BURNETT & BROWN, P.L.L.C. (Attorneys & Counselors at Law)

03/19/2021

The American Rescue Plan Act of 2021 was signed into law on March 11, 2021. Check out our summary of the bill and how it might effect you or your business: https://conta.cc/3lrYJB2

03/25/2020

Dear Clients and Friends,

I wanted to let you know that as of today we have closed our office in compliance with Governor Stitt's order yesterday. While our office is closed, we are still working remotely and will continue to be here to serve the needs of you and your businesses. These are very challenging times for all of us but you can rest assured that we will be here without interruption to support you. If you need to reach us, you may still call our main office phone number to get in touch with our team. If you need to send us something, the best option is still using our client portals or you can send it via US Mail to our PO Box. Please do not send us sensitive tax documents or information via email.

Our firm continues to monitor announcements from the IRS and Oklahoma Tax Commission regarding additional changes to in the law that may affect our clients and will keep you informed as more information becomes available.

If you have questions, be sure to reach out to us. Our entire team is here to support and guide you!

03/23/2020

Dear Clients and Friends,

The IRS has announced that employers can begin taking advantage of two new refundable payroll tax credits created by the Families First Coronavirus Response Act (the Act, PL 116-127, 3/18/2020). The IRS also announced that it will release guidance on how eligible employers who pay qualifying sick or child care leave under the Act will be able file a request for an accelerated payment from the IRS.

The Act provides paid sick leave and expanded family and medical leave for COVID-19 related reasons and created the refundable paid sick leave credit and the paid child care leave credit for eligible employers. Eligible employers are businesses and tax-exempt organizations with fewer than 500 employees that are required to provide emergency paid sick leave and emergency paid family and medical leave under the Act. Eligible employers can claim these credits based on qualifying leave they provide between the effective date and December 31, 2020. Equivalent credits are available to self-employed individuals based in similar circumstances.

Paid leave. The Act provides that employees of eligible employers can receive two weeks (up to 80 hours) of paid sick leave at 100% of the employee's pay where the employee is unable to work because the employee is quarantined, and/or experiencing COVID-19 symptoms, and seeking a medical diagnosis.

An employee who is unable to work because of a need to care for an individual subject to quarantine, to care for a child whose school is closed or child care provider is unavailable for reasons related to COVID-19, and/or the employee is experiencing substantially similar conditions as specified by the U.S. Department of Health and Human Services can receive two weeks (up to 80 hours) of paid sick leave at 2/3 the employee's pay.

An employee who is unable to work due to a need to care for a child whose school is closed, or child care provider is unavailable for reasons related to COVID-19, may in some instances receive up to an additional 10 weeks of expanded paid family and medical leave at 2/3 the employee's pay.

Paid sick leave credit. For an employee who is unable to work because of coronavirus quarantine or self-quarantine or has coronavirus symptoms and is seeking a medical diagnosis, eligible employers may receive a refundable sick leave credit for sick leave at the employee's regular rate of pay, up to $511 per day and $5,110 in the aggregate, for a total of 10 days.

For an employee who is caring for someone with coronavirus, or is caring for a child because the child's school or child care facility is closed, or the child care provider is unavailable due to the coronavirus, eligible employers may claim a credit for 2/3 of the employee's regular rate of pay, up to $200 per day and $2,000 in the aggregate, for up to 10 days. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period.

Child care leave credit. In addition to the sick leave credit, for an employee who is unable to work because of a need to care for a child whose school or child care facility is closed or whose child care provider is unavailable due to the coronavirus, eligible employers may receive a refundable child care leave credit. This credit is equal to 2/3 of the employee's regular pay, capped at $200 per day or $10,000 in the aggregate. Up to 10 weeks of qualifying leave can be counted towards the child care leave credit. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period.

Prompt payment for the cost of providing leave. In general, when employers pay their employees, they are required to withhold from their employees' paychecks federal income taxes and the employees' share of Social Security and Medicare taxes. (Code Sec. 3402, Code Sec. 3101(a), Code Sec. 3101(b)) The employers then are required to deposit these federal taxes, along with their share of Social Security and Medicare taxes, with the IRS and file quarterly payroll tax returns (Form 941 series) with the IRS. (Instructions for Form 941)

The Information Release says that, under guidance that will be released next week, eligible employers who pay qualifying sick or child care leave will be able to retain an amount of the payroll taxes equal to the amount of qualifying sick and child care leave that they paid, rather than deposit them with the IRS.

The Information Release says that the payroll taxes that are available for retention include withheld federal income taxes, the employee share of Social Security and Medicare taxes, and the employer share of Social Security and Medicare taxes with respect to all employees.

If there are not sufficient payroll taxes to cover the cost of qualified sick and child care leave paid, employers will be able file a request for an accelerated payment from the IRS. The IRS expects to process these requests in two weeks or less. The details of this new, expedited procedure will be announced next week.

Examples. If an eligible employer paid $5,000 in sick leave and is otherwise required to deposit $8,000 in payroll taxes, including taxes withheld from all its employees, the employer could use up to $5,000 of the $8,000 of taxes it was going to deposit for making qualified leave payments. The employer would only be required under the law to deposit the remaining $3,000 on its next regular deposit date.

If an eligible employer paid $10,000 in sick leave and was required to deposit $8,000 in taxes, the employer could use the entire $8,000 of taxes in order to make qualified leave payments and file a request for an accelerated credit for the remaining $2,000.

Equivalent child care leave and sick leave credit amounts are available to self-employed individuals under similar circumstances. These credits will be claimed on their income tax return and will reduce estimated tax payments.

Small business exemption. The Information Release says that small businesses with fewer than 50 employees will be eligible for an exemption from the leave requirements relating to school closings or child care unavailability where the requirements would jeopardize the ability of the business to continue. The exemption will be available on the basis of simple and clear criteria that make it available in circumstances involving jeopardy to the viability of an employer's business as a going concern. The Department of Labor (Labor) will provide emergency guidance and rulemaking to clearly articulate this standard.

Non-enforcement period. The Information Release says that Labor will be issuing a temporary non-enforcement policy that provides a period of time for employers to come into compliance with the Act. Under this policy, Labor will not bring an enforcement action against any employer for violations of the Act so long as the employer has acted reasonably and in good faith to comply with the Act. Labor will instead focus on compliance assistance during the 30-day period.

© 2020 Thomson Reuters/Tax & Accounting. All Rights Reserved.

Our firm continues to monitor announcements from the IRS and Oklahoma Tax Commission regarding additional changes to in the law that may affect our clients and will keep you informed as more information becomes available.

If you have questions, be sure to reach out to us. Our entire team is here to support and guide you!

03/20/2020

Treasury Secretary Steven Mnuchin just announced today (Friday) that the deadline for filing federal tax returns will move from April 15 to July 15 -- a move to ease the burden the coronavirus outbreak has put on individuals and the economy. We expect that Oklahoma and other states will follow suit and move the filing deadline to July 15th as well. We will let you know when that happens.

Our office will continue to work on tax returns even though the deadline has moved to July 15th. If you are expecting a refund, please contact our office so we can identify and prioritize the preparation of your return.

Our firm continues to monitor announcements from the IRS and Oklahoma Tax Commission regarding additional changes to filing and payment due dates and will keep you informed.

If you have questions, be sure to reach out to us. Our entire team is here to support and guide you!

03/20/2020

Dear Clients and Friends,

In an emergency meeting of the Oklahoma Tax Commission held March 19, all three Commissioners unanimously voted to extend the deadline to pay Oklahoma income taxes that would be due April 15, 2020 to July 15, 2020, following the newly established Internal Revenue Service (IRS) deadlines. Mirroring the guidance issued by the IRS, Commissioners voted to allow all individual and other non-corporate tax filers to defer up to $1 million of income tax payments due on April 15, 2020, until July 15, 2020, without penalties or interest. Corporate taxpayers will be granted a similar deferment of up to $10 million of income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest. Following IRS guidelines, the Commission’s Order does not change the April 15 filing deadline and is applicable to income tax due from Tax Year 2019 and the first quarter payment for Tax Year 2020, both of which would normally be due on April 15, 2020.

Charles Prater, Chairman of the Oklahoma Tax Commission said, “We are following IRS guidelines and want to remind Oklahomans that due dates for other tax types, including sales and withholding taxes, remain the same.”

If your return has already been filed and a balance due payment was scheduled to be paid electronically on the due date of April 15th and you would like to take advantage of the relief described above, please contact our office to discuss your options.

Our firm continues to monitor announcements from the IRS and Oklahoma Tax Commission regarding additional changes to filing and payment due dates and will keep you informed.

If you have questions, be sure to reach out to us. Our entire team is here to support and guide you!

03/20/2020

Dear Clients and Friends,

The Treasury Department and the IRS have announced special payment relief in response to the COVID-19 pandemic. This information is contained in Notice 2020-17. Key details are as follows:

• The income tax payment deadline for individual returns is automatically extended until July 15, 2020 for up to $1 million of 2019 tax due.
• Payment relief applies to all individual returns—including self-employed individuals and all entities other than C Corporations (e.g., trusts or estates).
• For C Corporations, the income tax payment deadline is also automatically extended until July 15, 2020 for up to $10 million of 2019 tax due.
• Tax payment relief also includes estimated tax payments for 2020 that are normally due April 15.
• Postponement of tax payments applies to federal returns only.
• While payments can be deferred, the filing deadline has NOT been extended. Taxpayers are expected to file returns by April 15, 2020, or file an extension.
• The IRS encourages Americans who can file their taxes before April 15, 2020 to do so in order to take advantage of any refund due to them.

If your return has already been filed and a balance due payment was scheduled to be paid electronically on the due date of April 15th and you would like to take advantage of the relief described above, please contact our office to discuss your options.

Our firm continues to monitor announcements from the IRS and Oklahoma Tax Commission regarding additional changes to filing and payment due dates and will keep you informed.

If you have questions, be sure to reach out to us. Our entire team is here to support and guide you!

11/01/2018

Tax Cuts and Jobs Act Planning

Tax Cuts and Jobs Act Planning -

08/29/2018

Oklahoma City financial firms announce merger

Oklahoma City financial firms announce merger

- Oklahoma City-based financial advisory firms Burnett Advisors and Kerri Lowber & Associates, recently announced that the two companies merged their operations.

05/02/2017

Kevin W. Burnett & Associates, PLLC (Certified Public Accountants)

Kevin W. Burnett & Associates, PLLC (Certified Public Accountants)

Kevin W. Burnett & Associates, P.L.L.C. is a CPA firm located in OKC, serving clients in Edmond, OKC & the surrounding OKC metropolitan area. Our practice focuses on the needs of small businesses & their owners.

08/15/2016

Business Travel Deductions v. Personal VacationTravel Deductions

There might be ways to combine domestic business trips with vacation days and still be able to write off some of the expenses. Here are the rules.

What business travel deductions v. personal vacation travel deductions can you take if you want to write off a trip? Don't get confused anymore.

09/30/2013

Death Dinners at Baby Boomers' Tables Take on Dying Taboo

A different way to talk about the neccessity of estate planning: http://finance.yahoo.com/news/death-dinners-baby-boomers-tables-040100216.html

At a Manhattan dinner party, former Citigroup Inc. (C) executive Steffen Landauer gathered an eclectic mix of guests at his apartment off Fifth Avenue to sip pinot noir, dine on seared salmon -- and talk ...