Author Archives:
Vivian Dempsey

For the most part, the IRS releases its annual mileage rate updates for the following year in December. These rates are used to determine the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. The rates are determined through either an annual study on the fixed and variable costs of operating a vehicle. For the medical/moving rates, the changes are only based on variable costs. While taxpayers can track and claim actual expenses related to these qualifying activities, the mileage deduction rates make the process much simpler. There are specific rules that apply when changing deduction methods.

Supply chain disruptions are nothing new to auto dealerships at this point. Chip shortages and the difficulty obtaining new semiconductors are just two factors that have strained the automotive industry. More than two years after COVID-19 was declared a global pandemic, dealerships using the last-in-first-out (LIFO) inventory method are still hurting, but for a less obvious reason.

The change of focus has created new challenges for independent auto dealers especially when it comes to inventory acquisition. As franchised dealers search for used car inventory, it makes it more difficult for independent dealers to keep lots full. According to the Cox Automotive Dealership Sentiment Index, 4th Quarter, inventory acquisition is the biggest challenge facing dealers.

The chaotic situation which followed the arrival of the pandemic created significant financial challenges for many Atlanta businesses. The variety of government orders combined with public concern about transmission changed the business landscape virtually overnight. The shift meant many businesses needed new and immediate capital infusions to make it through the transition. The Employee Retention Tax Credit (ERC) which was implemented as part of the CARES Act was one of several programs designed to help. Along with other federal relief programs, many were saved from financial uncertainty.

The financial and economic conditions created for Atlanta families, individuals, and businesses, by the COVID-19 pandemic have been very challenging. For many businesses, initial stay-at-home and forced business closures meant a steep drop in revenue almost overnight. Faced with this reality, difficult decisions about employee furloughs and terminations were made. The result was a sharp increase in unemployment.

The Georgia Department of Revenue (GDOR) announced yesterday the state will also be extending the 2020 individual tax filing deadline from April 15, 2021, to May 17, 2021.

On the same day, the IRS issued millions of taxpayers the economic stimulus payment outlined in the American Rescue Plan Act of 2021; they also announced an extension to the individual tax filing deadline. The original date of April 15th has been the standard deadline but was modified last year during the COVID-19 pandemic.

Alabama’s tax environment is known to favor simplicity and taxpayer-friendly policies. Despite this positive reputation, conflicts between state and federal taxation can leave taxpayers hanging in the balance. Recent tax reform, which passed both chambers of the legislature unanimously, provides a solution for some of the uncertainty caused by the Tax Cuts and Jobs Act and COVID-19.

Since the Paycheck Protection Program (PPP) was launched as part of the CARES Act in March 2020 it has undergone numerous changes and updates. The short timeframe the Small Business Administration (SBA) had to implement the PPP meant the time typically used to develop a comprehensive framework was simply not available. This resulted in many small businesses and organizations missing the opportunity to receive a loan due to confusion, lack of guidance, and inattention from lenders.

The Consolidated Appropriations Act, 2021, passed in late December provided many Atlanta businesses and nonprofit organizations with much needed financial and tax relief. While helpful, the new Biden Administration believes more is needed and is proposing a new $1.9 Trillion package to broaden the scope of assistance. The continued focus on economic relief makes it clear just how devastating the pandemic has been on the economy. While Congress and the White House work out the details of another rescue package, the IRS has also been making changes to provide relief to taxpayers. On January 19th, the IRS issued Notice 2021-10 which extends several deadlines originally outlined in IRS Notice 2020-39 governing Qualified Opportunity Zone (QOZ) investments.