Florida storm victims eligible for tax relief can take advantage of extended deadlines until August 15 instead of the original April 18 deadline.
Florida Storm victims now have until August 15, 2023, to file…
The House passed a $484 billion spending package Thursday as the unemployment crisis deepened. According to the Labor Department, 4.4. million Americans sought unemployment benefits last week because of the COVID-19 pandemic. More than 26 million jobless claims have been filed since the novel coronavirus breakout hit the U.S. last month.
The legislation passed yesterday, by a 388-5-1 bipartisan vote, seeks to restart the small-business loan program (that ran out of money last week and stopped processing loans by demand), and allocate more money for hospitals and virus testing to battle the coronavirus pandemic. The new measure includes $310 billion to replenish the Paycheck Protection Program, $60 billion for a separate small-business emergency loan and grant program, $75 billion for hospitals and health-care providers, and $25 billion for a new coronavirus testing program.
President Trump says he’ll sign.
Multiple media outlets reported that lawmakers from both parties are talking about pursuing more large spending bills to try to contain the pandemic’s economic fallout, but the measure passed on Thursday could be the last one for at least several weeks as divisions emerge between the parties about how much more to do. “Congress is not scheduled to return to Washington until May 4 at the earliest.”
In addition to this historic bill, the IRS granted broad coronavirus-related tax relief to help people facing the challenges of COVID-19 issues.
Please note that the new relief, issued in Notice 2020-23, applies to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020, including individuals, trusts, estates, corporations, and other noncorporate tax fillers, and that period will be disregarded by the IRS in calculating any interest, penalty, or addition to tax for failure to file the forms specified in the notice.
American citizens living abroad: Americans who live and work abroad can now wait until July 15, 2020, to file their 2019 federal income tax and pay any tax due.
Specified forms: Federal tax forms and payments covered by the relief include:
The IRS Initiative also includes:
For taxpayers under an existing Installment Agreement, payments due between April 1 and July 15, 2020 are suspended. Taxpayers who are currently unable to comply with the terms of an Installment Payment Agreement, including a Direct Debit Installment Agreement, may suspend payments during this period if they prefer. Furthermore, the IRS will not default any Installment Agreements during this period. By law, interest will continue to accrue on any unpaid balances.
The IRS reminds people unable to fully pay their federal taxes that they can resolve outstanding liabilities by entering into a monthly payment agreement with the IRS. See IRS.gov for further information.
The IRS is taking several steps to assist taxpayers in various stages of the OIC process:
The IRS reminds people who have not filed their return for tax years before 2019 that they should file their delinquent returns. More than 1 million households that haven’t filed tax returns during the last three years are actually owed refunds; they still have time to claim these refunds. Many should consider contacting a tax professional to consider various available options since the time to receive such refunds is limited by statute. Once delinquent returns have been filed, taxpayers with a tax liability should consider taking the opportunity to resolve any outstanding liabilities by entering into an Installment Agreement or an Offer in Compromise with the IRS to obtain a “Fresh Start.” See IRS.gov for further information.
Liens and levies (including any seizures of a personal residence) initiated by field revenue officers will be suspended during this period. However, field revenue officers will continue to pursue high-income non-filers and perform other similar activities where warranted.
New automatic, systemic liens and levies will be suspended during this period.
IRS will suspend new certifications to the Department of State for taxpayers who are “seriously delinquent” during this period. These taxpayers are encouraged to submit a request for an Installment Agreement or, if applicable, an OIC during this period. Certification prevents taxpayers from receiving or renewing passports.
New delinquent accounts will not be forwarded by the IRS to private collection agencies to work during this period.
During this period, the IRS will generally not start new field, office and correspondence examinations. We will continue to work refund claims where possible, without in-person contact. However, the IRS may start new examinations where deemed necessary to protect the government’s interest in preserving the applicable statute of limitations.
Taxpayers have until July 15, 2020, to respond to the IRS to verify that they qualify for the Earned Income Tax Credit or to verify their income. These taxpayers are encouraged to exercise their best efforts to obtain and submit all requested information, and if unable to do so, please reach out to the IRS indicating the reason such information is not available. Until July 15, 2020, the IRS will not deny these credits for a failure to provide the requested information.
Appeals employees will continue to work their cases. Although Appeals is not currently holding in-person conferences with taxpayers, conferences may be held over the telephone or by videoconference. Taxpayers are encouraged to promptly respond to any outstanding requests for information for all cases in the Independent Office of Appeals.
The IRS will continue to take steps where necessary to protect all applicable statutes of limitations. In instances where statute expirations might be jeopardized during this period, taxpayers are encouraged to cooperate in extending such statutes. Otherwise, the IRS will issue Notices of Deficiency and pursue other similar actions to protect the interests of the government in preserving such statutes. Where a statutory period is not set to expire during 2020, the IRS is unlikely to pursue the foregoing actions until at least July 15, 2020.
Sources: IRS.gov. / Johns Hopkins Coronavirus Resource Center, Friday, April 24, 1 a.m. / IRS grants coronavirus-tax relief. By Alistair M. Nevious, J.D. for Journal of Accountancy. / House passes $484 billion bill. By Erica Werner for The Washington Post. / Coronavirus.gov
At Guillen Pujol CPAs, we are ready to assist in the determination of the maximum amount that you can apply for, the completion of all these forms and preparing all necessary additional documentation, and even act as your agents to follow up through all the process with the SBA lender for this loan application.
Click here to visit the IRS for more information regarding ‘Coronavirus Tax Relief and Economic Impact Payments’
#StayHome: The U.S. has become the worldwide epicenter of the coronavirus epidemic. As of Friday, April 24, 01:00 a.m., the COVID-19 fatalities are approaching 50,000 and more than 869,172 cases have been reported. (Via the Center for Systems Science and Engineering at Johns Hopkins University Hospital).
En caso de necesitar mayor información, puede contactarnos vía email o teléfono. #QuédateEnCasa
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