2019 Tax Refund Delays – What You Should Know

Earlier this year the IRS extended the April 15th tax deadline to July 15th, 2020 because of the COVID-19 pandemic. Hopefully, you have either filed your return or filed an extension. With the filing deadline behind us, one thing on the minds of several taxpayers is their refund status. There are a few reasons why your refund may take longer than usual. The IRS closed their offices back in March due to the pandemic and were put in charge to distribute stimulus checks back in April with a limited staff. In June, the IRS was able to reopen under limited capacity. Outside of this pandemic, 90% of returns will receive their refund within 21 days of filing. This could still … Read More

Key Facts on the Proposed CHIPS Act

First, what is CHIPS? The CHIPS Act stands for Creating Helpful Incentives to Produce Semiconductors for America. This proposed refundable investment tax credit encourages domestic semiconductor manufacturing and has already gained bipartisan support.  Who are the key players?  Senator John Cornyn, a senior member of the Senate Finance Committee, heads a group of bipartisan lawmakers from the House and Senate in the pursuit of this refundable credit. There have been discussion within Congress to include the CHIPS Act in pandemic response legislation.  What are the potential benefits?  What does this mean for Chipmakers? It’s great news! Chipmakers will have support in 5G wireless network pursuits as well as the ability to stay competitive within the global technology landscape. We will … Read More

PPP Flexibility Act Approved by the Senate

We hope you have been safe and healthy during this extended tax season! This week, the PPP Flexibility Act (PPPFA) of 2020 was passed by the Senate and now moves on to be signed by the President. The PPPFA will help many small businesses that received loans via the Paycheck Protection Program and protect payrolls without costing extra taxpayer dollars. Two big changes related to loan forgiveness:

Happy Tax Day – Kinda

Today is traditionally the tax deadline for most Americans. But given the current pandemic, the government quickly rolled out the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) that included many changes to our tax system. One of the main changes is the automatic extension to file your 2019 tax return (you don’t need to do anything). The deadline for tax year 2019 (to file and pay your taxes) is July 15th, 2020. You can still file an extension (Form 4868) by July 15th, 2020 to extend your filing out to October 15th, 2020. Remember though, if you expect to owe taxes for 2019 and you extend your filing out to October, you still need to make a good … Read More

Coronavirus (COVID-19) and its Impact to Taxes

[Update 3/17/2020] Treasury Secretary Steven Mnuchin said on Tuesday (3/17/2020) that taxpayers can delay paying their income taxes on as much as $1 million in taxes owed for up to 90 days. This postponement applies to federal returns. Please check your state’s tax deadlines for any delays with state filings. On Friday, March 13th, 2020, President Trump declared the spread of COVID-19 (commonly referred to as the Coronavirus) a national emergency. While this declaration has far reaching implications across many industries and sectors, there are also tax implications. The IRS has setup a webpage for taxpayers to keep up to date on how the Coronavirus will impact your taxes: https://www.irs.gov/coronavirus We here at Tax Credit Hero wish you health and … Read More

Frequently Asked Questions about the R&D Tax Credit

As we head into tax season, we wanted to kick of 2020 by answering some common questions we get about the R&D tax credit. Let’s dive into it! The R&D (research and development) tax credit is a federal (and some states) tax incentive, that provides cash benefits to companies conducting research and development in the United States. A tax credit is a dollar-for-dollar reduction of a taxpayer’s income tax. It is NOT a tax deduction! All types of business can claim the R&D tax credit including sole proprietorships, partnerships, S-corps and C-corps. Credit that are claimed but not monetized are carried back one year and carried forward for twenty years. Historically, the R&D tax credit benefitted large, profitable organizations that … Read More

Superseding vs. Amended Returns and Why it Matters for the Payroll Tax Credit

Today is the extended tax deadline for many corporations (with calendar year ends) to file their federal tax returns. However, on October 7th, 2019, the IRS graciously gave victims of Tropical Storm Imelda until January 31st, 2020 to file their individual and business tax returns (including C-Corps whose extended deadline is today, October 15th, 2019 and S-Corps and partnerships whose extended deadline fell on September 17th, 2019). This relief is being offered to taxpayers in multiple Texas counties including Harris, Jefferson, Montgomery, and Orange. You can read more about the IRS’ extension here and here. Given the extension of the extension, what does this mean for a corporation claiming the R&D tax credit? By and large, most companies that claim … Read More

Staying Competitive to Outlast the Trade War (Part II)

We received some questions and feedback from our last blog post about Chinese tariffs and wanted to address our readers directly with an example of how a domestic taxpayer can be adversely affected by the ongoing trade wars, and what our consultancy can do to help. First, a clarification for those of us who are not economists:  A tariff is a tax imposed on imported goods.  Tariffs are paid to Customs & Border Protection at our ports when the goods arrive. Thus, when the goods are sold to domestic consumers, they are at a higher cost than they would have been had there not been tariffs imposed.  The cost of a final product using the foreign sourced material goes up. … Read More