After many years of low examination fees, there has been an announcement by the Internal Revenue Service (IRS) to increase small business audits by fifty percent. This news making headline in a time when complicated tax law modifications & economic spur programs with regards to Covid-19 have made businesses’ books even more complex than normal.
After several months of filibustering, many weeks of vicious negotiations, and so many false starts, a new bill was passed to aid individuals and businesses across the country to get respite from the financial destruction prompted by COVID-19. The Consolidated Appropriations Act, 2021 comprises funding reserved for small business loans, including a new round of the PPP (Paycheck Protection Program)..
Form 1099-NEC has been reintroduced by the IRS (Internal Revenue Service) as the new way to report self-employment income in place of Form 1099-MISC which has been used traditionally.
Besides offering financial relief to individuals & loans to businesses struggling during the Covid-19 disaster, the CARES (Coronavirus Aid, Relief, and Economic Security) Act changes several tax perquisites to improve liquidity for organizations that are enduring a large decline in cash flow.
If you run a business & you have debt, rest assured that you aren’t alone. In a study, 36% of small business owners stated they were not comfortable with how much debt their organization carried. 49% stated they find it really hard to tackle their present debt.