Law Office Of Bonnie G. Ostrofsky, P.C.

01/27/2025

In light of a recent federal court order, reporting companies are not currently required to file BENEFICIAL INFORMATION REPORTS ("BOI") with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.

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On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction issued by a federal judge in Texas (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland). As a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop. Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.

10/13/2022

October 13, 2022: Today, the Social Security Administration announced its annual cost-of-living adjustment will be an 8.7% increase beginning in January 2023 for Social Security beneficiaries. For Supplemental Security Income beneficiaries, the increase begins on December 30, 2022.

03/11/2022

IRS has issued proposed regulations which would change the requirements for heirs to make required minimum distributions from retirement accounts they inherit in years 2020 and later. It was originally assumed that the new law allowed most heirs to take distributions in any amount each year over a 10 year period, as long as they completed full distribution within 10 years. The proposed regulations state that if you inherit an account from someone who had already been taking RMDs, you are then required to take out EVEN annual distribution over the 10 years. The new proposed regulations issued in February 2022 are long, and are still being reviewed and interpreted, and comments are being solicited from tax practitioners. However, if you have inherited a Traditional, SEP, or SIMPLE IRA in 2020 or 2021 (and are not the surviving spouse, or someone who falls within an exception), you should consider taking action to comply with this new proposed regulation.

09/14/2021

The IRS announced relief for residents in Pennsylvania who were impacted by Hurricane Ida earlier this month. Most federal tax filing and payment deadlines due after September 1, 2021 have been delayed until January 3, 2022. Here are the details:

PA-2021-05, September 14, 2021
Pennsylvania — Victims of remnants of Hurricane Ida that began August 31, 2021 now have until January 3, 2022, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.
Following the recent disaster declaration issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in certain areas will receive tax relief.
Individuals and households affected by remnants of Hurricane Ida that reside or have a business in Bucks, Chester, Delaware, Montgomery, Philadelphia and York counties qualify for tax relief. The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after August 31, 2021, and before January 3, 2022, are postponed through January 3, 2022.
This means that individuals who had a valid extension to file their 2020 returns, due to run out on October 15, will now have until January 3, 2022 to file. The IRS noted, however, that because tax payments related to these 2020 returns were due on May 17, 2021, those payments are not eligible for this relief.
Businesses with extensions also have the additional time including, among others, calendar-year partnerships and S corporations whose 2020 extensions run out on September 15, 2021 and calendar-year corporations whose 2020 extensions run out on October 15, 2021.
The January 3, 2022, deadline applies to the quarterly estimated tax payment, normally due on September 15 and to the quarterly payroll and excise tax returns normally due on November 1, 2021. It also applies to tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on November 15, 2021. Also, penalties on deposits due on or after August 31, 2021, and before September 15, 2021, will be abated as long as the tax deposits were made by September 15, 2021.

03/31/2021

The PPP Extension Act of 2021extends the Paycheck Protection Program (PPP) application filing deadline from March 31, 2021, to May 31, 2021, thus providing potential PPP borrowers additional time to submit their applications. The law doesn’t provide the PPP with any additional funding. However, $7.25 billion in additional funding was recently provided in the American Rescue Plan Act.

03/04/2021

The SBA released an Interim Final Rule (IFR) regarding temporary changes related to loan amount calculations and eligibility of loans made through the Paycheck Protection Program (PPP).

The 32-page IFR provides self-employed individuals with the ability to calculate their maximum loan amount using gross income instead of net profit, specifically those individuals who file Form 1040, Schedule C, Profit or Loss from Business.

In the IFR, which is titled “Business Loan Program Temporary Changes; Paycheck Protection Program — Revisions to Loan Amount Calculation and Eligibility,” provides revisions to the maximum loan calculations for sole proprietors who file Schedule C returns. Keep in mind that the change is not retroactive. The SBA and Treasury have ruled that borrowers whose PPP loans already have been approved cannot increase their loan amount based on the new methodology.

Loan Calculation Instructions for Schedule C Filers

Instructions for maximum loan calculations for Schedule C filers with and without employees is detailed in this IFR.

Updated Borrower Application Forms

The first-draw and second-draw application forms for borrowers filing for the Paycheck Protection Program were revised on March 3, 2021.

For new borrowers who file Schedule C using gross income, a new first-draw form and second-draw form was released.

Deadline To Apply

If you are in the process of completing an application for a PPP loan, be aware of application deadlines.

Small businesses and non-profits with fewer than 20 employees and sole proprietors can apply for Second Draw PPP loans from February 24th through March 9, 2021. The program will be open to all eligible entities, from March 10th through March 31, 2021.

Thanks to Wouch, Maloney & Co, LLP for summarizing these changes!

01/19/2021

If you are over 65 (or under 65 but have an underlying health condition), you can now register for an appointment to get the vaccine. The website for Montgomery County, PA residents is:

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12/08/2020

Warning from the IRS:
IRS warns people about a COVID-related text message scam
The IRS and its Security Summit partners are warning people to be aware of a new text message scam. The thief’s goal is to trick people into revealing bank account information under the guise of receiving the $1,200 Economic Impact Payment.

Here’s how this scam works
People get a text message saying they have “received a direct deposit of $1,200 from COVID-19 TREAS FUND. Further action is required to accept this payment… Continue here to accept this payment …" The text includes a link to a phishing web address.
This fake link appears to come from a state agency or relief organization. It takes people to a fake website that looks like the IRS.gov Get My Payment website. If people visit the fake website and enter their personal and financial account information, the scammers collect it.

Here’s what people should do if they receive this message
Anyone who receives this scam text should take a screenshot and include the screenshot in an email to [email protected] with the following information:
• Date/time/time zone that they received the text message
• The phone number that received the text message
The IRS doesn’t send unsolicited texts or emails. The agency will never demand immediate payment using a gift card, prepaid debit card or wire transfer or threaten to have a taxpayer arrested.

07/29/2020

DO YOU NEED TO USE YOUR RETIREMENT ACCOUNT DUE TO CORONAVIRUS? The IRS posted this reminder today:

Can I get money from my retirement account now?

Under the CARES Act, individuals eligible for coronavirus-related relief may be able to withdraw up to $100,000 from IRAs or workplace retirement plans before Dec. 31, 2020, if their plans allow. In addition to IRAs, this relief applies to 401(k) plans, 403(b) plans, profit-sharing plans and others.

These coronavirus-related withdrawals:
• May be included in taxable income either over a three-year period (one-third each year) or in the year taken, at the individual’s option.
• Are not subject to the 10% additional tax on early distributions that would otherwise apply to most withdrawals before age 59½,
• Are not subject to mandatory tax withholding, and
• May be repaid to an IRA or workplace retirement plan within three years.
Can I take out a loan?

Individuals eligible to take coronavirus-related withdrawals may also, until Sept. 22, 2020, be able to borrow as much as $100,000 (up from $50,000) from a workplace retirement plan, if their plan allows. Loans are not available from an IRA.

For eligible individuals, plan administrators can suspend, for up to one year, plan loan repayments due on or after March 27, 2020, and before Jan. 1, 2021. A suspended loan is subject to interest during the suspension period, and the term of the loan may be extended to account for the suspension period.

Taxpayers should check with their plan administrator to see if their plan offers these expanded loan options and for more details about these options.

07/06/2020

On July 4th, President Trump signed into law a temporary extension to apply for the Paycheck Protection Program (PPP). The deadline for small businesses to apply for approximately $134 billion in PPP funds has been extended until August 8. Originally the deadline was June 30. So if you have your business, and haven't yet applied for a payroll protection loan, you now have until August 8th to make your application. You just have to show you will be spending the money (after you receive it) on salaries - including to yourself- and rent, utilities, and other permitted uses.

05/21/2020

Real estate brokers and agents are back to work this week in PA!!! Finally!!

05/12/2020

PA is offering "Pandemic unemployment assistance" (PUC) to self-employed affected by COVID-19.

You should file for regular UC if you have an employer and

you have been laid off, or
your hours have been reduced through no fault of your own, or
you cannot work because a medical or public official has directed you to quarantine or self-isolate because of COVID-19 exposure, symptoms, or a positive diagnosis; or
you are caring for someone who is suspected of having or has tested positive for COVID-19.

You should file for PUA if you are ineligible for regular UC because you have lost income due to COVID-19 and

are self-employed, or
are seeking part-time work, or
lack sufficient work history, or
have exhausted all rights to regular UC or extended benefits.