04/04/2020
FILING DEADLINE EXTENDED:
As you all know by now – the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.
Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.
Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief.
NEW UPDATE ON FILING REQUIREMENTS FOR THOSE WHO RECEIVE SSA OR SSI:
April 1, 2020 The Internal Revenue Service announced that Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return to receive an Economic Impact Payment – as earlier stated. Instead, payments will be automatically deposited into their bank accounts.
STIMULUS PAYMENTS (ECONOMIC IMPACT PAYMENTS):
The vast majority of people do not need to take any action to receive the payments. The IRS will calculate and automatically send the economic impact payment to those eligible. The IRS expects to start sending payments as early as April 10th with taxpayers seeing funds in their accounts the following week. Then continuing for several weeks thereafter as they work out the best way to get the payments to all eligible individuals.
There is a large percentage of tax returns that use the direct deposit feature on their return – and the IRS will look to leverage that method first – since it’s the fastest.
Although we do not expect that stimulus payments will be processed through Refund Transfer banks, we anticipate that those taxpayers will either have funds direct deposited into their own bank account or a check mailed to them.
This information is discussed daily and changes made accordingly. We will keep you posted periodically as we learn the facts.
BE WARY OF FRAUD & PHISHING SCHEMES:
The Internal Revenue Service urged taxpayers to be on the lookout for a surge of calls and email phishing attempts about the Coronavirus, or COVID-19. These contacts can lead to tax-related fraud and identity theft. Taxpayers should watch not only for emails but text messages, websites and social media attempts that request money or personal information.