We keep you up to date on the latest tax changes and news in the industry.
As Americans and global citizens, we are living in unprecedented times with the onset of coronavirus (COVID-19) around the world. As we work together to move through these difficult times together, the IRS has provided some tax relief provisions for affected taxpayers. Let's take a look at what's being offered.
Extended Due Date to File and Pay Taxes
The regular due date for filing your Federal tax return is April 15th of any given tax year. Taxpayers, however, are generally allowed to file an extension of time to file their returns to October 15th of the same year. However, this is not typically considered an extension of time to pay any taxes owed.
The IRS has extended the tax deadline for this tax season (tax year 2019) to July 15, 2020. It is important to note that this is an extension to both file and pay any taxes owed. This includes both taxes owed for the 2019 tax filing year and 2020 Federal tax estimated payments.
Economic Impact Payments for Individuals and Families
Congress recently passed legislation that allows for direct payments to U.S. individuals and their families. Most payments will be based on 2019 tax information, or the 2018 tax return if 2019 has not yet been filed. For those who are not required to file a tax return or for which the IRS does not have bank account information, the IRS has a portal where bank account information can be provided.
(Note: Non-filers can enter their information in the “Non-Filers: Enter Payment Info” form, available here.)
Those who receive Social Security retirement, disability (SSDI), survivors’ benefits, Railroad Retirement or veteran’s benefits are not required to provide this information as it is already on file. Payments will be made for direct deposit for those with information on file and via check for anyone without readily available banking information.
The amount of payment received depends on filing status and adjusted gross income.
Sick Leave for Individuals and Families Affected by COVID-19 - Families First Coronavirus Response Act
The Families First Coronavirus Response Act provides that individuals who are required to miss work due to Coronavirus-related illness or childcare leave may request up to 80 hours of paid leave from their employers. Employers will be completely reimbursed for the cost of the leave by the government.
For employees who are forced to miss work due to children's schools being closed may in some instances be eligible for an additional ten weeks of pay at the same 2/3 of total pay in compliance with the expanded Family and Medical Leave Act.
Sick leave relief applies for employees who work for companies with fewer than 500 employees. For businesses with less than 50 workers, if the viability of the business would be threatened due to allowing leave for a child's school closing and/or childcare is unavailable, the employer may qualify for an exemption to providing related childcare leave.
Full information on who qualifies for family and medical leave, as well as information on the employer effects of this legislation, can be seen here.
Unemployment Benefits
Another benefit being provided as a result of the COVID-19 outbreak is an expansion of unemployment benefits. Here’s a quick summary of some of the changes:
Eligibility for the program has now been extended to include:
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Personal Income Tax Services
In addition to our normal tax preparation service, we also offer the Tax Assurance Packages for those clients who want more than just a tax preparation. These packages are annual packages which provide superior tax preparation, tax planning and access to a tax expert via e-mail. All of these additional services are free of charge to those clients who select on of our Tax Assurance Packages.
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Business Income Tax Services
In addition to our normal tax preparation service, we also offer the Tax Assurance Packages for those clients who want more than just a tax preparation. These packages are annual packages which provide superior tax preparation, tax planning and access to a tax expert via e-mail. All of these additional services are free of charge to those clients who select on of our Tax Assurance Packages. These packages include both the business and personal tax related preparation services.
Annual Tax Preparation (Business and Personal)
Audit Assistance - We respond to audit inquiries
E-Mail Access for questions (72 Hour Response)
Annual Tax Preparation (Business and Personal)
2 Tax Planning Meetings per year
Audit Assistance - We respond to audit inquiries
E-Mail Access for questions (24 Hour Response)
Annual Tax Preparation (Business and Personal)
Annual Tax Planning Meeting
Audit Assistance - We respond to audit inquiries and E-Mail access for questions (48 Hour Response)