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  • IRS is processing returns of taxpayers who paid tax on 2020 unemployment comp

    IRS is processing returns of taxpayers who paid tax on 2020 unemployment comp IR 2021-123, 6/4/2021 In a News Release, IRS has announced that it has begun processing returns of taxpayers who paid tax on their 2020 unemployment compensation that, as a result of 2021 legislation, was not taxable. Background—2020 unemployment compensation exclusion. The American Rescue Plan Act of 2021 (ARP Plan or ARPA) provides that, for taxpayers whose 2020 modified adjusted gross income is less than $150,000, the first $10,200 of unemployment compensation received in 2020 is not included in the taxpayer’s 2020 gross income. In the case of a joint return, the first $10,200 per spouse is not included in gross income. (Code Sec. 85(c)(1)) In IR 2021-71, IRS announced that, for those taxpayers who had already filed their 2020 return and figured their 2020 tax based on the full amount of unemployment compensation received in 2020, IRS would determine the correct taxable amount of unemployment compensation and tax. Any resulting overpayment of tax would be either refunded or applied to other outstanding taxes owed. See IRS: No need to amend 2020 returns to get unemployment exclusion. IRS has begun processing the returns. IRS has announced that it is processing these 2020 returns and that, during the week of June 4, 2021, it sent more than 2.8 million refunds to filers of these returns. IRS also noted: So far, IRS has identified 13 million taxpayers that may be eligible for the adjustment that resulted from the ARPA provision. IRS also is making corrections for the Earned Income Tax Credit (EITC), Premium Tax Credit and Recovery Rebate Credit affected by the exclusion. Taxpayers who have qualifying children and who become eligible for EITC after the exclusion is calculated may have to file an amended return to claim any new benefits. IRS can adjust tax returns for those who are single with no children and who become eligible for EITC. IRS also can adjust tax returns where EITC was claimed and qualifying children identified. IRS plans to issue the next set of refunds in mid-June. The review of returns and processing corrections will continue during the summer as IRS continues to review the simplest returns and then turns to more complex returns. Taxpayers will receive letters from IRS, generally within 30 days of the adjustment, informing them of what kind of adjustment was made (such as refund, payment of IRS debt payment or payment offset for other authorized debts) and the amount of the adjustment. If you have questions about unemployment compensation tax, give us a call today. 605-271-1302 | Find a location near you.

  • ELO CPA's voted "Best of Mitchell" for sixth straight year

    At ELO CPAs & Advisors, we know that satisfying the needs of individuals and businesses is important in today’s ever-changing tax and business environment. With a dedicated team of over 70 people in six communities across eastern South Dakota, ELO is uniquely positioned to support our clients wherever they live and work. We enjoy solving the difficult and complex problems our clients face. We have the keen sense and ability to analyze the right moves needed to bring you, your family and/or your business continued success. We look forward to taking the time Working Together and Finding Solutions as we are always here to listen and help you whenever and wherever you need us. Thank you again for your votes Mitchell! - Eric Christensen, CEO Thank you, to everyone who voted for me as “Best of Mitchell”. It has been my pleasure to service Mitchell and the surrounding area for more than 30 years. I am committed to providing individuals, businesses, organizations and government entities value-based and practical solutions for the challenges they face every day. My approach to helping my clients is just like coaching my basketball teams. You realize when you have a commitment to excellence and developing your individual skills, you can maximize your potential and that of the team. As a CPA, it is no different, it has been my passion for years to take those skills in coaching to help my clients and my colleagues to become better versions of themselves in the future. Thank you, again for the honor! - Jay Tolsma, Senior Partner “Thank you, Mitchell and surrounding communities, for the honor of being voted Best of Mitchell three years running. At ELO, we love the opportunity to help businesses and individuals accomplish their financial and professional goals. We strive to be trusted advisors who help clients understand bookkeeping, tax, and consulting problems. This allows ELO’s team to learn more and grow our relationships. We see more than just numbers, but people and their stories. These opportunities would not be possible without our great team at ELO, as well as my family. Thank you, for the honor! We look forward to continued success with you!” - Matt Doerr, Senior Business Services Associate ELO CPAs & Advisors was founded in Mitchell, South Dakota more than 30 years ago. Find an office conveniently near you!

  • President's budget contains many tax proposals

    President Joe Biden’s administration unveiled its proposed budget for fiscal year 2022 on Friday. Treasury says the $6 trillion proposed budget focuses on infrastructure, clean energy, and research and development, and among its many provisions are a host of proposed tax changes affecting individuals and corporations. One set of tax and revenue proposals, named the American Families Plan, would increase taxes on high-income individuals, make permanent various recent tax credit expansions, further limit like-kind exchanges, and address various tax administration issues, including regulation of paid tax return preparers. Other proposals are grouped under the name American Jobs Plan, and they include a variety of corporate tax changes, including raising the corporate tax rate and imposing a minimum tax on corporations, tax incentives to support housing and infrastructure, and clean energy incentives. Along with the proposed budget, Treasury released its General Explanations of the Administration’s FY2022 Revenue Proposals (Greenbook), which explains the budget’s revenue proposals. In a prepared statement, Treasury Secretary Janet Yellen described the budget’s tax proposals as “fair and efficient tax reform.” American Families Plan The proposed budget would make three changes to the taxation of high-income individuals: Increasing the top marginal income tax rate for high earners from 37% to 39.6% for taxpayers with taxable income over $509,300 for married taxpayers filing jointly and over $452,700 for single filers; Taxing capital gains of high-income individuals (with adjusted gross income over $1 million) at a 37% rate; Imposing capital gain tax on property transferred by gift and on property owned at death; and Rationalizing the net investment income and Self-Employment Contributions Act (SECA) taxes so that all passthrough business income of high-income individuals is subject to either the net investment income tax or SECA tax. Other proposed changes include: Making permanent the expansion by the American Rescue Plan Act (ARPA), P.L. 117-2, of premium assistance tax credits; Making permanent the expansion of the earned income tax credit (EITC) for workers without qualifying children; Making permanent ARPA’s changes to the child and dependent care tax credit; Extending ARPA’s child tax credit increase through 2025 and making permanent its full refundability; Increasing the employer-provided child care tax credit for businesses to 50% of the first $1 million of qualified care expenses; Taxing carried interests as ordinary income for partners with taxable income over $400,000; Limiting the deferral of gain from like-kind exchanges to $500,000 per taxpayer ($1 million for married taxpayers filing jointly) per year; Making permanent the Sec. 461(l) excess business loss limitation for noncorporate taxpayers. To improve compliance and tax administration, the budget proposes: Providing the IRS a multiyear appropriation to address tax evasion; Introducing comprehensive financial account reporting, which would apply to all business and personal accounts from financial institutions, including bank, loan, and investment accounts above a $600 threshold; Increasing oversight of return preparers by providing Treasury with explicit authority to regulate paid preparers of federal tax returns, including establishing minimum competency standards; Enhancing accuracy of tax information by expanding Treasury’s authority to require e-filing and improving information reporting; Expanding broker information reporting with respect to cryptoassets; Addressing taxpayer noncompliance with listed transactions by extending the statute of limitation and imposing liability on shareholders to collect unpaid corporate income taxes; Modifying various tax administration rules; and Authorizing limited sharing of business tax return information to measure the economy more accurately. American Jobs Plan The proposed budget calls for the following corporate tax changes: Raising the corporate income tax rate to 28% from its current 21%; Revising the global minimum tax regime, disallowing deductions attributable to exempt income, and limiting inversions; Repealing the global intangible low-taxed income (GILTI) exemption for foreign oil and gas extraction income; Repealing the deduction for foreign-derived intangible income (FDII); Replacing the Sec. 59A base-erosion and anti-abuse tax (BEAT) with a new “stopping harmful inversions and ending low-tax developments” (SHIELD) rule; Limiting foreign tax credits from sales of hybrid entities; Restricting deductions of excessive interest of members of financial reporting groups for disproportionate borrowing in the United States; Imposing a 15% minimum tax on book earnings of large corporations; and Providing a 10% tax credit as an incentive for locating jobs and business activity in the United States and removing tax deductions for expenses incurred in connection with moving jobs overseas. To support housing and infrastructure, the budget proposes: Expanding the low-income housing tax credit; Providing a new neighborhood homes investment tax credit; Making permanent the Sec. 45D new markets tax credit; and Providing federally subsidized state and local bonds for infrastructure. In the area of clean energy, the budget proposes: Eliminating various fossil fuel tax preferences; Extending and improving various renewable and alternative energy incentives; Providing a tax credit for electricity transmission investments; Providing an allocated credit for electricity generation from existing nuclear power facilities; Establishing new tax credits for qualifying advanced energy manufacturing; Establishing tax credits for heavy- and medium-duty zero emissions vehicles; Providing tax incentives for sustainable aviation fuel; Providing a production tax credit for low-carbon hydrogen; Extending and enhancing various energy efficiency and electrification incentives; Providing a disaster mitigation tax credit; Expanding and enhancing the carbon oxide sequestration credit; Extending and enhancing the electric vehicle charging station credit; and Reinstating superfund excise taxes and modifying oil spill liability trust fund financing. If you need help or have questions about how the President's budget tax proposals might affect you, contact ELO CPAs and Advisors today. FIND THE OFFICE NEAREST YOU | CALL US: 605-996-7717 Original Source:

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  • Accounting Services | ELO CPAs & Advisors | South Dakota

    Helping You Succeed Everyday We are the trusted Advisors that businesses and professionals from Texas to North Dakota and Colorado to Minnesota, even in Hawaii, want as partners to assist them with business consulting, tax, client accounting services, auditing and wealth management. Working Together. Finding Solutions. At ELO CPAs & Advisors, we believe when we work side-by-side with our clients as partners, we can find solutions to the most challenging issues together. OUR SERVICES What Our Clients Are Saying "Just like any other business, it is all about relationships and what you can do for me. ELO has done a great job of building that relationship of trust and offering many services to me and my businesses on top of that. ELO has earned my trust, and they provide great advice and I value that advice deeply." Terry Wieting, Managing Partner, Max Nutrition, LLC & Dak Pak, LLC "There is probably nothing that ELO has not seen or handled when it comes to Accounting & Auditing. Their broad spectrum of knowledge and speed of service is unmatched. When we need them, they can provide the support quickly and accurately which is important with our diverse and ever-changing businesses." Kevin Johnson, Managing Partner KAJ Hospitality "ELO sets themselves apart from other accounting services through their professionalism, integrity and openness. They are always willing to sit down and explain their work and provide guidance on how to maintain the financial health of our agency. They have earned our trust and business by consistently and efficiently producing high quality work that is accurate and organized." Sarah Shoffner, Executive Director Family Services, Inc. Current Insights VIEW ALL ELO CPAs & Advisors May 19 2 min Restaurant Revitalization Fund to stop accepting applications Monday 17 views Write a comment ELO CPAs & Advisors May 14 5 min Onboarding and Offboarding Employees: Why Getting it Right Matters 7 views Write a comment ELO CPAs & Advisors May 12 2 min Restaurant Revitalization Fund faces huge funding shortfall 98 views Write a comment ELO CPAs & Advisors May 12 3 min Social and political factors driving company financial plans 3 views Write a comment Stay Informed Get the latest industry insights sent right to your inbox! SIGN UP Our Team ELO CPAs & Advisors has served the region for over 30 years and has develop one of the finest reputations in the industry. What has made us successful is our staff of over 70 hardworking professionals. We work every day to provide expert knowledge and unmatched service from professionals that have sat in the same chair as, or alongside of, our clients for decades. That sets us apart from all the other firms in the region. MEET THE TEAM JOIN OUR TEAM

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