April 15th is now May 17th. Of course in Texas, April 15th is June 15th.
These are the due dates of tax returns now.
Keeping You On the Right Track!!!! "Making Reporting Less Taxing" Accounting firm with an emphasis on services for start-up businesses including tax preparation, payroll processing, bookkeeping assistance and many other services.
April 15th is now May 17th. Of course in Texas, April 15th is June 15th.
These are the due dates of tax returns now.
Texans affected by the winter storm have until June 15 to file their taxes
Individuals and households affected by severe winter storms that live or have a business in all 254 Texas counties qualify for tax relief, the IRS said Monday.
2020 FILING SEASON DEADLINE EXTENDED FOR TEXAS
The IRS just announced that the deadline for filing taxes for Texas winter storm victims has been moved from April 15th to June 15th.
Also, IRA contributions deadline ahs been moved to June 15th as well.
1st quarter estimated taxes were also moved to June 15th.
Do to the weather conditions, my office will be closed Monday February 15th. Based on current forecasts, my office will probably be closed Tuesday as well. Please email me if you need assistance. My office will reopen when travel is safe.
2021 FIling Season Start Date Announced
The IRS announced today that individuals can start filing tax returns on FEBRUARY 12th. This is probably the latest start date in history. So, there is no rush in getting your documents to us as we can't transmit the return until then. We will probably be able to transmit the return to our software provider before then but they can't do the final transmission until February 12th.
Also this year with the two rounds (and maybe even a 3rd round) of economic impact payments (stimulus) we will need the amounts you received. Shortfalls in payments to you can generate an additional credit to you.
Finally, if you have a child and get a child credit or Earned Income Credit, please provide me documentation of proof of residency as it will speed up our processing time.
Technical Correction on PPP Loans - Good News!!!!
Under the original legislation authorizing PPP loans, the law made it clear that the forgiveness was tax free but the expenses paid with PPP funds were not deductible. Thus, the taxable income of the taxpayer WAS going up by the PPP loans.
However, the new stimulus bill did a technical correction that will really help small businesses. Section 276 of the bill states that Congress did not intend for the funds to be taxable in any way. So, as such, Congress has made it clear that expenses paid with PPP funds are now fully deductible.
This is a huge benefit for small businesses that had a hidden time bomb in them - a massive tax bill in 2021. But now, small businesses can breathe again.
Rules regarding meals are changing again. As part of the Stimulus package that sent $600 to most taxpayers, the meals deduction was increased back to 100% for 2021 and 2022. BUT ONLY IF THE MEAL WAS PURCHASED FROM A RESTAURANT. So, food purchased at a Spurs game would still be at 50%. Oh by the way, those Spurs tickets are still not deductible.
First batch of the second round of stimulus payments have started hitting individuals accounts. If you have received a direct deposit refund in the last 2 years (or supplied the IRS with your banking information), then you should be seeing your $600 stimulus payment soon. Obviously, there are restrictions based on income levels etc.
Also, this time, the legislation specifically stated that individuals who died prior to January 1, 2020 are not eligible for a stimulus payment. But they did not correct the language for the first round of payments.
News have been reporting a story about the new Employee Payroll Tax Deferral that starts with paychecks dated after September 1st. However, this is a DEFERRAL which is going to be REPAID beginning January 1st.
I do not foresee many companies actually doing this as the EMPLOYER is on the hook for the repayment of the taxes if the employee is terminated.
I am advising ALL of my clients to OPT OUT of the employee payroll tax deferral.
As an employee, if your employer chooses to participate in the employee payroll tax deferral program, you have the right to opt out as well. You just need to notify your HR to do so. If you choose to defer your payroll taxes, you will see double the payroll taxes (F**A taxes - not income taxes) withheld beginning January 1st.
At this point, it doesn't look like the IRS is going to pursue the funds. I have advised my clients to hold on to the money but don't spend it. I have always believed that as the law was written, that the heirs WERE entitled to the money and that the law also had no provision to require refunding excess funds.
It's a lapse that tax experts say is almost inevitable
IRS has made a major improvement to the e-file system. Beginning in late Summer, we will have be able to e-file amended tax returns for individuals. In the past, amended returns had to be filed by paper (a major hassle). Amended returns can only be e-filed for tax years 2019 forward. The prior ones will still need to be filed by paper. All other amended returns (businesses, trusts etc) could be e-filed.
Reminder, you have 3 years to file an amended return.
The last hurdle for the e-file program will be delinquent tax returns for individuals.
IRS DEBIT CARDS
For those that did not receive a stimulus payment check or direct deposit, the IRS is now sending debit cards. These are legit. They have a flag on them and they are VISA cards on a bank called MetaBank.
THESE ARE LEGIT. If it is any other bank, then it is a scam.
Some stimulus check payments may be sent on a prepaid debit card known as the Economic Impact Payment Card.
Are you a small business? The City of San Antonio has a COVID-19 safety kit for businesses with less than 25 employees. The kit comes with a touchless thermometer, 2 gallons of hand sanitizer and masks. Now, for me, I did the option with just the thermometer and it will be mailed to me. But the full kit is available for pickup. YOU MUST REGISTER AT THE SITE BELOW TO PICK ONE UP. AND YOU MUST PICK IT UP TODAY.
Business and economic development leaders have constructed a thoughtful path forward, intentionally designed to support businesses and nonprofits most in need.
The IRS was quick to point out that under the law the Payroll Protection Plan loans that will be forgiven will have that forgiveness tax free. However, the IRS didn't mention that buried in the law that the expenses covered by the PPP are not deductible. The overall effect is the same. Your taxable income will go up by the amount of the forgiveness of debt.
Here is an article about that hidden bomb!
The Paycheck Protection Program rolled out with great fanfare to help save small businesses during the coronavirus pandemic. But something the IRS just did could decimate much of that benefit.
FRANCHISE TAX AUTOMATIC EXTENSION:
The State of Texas has automatically extended the due date of franchise tax reports. Normally, they are due on May 15th but the State Comptroller has changed the due date to July 15th to mirror the IRS.
The IRS went live with the website for those who need to supply their direct deposit information with the IRS for the Economic Impact Payment (aka stimulus).
This site has two purposes:
The left side is for those who do not file a tax return.
The right sides is for those who DID file a tax return but they either have not had a refund direct deposited in the last 2 years OR they need to change their direct deposit information.
We’re committed to helping you get your economic impact, or stimulus, payment as soon as possible. See if you are eligible for an Economic Impact Payment.
My software provider published this special report on COVID-19.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. In addition to funding the health care fight against the novel coronavirus (COVID-19), the roughly $2 trillion legislation provides much-needed financial relief to individuals, businesses, not-for-p...
BE ON ALERT FOR STIMULUS PAYMENT SCAMS.
I just got a phone call and that for a small fee, they could get my wife and I's stimulus payment in our bank account overnight.
A few problems:
1 - My wife passed away.
2 - There is no LEGITIMATE program that you would pay a fee to get your stimulus payment.
The IRS will automatically direct deposit it into your account or send you a check. No action is required on your part. Also, if you have not had a direct deposit on your 2018 return or 2019 return, then the IRS will set up a webpage to enter your direct deposit information. I strongly encourage you to do this when it is available. It is suppose to go active next week. The first batch of stimulus payments are also supposed to go out later this week or next week.
Stimulus payment information:
IRS has setup this page to provide information about how the stimulus payments will be disbursed.
IR-2020-61, March 30, 2020 — The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. Updated with new information for se...
The IRS has setup this special page with further explanation of the deadline and tax payment deferral until July 15th.
In Notice 2020-18 (PDF), the Treasury Department and the Internal Revenue Service (IRS) announced special Federal income tax return filing and payment relief in response to the ongoing Coronavirus Disease 2019 (COVID-19) emergency. Below are answers to frequently asked questions related to the relie...
2020 Estimated Tax Payments Due Date Moved
For those that make estimated tax payments, the first installment is normally due on April 15th. With the announcement of the deadline extension to July 15th, the IRS is also delaying the deadline for making the first quarter estimated tax payment to July 15th as well.
The second quarter estimated tax payment is normally due on June 15th. As of now, that estimated tax payment is still due on June 15th. Going to be quirky but the 2nd quarter will be due before the first quarter is due.
San Antonio has gone to a "Shelter in Place". I just read the City's new order and CPAs are considered an exempt business. However, I will not be meeting any clients until further notice.
The official IRS announcement has not been made but the April 15th FILING deadline has been moved to July 15th. I will post a link here once I get the "official" announcement from the IRS.
IRS TAX PAYMENT (NOT FILING) DEADLINE EXTENDED
The IRS has finally issued information regarding the extension of time to PAY income taxes that would be due on April 15th. The new payment deadline is July 15, 2020. No penalties or interest for late payment of income taxes will accrue during this period. Penalties and interest will begin accruing on July 16th for any unpaid income taxes.
It is important to note that only the deadline for payment of taxes has been extended. Penalties for late filing of income taxes will be assessed if a return or extension is not filed by April 15th so our filing deadline has not changed as of today (March 18th).
I personally believe that the filing deadline will be changed at some point given so many individuals are starting to be sheltered in place and so many tax preparers are closing physical offices due to Social Distancing recommendations.
My office will no longer be meeting with individuals in person as of March 19th. All appointments from this point on will be done via telephone or via Video Conferencing using a platform called Zoom.
News agencies are reporting that President Trump has announced a 3 month delay in PAYING your income taxes without interest and penalties. I have not seen any "official" word or guidance on this. It is my understanding that the return is still due on April 15th.
I will keep you posted once I have seen something from the IRS. I still expect the deadline to FILE your taxes to be pushed back.
CORONAVIRUS (COVID-19) INFORMATION:
In accordance with suggested actions from the San Antonio Metropolitan Health District, I will be limiting my physical contact with my clients. At this time, I will not be maintaining regular office hours and may be working from home instead. In addition, I am wiping down my desk and the other surfaces in my office. Also, I will be confirming all appointments on the day of the appointment. If at all possible, I am going to be conducting all business via telephone or email. PLEASE PLEASE PLEASE cancel an appointment if you do not feel good and I will do the same.
In addition, my landlord is also decreasing exposure to the COVID-19 within our building by wiping down surfaces and disinfecting common areas several times a day.
Thank you for your consideration.
Mark Lackie CPA
Last night, President Trump announced a delay of income tax filing deadline "for those impacted by the coronavirus." No specifics were given for who that relief will be given to and no date was set for the tax deadline.
I have been researching my professional sites and the feeling is that ALL taxpayers will be given relief of a deadline extension. The reason is that it taxpayers may have a harder time finding tax preparers to prepare their return (think how the large tax preparers meet face to face). In addition, they expect that there will be less IRS agents available to assist the public.
As for the extended deadline date, the "experts" think it will be at least June 15th but may be as late as October 15th.
Another nice thing is that any tax payments made after April 15th for 2019 will not be subject to late payment penalties and interest. Again, exactly who will be given this relief has not been specified but most experts believe it will be all taxpayers.
Looks like April 15th won't be April 15th this year. According to various news agencies, the tax deadline is expected to be extended due to the coronavirus. The exact mechanics and what the new deadline will be has not been announced. Also, it has not been announced if it will be everyone or only impacted individuals. My gut says it will be an overall extension benefiting everyone. I will keep you informed more upon further information being released.
For now, I am attaching this article.
Treasury Secretary Steve Mnuchin confirms the Trump administration is looking to extend tax filing deadline to help those impacted by coronavirus.
To expedite the filing of tax returns, I am going to electronic signatures. In the past, we have sent PDFs which people had to actually print, sign and return.
Now, individuals can sign the return via an online review of the return and then signing it electronically. Our software vendor uses information to verify the identity of the signer and then sends us a notification that the taxpayer (and spouse) have "signed" their return.
It is an effort to help fight id theft. No more emails with passwords and no more returning emails with social security numbers exposed.
Right now, the IRS is only accepting individual returns with electronic signatures.
Business Owners: Do you use individuals who provide a service to your company? If so, you need to send them a 1099 if you paid them more than $600 in a year.
And when is that 1099 due? JANUARY 31st.
The Affordable Care Act increased the penalties for failure to file 1099s. As such, you really need to take a look to make sure you are in compliance.
WHO DO I SEND A 1099 TO? A 1099 is sent to an individual or business that provides a service and you paid them more than $600 last year. Businesses that are corporations (including S corporations) and LLCs that are treated as corporations do not receive a 1099.
WHAT IS A SERVICE SUBJECT TO 1099 REPORTING? Think of it this way. If they provided something tangible (ie touchable) then it is not a service and they sold you a product and thus not a 1099. Example, a plumber that clears a drain provided you a service (and receives a 1099) but a plumber that sold and installed a toilet would not receive a 1099.
WHO MUST FILE 1099s? A business that files either a corporate return, a partnership return or a schedule C (sole proprietorship) are required to file 1099s. Also, the definition of a business for 1099 purposes includes non-profit organizations and INDIVIDUALS WHO HAVE RENTAL PROPERTIES. Thus, if you are a landlord, you need to file 1099s.
If you need assistance preparing 1099s, I would be happy to help you. Please contact my office ASAP.
1003 Beckett, Ste 104
San Antonio, TX
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