Coronavirus upended life as we know it in 2020. As consumers, we were forced to stay at home for the safety of us all. As a result of having no customers to buy their services or products, the storefronts of small businesses suffered immense losses of revenue.
On top of that, there were so many additions and addendums to the tax code in 2020, as an accountant you are probably finding it very challenging to untangle the complex tax issues as a result of coronavirus. Business clients are relying more heavily than ever on their accountants to help sort out their 2020 taxes.
Even though the tax deadline has been extended to May 17th as opposed to the traditional April 15th deadline, understanding the new tax laws and changes that have been implemented and making sure your small business client's tax returns are done correctly is still a major challenge for accountants.
To help you as accountants untangle complex tax issues created as a result of coronavirus for your small business clients, the Rules of Thumb blog from MoneyThumb would like to reference this article from CPA Practice Advisor, which offers a comprehensive list of how coronavirus has affected the taxes of your small business clients as a result of coronavirus.
Below is a list of each tax change listed in that article. We suggest you read the article in full for detailed explanations of each item:
- PPP (Payroll Protection Program)
- Economic Injury Disaster Loan (EIDL)
- Employee Retention Tax Credit (ERTC)
- Payroll Tax Deferment
- Families First Coronavirus Response Act (FFCRA)
- Expansion of Charitable Gift Deductions
- Expanded Interest Deduction
- Individual Business Loss Deduction
- Tax Cuts and Jobs Act of 2017 (TCJA)
- Sales Taxes Across State Lines
Quite the list, right? Not to worry, we have one other free resource for our readers, also courtesy of CPA Practice Advisor, which is this whitepaper, The 8 Most Important 2020 Tax Issues that Every Business Owner (and their Accountant) Needs to Know. Below is a short description of what you will learn by reading this free whitepaper:
Measures to save the economy during COVID shutdowns last year have caused tax filing to be more complex than ever—especially for your small to mid-sized business clients.
Written by the small business owner and CPA Gene Marks, this eBook will provide the tools you need to explain the complexities around:
- Minimizing tax liability and maximizing refunds
- NOL Carrybacks, Employee Retention Tax Credits, and FFCRA Tax Credits
- PPP tax implications, and more
Last but most certainly not least, one other very important way you can more easily sift through the changes to your accounting client's finances due to coronavirus and get ready to file their taxes is by using the version of MoneyThumb's PDF financial file converters designed for professionals. We have listed below the key features of this time-saving MoneyThumb product for accounting professionals.