Tax & Current Accounting Topics

The postponed federal tax deadline applies to taxpayers living overseas 

https://www.irs.gov/newsroom/the-pos

https://accountinginstruction.info

Taxpayers who live and work abroad have until Wednesday, July 15, 2020 to file and pay their 2019 federal income taxes.  U.S. citizens and resident aliens generally have the same filing and payment requirements regardless of where they live. The July 15 postponed deadline also applies to nonresident aliens and foreign entities with a U.S. filing and payment requirement.  Taxpayers who still owe 2019 income tax, as well as estimated tax for 2020, must make two separate payments on or by July 15, 2020: One for their 2019 income taxes owed and one for their 2020 estimated tax payments. The two estimated tax payments can be combined into a single payment.

How to report nonemployee compensation and backup withholding 

https://www.irs.gov/newsroom/how-to-r

https://accountinginstruction.info

There is a new Form 1099-NEC, Nonemployee Compensation for business taxpayers who pay or receive nonemployee compensation.  Starting in tax year 2020, payers must complete this form to report any payment of $600 or more to a payee.  Generally, payers must file Form 1099-NEC by January 31. For 2020 tax returns, the due date is February 1, 2021. There is no automatic 30-day extension to file Form 1099-NEC. However, an extension to file may be available under certain hardship conditions.

Find a qualified tax professional using IRS website resource 

https://www.irs.gov/newsroom/find-a-q

https://accountinginstruction.info

There is a new Form 1099-NEC, Nonemployee Compensation for business taxpayers who pay or receive nonemployee compensation.  Starting in tax year 2020, payers must complete this form to report any payment of $600 or more to a payee.  Generally, payers must file Form 1099-NEC by January 31. For 2020 tax returns, the due date is February 1, 2021. There is no automatic 30-day extension to file Form 1099-NEC. However, an extension to file may be available under certain hardship conditions.

IRS provides tax relief for the low-income housing credit and bonds for qualified residential rental projects 

https://accountinginstruction.info

WASHINGTON – In response to the ongoing COVID-19 pandemic, the Internal Revenue Service today issued Notice 2020-53 (PDF) to provide tax relief to issuers, operators, owners, and tenants of qualified low-income housing projects or qualified residential rental projects financed with exempt facility bonds, and state agencies that have jurisdiction over these projects.  For certain time-sensitive actions scheduled to be performed and requirements to be met on or after April 1, 2020 and before December 31, 2020, owners and operators now have until December 31, 2020 to perform the actions and satisfy the requirements.

Deadline for estimated tax payments postponed until Wednesday, July 15 

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

https://accountinginstruction.info

As part of its response to COVID-19, the IRS has postponed several tax deadlines until Wednesday, July 15, 2020. These postponements generally apply to all taxpayers with a filing or payment deadline between April 1 and July 15, 2020.  This relief includes individual and corporate quarterly estimated tax payments. Any taxpayer making payments received by July 15, 2020 will not be charged late-filing, late-payment or interest fees.

IRS offers additional retail partners that accept cash payments for federal taxes 

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

https://accountinginstruction.info

WASHINGTON ― The Internal Revenue Service today announced additional retail partners are accepting cash payments for federal taxes. This cash payment option is for individual and business taxpayers.  The IRS' continuing partnership with ACI Worldwide's OfficialPayments.com and the PayNearMe Company allows taxpayers to make a payment without a bank account or credit card at participating 7-Eleven stores, Ace Cash Express and Casey's General Stores nationwide.

IRS unclaimed refunds of $1.5 billion waiting for tax year 2016; taxpayers face July 15 deadline 

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

https://accountinginstruction.info

WASHINGTON — Unclaimed income tax refunds worth more than $1.5 billion await an estimated 1.4 million individual taxpayers who did not file a 2016 federal income tax return, according to the Internal Revenue Service.  "The IRS wants to help taxpayers who are owed refunds but haven't filed their 2016 tax returns yet," said IRS Commissioner Chuck Rettig. "Time is quickly running out for these taxpayers. There's only a three-year window to claim these refunds, and the window closes on July 15. To claim the refund, a return for tax year 2016 must be filed by July 15, 2020."

Taxpayers can get last minute filing tips on IRS.gov 

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

https://accountinginstruction.info

The July deadline for filing a 2019 tax return is near, but IRS tax help is available 24 hours a day on IRS.gov. Whether filing a tax return, requesting an extension or making a payment, the IRS website can help taxpayers answer most questions and avoid long waits for phone assistance.  Electronic filing is the best option Taxpayers who file electronically will likely have fewer mistakes on their tax return. Electronic filing options like IRS Free File or commercial tax software do the math, flag common errors and ask for missing information. Taxpayers with income over $69,000 who know how to complete their tax returns can use the Free File Fillable Forms.

Taxpayers should file by July 15 tax deadline; automatic extension to Oct. 15 available 

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

https://accountinginstruction.info

IRS has easy ways to help taxpayers who need more time or payment options IR-2020-134, June 29, 2020  WASHINGTON ― The Department of the Treasury and IRS today announced the tax filing and payment deadline of July 15 will not be postponed. Individual taxpayers unable to meet the July 15 due date can request an automatic extension of time to file until Oct. 15.  Due to COVID-19, the original filing deadline and tax payment due date for 2019 was postponed from April 15 to July 15.

Here are reasons people should file a 2019 tax return; Economic Impact Payment, tax credits available for some https://www.irs.gov/newsroom/here-are

https://accountinginstruction.info

While many people are required to file a tax return, it's a good idea for everyone to determine if they should file. Some people with low income are not required to file but will need to do so to get a tax refund.  The Interactive Tax Assistant – Do I Need to File a Tax Return? - will help determine if an individual is required to file a federal tax return or should file to receive a refund.  Here are seven things to consider when determining whether to file a 2019 tax return, including possibly being eligible for an Economic Impact Payment.