Accountax Aid, Inc

IRS delays on 2019 & 2020 returns explained

The PPP forgiveness application window begins on Monday. However, for some it may be beneficial to wait to see how Congress proceeds during the next few weeks.

Those hoping for another delay will be disappointed. There are barely 2 weeks left, don't delay!

New Paid Sick Time Off Rules - Contact your CPA or Payroll Provider to see how this affects your payroll taxes

New guidance has been issued regarding how to calculate payroll and what can be included for PPP loans.

More information on when checks can be expected

Be careful of the FALSE news about how Forbearance Agreements will be applied to homeowners that want to miss payments. There is a lot of fake news out there right now. A forbearance is strictly a delay in payments. They will NOT just be tacked on to the end of the loan term. Once the forbearance term ends, the payments will be due. Meaning, if you skip 3 payments, on month 4, the servicer could require all 4 payments be made at that time. This should strictly be done by homeowners that are in dire straits and have lost their jobs etc, not for everybody. Make sure you discuss with your servicer the exact terms of what a forbearance or modification means. After 3 months, the servicer will discuss full loan modification options based on your current income situation.

A comparison of the current programs available under the CARES Act

We have received several questions regarding the CARES Act stimulus checks recently approved. Here's a quick summary of the confirmed information we know: 1 Tax Credit rebate of up to $1200 per individual and $500 per child for taxpayers with AGI under $150k for MFJ, $112,500 HOH and $75k for Single. If you are over the threshold, you MAY be eligible for a reduced rebate. 2 The rebate is based on your 2019 return. If 2019 has not been filed, refer to your 2018 return 3 ...AGI is line 8b on your 2019 Form 1040 and line 7 on your 2018 Form 1040. 4 If you are over the threshold based on the 2018 or 2019 returns, but your 2020 income is under the threshold due to lack of work or layoffs, you will get the stimulus on your 2020 return. 5 The stimulus is not taxable and does not need to be paid back. 6 In order to qualify for a relief check, you must have a social security number. 7 If your only income is disability income or social security income and you are not required to file a return, you are still eligible for the stimulus assuming all other requirements are met. 8 If you have used a bank account for direct deposits or direct debits in the past 2 years, you will receive the stimulus check via direct deposit. 9 If the account has been closed or you have not used the direct deposit/debit options, you will be mailed a check. As more information becomes available, we will post more updates.

EDIT: YOU MUST STILL FILE AN EXTENSION TO TAKE ADVANTAGE OF THIS BENEFIT. Important Information for those who still haven't filed their returns: 1 - IRS has granted a 90 day extension for payment for those individuals who owe $1M or less. This includes interest and penalties on those balances.... 2 - If you have not filed and you are expecting a refund, you can still file since they are continuing to issue refunds. We highly recommend you complete this with your CPA via email/electronically to further flatten the curve. 3 - Additionally, California has already granted a extension to file and pay on business & individual returns, as well as estimate payments until June 15th. See more

Our firm works with KCKW and they are hosting a free and informative event next week. If you have ever wanted more information, this would be a great exposure to the world of estate planning.

Relief for PPP recipients on the parameters of use and disbursement of funds

For many individuals, the last chance to get a direct deposit of their Economic Impact Payment (EIP) rather than receive a paper check is 9:00 A.M. PST (noon Eastern time) on Wednesday, May 13. Individuals who have filed a 2018 or 2019 return, and have not already received an EIP, will need to use the Get My Payment tool to check on their payment status and possibly provide their direct deposit information in order to avoid getting a paper check. https://www.irs.gov/coronavirus/get-my-payment

If you have not filed your 2018 or 2019 return and need to register to get your stimulus check, please use the following website. (Note: if you already receive Social Security or Veteran’s retirement benefits, you do not need to register.) https://www.irs.gov/coro/non-filers-enter-payment-info-here

New Paid Sick Time Off Rules - Contact your CPA or Payroll Provider to see how this affects your payroll taxes

New guidance has been issued regarding how to calculate payroll and what can be included for PPP loans.