Archives for IRS

Advance Child Tax Credit 2021

Advance Child Tax Credit 2021

Taxpayers who have qualifying children under the age 18 at the end of 2021 can now get the full credit if they have little or no income from a job, business, or other source. Prior to 2021, the credit was worth up to $2,000 per qualifying child, with refundable portion limited to $1,400 per child. It has been increased to as much as $3,000 per child ages 6 – 17 at the end of 2021, and $3,600 per child ages 5 and under at the end of 2021.

The maximum credit is available to taxpayers with a Modified AGI of:

  1. $75,000 or less for Single and Marries Filing Separate filers
  2. $112,500 or less for Head of Household filers
  3. $150,000 or less for Married Filing Joint filers

From July 15 through December 2021, the IRS will advance 50% of the 2021 child tax credit in monthly payments to eligible taxpayers. The monthly payment will be estimated from their 2020 tax returns. The remaining amount will be claimed on their 2021 income tax return.

If you did not file a tax return during 2020 you can use this tool to report qualifying children for 2020 non-filers:

Taxpayers may elect to opt-out from the monthly child tax credit payments to receive a large payment next year instead of seven smaller payments. This could be the case for families saving up for a big expense or those who have budgeted for that money to pay off outstanding debt. Also, your household circumstances or tax situation will change and don’t want to deal with having to update your information in the portal.

Taxpayers may opt-out use the Child Tax Credit Update Portal by July 1.

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Research & Development Tax Credit

The Research & Development tax credit allows companies to claim a tax credit for qualifying research expenditures. If your company has invested in R&D, you may benefit from this tax credit.

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Individual return filing season will start on February 12, 2021

Individual return filing season will start on February 12, 2021

In a News Release, IRS has announced that tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 individual income tax year returns. It also provided additional filing season date information.

IRS said that the February 12 start date for individual tax return filers allows IRS time to do additional programming and testing of IRS systems following the December 27 tax law changes that provided a second round of Economic Impact Payments and other benefits.

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A note from Secretary of State concerning franchise tax.

Secretary of State announces temporary waiver of franchise tax late fees and interest charges

Tax Deadline is May 1st; Late Fees and Interest Waived Until July 15th

Arkansas Secretary of State John Thurston announced today that late fees and interest charges on businesses’ annual franchise taxes will be waived until July 15th. The filing deadline for annual franchise taxes is May 1st. Typically, companies filing after the deadline are charged a $25 late fee plus 0.000274% interest per day the payment is delinquent. These penalties will be waived for those who file between May 2nd and July 15th.  This only applies to the 2020 franchise tax reporting year.

Secretary Thurston said, “The May 1st deadline is set by state law, however, we thought this would be one way to help companies who may need a little extra time to get their tax payments in order. The ongoing COVID-19 pandemic is having a serious impact on our business community and we want to help them in any way that we can.”

The Secretary continues to work closely with all stakeholders and coordinated these efforts with those of the Governor’s Office and the Department of Finance and Administration.

Arkansas franchise taxes can be filed conveniently online at

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Covid19 Families First Coronavirus Response Act

Families First Coronavirus Response Act Notice – FAQ

WASHINGTON, DC – Today, the U.S. Department of Labor’s Wage and Hour Division (WHD) announced more guidance to provide information to workers and employers about how each will be able to take advantage of the protections and relief offered by the Families First Coronavirus Response Act (FFCRA) when it takes effect on April 1, 2020.

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IRS Notice 2020

The Treasury Department and the Internal Revenue Service are providing special tax filing and payment relief to individuals and businesses in response to the COVID-19 Outbreak. The filing deadline for tax returns has been extended from April 15 to July 15, 2020. The IRS urges taxpayers who are owed a refund to file as quickly as possible. For those who can’t file by the July 15, 2020 deadline, the IRS reminds individual taxpayers that everyone is eligible to request an extension to file their return.

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Families First Coronavirus Response Act (FFCRA)

Families First Coronavirus Response Act (FFCRA) Compliance Recommendations

Employers with fewer than 500 employees should review policies and practices to ensure compliance with the Families First Coronavirus Response Act and train supervisors on how to respond when employees request such leave.  You will find summarized notes from the Families First Coronavirus Response Act below:

Here are sample policies on Emergency Paid Sick Leave and Public Emergency Health Leave required by the Act.

If you have questions please contact us at (479) 249-9916.


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Pierce Firm charitable tax deduction rules

Charitable Tax Deductions IRS Rules

If reducing your taxable estate is an important estate planning goal, making lifetime charitable donations can help achieve that goal and benefit your favorite organizations. In addition, by making donations during your lifetime, rather than at death, you can claim income tax deductions. But some of your charitable deductions could be denied if you don’t follow IRS rules.

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Pierce Firm Asset Protection

4 Asset Protection Strategies

Asset protection (sometimes also referred to as debtor-creditor law) is a set of legal techniques and a body of statutory and common law dealing with protecting assets of individuals and business entities from civil money judgments. The goal of asset protection planning is to insulate assets from claims of creditors without perjury or tax evasion.

 Creditor and litigant claims have the potential to put a big dent in your next worth. To help protect your assets from such threats, we are providing four asset-protection strategies here.
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Pump prices and the IRS

Impact of mileage rates and gas prices on tax deductions

If you drive for work, you may pay attention when the IRS updates the standard mileage rate used to deduct business driving expenses. The rate rises most years, but it also falls occasionally. That’s because mileage rates follow gas prices.

For 2017, the standard mileage rates are:

  • 53.5 cents per mile for business miles driven, down from 54 cents for 2016.
  • 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016.
  • 14 cents per mile driven in service of charitable organizations.

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Pierce Firm Bypass Probate

Three smart ways to avoid probate

Ways to Avoid Probate

Probate is generally about as desirable as a case of shingles.  A legal procedure in which a court validates a will and resolves other estate-related issues and probate is public.  It can also be costly and time-consuming. So do your family a favor: Take steps to avoid, or at least, minimize, probate.

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Tax Reform

Congress Passes Tax Reform Bill

What the tax reform bill means for individuals and business owners.

On 12/20/17, both the House (in a 224–201 vote) and the Senate (in a 51–48 vote) passed H.R. 1—commonly referred to as the Tax Cuts and Jobs Act (TCJA). The bill will be sent to President Trump, who is expected to sign it into law. Hailed as the largest major tax reform in over three decades, the TCJA contains a whole host of tax provisions that impact individuals and businesses.

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Bonuses deduction

Can I pay bonuses in 2018 but deduct them in 2017?

If you are a business owner, you may be wondering if you can pay bonuses in 2018, but deduct them in 2017.  Is it even possible?

The answer is Yes, but only if:

  1. Your company uses  accrual-basis accounting.
  2. The bonuses were earned in 2017 and are paid by march 15.
  3. Bonus liability must be fixed by the end of 2017.

This process can be complicated, which is why you should talk to a experience CPA.

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When it pays to do the right thing

When it pays to do the right thing

You walk the straight and narrow, follow the law, file your taxes. But maybe you know of someone who doesn’t…

The IRS wants to hear from you – and will pay for concrete information leading to the collection of unpaid taxes. Whistleblower awards typically range between 15% and 30% of the outstanding taxes, penalties and interest collected.

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Deduction for Production

Looking for ways to minimize your company’s 2017 tax bill? Consider the domestic production activities deduction (DPAD). Often referred to as “manufacturer’s deduction,” the DPAD can also be claimed by many construction engineering, oil and mining, software and other business.

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How much do you know about penalties for 1099 forms?

How much do you know about penalties for 1099 forms?

This article was sponsored by The fastest way to e-file 1099s.  For more information about Tax1099’s services or the requirements for tax information returns check out their website and Knowledge Base.

Penalties Pop-Quiz

How much do you know about penalties for 1099 forms? Test your knowledge on these true and false questions. If you’re not in the mood, don’t worry – the answer key is just below.

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Lottery and Taxes

Lottery and Taxes

Last month, a Massachussetts woman won the largest undivided Powerball jackpot. After she opted for a lump-sum payment, her prize of nearly $759 million shrunk to $480 million. But federal and state withholding took their toll as well – reducing her take-home amount to $336 million. She can expect to pay even more when she files her tax return.

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IRS Online Tool to Assist Taxpayers

IRS Online Tool to Assist Taxpayers with Basic Account Information

This secure tool, available on allows taxpayers to view their IRS account balance, which will include the amount they owe for tax, penalties and interest. Taxpayers may also continue to take advantage of the various online payment options available by accessing any of the payment features including: direct pay, pay by card and Online Payment Agreement.

The new features added include the ability to:

  • View up to 18 months of tax payment history
  • View payoff amounts and tax balance due for each tax year
  • Obtain online transcripts of various Form 1040-series through Get Transcript
  • Give feedback on their experience with their online account and make suggestions for improvement.
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2013 Taxes

Have you filed your 2013 tax return? Come see us today!

You may have a refund waiting for you.


The IRS estimates $1 Billion in refunds for unfiled 2013 tax returns.  The IRS grants a 3 year window to file a tax return in order to receive a refund if you are owed one.  It is very interesting that so many people have not filed their 2013 tax return.  The IRS estimates the midpoint for potential refunds for 2013 at $763.

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Tax Season is here. Are you ready?

Although tax season doesn’t officially begin until next week, it is important to get ready and file as early as possible to avoid any unneeded stress by using these tips to prepare for the 2017 tax season now.

Here are a few tips to prepare for Tax Season 2017

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Steps to Protect Yourself from Identity Theft

Steps to Protect Yourself from Identity Theft

Whether you are a large corporation or a small business owner working from home, we all are exposed to Identity Theft. Identity theft is the deliberate use of someone else's identity, usually as a method to gain a financial advantage or obtain credit and other benefits in the other person's name, and perhaps to the other person's disadvantage or loss. The person whose identity has been assumed may suffer adverse consequences if they are held responsible for the perpetrator's actions. Identity theft occurs when someone uses another's personally identifying information, like their name, identifying number, or credit card number, without their permission, to commit fraud or other crimes.

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