If your client is considering a ERC company you have never heard of and you google their chief tax strategist and he's an unlicensed preparer who recently was sued by his state for unauthorized practice of law (and lost), you my friend might have found an #ERCmill 🚩🚩🚩🚩🚩🚩
If your client is considering a ERC company and you google their registered address and find that it's in a tiny strip mall from a small town next to a vape shop and a nail salon you my friend might have found an #ERCmill 🚩🚩🚩🚩🚩
If your client is considering a ERC company and you can find their incorporation paperwork with the state and it's dated in 2022, you my friend might have found an #ERCmill 🚩🚩🚩🚩🚩
If your client is considering a ERC company and their only technical writer documenting the ERC qualifications is not a tax attorney but instead a recent college graduate with an English degree in their first job out of college, you my friend might have found an #ERCmill 🚩🚩🚩
If your client is considering a ERC company and they tell you that you definitely qualify before you have even had a discussion with them and they don't even know what type of business you have, you my friend might have found an #ERCmill 🚩🚩🚩🚩🚩🚩
If your client is considering a ERC company and their document request list doesn't include the PPP forgiveness applications, you my friend might have found an #ERCmill 🚩🚩🚩🚩🚩🚩
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It's announcement time on #taxtwitter mega🧵 Starting now Jan 2022 I am no longer working "full time" as a partner in public accounting and I do not ever intend to go back. I've decided to take my talents to "part time" and I'll try to explain what I mean. Insert fav gif here 1/
My firm has been a very good place to work at times, even a great place to work at times. Sure there are things I'd change, but it's not about the firm, it's about my life. Partners work about 2400 hours/year, a bunch during tax season and close to 40 the rest of the year. 2/
Maybe your firm is more, maybe a bit less, but 2400 hours is about what we expect anyways and some people go over. I know there are plenty of firms that are way higher than 2400 hours, our relatively modest expectations compared to the industry is one of our great attributes. 3/
As far as I can tell this is the link to the bill that the house passed this morning congress.gov/117/bills/hr13…
Tax Provisions seem unlikely to change so I guess I'm going to read it today. Cat gifs!
Remarkably it's only like 600 pages so we are getting off easy this time #taxtwitter
First 45 pages are pretty random, then the minimum wage phase up to $15 is on page 46. Sounds like that'll be removed in the Senate so I'll skip all that.
Some child care grants mixed into the HHS section I suspect we'll get to more tax items about child care eventually.
Page 97 COBRA benefit continuation with an associated credit.
Page 126 begins the actual public health section, I doubt there is much here I'll even understand
Reading the IFR about PPP second draw and it's got me thinking about who qualifies for second draw. Might be so many thoughts I need like several tweets in a row or a thread if you will. Warning I don't get to the real point of this until like a dozen tweets in #taxtwitter
Need 300 or less emp and a 25% decline in revenue 2020 vs 2019. There are rules about what's an employee and what's gross receipts so I don't really have any questions or deep thoughts about that part. I think we all understand how you document gross receipts went down.
Nice of them to define the gross receipts in a footnote of page 8 and on page 23. PPP loans would not be included so that's helpful and logical. These rules are not always helpful and logical so nice to see that.
Busy today with webinars, but I'm starting this thread now and will add to it as I have time, probably finish about midnight at the rate I'm going. Let's think about the new ERTC. #taxtwitter
Changes in the relief bill allow ERTC to stick around for Q1 and Q2 of 2021. That means we can plan for it looking forward. I think it mixed with PPP Second Draw in a very strange way. More on this later.
Changes to ERTC to allow up to $10k wages per employee per quarter instead of per year. Changes make the credit 70% so $7k per emp/quarter max. Changes allow ERTC to be claimed by taxpayers who did take a PPP loan, no double counting wages for PPP forgiveness and ERTC.
Stimulus COVID Relief Bill is out! Let the Challenge begin! Let's read through it and enjoy gifs from a classic television show that capture the essence of a 3000 page tax bill as best they can. Apologies for those who don't yet know the wonder that is @ChallengeMTV
OMG this is so long, it's too hard to find things, not a good start, but let the treasure hunt begin!
Our journey begins on page 1924 Division N, if I missed something in the first 1923 pages please do let me know. PUA is now $300 for weeks after this week a total of 50 weeks (that's 11 more than before). So 11 more weeks, but only $300 per week on top of the state.
I've read through and there are some interesting things in there, definitely a couple curveballs and then a bunch of examples. Thankful they are finally using examples.
Page 1, Q1 people without employees should use the EZ application, well duh.
Q2. Esignatures are ok! Hopefully this trend of allowing them continues into other areas.
Q3. No payments until forgiveness is ruled on. Confirming the understanding here.
P2, Q1. Finally a good example of how the payroll incurred during but paid after the covered period will count towards payroll cost.
Q2 is the same thing but for the costs incurred prior and paid during the CP. Huzzah! That's what I've been telling people for months