Author Archives:
Josh Crisp

There is a new change to federal estate planning rules which will be warmly received by Atlanta high net-worth individuals and family offices. The IRS recently released Revenue Procedure 2022-32, which allows certain qualified estates a longer timeframe to elect portability along with a simpler procedure. Previous guidance allowed for late elections for up to two years.

Almost 30 percent of global carbon dioxide emissions can be traced back to building operations. This is a surprising number that reflects the impact certain building systems can have on the environment. Beyond this, older systems are likely to be consuming more resources, and therefore cost more, to operate. That is why so many have decided to leverage renewable energy systems to address the problem.

Required minimum distributions (RMDs) can be tricky. The IRS mandates that once a person reaches a certain age – currently age 72 – they must make mandatory withdrawals from certain retirement accounts every year. Fail to withdraw the right amount of money, and the individual gets a 50 percent excise tax.

Before COVID-19, changes to participant elections needed to be done in person with a notary or plan representative. Since March 2020, plan sponsors have had the option of permitting participants to make changes of election remotely. That relief was set to expire on June 30, 2022. However, the IRS recently announced new extended temporary relief for physical presence requirements to December 31, 2022 – and there seems to be talk of making it permanent.

Originally established by the American Rescue Plan Act of 2021, the Restaurant Revitalization Fund (RRF) was designed to provide needed capital to help restaurants and other hospitality businesses keep their doors open. As one of the hardest-hit industries by the combination of stay-at-home orders and forced business closures, the capital infusion was desperately needed. The RRF provided up to $10M per business was available and repayment was not required assuming monies were used to pay eligible expenses.

Each year the Administration issues a proposed budget to Congress which outlines policy objectives, funding allocation, and concurrent tax changes from the coming fiscal year. In late March, President Biden issued the Budget of the United States Government – Fiscal Year 2023. The specific details are included in a separate document, General Explanations of the Administration’s Fiscal Year 2023 Revenue Proposals, also known as the “Green Book”.

"At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?" This new question appears on IRS Form 1040, and taxpayers are required to answer. More than half of new Bitcoin investors joined the platform within the last 12 months, so there are taxpayers who are completely new to the market, and its potential tax implications. Given the new disclosure requirement, it is essential for Atlanta investors to understand the federal tax treatment of cryptocurrency investments.

On March 16, 2022, the Small Business Administration (SBA) announced that all existing Economic Injury Disaster Loan (EIDL) borrowers will receive an extended deferment period. The EIDL program has undergone several stops and starts, amendments, and extensions since it was offered as an option during the COVID-19 pandemic. Since many Atlanta companies have relied on the program to address cash flow needs during and post-pandemic, it is important to know when payments are due and the specific details of the new deferment changes.

Georgia taxpayers may be getting an extra refund soon if the state legislature’s latest proposal passes muster. Under H.B. 1302, taxpayers who filed returns in 2020 and 2021 would receive a one-time refund between $250 and $500.

Many Atlanta S-corporation and partnerships have been confused about the new Schedule K-2 and K-3 filings required as part of the 2021 tax return. Not only does the requirement mean the business and partners/shareholders must report international tax-related information on an updated form, but even the type of information required has changed. Despite the fact the updated forms were issued last September, many are unfamiliar with the new filing and concerned about the short adoption timeline. The IRS was aware of the potential for problems and issued IRS Notice 2021-39 which amongst other things offers transitional penalty relief for certain filers. Although helpful, many needed additional time to become familiar and comply with the new requirements. To assuage concern, the IRS announced new exemptions for certain domestic partnerships and S corporations.