e-News for Small Business Issue 2021-09

e-News for Small Business June 29, 2021
Tax Resources for Small Business Small Business and Self-Employed One-Stop Resource Small Business Forms & Instructions Small Business Events Small Business Webinars e-File for Businesses and Self-Employed Businesses with Employees Small Business Products Self-Employed Individuals S Corporations Other Resources IRS.gov Find it Fast! All Forms and Instructions Filing Your Taxes Make a Payment Taxpayer Advocate Service Retirement Plans Tax Information for Charities and Other Non-Profits State Links SSA/IRS Reporter IRS Social Media	Issue Number: 2021-09 Inside This Issue New online tools to help families manage Child Tax Credit payments Help spread the word New FAQs available to aid families and small businesses under the American Rescue Plan Guidance available on tax credits for continuation health coverage 2022 adjustments for HSAs and excepted-benefit HRAs Resources for small businesses with assets under $10 million A Closer Look – Employment tax initiatives: helping small business and self-employed taxpayers Other tax news 1.  New online tools to help families manage Child Tax Credit payments The American Rescue plan increased the maximum Child Tax Credit amount in 2021 to $3,600 per child for children under the age of 6 and to $3,000 per child for children ages 6 through 17. It's also now an advanceable payment, and automatic payments for eligible families will start on July 15, 2021. To help families sign up for this advanceable credit, the IRS launched several new online tools designed to help families manage and monitor these payments: Child Tax Credit Eligibility Assistant – allows families to answer a series of questions to quickly determine whether they qualify for the advance credit Child Tax Credit Update Portal – allows families to verify their eligibility for the payments and if they choose to unenroll, or opt out, from receiving the monthly payments so they can receive a lump-sum when they file their tax return next year Non-filer Sign-up Tool – helps families not normally required to file an income tax return to quickly register for the Child Tax Credit and Economic Impact Payments Back to top 2.  Help spread the word The IRS urges small business owners to share this critical information about the Child Tax Credit with their employees, family and friends. It is important to reach people with children, especially those who do not normally file an income tax return. For the most up-to-date information on the Child Tax Credit and advance payments, visit Advance Child Tax Credit Payments in 2021. Back to top 3.  New FAQs available to aid families and small businesses under the American Rescue Plan The Internal Revenue Service posted two new, separate sets of frequently-asked-questions to assist families and small and mid-sized employers in claiming credits under the American Rescue Plan. Back to top 4.  Guidance available on tax credits for continuation health coverage IRS news release IR-2021-115, provides information on tax breaks under the American Rescue Plan for continuation health coverage under COBRA. In summary: The American Rescue Plan Act provides a temporary 100% reduction in the premium that individuals would have to pay when they elect COBRA continuation health coverage following a reduction in work hours or an involuntary termination of employment. The new law also provides a corresponding tax credit for the entities that maintain group health plans—such as employers, multiemployer plans and insurers. The 100% reduction in the premium and the credit are also available with respect to continuation coverage provided for those events under comparable state laws –sometimes referred to as "mini-COBRA." Notice 2021-31 provides information regarding the calculation of the credit, the eligibility of individuals, the premium assistance period, and other information vital to employers, plan administrators, and insurers to understand the credit. Back to top 5.  2022 adjustments for HSAs & excepted-benefit HRAs The IRS released its 2022 annual inflation adjustments for Health Savings Accounts as determined under Section 223 of the Internal Revenue Code. IRS Revenue Procedure 2021-25 provides the adjusted limits for contributions to an HSA, as well as the high deductible health plan minimums and maximums for calendar year 2022. The revenue procedure also sets the maximum amount that may be made newly available for the plan year for an excepted-benefit health reimbursement arrangements. Back to top 6.  Resources for small businesses with assets under $10 million The IRS has developed a variety of tools and information to help small businesses understand and comply with their tax obligations. For more resources visit the Small Business and Self-Employed Tax Center. The information is translated into a variety of languages. Back to top 7.  A Closer Look – Employment tax initiatives: helping small business and self-employed taxpayers Scott Irick, Director of Examination Division discusses the compliance programs and outreach efforts to help employers meet their employment tax responsibilities. Engaging industries and employers to help properly withhold and remit all employment taxes. Enforcement programs to ensure fairness and compliance with tax laws. Take a closer look. Back to top 8.  Other tax news The following information may be of interest to individuals and groups in or related to small businesses: 2021 IRS Virtual Nationwide Tax Forum early-bird deadline approaching. Back to top           Thank you for subscribing to this IRS email service. This message was distributed automatically from the mailing list e-News For Small Business. Please Do Not Reply To This Message.

 

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