 |
|
We're working to keep you informed in a world that changes by the minute. If you have anything you'd like to share, or if we can help you in any way, please email Zach Donah or Larry Liuzzo. |
MassCPAs Attends AICPA Fall Meeting of Council, Meets with Massachusetts Congressional Delegation in Coming Weeks
|
This week, MassCPAs executive and Board leadership participated in the AICPA’s Fall Meeting of Council. The Council meeting provided updates on the accounting profession and legislative priorities that lie ahead.
Over the next few weeks, we will meet with the Massachusetts Congressional Delegation and their staff to discuss the pressing issues facing the accounting profession. Topics we will discuss include efforts to:
- Address current customer service levels at the IRS and how certain businesses that target CPAs flood all IRS phone lines and exacerbate the inability to connect with a live IRS representative
- Address current service levels at the IRS and modernize the IRS by creating a Practitioners Services Division
- Provide taxpayers with targeted COVID-19 tax penalty relief from the underpayment of estimated tax penalty and late payment penalty for the 2020 tax year
- Grant the IRS authority to issue disaster relief in a timely manner in response to state-declared disasters
We look forward to our meetings with members of Congress and their staff and will keep you posted on any developments.
|
MassCPAs Member Survey on IRS Service Levels
|
As you know, MassCPAs' government affairs team has been in touch with staff on the U.S. Committee on Ways and Means to discuss the current IRS service levels and to alert them of robo calls that allow subscribers to jump into a call that is already on hold, to move ahead in the queue. To learn more, click here.
|
Governor Baker to Sign $303 Million Budget, Expects ARPA Bill by Thanksgiving
|
Governor Baker is expected to sign the $303 million supplemental budget, which the Massachusetts Legislature enacted last week to close out FY21. As we mentioned last week, language that would address 2021 Paycheck Protection Program (PPP) loans and other federal loans and state-specific grants nontaxable in Massachusetts for all recipients was not included in this piece of legislation. The Legislature has committed to addressing this issue this fall and we are working to identify fast-moving legislation as a vehicle to attach the specific language.
The Governor has also stated he expects a “comprehensive” American Rescue Plan Act (ARPA) bill with details on how to allocate the $4.8 billion in federal funds to hit his desk by Thanksgiving. The Joint Committee on Ways and Means began the ARPA hearings in July and gathered testimony from administration officials, planning councils, housing advocates, business groups and others. The hearings focused on healthcare, public health, mental health and human services; economic development, transportation,
arts, tourism, climate and infrastructure; and education, social equity, safety net programs and families. A recent report indicated that more than 90% of Massachusetts’ ARPA money has yet to be allocated. The Legislature has until 2024 to allocate the funds and until 2026 to spend it. To learn more, click here.
We will keep you posted on any developments.
|
Massachusetts Department of Revenue – October 2021 News
|
The information below was included in the Massachusetts Department of Revenue (DOR)’s October 2021 newsletter:
DRAFT 2021 Tax Forms Are Available for Review
Back in May, the DOR told us about the new Massachusetts/federal differences for the Personal Income Tax page, and now we’ve taken the same steps to outline the differences between the state and federal tax laws for corporate excise as well. To learn more, click here.
New Pass-Through Entity (PTE) Legislation Preserves Federal Deduction for State Income Tax
Under the new legislation, if a PTE elects to pay the new entity-level tax, the aggregated income would be subject to a 5% tax at the entity level. Each partner or member would then be allowed a credit on their Massachusetts individual tax return equal to 90% of the tax paid by the entity on their share of the entity’s income. Keep an eye out for the new return that’s currently being developed and some FAQs.
REMINDER: How to handle taxes on unemployment income
Unemployment is generally taxable, but things changed during the pandemic for those receiving unemployment benefits in 2020 and 2021. Make sure you familiarize yourself with the FAQs and guidance on who may be eligible to deduct unemployment benefits. Remember that a taxpayer could be eligible for a deduction on their federal tax return but not on their Massachusetts tax return – this page will help with that.
|
Election Day is November 2
|
As the saying goes, “all politics is local.” Municipal and town government impact our lives in several ways. Check your city or town’s website and local newspapers to see what races may be happening in your neighborhood on Tuesday, November 2.
|
DOR & IRS Updates
|
|
|
Guidance for Paycheck Protection Program (PPP)
|
|
|
|
|
 |
