Accounting & Tax Services to fit your needs

Tax filing deadline extended to May 17, 2021. Call to schedule your tax appointment. We ask that you wear a mask inside our office. Wash your hands, avoid touching your eyes and nose, disinfect areas frequently, and maintain a safe distance away from others. If you are sick please stay home.

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                                                              Important Updates

• Our office hours are Monday thru Friday 9-5. Others available by appointment. Please remember social distancing guidelines of maintaining a safe distance of six feet away from others, wear a face mask, wash your hands frequently and disinfect regularly. If you are not feeling well please stay home.
• Tax Season Extended! The federal and Michigan income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. Individual taxpayers can also postpone federal and Michigan income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed.  This extends the deadline to May 17 for contributing towards your 2020 limits on HSAs and IRAs.
• Tax year 2020 Changes: The American Rescue Act has made changes to the taxability of unemployment income and repayment of Healthcare Marketplace Insurance.  If you have already filed your 2020 income tax return the Internal Revenue Service will automatically process refunds for individuals who paid taxes on their unemployment benefits after May 17.  The State of Michigan is requesting that taxpayers amend their 2020 tax return to report the unemployment exclusion.
• Child Tax Credit Changes for 2021: The new Child Tax Credit is currently for 2021 only.  For families that qualify if under the income threshold, it will be a $3,600 credit for each child under age 6. For children ages 6 to 17, the credit is $3,000. Half of the credit will pay out monthly from July through December. In each of those months, the IRS will deposit the Child Tax Credit into taxpayers’ bank accounts - $300 for each child under age 6 and $250 for each child ages 6 to 17. The remaining half of the credit will then be an adjustment on the 2021 income tax return to be filed next year. For dependents over 18, the credit will be $500.
• $1,400 Stimulus Payments: Most Americans will receive a $1,400 stimulus payment after March 16 if you meet income requirements.  If you have not received your stimulus payment by May 17 the IRS will do a sweep after this filing season to match updated 2020 income with the payments. Those that are owed additional amounts, because of the addition of a child or dependent, will get sent a second payment. 
• 1st Round PPP loan forgiveness applications will be coming due soon!   Recipients of the 2020 PPP loan may apply for loan forgiveness from their lender. Applicants have up to ten months to apply. The amount of loan forgiveness, if any, a PPP loan recipient may receive will depend on a variety of factors but will not exceed the loan principal amount plus accrued interest. Certain uses of the loan count towards how much is forgiven. Its important to know that the employees kept during this time may impact the amount forgiven.  Call us to discuss what is needed to process the applications. 
• Economic Injury Disaster Loan for businesses: There is now an additional $60 billion for the EIDL program including $50 billion in loans and $10 billion in grants. SBA will process EIDL Loan and Advance applications that are already in queue in the order they were received.
• Payroll tax relief: The passage of the new stimulus bill has extended payroll tax relief until the end of the year. Do you have employees affected by Covid and they are required to self isolate or need to get the Covid vaccine?  Retention tax credits are available to help with emergency leave sick and family pay.  These credits can be used now to offset payroll tax deposits. Call us if you need assistance.
• Applications for the second round of PPP loans starts January 12: The Consolidated Appropriations Act included $284 billion for a second round of the Paycheck Protection Program (PPP). If you wish to apply for a PPP loan, you must meet the following qualifications to be eligible:
  • Second time borrowers must have used their first loan in full.
  • You must demonstrate a 25% decline in any matching quarter between 2019 & 2020 OR a 25% or more reduction in annual revenues for 2020 compared to 2019.
  • Your business must have less than 300 employees.
  • PPP #2 will also apply to sole proprietors and independent contractors as well as individuals who own or operate their own business.

    In order to apply for a second PPP loan, all of the following must be provided:

1. Completed form 2483-SD
2. 2020 quarterly financial statement and the same quarter period financial statement for 2019 showing a 25% reduction in revenue OR 2020 and 2019 federal tax return filing if choosing annual revenue reduction option.
3. Copy of 941's for all four quarters and the annual 940 for 2019 or 2020 that was used to determine payroll costs.

        Borrowers are still required to use at least 60% of the PPP #2 money they receive on payroll.                        Expenses are for the remaining 40% include rent & mortgage, utilities & supplier costs, operating                    costs including software, cloud computing, and accountng. ​If your property or your business was                    damaged during the initial shutdowns of Covid-19, you can now use PPP #2 money to pay for the                  repair of that property. Personal protective equipment (PPE) for your employees, staff, or for the office            are also expenses that are permitted under PPP #2.​

• Payroll Tax Deferral repayment to begin:  Employers had the option to defer withholding and payment of the employee's portion of the Social Security tax if the employee's wages during the period of September 1, 2020 thru December 31, 2020. If employers have deferred withholding and payment of employee social security tax, employers must pay the employer and employee Social Security taxes on wages and compensation between April 30, 2021 and December 31, 2021 and should make arrangements to collect the total social security taxes from the employee. If deferred taxes are not paid interest, penalties, and additions to tax will begin to accrue on January 1, 2022.
• Help for Renters and Landlords: The Eviction Diversion Program (EDP) is designed to keep Michigan residents who fell behind on their rent during COVID-19 in their homes. The program utilizes a special court process to get fast rental assistance for renters who have been impacted. Rental assistance in the amount of $50 million is available in the form of lump sum payments to landlords in exchange for allowing tenants to remain in their homes, forgiving late fees and up to 10% of amount due. For more information go to: www.michigan.gov/mshda/0,4641,7-141-5555-533463--,00.html
• Stimulus payment bank account tool: The new Get My Payment tool to let taxpayers check on their Economic Impact Payment date and update direct deposit information is now available on IRS.gov. People who did not use direct deposit on their last tax return will be able to input information to receive the payment by direct deposit into their bank account, expediting receipt. If you have filed a tax return be sure to have your most recently filed 2018 or 2019 tax return with you to assist with the information needed to verify sensitive information on the site. For more information and to access the payment tool go to:  www.irs.gov/coronavirus/get-my-payment
  Unemployment for those that are self employed: Self-employed workers, gig workers, 1099-independent contractors and low-wage workers can apply for federal benefits online at Michigan.gov/UIA. All newly eligible workers will need to provide proof of income to receive the maximum amount they are entitled. This could include W-2s, 1099 tax forms, and pay stubs. For more information go to www.michigan.gov/leo/0,5863,7-336-78421_97241_90031-523450--,00.html.
  Stimulus non tax filer payment web tool​: The Treasury Department and the Internal Revenue Service launched a new web tool allowing quick registration for Economic Impact Payments for those who don’t normally file a tax return. The non-filer tool provides a free and easy option designed for people who don’t have a return filing obligation, including those with too little income to file. The feature is available only on IRS.gov and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool. To use the web tool go to www.irs.gov/coronavirus/non-filers-enter-payment-info-here.

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Integrity * Accuracy * Trustworthy

Allied Accounting Services has been providing total financial services to individuals and businesses for over 30 years. Professionalism and integrity encompasses everything we do. We help our clients so that their business’ financials are clear and straightforward. We stop and listen to client needs, questions and concerns.  We have experience in financial planning strategies to meet business’ current needs in a number of areas from tax law to a trusted business advisor. We are a trustworthy confidant for your most guarded personal financial information and proprietary business data where we make it easier to deal with stressful financial matters. We offer fresh ideas for more convenient and cost-efficient ways of doing things. Contact us today for a consultation with a competent, experienced advisor to identify and implement innovative ways to keep more of what you earn and help your business grow.