In the midst of another budget stalemate, congressional in-fighting, and leadership trying to say that $3.5T in new taxes will cost “zero”, I thought I’d tell some happy stories for a change. We’re between the last two tax deadlines of 2020, and I’m actually seeing several glimmers of hope.
The entertainment and special events businesses seems to have rebounded nicely. Given the fact that I come from a family heavily involved in event planning, we’ve always handled a lot of the accounting for those industries.
Everyone from event staffing agencies, caterers, and even the Halsted Street Theater companies seem to have rebounded nicely. There’s an incredible amount of pent-up demand, given the recent pandemic restrictions.
The restaurant and bar industries seem to be doing equally as well. Many are having one of their best years from a profit standpoint. They’ve learned to do less with more, given the problems inherent in staffing their facilities, but the sales are there. Given their reduced payrolls, many are having a fantastic year.
Anyone in the home improvement business is also having a great year. Office closures and people working remotely mean that all of the little repairs that drove people crazy in their homes are being addressed. Painters, decorators, flooring, you name the repair industries, are all having a banner year.
And it came down to not being afraid.
When I’m doing the year-end tax work for an entity, it’s easy to see the difference between an entrepreneur who was aggressive versus one who wasn’t. I’ve been preaching non-stop for the past eighteen months, to use the pandemic as an opportunity rather than a set back.
I’m so glad and proud that so many of you listened.
Let me leave you with this.
Believe it or not, the IRS recently sent out an Interim Final Ruling saying that they weren’t going to send out anymore Interim Final Rulings on the Employee Retention Credit. Our government never ceases to amaze me.
That’s our tax dollars at work.
The proposed tax legislation included in the budget from the Senate stops the ERC at the third quarter of this year. The proposal from the House allows it to continue through the end of 2021.
My point is that the current administration obviously has new priorities in mind. Stopping businesses from being able to claim the credit would save substantial sums, that could now be used for their new social agenda.
This tells me that there could be a new deadline we should all be considering.
If you haven’t, for whatever reason, yet claimed the credit, do it now. It may not be available soon.
It could all vanish with the stroke of a pen.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Employee Retention Credits, PPP Loan Forgiveness, Payroll Services, or Bookkeeping and Tax Work, you have but to ask. I’m here and I remain,
Accounting Solutions Ltd.
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