Let’s start 2021 off with an update:
I have moved my residence to the State of Vermont. However I am maintaining my NJ CPA license. Since the vast majority of my clients are handled remotely, via either the internet or mail, it should have no effect on most of you. For the small business clients I see on a monthly or quarterly basis, and for the few individual income tax clients who prefer to meet me personally, I will be coming down to NJ for at least a few days every month, usually towards the end of the month. My address in Vermont is:
Leigh J Kremer, CPA
32 Bank Street
Bennington, VT 05201
My phone numbers remain the same. The best way to reach me is my cell (732) 822-6890. I can also be reached at my old office number (732) 222-4422. My email also remains the same, LeighKremer@verizon.net.
In other news, January is the month for small business clients to prepare and send out 1099 forms. This year there is a new form, form 1099-NEC, which replaces form 1099-MISC for reporting non-employee compensation (form 1099-MISC is still used for reporting other types of payments). The forms must be sent to all non-employees, which includes subcontractors, vendors, professionals, and landlords, that were paid a total of $600 or more in 2020. The due date this year is February 1, 2021. Copies must also be filed with the IRS/SSA Administration, either electronically or via specially prepared hard copies.
If you do not want to prepare and send out the 1099 forms yourself, I can do it for you. The cost is $160.00 plus $10.00 per form, plus postage. In order to prepare the forms for you I would need the name, address, and taxpayer identification number (either the Employer ID number for a business or the Social Security number for an individual) as well as the amount paid. Please get the necessary information to me as soon as possible to ensure I have time to prepare and send out the forms prior to the deadline.
For individual income tax filers January is also the month where you will begin receiving the tax forms necessary to prepare your 2020 income taxes. Be on special lookout for forms that come in envelopes marked “IMPORTANT TAX DOCUMENTS ENCLOSED”. I need these forms as copies are also sent to the IRS and will be matched against your return to ensure the completeness and accuracy of your filing. Also be aware that some entities have switched over to electronic delivery of your tax forms so you may need to log in to a website and download the forms yourself. Finally, be aware of scammers who will send you letters containing advertisements, offers, or official sounding letters demanding responses in envelopes marked with something similar to “IMPORTANT TAX DOCUMENTS ENCLOSED”. As always, never give out your personal information or send any money to anyone contacting you in this manner.
One more thing, a new round of Paycheck Protection Loan (PPP) funding has been announced to help small businesses effected by Covid-19. The qualifications are a bit different this time around. In order to qualify your business must:
- Have no more than 300 employees.
- Have used or will use the full amount of your first PPP loan.
- Can show a drop of at least 25% in annual gross receipts or for any quarter of 2020, compared with the same quarter in 2019.
- Have not permanently closed. Businesses that have temporarily closed or suspended operations can receive a second-draw loan.
The application process will be similar to last time around with most businesses applying through the bank that handles the business bank accounts, however other lenders are available.
If you have any questions about these matters, or any other tax or accounting related questions, please do not hesitate to contact me. Thank you.
Leigh J Kremer, CPA
I help clients reduce taxes, increase profitability, meet reporting requirements and save valuable time. Contact me to find out how!