With the end of the year and tax season quickly approaching, the IRS has issued a press release regarding stimulus payments and the additional child tax credit.
The IRS will be issuing two letters to taxpayers in January of 2022 that you should be aware of and keep for your records to assist with your individual tax return preparation:
Letter 6419 – Advance Child Tax Credit Payments
This letter provides the total amount of the advance Child Tax Credit payments that were sent to you in 2021
Letter 6475 – Economic Impact (stimulus) Payment
This letter provides the total amount of the third Economic Impact (Stimulus) payment that you may have received in 2021.
While this is not included in your gross or taxable income, you need this information in case you are eligible for additional stimulus
It is important for your individual tax return that you keep these letters and provide them to your tax preparer. If the information provided to the IRS does not match the letters it could delay the processing of your tax return or your refund.
Have questions? Don’t hesitate to reach out email@wheelercpa.com or call our offices.
Form BE-10, “Benchmark Survey of U.S. Direct Investment Abroad,” issued by the Commerce Department’s Bureau of Economic Analysis (BEA), is filed every 5 years for U.S. Persons with Non-U.S. Investments. The BE-10 survey is one of many mandatory surveys to collect information on US investment abroad and foreign investment in the US. The BE-10, which has a series of component parts, is the BEA’s benchmark survey of US direct investment abroad and is used to produce statistics on changing trends in investment activities of US-owned businesses in other countries. The BE-10 survey is conducted every five years and this year’s survey covers fiscal years ending in 2019. The survey is used to produce statistics on the scale and effects of US-owned business activities abroad. Business leaders use these statistics to inform decisions about hiring and investing. Policymakers and researchers use them to analyze the impacts of direct investment on jobs, wages, productivity and taxes.
The BEA publishes US economic and industry statistics, including international transactions and investments, and is authorized to mandate reporting under the International Investment and Trade in Services Survey Act (the “Act”). The Act generally requires that the BEA collect information on international investment and foreign trade in services. The confidentiality of the information collected by the BEA is protected under the Act and the BEA is prohibited from granting another agency access to the data for tax, investigative, or regulatory purposes.
A BE-10 report is required of any U.S. person that had a foreign affiliate – that is, that had a direct or indirect ownership or control of at least 10 percent of the voting stock of an incorporated foreign business enterprise, or an equivalent interest in an unincorporated foreign business enterprise – at the end of the U.S. person’s 2019 fiscal year. A response is required from entities subject to the reporting requirements, whether or not contacted by BEA. If you were NOT notified by BEA to file a BE-10 survey, and you do NOT meet BE-10 filing requirements, no action is necessary.
A complete BE-10 report is due on the following dates:
May 29, 2020 for a U.S. Reporter required to file fewer than 50 Forms BE-10B, BE-10C, and/or BE-10D.
June 30, 2020 for a U.S. Reporter required to file 50 or more Forms BE-10B, BE-10C, and/or BE-10D.
Given recognized compliance challenges due to the COVID-19 precautions in the current environment, the BEA is flexible with granting extensions up to August 31st, where US Reporters contact the BEA in advance and receive approval from the BEA. Without approval, the deadline for the 2019 BE-10 Survey forms remains (a) May 29th, 2020 for respondents with fewer than 50 BE-10 forms and (b) June 30th, 2020 for respondents with 50 or more BE-10 forms to complete.
The BE-10 series of surveys is often overlooked because it is only required every 5 years, and is NOT a tax form. Your accountant or tax lawyer may not prepare it unless you ask them to help. Like many of the foreign reporting forms, the penalties are draconian.
Determining whether a US individual or entity has a BE-10 reporting obligation can be complicated, especially for those holding interests in a multi-tiered ownership structure. Wheeler Accountants is able to assist clients in confirming whether they have a reporting obligation, help in consolidating filings and, if needed, assist with preparation of Form BE-10.
If you are unsure if you meet the filing requirements, contact us and we can be of assistance.
Families First Coronavirus Response Act (FFCRA) and CA State Unemployment and Disability Benefits
What types of benefits are available to me if I am unable to work for COVID-19 related reasons?
If you are unable to work (or telework) due to COVID-19 related reasons, there are a variety of potential benefits available to you depending on the circumstances. Broadly, there are four possible benefits available to you:
Emergency Paid Sick Leave – This is available if you have been diagnosed with COVID-19, have symptoms related to COVID-19 and are seeking diagnosis, or have been placed under quarantine or self-isolation by a medical professional related to exposure to COVID-19
Emergency Family Medical Leave – This is available to you if you are unable to work or telework while caring for someone who is sick with COVID-19, or caring for children under 18 who are unable to attend school or daycare due to local COVID-19 closures
CA State Unemployment Benefits – This may be available to you if you have been laid off or experiencing reduced work hours, or unable to work or telework due to COVID-19
CA State Disability Benefits – This may be available to you if you have been diagnosed with COVID-19 and are unable to work or telework
How many hours of emergency sick leave am I entitled to?
You may receive up to 80 hours of paid sick leave if you are unable to work or telework for specified virus related reasons including:
Diagnosed with COVID-19
Experiencing symptoms of COVID-19 and seeking diagnosis
Subject to a quarantine or isolation order or advised by a Health Provider to self-quarantine
Caring for someone who is diagnosed with COVID-19
Caring for a child under age 18 whose school or daycare is closed due to an emergency declaration by federal, state or local authorities
Can my employer require me to use PTO?
Unless your employer is a potentially exempt business (fewer than 50 employees) you are not required to use PTO before using sick leave
What if I already took sick leave this year?
Sick leave taken prior to the passage of the FFCRA is irrelevant. You are entitled to a new 80 hours or part-time equivalent
When do the emergency sick leave and family medical leave rules go into effect?
The rules go into effect April 1.
How much emergency sick leave or emergency family medical leave am I entitled to?
For emergency sick leave, if you are the one diagnosed with COVID-19, experiencing symptoms and seeking diagnosis, or subject to a quarantine or isolation order you are paid the lesser of $511/day (maximum of $5,110) or your normal compensation. If you are caring for someone described previously, or a child out of school due to closures you are paid the lesser of $200/day (maximum $2,000) or your normal compensation. Special calculations apply for part-time hourly employees. For emergency family medical leave, you are paid the lesser of 2/3 of your regular rate of pay or $200/day (maximum $10,000).
What does unable to work or “telework” mean?
You are unable to work if your employer has work for you and one of the COVID-19 qualifying reasons set forth in the FFCRA prevents you from being able to perform that work, either under normal circumstances at your normal worksite or by means of telework
Can I claim both emergency sick leave and emergency family medical leave?
You cannot claim both simultaneously, but you can claim your 1st two weeks as emergency sick leave and the next 10 weeks as emergency family medical leave for a total of 12 weeks. The first two weeks of emergency family medical leave may be unpaid but can be covered by the emergency sick leave.
I am subject to a local “shelter in place” order. Is this the same as a local quarantine or isolation order?
No, these are not the same. However, a school or daycare closure due to local “shelter in place” orders, may entitle you to emergency family medical leave
Where do I apply?
Your employer will pay you emergency sick leave or emergency family medical leave. You may need to provide information from a doctor or healthcare provider. You should go to the CA EDD website to apply for Unemployment or Disability benefits.
