News & Events

Alimony and Taxes in the Post-TCJA World

In divorces, an ex-spouse may be legally obligated to make alimony payments to his or her former significant other.

Payments often are substantial and have been locked into tax deductions for the payer — but that was before the Tax Cuts and Jobs Act came to pass.

IRS announced 401(k) limit increases to $20,500

On November 4th, 2021, the Internal Revenue Service announced 401(k) contributions for individuals have been increased to $20,500. For tax years 2020 and 2021, the maximum was contribution was limited to $19,500. The IRS also issued technical guidance regarding cost of living adjustments affecting dollar limits for pension plans and other retirement-related items for tax year 2022.

Tax Items To Check as the Year Winds Up

It's been a very busy year at the IRS, with many special tax changes.This article reviews some of the top issues you will want to discuss with your tax preparer as the year draws to a close and again when you meet to prepare your returns. These include coronavirus tax relief, job loss, and natural disasters.

2021 Tax Tips: A Look at the Future

The end of the year always means the possibility of last-minute tax changes, and this year, that's especially true. Some of the new legislation may mean major changes starting in the new year, but other proposed bills, such as new capital gains and qualified dividend tax rates, may take effect retroactively. And taxes on the wealthy may go up, too.These possibilities make it difficult to plan with certainty.

New Jersey Small Business Lease Grant Program

The New Jersey Economic Development Authority (NJEDA) plans to open applications for its Small Business Lease Grant Program on October 20, 2021. The $10 million pilot program will help revitalize downtowns and Main Streets by offsetting a portion of the cost associated with businesses and nonprofits leasing street-level space.

Meet the newest member of KRS!

Please meet Antoinette Borkowski! She joined our team on September 8, 2021. 

“As a tax manager, I will be preparing and reviewing various types of tax returns and training our staff. I look forward to working with clients and assisting them with their business needs.”

Managing Your Business and Staff After the Pandemic

The pandemic foisted changes on society that reset the context for your company, its employees and professionals, but just because the crisis is over doesn't mean you shouldn't incorporate the changes you made into your future strategy. In responding to COVID-19, you publicly and unambiguously elevated employees' health and well-being to a high priority. Even after lockdowns are lifted, that change in emphasis is not easily reversed.

As the pandemic recedes, can you create a new work world to keep employees happy and productive? The pandemic has challenged conventional thinking about work.

IRS Provides Tax Relief to Hurricane Ida Victims in NJ, NY

The IRS has extended deadlines for certain taxpayers affected by Hurricane Ida to file individual and business tax returns and make tax payments. The IRS, New Jersey and New York are offering tax relief to areas designated as disaster areas by the Federal Emergency Management Agency (FEMA).

New Jersey Ends COVID-19 Teleworker Nexus and Withholding Policies

On August 3, 2021, the New Jersey Division of Taxation announced that its COVID-19 temporary guidelines for establishing sales tax/Corporation Business Tax (CBT) nexus and income tax withholding liability in connection with teleworkers will expire on and after October 1, 2021.

Meet the newest KRS team members!

Please join us in welcoming Gionna Pacelli and Alyssa Flowers to the KRS team. Gionna joined us on July 26 as our new receptionist/admin assistant. Alyssa joined on August 2 as a staff accountant.

S Corporations and PPP Loan Forgiveness

Attaining S corporation status has certain tax advantages. S corporations are treated as passthrough entities for tax purposes and the protection of shareholder assets.

However, the relief acts passed in response to the COVID-19 pandemic revealed some potential problems with how income passed to individual shareholders is taxed. Two of the most relevant issues are discussed in this article.

KRS CPAs Promotes Adriane Montemayor to Senior Accountant

We're excited to announce the promotion of Adriane Montemayor to Senior Accountant. She previously served as a Staff Accountant.

2021 Child Tax Credit Advanced Payments

More money is coming to more families — and soon.That’s the main takeaway of the changes implemented to the Child Tax Credit (CTC) this year. As part of the March 2021 stimulus bill, the value of the credit as well as the age limit have been increased. The CTC is now fully refundable, which means you can receive the credit even if you don’t owe the IRS.

The Advantages of ABLE Accounts and Saver’s Credits

Achieving a Better Life Experience Act, ABLE, accounts help people with disabilities and their families save and pay for disability-related expenses. They allow states to create tax-advantaged savings programs for eligible people with disabilities, and distributions are tax free if they are used for qualified disability expenses.

Tax Credit for Vaccination Paid Time Off

Employers that provide full pay for employees who take time off to get and recover from a COVID-19 vaccination are eligible for a paid-leave tax credit.

The tax credit is available to organizations with fewer than 500 employees and covers up to $511 per day for each vaccinated employee.

NJ Small Business Relief Grants UPDATE

New guidance further specifies which small businesses qualify for grants. Interested business owners must also pre-register to access the application. Pre-registration begins on April 19 at 9am. The application itself will be available through a phased approach, starting with businesses that didn't apply or weren't approved for Phase 3 funding.

NJ Small Business Relief Grants

Governor Murphy recently signed two bills establishing more grant funds for small businesses in New Jersey.

The first program puts $25 million towards grants for microbusinesses, meaning companies with five or less employees. This program is expected to follow previous programs and microbusinesses would be eligible for $1,000 per employee with a maximum of $5,000.

American Rescue Plan Act Increases Dependent Care FSA Contributions

The American Rescue Plan Act (ARPA) raises pretax contribution limits for dependent care flexible spending accounts (DC-FSA) for the 2021 calendar year. A dependent care FSA is a pretax benefit account used to pay for services such as day care, preschool, summer camps, and before or after-school programs.

PPP Application Deadline Extended to May 31

The PPP Extension Act of 2021 passed in the U.S. Senate yesterday and is expected to be signed into law by President Biden. The bill extends the Paycheck Protection Program (PPP) application deadline from March 31, 2021 to May 31, 2021. The bill will also provide the Small Business Administration (SBA) with an additional 30 days to process pending applications. It does not provide any additional funding for the current round of the PPP.

CA Employers Must Provide Paid Leave for COVID-19

California employers must provide employees with up to 80 hours of COVID-19 supplemental paid sick leave for eligible employees, including those advised to quarantine or isolate and those caring for COVID-impacted family members.

American Rescue Plan Act Extends Employer Tax Credits, Doesn’t Require Leave

The American Rescue Plan Act (ARPA) does not require Families First Coronavirus Response Act (FFCRA) paid and emergency family leave, but does extend and expand the tax credits for employers. ARPA extends these tax credits through September 30, 2021.

NJ and NY Tax Deadline Extended

New Jersey and New York have extended the filing deadline to May 17, 2021, following the IRS.

Only a small number of states have not extended their filing deadline. First quarter estimated taxes are still due on April 15.

NY Employers Must Provide Paid Leave for COVID-19 Vaccination

New York State employers must provide employees with up to four hours of paid time off per COVID-19 vaccination. The law takes effect immediately and ends on December 31, 2022. Similar legislation is pending in other states and jurisdictions.

Federal Tax Deadline Extended

The IRS has extended the federal filing deadline to May 17, 2021.

Meet Our Newest Team Member – Yineth Castro!

Yineth joined the KRS team late February working as a bookkeeper. She provides clients with write-ups, AP/AR, and monthly reconciliations. She has a Bachelor’s degree in Business Administration. Welcome, Yineth!

American Rescue Plan Act

President Joe Biden signed into law the latest round of COVID-19-related legislation. The American Rescue Plan Act is intended to provide additional relief to workers and employers through tax credits, expanded federal unemployment benefits, and additional small-business aid.

PPP Update for Schedule C Borrowers

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.

KRS Managing Partner Maria Rollins Named to ROI NJ’s Power List

KRS Managing Partner Maria Rollins, CPA, MST, was named by ROI-NJ as one of the people who will have the biggest influence on everything affecting business in the state for the third year in a row.

PPP Loans Tax Exempt and Expenses Deductible for New Jersey

PPP loans given to New Jersey businesses during the COVID-19 pandemic will be exempt from state income taxes.

The federal government already stated PPP loans are exempt from federal taxes.

Join Us in Welcoming Thomas Farish!

One month into the new year and we welcome yet another new member to the KRS team!

Tom Farish joins us as a Senior Tax Accountant and will be involved in the preparation of income tax returns for business, individual, and fiduciary purposes.  He will also supervise and train staff.

NJEDA Small Business Emergency Assistance Loan Program Phase 2 Opens February 10

The New Jersey Economic Development Authority (NJEDA) will open pre-registration for Phase 2 of the Small Business Emergency Assistance Loan Program on Wednesday, February 10, at 9 am. The $10 million program expansion will support New Jersey small businesses and nonprofits impacted by the COVID-19 pandemic.

Get To Know Our New Interns!

We're grateful to be operating during these crazy times. We're even more grateful to continue our internship program, onboarding three new interns.

Get to know Jake, Sarah & Faith. They will be working with us to make the tax season a better experience for our clients.

Important Changes to the Employee Retention Credit

The Consolidated Appropriations Act, 2021 (CAA), was signed into law on December 27, 2020. Among many changes and updates to the prior legislation for COVID-19, this law clarifies and expands the Employee Retention Credit (ERC) that was created by the CARES Act.

If your business did not previously claim this credit due to eligibility, it may now qualify.  Also, if you have previously claimed this credit, you may now be eligible for an enhanced benefit.

New PPP Guidance Issued by SBA

The U.S. Small Business Administration (SBA) and Treasury issued guidance late Wednesday night for the reconstituted Paycheck Protection Program (PPP). Under PPP2, businesses are eligible for a second PPP loan of up to $2 million, if they meet certain provisions.

The new bill also creates a simplified forgiveness application process for first round PPP loans of $150,000 or less.

NEW YEAR, NEW TEAM MEMBERS!

Please help us welcome Tahsin Islam and Alfonso Toxtli, who recently joined our firm as staff accountants - just in time for the start of the new tax season!

Congress Passes Long-Awaited Relief Bill

$900 billion package includes critical funding and policy changes to help small businesses and nonprofits recover from the pandemic.

Congress has passed and President Donald Trump is expected to sign a $900 billion coronavirus relief package. The legislation includes a $300 weekly unemployment supplement, $600 direct payments and nearly $300 billion in Paycheck Protection program loans.

Lance Aligo Discusses PPP Loan Forgiveness on Popular Regional Business Podcast

Tune in and listen to KRS manager Lance Aligo, CPA, on the Strategies & Ideas for Business podcast as he discusses where things stand now with Paycheck Protection Plan loan forgiveness. He covers the status of the forgiveness application process and the potential for a second round of funding and how it will differ. He also talks about important IRS rulings on expenses covered by the loan and which loan types are certain to be audited by the SBA.

Time to Send Out Those 1099s

Get started now on Form 1099-Misc and New Form 1099-NEC and avoid penalties.

Form 1099-NEC is required to be filed with the IRS and the recipient by February 1, 2021, using either paper or electronic filing procedures.

Form 1099-Misc is required to be filed with the IRS by March 1,2021, if you file on paper, or March 31, 2021, if you file electronically. The recipient is required to receive Form 1099-Misc by February 1, 2021.

Paycheck Protection Program Second Round? What We Know Now

There has been a lot of media coverage regarding additional stimulus packages and a second round of Paycheck Protection Program funding (PPP2).

No legislation has been enacted and no applications can be submitted, at time of release of this article.

KRS Insights Webinar: COVID-19 Relief and Payroll Protection Program Updates

Join our Tuesday, December 1, 2020, 11:00 AM webinar and find out what's going on with the PPP program.

If you are a business owner and a PPP participant, you likely have many questions as the program draws to an end. In this webinar, the KRS CPAs team will provide insights on PPP updates, the loan forgiveness application process, income tax impacts, and future implications.

Reminder: No RMDS This Year

The Coronavirus Aid, Relief and Economic Security (CARES) Act enacted to provide relief in response to the coronavirus (COVID-19) pandemic includes a provision to waive Required Minimum Distributions (RMDs) during 2020 for individual retirement accounts (IRAs) and retirement plans, including for beneficiaries with inherited accounts.

New Jersey Pass-Through Entities Can Now Pay Income Tax

The Pass-Through Business Alternative Income Tax Act (BAIT) allows pass-through businesses to pay income taxes at the entity level instead of the personal level. Most pass-through entities are owned by an individual or group of individuals. Income from that entity flows through to the owners and the owners pay tax on the income.

Enacting this legislation allows New Jersey taxpayers a way to work around the $10,000 limitation by allowing pass-through entities to pay income tax instead of the individual.

Governor Murphy Signs COVID-19 Workplace Safety Executive Order

Governor Phil Murphy signed Executive Order No. 192, which mandates workplace health and safety standards during the COVID-19 pandemic.

The executive order, which goes into effect on November 5th at 6am, will require all New Jersey employers in both the private and public sector (including non-profits and governmental/educational entities) to follow all health and safety protocols outlined in the executive order.

Employer Voting Requirements in NJ and NY

Although some employees may choose to vote by mail during the COVID-19 pandemic, others will want to cast their ballots in person. They may have the right to take time off from work to do so depending on state law.

SBA Releases New PPP Loan Forgiveness Form for Loans $50K or Less

The U.S. Small Business Administration has released SBA Form 3508S, a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less.

The new form allows borrowers to self-certify they used the money appropriately and receive complete forgiveness.