Brent Nyitray
Fairlington Blade
Let the mutherfuker burn!
jnc4p
Kevin S. Willis
Michigoose
lmsinca
markinaustin
Memetrics
novahockey
quarterback
ScottC
yellojktIn a tremendously unpleasant surprise for owners of S-corporations and C-Corporations and their tax advisors, the IRS issued Notice 2021-49 on August 4th which states that the Employee Retention Credit (ERC), made available for businesses suffering from the COVID-19 crisis, will not be available with respect to wages paid to a majority owner, or such owner’s spouse, if the majority owner has a brother or sister (whether by whole or half-blood), ancestor, or lineal descendant.
In the event that the majority owner of a corporation has no brother or sister (whether by whole or half-blood), ancestor, or lineal descendant, then wages paid to a majority owner and such owner’s spouse will qualify for the Employee Retention Credit.
Yes, you read that right. If a majority owner of a corporation has any living family members then wages paid to the owner will not be eligible for the ERC credit; however, if the majority owner has no family then wages are eligible for the ERC credit.
This is brutally unfair and makes no sense whatsoever. Only orphans that have no children are able to get the credit, while it is people with large families who need the credit to support their families. This is anti-family, unamerican, and utterly without logic or justification.
My comment: Congress ain’t gonna fix it, either.
Filed under: Economy, Open Thread, taxes |
All Things in Moderation 
Seriously funny
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The folks at the lowest risk of COVID complications are forced to get the vaccine while the people at higher risk can skip it.
Makes sense for California.
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Thanks for the info Mark.
This is the piece you are referencing right?
https://www.forbes.com/sites/alangassman/2021/08/05/newly-issued-employee-retention-credit-guidance-punishes-owner-employees-if-they-have-living-family-members/
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Yep.
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Ron Wyden has made some additional tax proposals that make no economic sense, probably do not raise revenue, create further traps for the unwary, and are otherwise in line with current amateurish taxation ideas that no tax lawyer or CPA ever vetted.
In a simpler, more rational world, Ds would merely reverse the Trump cuts and fund the IRS well enough to make enforcement real again. But no.
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For whom is tax enforcement currently not real?
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Anyone who gets away with underpaying or not reporting income. I’m sure it’s real. But enforcement requires auditing which costs money and makes both the IRS and taxes way more unpopular than they already are.
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but no mean tweets
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JFC, this guy.
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Scott, I finished Shrier’s book. Thanks for the recommendation.
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Hope you found it worthwhile. Are you convinced that this is a bigger deal than you previously thought?
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Yep. Although still statistically rare, it isn’t rare enough, and the buy-in by education and counseling “authorities” is threatening to the future well being of many troubled adolescents.
That this did not visibly exist in almost all of my life clearly framed my previous “No Big Deal” attitude.
My own childhood and early adolescence were so different from what she describes that I think my experiences were closer to Tom Sawyer’s than to anything today.
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China blaming COVID on US Fort Detrick in social media:
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“Chinese state media and officials have posted over 1,000 tweets, articles and videos about Fort Detrick since May, in doing so “flooding social media platforms with elaborate conspiracy theories that have been thoroughly debunked,” according to a report released Tuesday by the Alliance for Securing Democracy (ASD), a bipartisan transatlantic advisory council.”
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As I do not read the social media platforms referred to here I was unaware of this.
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