by MEA Tax Advisors | Oct 29, 2020 | Tax Tips and News
The Internal Revenue Service is continuing its push to get non-filers to register so they can receive an Economic Impact Payment or EIP.
In keeping with that mission, the IRS has designated Nov. 10 as “National EIP Registration Day.” It comes just a few days ahead of the extended Nov. 21 registration deadline.
The event will feature support from IRS partner groups both inside and outside of the tax community, including those who work with low-income and underserved communities.
These partner groups will help spread the word about the new Nov. 21 deadline and, in some cases, provide special support for people who still need to register for a payment.
IRS is getting the word out.
Nearly 9 million letters have been sent by the IRS to people who may be eligible for the $1,200 Economic Impact Payment, but don’t normally file an income tax return. The letters, and the Nov.10 event both urge people to use the Non-Filers: Enter Info Here tool, available only on IRS.gov.
“Our partner groups have been a critical part of the unprecedented IRS outreach and education campaign this year to contact as many people as possible about these payments,” said IRS Commissioner Chuck Rettig. “As a result, millions of Americans have successfully used the Non-filers portal and received their Economic Impact Payment. Registration is quick and easy, and we urge everyone to share this information to reach as many people before time runs out on November 21.”
Many partner groups have already been working with the IRS on the registration effort, spreading information about the EIP and translating the notices and other information into as many as 35 languages.
The IRS also plans a social media campaign in several languages to support the final push for registrations.
No EIP if you don’t register.
Most eligible U.S. taxpayers have already automatically received their Economic Impact Payment; but others who don’t have an obligation to file a tax return should use the Non-Filers tool to register with the IRS to get their money. Typically, this includes people who receive little or no income.
Since the Non-Filers tool launched in the spring, over 8 million people who normally aren’t required to file a tax return have registered for the payments. The IRS continues to work to reach others who haven’t used the tool yet, which led to the special mailing and the special Nov. 10 registration event.
The 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.
Those using the Non-Filers tool can speed up their payment’s arrival by choosing to get it by direct deposit. Recipients not choosing this option will get their payment by check.
Starting two weeks after they register, people can track the status of their payment by using the Get My Payment tool, available only on IRS.gov.
Source: IR-2020-242
– Story provided by TaxingSubjects.com
by MEA Tax Advisors | Oct 22, 2020 | Tax Tips and News
Taxpayers dealing with the fallout from wildfires in California and Hurricane Delta in Louisiana yesterday received some good news from the Internal Revenue Service. Following the Federal Emergency Management Agency’s disaster declarations for affected areas, the IRS is giving victims additional time to meet certain filing and payment deadlines.
What parts of California have been granted tax relief due to September wildfires?
Individuals and businesses in the following wildfire-affected California counties automatically have until January 15, 2021, to meet filing and payment deadlines that would have occurred on or after September 4, 2020:
- Fresno
- Los Angeles
- Madera
- Mendocino
- San Bernardino
- San Diego
- Siskiyou
What filing and payment deadlines in California are affected by the tax relief?
Deadlines beginning September 4, 2020, for individuals and businesses in affected California counties will be pushed back to January 15, 2021, including:*
- September 15, 2020 quarterly estimated income tax payment deadline
- October 15, 2020, individual tax return extension deadline
- October 15, 2020, calendar-year corporation extension deadline
- November 2, 2020 quarterly payroll and excise tax return deadline
- November 16, 2020, calendar-year tax-exempt organization extension deadline
As with other disaster-related tax relief, this list could grow, and affected taxpayers will not need to contact the IRS to receive updated filing and payment deadlines. Further, this tax relief also helps taxpayers who owe “penalties on payroll and excise tax deposits due on or after September 4 and before September 21.” If taxpayers in affected California counties make a deposit by September 21, 2020, the penalty will be abated.
That said, the IRS explains there are edge cases: “If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment, or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.”
The IRS also notes that “this relief is separate from that provided for the California wildfires that began on August 14,” directing taxpayers interested in more information about that tax relief to the announcement made on August 26.
What parts of Louisiana have been granted tax relief due to Hurricane Delta?
Individuals and businesses in the following hurricane-affected Louisiana parishes automatically have until February 16, 2021, to meet filing and payment deadlines that would have occurred on or after October 6, 2020:*
- Acadia
- Calcasieu
- Cameron
- Jefferson Davis
- Vermilion
If any of the included parishes were previously granted tax relief due to Hurricane Laura, they will now benefit from the updated filing and payment deadline.
What filing and payment deadlines in Louisiana are affected by the tax relief?
Deadlines beginning on October 6, 2020, for individuals and businesses in affected Louisiana parishes will be pushed back to February 16, 2021, including:
- October 15, 2020, individual tax return extension deadline
- October 15, 2020, calendar-year corporation extension deadline
- November 2, 2020, quarterly payroll and excise tax return deadline
- November 16, 2020, calendar-year tax-exempt organization extension deadline
- January 15, 2021, quarterly estimated income tax payments
- February 1, 2021, quarterly payroll and excise tax return deadline
Like the California tax relief, taxpayers will have certain penalties abated if they make a payment by the designated date. Louisianans living in affected areas with “penalties on payroll and excise tax deposits due on or after October 6 and before October 21, will [have those penalties] abated as long as the deposits are made by October 21, 2020.”
What deadlines are not affected by the tax relief for disaster victims in California and Louisiana?
Deadlines that occurred before the dates indicated in the IRS press releases are not affected by this tax relief, including—importantly—the July 15 tax payment deadline.
* These lists of affected deadlines are not exhaustive. Check the “Disaster Assistance and Emergency Relief for Individuals and Businesses” page on IRS.gov for links to more details.
Sources: IR-2020-236; IR-2020-237
– Story provided by TaxingSubjects.com
by MEA Tax Advisors | Oct 10, 2020 | Tax Tips and News
Americans who don’t normally file a tax return now have more time to apply for an Economic Impact Payment (EIP). The Internal Revenue Service this week announced that the deadline for non-filers to send EIP-qualifying information has been extended to November 21, 2020.
Congress passed the CARES Act early in the pandemic, which provides a one-time payment of up to $1,200 for qualifying filers—even those who don’t normally file a tax return. In an effort to make it easier for non-filers to timely send their information to the IRS, the agency created the Non-Filers: Enter Info Here tool.
While the window is closing to apply for an EIP and use the tool, the IRS has given non-filers another month to register.
Who can use the Non-Filers: Enter Info Here tool?
“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,” the IRS explains. “This includes couples and individuals who are experiencing homelessness.”
Those who want to get their EIP as fast as possible will need to select direct deposit. Otherwise, the IRS says filers will need to wait for a check to arrive in the mail. Regardless of how an EIP is issued, payment status can be tracked with Get My Payment two weeks after applying.
What is the EIP-application deadline for those who normally file a return?
According to the IRS, “[the November 21, 2020 deadline] 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 October 15.”
Don’t expect for this new deadline to get pushed back further. IRS Commissioner Chuck Rettig says “any further extension beyond November would adversely impact our work on the 2020 and 2021 filing seasons.”
Source: IR-2020-229
– Story provided by TaxingSubjects.com
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