Last month, the IRS announced that certain taxpayers generally have until July 15, 2020, to file and pay federal income taxes originally due on April 15. The IRS has extended this relief to additional returns, tax payments and other actions. As a result, the extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. The extensions apply to many forms and tax payments, including:
- Form 1040-series returns and Q1 and Q2 Form 1040-ES estimate payments
- Form 1120-series returns and Q1 and Q2 Form 1120-W estimate payments
- Form 1065 and Form 1066 returns
- Form 1041-series returns and Q1 and Q2 Form 1041-ES estimate payments
- Form 706-series returns
- Form 709
- Form 990-series annual information returns or notices (Forms 990, 990-EZ, 990-PF, 990-BL, 990-N (e-postcard))
See Notice 2020-23 and Rev. Proc. 2018-58 for more information, including a complete list of affected forms, tax payments and other time-sensitive actions.
Please note that federal extensions of time do not guarantee extensions of time for the corresponding state or local returns. Please contact your ScrogginsGrear representative if you have any questions for how this will affect you or your business.
Taxpayers should be aware of COVID-19 related scams
As of 4/16/2020.
Taxpayers should be on the lookout for IRS impersonation calls, texts and email phishing attempts about the COVID-19 Economic Impact Payments. These scams can lead to tax-related fraud and identity theft. CLICK HERE to learn more about what you should know to protect yourself from scammers.
Deferral of the excess business loss limits
The Tax Cuts and Jobs Act (the 2017 Tax Law) provided that net tax losses from active businesses in excess of an inflation-adjusted $500,000 for joint filers, or an inflation-adjusted $250,000 for other covered taxpayers, are to be treated as net operating loss carry forwards in the following tax year. The covered taxpayers are individuals (or estates or trusts) that own businesses directly or as partners in a partnership or shareholders in an S corporation. CLICK HERE for more information.
IRS Creates Website to Help Those Entitled to Economic Impact IR 2020-72
As of 4/15/2020
The IRS provides details on the distribution of the EIPs that are part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). In the information released, the IRS stated that it planned to develop a web-based portal so that individuals who did not use direct deposit on their last tax return could provide their banking information to the IRS, which would allow these individuals to receive their EIP more quickly. This is the “Get My Payment” tool. CLICK HERE to read more.
Lapse in Appropriations Notice:
As of 4/16/2020.
The SBA is unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL) COVID-19 related assistance program (including EIDL advances) based on available appropriations funding.
EIDL applicants who have already submitted their applications will continue to be processed on a first come, first-served basis.
CLICK HERE to learn more.
Prior Updates from COVID-19 Financial Assistance and COVID-19 Tax Information
Includes: Tax Filing and Payment Deadline FAQs, Financial Considerations, Tax Aspects of the CARES Act, Economic Injury Disaster Loans and Emergency Economic Injury Grants, and COVID-19 Economic Injury Disaster Loan Application Process Checklist.
CLICK HERE to access prior updates.
CLICK HERE Paycheck Protection Program Loans
*as of 4/16/2020, the SBA is unable to accept new PPPL applications.
CLICK HERE Paycheck Protection Program FAQ
*as of 4/16/2020, the SBA is unable to accept new EIDL applications.