TABS Talk – March 2021

Income tax filings are due March 15th for some LLCs and April 15th for C-corporations (corporations with foreign owners).

TABS can assist your company with the preparation of figures and documentation required for this filing. We can work with our network of third-party CPAs to complete the filing, or a CPA of your choice. We can provide support to file on time or request a 6-month extension. (Extended deadline: September/ October 15 respectively.) The request for extension must be filed by the original deadline, and must include payment of any tax liabilities. It will be deemed invalid retroactively if it later turns out that the tax liability was not paid at least 90% by the original deadline (March/ April 15). This can result in significant penalties.

The Internal Revenue Service (IRS) urges employers to take advantage of the newly-extended employee retention credit, designed to make it easier for businesses that, despite challenges posed by COVID-19, choose to keep their employees on the payroll.

The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, made a number of changes to the employee retention tax credits previously made available under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), including modifying and extending the Employee Retention Credit (ERC), for six months through June 30, 2021. Several of the changes apply only to 2021, while others apply to both 2020 and 2021.

As a result of the new legislation, eligible employers can now claim a refundable tax credit against the employer share of Social Security tax equal to 70% of the qualified wages they pay to employees after December 31, 2020, through June 30, 2021. Qualified wages are limited to $10,000 per employee per calendar quarter in 2021. Thus, the maximum ERC amount available is $7,000 per employee per calendar quarter, for a total of $14,000 in 2021.

Employers can access the ERC for the 1st and 2nd quarters of 2021 prior to filing their employment tax returns by reducing employment tax deposits. Small employers (i.e., employers with an average of 500 or fewer full-time employees in 2019) may request advance payment of the credit (subject to certain limits) on Form 7200, Advance of Employer Credits Due to Covid-19, after reducing deposits. In 2021, advances are not available for employers larger than this.

Check if you’re eligible by clicking on the link below.

When applying for an ITIN, on receiving a Tax ID-number, people appear to be targeted with an IRS request to fill out a W-8BEN tax status form.

It looks very professional, but this is phishing. W-8BEN forms are legitimate documents, but the IRS will never ask you to complete and return this form. Various information fields have been created that should never be filled in. Do not return any information. It’s identity theft.

TABS congratulates DEN Smart Home on being named a CES® 2021 Innovation Awards Honoree for DEN SmartStrike™ at the first-ever, all-digital CES 2021, the world’s most influential technology event, which happened January 11-14, 2021.

DEN Smart Home makes the first ever wireless communicating door strike. DEN SmartStrike™ provides full featured access management, eliminates the need for changing your preferred door hardware décor and does all this at disruptive pricing.

The CES Innovation Awards program, owned and produced by the Consumer Technology Association (CTA)®, is an annual competition honoring outstanding design and engineering in consumer technology products across 28 product categories. An elite panel of industry expert judges, including members of the media, designers, engineers and more, reviewed submissions based on innovation, engineering and functionality, aesthetic and design.

“We were delighted when we learned we achieved a CTA Innovations Award in the Smart Home category,” stated Marijn van der Wal, founder of DEN Smart Home, “it affirms my vision of smarter better access control and reflects the hard work of my teams in the Netherlands and United States.”

TABS is proud to guide DEN Smart Home in their U.S. expansion.

Pig & Hen is a bold and adventurous brand producing handmade bracelets from Amsterdam for men capitalizing on a unique and authentic brand story. Pig & Hen sell their bracelets through their own web shop and a lot of great retailers in the United States. TABS’ Sales Tax specialist Thom Doensen assisted them in efficiently setting up sales tax processes to ensure that all rules and regulations are adhered to. The TABS team of dedicated consultants also facilitated formation of their U.S. entity, including setting up a New York address, and providing corporate compliance and income tax support.

Many of their bracelets are purchased as a gift which inspired them to create a corporate gift program.
Interested? Click on the link below. You can get a free sample via TABS!

Did you read our 2020 research report? Get the latest insights from the TABS ‘Dutch Ventures in the United States’ project on how to successfully expand to and build your business in the U.S. market.

When compared to the Netherlands, and to Europe as a whole, the participants in this research overwhelmingly agreed that the U.S. is a huge market with a lot of potential customers. The potential exists in the U.S. to scale your business in ways that are simply not possible in the Netherlands.