxpayers with an average annual income of nearly $1.6 million. Read More
  5. IRS issues employee retention credit guidance: The IRS issued detailed guidance for employers claiming the employee retention credit for calendar quarters in 2020. The credit was created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L 116-136, and amended by the Consolidated Appropriations Act, 2021, P.L 116-260. Read More
  6. Biden signs PPP deadline extension into law: The Paycheck Protection Program (PPP) application deadline formally changed from March 31 to May 31 on Tuesday when President Joe Biden signed the extension into law. Read More
  7. PCAOB establishes a new advisory group for standard-setting: The PCAOB approved the formation of a new advisory group Monday that will provide the board with insight for its standard-setting activities. Read More
  8. NOCLAR: Proposals aim to help CPAs find the right balance: Noncompliance with laws or regulations (NOCLAR) is one of the most challenging ethical issues for  CPA. Complementary proposals issued by two AICPA committees are designed to provide clarity for these circumstances. Read More
  9. Shuttered Venue Operators Grant program to open April 8: The U.S. Small Business Administration (SBA) has set April 8 as the date it will begin accepting applications for the Shuttered Venue Operators Grant (SVOG) program. Read More
  10. Deadline for certain single audits delayed because of pandemic: The due date for certain single audits to be submitted to the Federal Audit Clearinghouse has been delayed six months. Read More
  11. IRS Says Taxpayers Should Not File Amended Tax Returns Due to Stimulus Law: Should a taxpayer file an amended return if they have already filed a 2020 return with the IRS? Of course, there may be extenuating circumstances, but the short answer, in a word. Is “no.” The IRS is strongly urging taxpayers to not file amended returns related to the new provisions in ARPA or take other unnecessary steps at this time. Read More
  12. SEC Accepts 2021 GAAP Financial Reporting Taxonomy and SEC Reporting Taxonomy: The Financial Accounting Standards Board (FASB) today announced that the U.S. Securities and Exchange Commission (SEC) has accepted the 2021 GAAP Financial Reporting Taxonomy (GRT) and the 2021 SEC Reporting Taxonomy (SRT) (collectively referred to as the “GAAP Taxonomy”). The FASB also finalized the  2021 DQC Rules Taxonomy (DQCRT) which together with the GAAP Taxonomy are collectively referred to as the “FASB Taxonomies.” Read More
  13. SBA raises COVID-19 EIDL loan limit to $500,000: Starting the week of April 6, the loan limit for COVID-19 U.S. Small Business Administration (SBA) EIDL loans will jump from six months of economic injury with a maximum loan amount of $150,000 to up to 24 months of economic injury with a maximum loan amount of $500,000. Read More
  14. TXCPA Committee Issues Urgent Request to Commissioner Rettig for Partnership Tax Basis Reporting Relief: In light of burdensome changes and the ongoing pandemic, TXCPA’s Federal Tax Policy Committee asked the IRS to immediately reconsider, eliminate or delay the requirement and procedures for reporting partners’ capital accounts on a tax basis as stated in the IRS Form 1065 instructions. Read More
  15. Court denies IRS ‘stacking penalties’ on FBARs: A federal district court has sided with the taxpayer on an FBAR penalty issue, reducing the amount owed by the 89-year-old taxpayer from $160,000 to $40,000. Read More
  16. IMA elects an incoming chair: The Institute of Management Accountants named Gwen van Berne, CFO of the internet registry agency RIPE NCC, as its sixth female chair-elect and the first to reside abroad. Read More
  17. New PPP guidance implements changes from American Rescue Plan Act: New (PPP) guidance from the U.S. (SBA) incorporates changes to the program made by the American Rescue Plan Act, P.L. 117-2, and establishes that entities that receive a Shuttered Venue Operators Grant (SVOG) cannot subsequently receive a PPP loan. Read More
  18. Cybersecurity requirements provide new opportunities for CPAs: CPAs have a new opportunity to act as third-party assessors of the cybersecurity maturity of U.S. defense contractors as they work to comply with new regulations that have been created to combat cyber threats. Read More
  19. SBA defers EIDL payments until 2022: The SBA announced extended deferment periods for all of its disaster loans, including the COVID-19 EIDL loans. The deferral details differ depending on the calendar year the disaster loan was made. Read More
  20. AICPA urges Congress to extend PPP deadline: The AICPA called on Congress to extend the application period for the Paycheck Protection Program (PPP) by at least 60 days. Read More

Entigrity™ is a trusted offshore staffing partner to over 550+ accountants, CPAs, and tax firms across the US and Canada. Our flexible and transparent hiring model gives helps firms of all sizes to hire staff for accounting, bookkeeping, tax preparation, or any other task for 75% less cost. As a firm 'run by accountants, for the accountants', Entigrity captures the hiring needs of accounting firms most precisely, providing staff that works directly under your control and management, still, you are left with least to worry about compliance, payroll taxes, overheads or any other benefits.

About The Author
Director, Client Relations

Christopher Rivera, Chris serves as a Director of Client Relations and Business Development at Entigrity. He is an expert at leading and managing teams actively from the front. His expertise in sales, training, coaching, mentoring and influencing combined with his competitive nature makes him a strong leader.  Chris has traveled through the length and width of the country and has spoken with more than five thousand CPAs, understanding their challenges and limitations. On the grounds of that, he can now easily provide opinions and solutions that can be immensely helpful to the professionals. He has also represented Entigrity at a number of major accounting conferences and networking events.

Recent Posts

Schedule Meeting Schedule free consultation call