On this episode of Practical Tax, Congressman Jared Huffman joins us to discuss green tax initiatives and Chris Westfall joins us to discuss side husltles for businesses.

Episode Transcript

Intro:
Welcome to the Practical Tax podcast, with tax attorney Steve Moskowitz. The Practical Tax podcast is brought to you by Moskowitz, LLP, a tax law firm.

Disclaimer:
The information contained in this podcast is based upon information available as of date of recording and will not be updated for changes in law regulation. Any information is not to be considered tax advice or legal advice and does not form an attorney/client relationship. Further, this podcast may be construed as attorney advertising. You should see professional consultation for your individual tax and legal situation.

Chip Franklin:
Hello and welcome again to another edition of Practical Tax with tax attorney, Steve Moskowitz. Steve, hope all is well.

Steve Moskowitz:
All is well and there is so much going on in the tax world. It just keeps us happy because we're getting back so much money for our clients. For example, this ERC program, employee retention credits where the federal government is giving away their grants, they're not loans, up to $26,000 for every employee that you have that qualified is tremendous and is helping out so many small businesses.

Chip Franklin:
We have been talking about this for four years, right? That's been going on for a while.

Steve Moskowitz:
It hasn't been that long. It may seem that long, but it hasn't. And the bottom line is that... The important part is you have to know, and there are some real differences of opinion, who qualifies and who doesn't. There are two tests. One test is a certain drop in gross revenue. That's easy. It's math, either above or below a certain number. But there's a second test called full or partial closure. And that's really a facts and circumstances test. For example, even an essential business like Safeway could only use 25% of the inside of their business, as was mandated by the state of California for all businesses from the beginning of the pandemic until 6/15/21. That may qualify them supply chain disruptions and so on. But it takes some work to figure that out and a lot of firms are ignoring that. If you don't meet the math, they say no ERC for you, that's wrong because the test is either/or.
On the other hand, the IRS is warning that there are a bunch of fraudulent firms just making stuff up and like anything else in your tax, obviously, you want to take everything to which you're legally entitled, no more and no less. You'd never want to put anything on any tax return or anything you give to the government is fraudulent, yet some companies are doing that. And there are these popup companies, they just came into existence to file ERC and then they're going to be gone when the IRS is asking questions whereas we're a law firm and we've been around for over 30 years.

Chip Franklin:
Well, all of these trails lead to Washington DC eventually, right? I mean-

Steve Moskowitz:
Yes, they do.

Chip Franklin:
... [inaudible 00:02:28]. And we're nice enough to be joined today by US representative from California, Second Congressional district since back in 2013, Congressman Jared Huffman. Congressman, good to have you here.

Jared Huffman:
Good to be with you.

Chip Franklin:
I understand-

Steve Moskowitz:
Congressman, thanks so much for joining us.

Jared Huffman:
Thank you, Steve.

Chip Franklin:
And you're in the neighborhood just a little north of us and enjoying again, California. Whenever I hear about people saying, "Oh, we're moving to Texas." I'm like, "Don't let the door hit you on the way out." I love it here, right?

Jared Huffman:
Yeah. Yeah. California is still going strong despite the detractors out there who don't wish us well.

Steve Moskowitz:
You know there are always detractors for everything.