Tax & Current Accounting Topics

Some taxpayers may need to make estimated tax payments 

https://www.irs.gov/newsroom/some-tax

https://accountinginstruction.info

Some taxpayers earn income not subject to withholding. For small business owners and self-employed people this can mean making quarterly estimated tax payments.  Anyone in this situation should check their withholding using the Tax Withholding Estimator on IRS.gov. If the estimator suggests a change, the taxpayer can submit a new Form W-4 to their employer.

Tips for taxpayers who need to file an amended tax return 

https://www.irs.gov/newsroom/tips-fo

https://accountinginstruction.info

The IRS will correct common errors during processing. However, there are certain situations in which a taxpayer may need to file an amended return to make a correction. Taxpayers can now file some amended electronically. Here are some tips for anyone who discovered they made a mistake or forgot to include something on their tax return.  Use the Interactive Tax Assistant. Taxpayers can use the Should I file an amended return? to help determine if they should file an amended tax return.

Interest rates remain the same for the fourth quarter of 2020 

https://www.irs.gov/newsroom/interest

https://accountinginstruction.info

WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning October 1, 2020. The rates will be:   3% for overpayments (2% in the case of a corporation); 0.5% for the portion of a corporate overpayment exceeding $10,000; 3% percent for underpayments; and 5% percent for large corporate underpayments. Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

Federal benefit recipients with children have more time to get the $500 Economic Impact Payment 

https://www.irs.gov/newsroom/federal

https://accountinginstruction.info

The IRS has reopened the registration period for individuals who receive Social Security, Supplemental Security Income, Railroad Retirement or veteran's benefits, but didn't receive $500 per child earlier this year when they received their own Economic Impact Payment.

Thursday, Sept. 3 IRS webinar focuses on Opportunity Zones 

https://www.irs.gov/newsroom/thursday

https://accountinginstruction.info

The Internal Revenue Service is holding a free webinar designed to give an overview of Opportunity Zones and to discuss related tax benefits for investors. Opportunity Zones are an economic development tool that allows people to invest in distressed areas in the United States.  This free 75-minute webinar will take place on Thursday, September 3 at 2 p.m. Eastern Time. It is open to investors, tax professionals, government agencies and anyone else interested in the tax rules that affect Opportunity Zones.

Choosing a trustworthy payroll service provider can protect employers from fraud 

https://www.irs.gov/newsroom/choosing

https://accountinginstruction.info

IRS Tax Tip 2020-112, September 1, 2020  When hiring a company to handle payroll and payroll tax, employers should carefully choose their payroll service provider. This can help a business avoid missed deposits for employment taxes and other unpaid bills.

IRS approves temporary use of e-signatures for certain forms 

https://www.irs.gov/newsroom/irs-appr

https://accountinginstruction.info

WASHINGTON – To protect the health of taxpayers and tax professionals, the Internal Revenue Service today announced it will temporarily allow the use of digital signatures on certain forms that cannot be filed electronically.  The change will help to reduce in-person contact and lessen the risk to taxpayers and tax professionals during the COVID-19 pandemic, allowing both groups to work remotely to timely file forms.

Taxpayers should renew expiring ITINs early to avoid a refund delay next year 

https://www.irs.gov/newsroom/taxpayer

https://accountinginstruction.info

IRS Tax Tip 2020-110, August 27, 2020  Individual taxpayer identification numbers are used by taxpayers who have tax filing or payment obligations under U.S. law but who are not eligible for a Social Security number. People with expiring individual taxpayer identification numbers should renew their number ASAP. This will help avoid unnecessary delays related to their tax refund next year.

IRS: 50,000 spouses to get catch-up Economic Impact Payments 

https://www.irs.gov/newsroom/irs-5000

https://accountinginstruction.info

WASHINGTON — The Internal Revenue Service will soon send catch-up Economic Impact Payment checks to about 50,000 individuals whose portion of the EIP was diverted to pay their spouse's past-due child support.

Earning side income: Is it a hobby or a business? 

https://www.irs.gov/newsroom/earning

https://accountinginstruction.info

Whether it's something they've been doing for years or something they just started to make extra money, taxpayers must report income earned from hobbies in 2020 on next year's tax return.  What the difference between a hobby and a business? A business operates to make a profit. People engage in a hobby for sport or recreation, not to make a profit.