Tax changes and IRS info from the stimulus package

[Jazzmammal]

Finally got my stimulus this morning so it looks like SS and SSI recipients either have theirs now or it should be imminent.

 

Bob

[MoodyBluesKeys]

May 15 came and went. My normal Social Security payment was made. My wife and I did receive the $2,400 a while back. As far as the EIDL goes, the best I can figure from SBA.gov is that I probably filed too late. On the second round of funding, they are only accepting agricultural applicants. As of 08 May, they had disbursed 3,009,934 separate amounts for a total of $9,833,210,000. My application was above 3,300,000,000,000 in number, so my best guess is that many, many, many small businesses applied too late. Oh well, knew going in that it might not result in any money.

On the good side, even though I have been turning down residential service calls, the calls that I've done for my "essential" commercial clients have resulted so far in my business being about as well as last year this time. I am thankful. Gave my wife her half of the $2400, put my half in savings to help later this year when property tax and home insurance come due.

 

Musically, tomorrow will be the second week that I play with our praise band in our modified online service. I went to the church yesterday and rewired my system to provide a single mono feed to FOH, after listening to playback of last week and noting that my bass was very low in the mix (not in FOH at all) and the organ was inaudible. Felt so good last week to be able to play again (yes, there were less than to people in the building and we did or at least I did maintain distancing). Feeling blessed.

[Jazzmammal]

Glad you got the stimulus and sorry about the EIDL. I have no clue but you're probably correct. What's really bugging me right now is people on SSI are STILL not getting their money but the last I read in a blog is it should be by the end of the month which is only a few more days. My next door neighbor keeps looking at me like I'm Shrek. Can't you call someone for me he asks? He's on both SS and SSI and I guess that somehow that's gumming up the system. I don't know all of his details so maybe there's something else going on but still just being on regular Social Security and he says it's being direct deposited should be enough. I know for a fact he's not making 75K.

 

Here's something new but not about any special stimulus programs, it's about efiling amended returns. In the tax community this is a very big deal:

 

IRS announces Form 1040-X electronic filing options coming this summer; major milestone reached for electronic returns

 

WASHINGTON- The Internal Revenue Service announced today that later this summer taxpayers will for the first time be able to file their Form 1040-X, Amended U.S Individual Income Tax Return, electronically using available tax software products.

 

Making the 1040-X an electronically filed form has been a goal of the IRS for a number of years. It"s also been an ongoing request from the nation"s tax professional community and has been a continuing recommendation from the Internal Revenue Service Advisory Council (IRSAC) and Electronic Tax Administration Advisory Committee (ETAAC).

 

Currently, taxpayers must mail a completed Form 1040-X to the IRS for processing. The new electronic option allows the IRS to receive amended returns faster while minimizing errors normally associated with manually completing the form.

 

'This new process is a major milestone for the IRS, and it follows hard work by people across the agency,' said IRS Commissioner Chuck Rettig. 'E-filing has been one of the great success stories of the IRS, and more than 90 percent of taxpayers use it routinely. But the big hurdle that"s been remaining for years is to convert amended returns into this electronic process. Our teams have worked diligently to overcome the unique challenges related to the 1040-X, and we look forward to offering this new service this summer.'

 

Bob

[Jazzmammal]

Here's a good summary and a reminder that the deadline for filing and paying any tax owed is July 15. Extensions to October 15 are also still available. For those who pay quarterly Estimated Taxes those payments are also extended to July 15. The confusing thing there is all software I've seen puts the due date for the first two quarters (normally April 15, and June 15) as July 15 meaning you have two payment vouchers dated July 15, 2020. I've had some clients call me to ask if they only need to make one payment because it looks like they're duplicates. No, they are two separate payments that happen to be both due on the same date because of the COVID 19 payment extension. The last two quarters, Sept 15 and Jan 15 are dated normally.

 

Issue Number: IR-2020-118

Inside This Issue

 

IRS reminder: File now, choose direct deposit or schedule tax payments electronically before the July 15 deadline

 

WASHINGTON â As the July 15 tax-filing deadline â postponed from April 15 â draws near, the Internal Revenue Service is reminding all taxpayers who have yet to file their 2019 federal tax return to file electronically now, choose direct deposit for their refund, or pay any tax owed electronically.

 

Taxpayers who owe for tax year 2019 or need to pay 2020 estimated taxes originally due for the first quarter on April 15 or the second quarter on June 15 can schedule an electronic payment up to the July 15 due date.

 

The IRS continues to process electronic tax returns, issue direct deposit refunds and accept electronic payments. As of May 29, the IRS received over 133.8 million tax returns and issued over $250.9 billion in refunds.

 

Taxpayers should use electronic options to support social distancing and speed the processing of tax returns, refunds and payments. IRS.gov has a variety of options to help taxpayers.

 

Most taxpayers that usually have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020 â including individuals, trusts, estates, corporations and other non-corporate tax filers â qualify for the postponed due date. This means that anyone, including Americans who live and work abroad, now have until July 15 to file their 2019 federal income tax return and pay any tax due. A list of forms due July 15 is on the Coronavirus Tax Relief: Filing and Payment Deadlines page.

 

File electronically for free

 

Taxpayers whose income was $69,000 or less last year are eligible to use IRS Free File software. There are also Free File Fillable Forms, an electronic version of IRS paper forms. It has no income limitations. Free File options are available at IRS.gov/freefile.

 

2016 file for unclaimed refunds â deadline postponed to July 15

 

For 2016 tax returns, the normal April 15 deadline to claim a refund is now July 15, 2020. The law provides a three-year window of opportunity to claim a refund. If taxpayers do not file a return within three years, the money becomes property of the U.S. Treasury. The law requires taxpayers to properly address, mail and ensure the tax return postmark is July 15, 2020, or sooner.

 

Choose direct deposit for refunds

 

The safest and fastest way for taxpayers to get their refund is to have it electronically deposited into their bank or other financial account. Taxpayers can use direct deposit to deposit their refund into one, two or even three accounts. Direct deposit is much faster than waiting for a paper check to arrive in the mail.

 

After filing, use 'Where"s My Refund?' on IRS.gov or download the IRS2Go Mobile App to track the status of a refund.

 

Schedule a payment electronically

 

Taxpayers can file now and schedule their federal tax payments up to the July 15 due date. They can pay online, by phone or with their mobile device and the IRS2Go app. When paying federal taxes electronically taxpayers should remember:

 

Electronic payment options are the optimal way to make a tax payment.

They can pay when they file electronically using tax software online. If using a tax preparer, taxpayers should ask the preparer to make the tax payment through an electronic funds withdrawal from a bank account.

IRS Direct Pay allows taxpayers to pay online directly from a checking or savings account for free, and to schedule payments up to 365 days in advance.

Taxpayers can choose to pay with a credit card, debit card or digital wallet option through a payment processor. No fees go to the IRS.

The IRS2Go app provides the mobile-friendly payment options, including Direct Pay and Payment Provider payments on mobile devices.

Taxpayers may also enroll in the Electronic Federal Tax Payment System and have a choice of paying online or by phone by using the EFTPS Voice Response System.

Taxpayers can go to IRS.gov/account to securely access information about their federal tax account. They can view the amount they owe, access their tax records online, review their payment history and view key tax return information for the most recent tax return as originally filed.

 

Request an extension of time to file a tax return electronically

 

Taxpayers who need more time to prepare their federal tax return should be aware that:

 

An extension of time to file a return does not grant any extension of time to pay taxes.

Taxpayers should estimate and pay any owed taxes by the July 15 deadline to help avoid possible penalties.

Taxpayers must file their extension request no later than the July 15 postponed due date of their return.

 

Individual tax filers, regardless of income, can use IRS Free File to electronically request an automatic tax-filing extension. Filing this form gives the taxpayer until Oct. 15 to file a federal tax return. To get the extension, the taxpayers must estimate their tax liability on the extension form and should pay any amount due.

 

Alternatively, taxpayers can get an extension by paying all or part of their estimated income tax due and indicate that the payment is for an extension using Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a credit or debit card. This way the taxpayer won"t have to file a separate extension form and will receive a confirmation number for their records.

 

Get answers to tax questions

 

Taxpayers may find answers to many of their questions using the Interactive Tax Assistant (ITA), a tax law resource that works using a series of questions and responses. IRS.gov has answers for Frequently Asked Questions. The IRS website has tax information in: Spanish (Español); Chinese (中æ); Korean (íêµ­ì´); Russian (PÑÑÑкий); Vietnamese (Tiếng Viá»t); and Haitian Creole (Kreyòl ayisyen).

 

For more information go to IRS.gov/COVIDtaxdeadlines.

 

Bob

[MoodyBluesKeys]

Wow. After submitting for an EIDL on 13 April, and by mid-May figuring that nothing was going to happen, I got an email from SSA.gov this morning. The email said that I could get anywhere from $1000 to $4400 (with a slider for making my request). It also stated that loan repayment would begin 12 months after receiving the money, at 3.5% interest, with $0 third party fee, and a monthly dollar amount.

Not all done, had to create an account with SSA with password, and decide how much to actually apply for. After looking at some other websites of CPA's, I applied for the minimum $1000; on the reasoning that seemed to be the amount per employee (so that hopefully the loan will be forgiven. I completed the process to apply. Will be a direct deposit, if they approve it. Guess with the huge number of applicants, they just got to mine.

Will inform if anything actually received. Jim.

[MoodyBluesKeys]

Got word today that I have been approved. Had to sign the agreement electronically (after reading it fully) Will need to keep detail records on exactly where the money from the EIDL went, make my books available to SDA if requested. I'm only going to use this on things that I KNOW are approved uses, such as utilities, insurance for business vehicle, prorated amount of property tax; keep the fund separately with a spreadsheet showing all disbursements. Will also keep enough money in the business (assuming possible) to pay the full amount back a year later if it doesn't get forgiven under the program.

[Greg Mein]

My wife and I got the "covid card" as she dubbed it a couple weeks ago which came as a total surprise. It was in the neighborhood of $1100 so we took it out to dine and party it up while tipping like drunken sailors. We wiped it out in no time!

[Jazzmammal]

There ya go! Use it to stimulate the economy, nothing like a bunch of drunken sailors to soak it up. These late payments are still baffling to me, there was supposed to be a IRS phone number to call if you haven't received it but no number yet. My buddy on SSI still hasn't gotten his and I have nothing to tell him.

 

Bob

[MoodyBluesKeys]

EIDL was received direct deposit on 18 June. Transferred to the business account, will put notes on each item that it is spent on, and also keeping a spreadsheet showing all disbursements. Want to be careful to only disburse for purposes in which the loan may be forgiven.

[Jazzmammal]

Wow, nothing new to report since June 20. I would have bet real money we would have a new stimulus bill by now but so far a lot of talk, no action. No predictions from me.

 

We do have this though:

 

IRS Newswire

August 28, 2020

Issue Number: IR-2020-195

 

Inside This Issue

 

Guidance issued to implement Presidential Memorandum deferring certain employee Social Security tax withholding

 

WASHINGTON â The Department of Treasury and Internal Revenue Service today issued guidance implementing the Presidential Memorandum issued on Aug. 8, 2020, allowing employers to defer withholding and payment of the employee"s portion of the Social Security tax if the employee"s wages are below a certain amount.

 

Notice 2020-65, posted today on IRS.gov, makes relief available for employers and generally applies to wages paid starting Sept. 1, 2020, through Dec. 31, 2020.

 

The employee Social Security tax deferral may apply to payments of taxable wages to an employee that are less than $4,000 during a bi-weekly pay period, with each pay period considered separately. No deferral is available for any payment to an employee of taxable wages of $4,000 or above for a bi-weekly pay period.

 

Today"s notice postpones the time for employers to withhold and pay employee Social Security taxes.

 

This is real for those getting W2 wages. If you haven't discussed this with your employer, now's the time.

 

Bob

[Jazzmammal]

Still no news on a new stimulus package but it does seem to be getting closer...

 

Here's an update for non filers who have not yet received their current stimulus money. This could be something to mention to family and friends who are low income with no need to file a tax return and may not understand any of this, you could be doing them a big favor.

 

Issue Number: IR-2020-229

 

IRS extends Economic Impact Payment deadline to Nov. 21 to help non-filers

 

WASHINGTON â The Internal Revenue Service announced today that the deadline to register for an Economic Impact Payment (EIP) is now Nov. 21, 2020. This new date will provide an additional five weeks beyond the original deadline.

 

The IRS urges people who don"t typically file a tax return â and haven"t received an Economic Impact Payment â to register as quickly as possible using the Non-Filers: Enter Info Here tool on IRS.gov. The tool will not be available after Nov. 21.

 

'We took this step to provide more time for those who have not yet received a payment to register to get their money, including those in low-income and underserved communities,' said IRS Commissioner Chuck Rettig. 'The IRS is deeply involved in processing and programming that overlaps filing seasons. Any further extension beyond November would adversely impact our work on the 2020 and 2021 filing seasons. The Non-filers portal has been available since the spring and has been used successfully by many millions of Americans.'

 

Special note: This additional time into November is solely for those who have not received their EIP and don"t normally file a tax return. For taxpayers who requested an extension of time to file their 2019 tax return, that deadline date remains Oct. 15.

 

To support the ongoing EIP effort, many partner groups have been working with the IRS, helping translate and making available in 35 languages IRS information and resources on Economic Impact Payments.

 

To help spread the word, the IRS sent nearly 9 million letters in September to people who may be eligible for the $1,200 Economic Impact Payments but don"t normally file a tax return. This push encourages people to use the Non-Filers tool on IRS.gov.

 

'Time is running out for those who don"t normally file a tax return to get their payments,' Rettig added. 'Registration is quick and easy, and we urge everyone to share this information to reach as many people before the deadline.'

 

While most eligible U.S. taxpayers have automatically received their Economic Impact Payment, others who don"t have a filing obligation need to use the Non-Filers tool to register with the IRS to get their money. Typically, this includes people who receive little or no income.

 

The Non-Filers tool is secure and is based on Free File Fillable Forms, part of the Free File Alliance's offering of free products on IRS.gov.

 

The Non-Filers tool is designed for people with incomes typically below $24,400 for married couples, and $12,200 for singles who could not be claimed as a dependent by someone else. This includes couples and individuals who are experiencing homelessness.

 

Anyone using the Non-Filers tool can speed the arrival of their payment by choosing to receive it by direct deposit. Those not choosing this option will get a check.

 

Beginning two weeks after they register, people can track the status of their payment using the Get My Payment tool, available only on IRS.gov.

 

Bob

[Jazzmammal]

This one has nothing to do with stimulus payments but it's very cool so I'm including it here.

 

Issue Number: IR-2020-233

 

Inside This Issue

 

IRS adds QR technology to key balance due notices to help taxpayers

 

WASHINGTON â For the first time, the IRS is adding barcode technology to notices sent to millions of taxpayers.

 

Starting this month, the CP14 and CP14 IA notices that inform taxpayers that they owe money on unpaid taxes and their payment options are now equipped with QR bar codes to help those taxpayers securely and easily navigate to the IRS.gov website.

 

Taxpayers can now use their smartphones to scan a QR code in the CP14 or CP14 IA to go directly to IRS.gov and securely access their account, set up a payment plan or contact the Taxpayer Advocate Service.

 

Scanning the QR code on the CP14 or CP14 IA gives the taxpayer direct access to the information they need on IRS.gov to resolve their account balance online without the need to call or interact with the IRS directly.

 

'These codes will give taxpayers immediate access to the most important information for them to pay their balances, set up payment agreements or reach out for help,' said Darren Guillot, the IRS Small Business/Self-Employed Deputy Commissioner for Collection and Operations Support. 'We understand there"s a lot of information on the web, and we want to give taxpayers more secure tools that can more easily help them resolve their tax situations.'

 

The IRS generally sends more than 8 million CP14 notices each year to taxpayers. They are the first legal notice alerting them that they have a balance due. Adding a QR code to the notice provides access to an up-front resolution for millions of taxpayers.

 

'This will help make the entire process easier for taxpayers,' Guillot said.

 

The IRS is assessing the possibility of adding other QR codes to other balance due notices in the future.

 

Of course if anybody gets a bill and thinks they don't owe it or it just doesn't make sense they can still call the Helpline at 800-829-1040. This is the problem with big government bureaucracies though, they are soooo sloooww. Businesses have been using bar codes for how long? Better late than never.

 

Bob

[MoodyBluesKeys]

Resurrecting this thread because:

I got an email Tuesday (09 Feb, 2021) from disastercustomerservice@sba.gov with my application number entitled Status. In it, there was some detail on repayment of the EIDL that I received in June, 2020. As previously mentioned, I actually got two payments a couple of weeks apart.

Yesterday, desiring to pay whatever I owed, so as to minimize any interest due, I started a rather long process of going to different government websites that were mentioned, to FIND OUT WHAT I OWED. Payment can be made electronically through Pay.gov. After several hours of frustration with little accomplished, I called the particular Help Line that was indicated in Birmingham, AL. Number 800 736-6048. After about half an hour waiting on the line for the "next agent," when they asked every minute or so, I chose to have them call me, sometime between 7am and 7pm (eastern time).

 

An hour or so later, I received a call from a VERY knowledgeable and courteous agent. I told him my basic purpose, to pay what I owed, and mentioned to him that I had gotten TWO payments instead of one. He explained that the first one of those was an EIDL Grant, and did not have to be repaid. The second was an EIDL Loan, whidh DID have to be repaid.

 

I asked if there was any way I could pay right then and there by bank draft, whatever the amount owed.. Yes, that could be done, all that was needed was my bank number and my account number for the draft. He said give him a minute or so to find out the exact amount owed. The loan was for $1000.00, the amount owed was $1020.55. Paid it, got an email receipt from pay.gov while we were still on the phone. Very glad to have the matter all resolved.

 

Figured this might be of help to any others who are trying to work through the morass of online sites to learn their liability and make arrangements for payment. Have a blessed day!