Arnone's Tax Service

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Taxpayers act now to receive Economic Impact Payments by direct deposit People must use Get My Payment by noon Wednesday, May 13, for a chance to get their Economic Impact Payment by direct deposit. After noon Wednesday, the IRS will begin preparing to mail millions of additional payments to those who haven’t received one yet. Taxpayers can expect to receive these payments beginning in late May. People who use Get My Payment before the deadline can still take advantage of the... direct deposit option. Get My Payment is available in English and Spanish. https://www.irs.gov/coronavirus/get-my-payment

What Is the IRS Timeline for Sending Stimulus Checks? The week of April 13 You'll likely get your payment faster if you have direct deposit information for your bank account on file with the IRS. The week of April 13, the IRS started to send 80 million stimulus payments to eligible Americans via direct deposit. The first wave of recipients had filed federal tax returns for 2018 or 2019 that included their direct deposit information. This initial round included Social Security... beneficiaries who filed tax returns in 2018 or 2019. As of April 17, the IRS says it had delivered 88.1 million stimulus payments worth nearly $158 billion. In total, the IRS expects to send out more than 150 million payments to eligible Americans. The week of April 20 Beginning the week of April 20, the IRS planned to start making additional rounds of weekly payments by direct deposit to people who provide direct deposit information on IRS.gov. The IRS also began issuing paper checks on a weekly basis to individuals who have not provided direct deposit information but for whom the IRS has a mailing address. Paper checks will be issued at a rate of about 5 million per week, which could take up to 20 weeks. The checks will be issued to the people with the lowest incomes first. Based on the Ways & Means estimated timeline, it could take until September to mail out all of the payments by paper check. End of April At the end of April, adult Social Security retirement, survivor and disability insurance (SSDI) beneficiaries who did not file tax returns in 2018 or 2019 will receive their payments if they receive their benefits via direct deposit. (Nearly 99 percent of Social Security beneficiaries use direct deposit.) Early May The Treasury Department has announced that adult Supplemental Security Income (SSI) recipients will receive their payments by early May, in the same way they receive their normal benefits. If, for some reason, your bank account information was incorrect if you've changed banks, for instance the IRS will send you a paper check instead. Weekly payments will continue until all eligible people get their payments, according to the Ways & Means timeline.

Stimulus payments The payment is an advance payment of a 2020 tax credit; The maximum credit is $1,200 per individual ($2,400 MFJ) plus $500 per qualifying child under 17 years old; The credit is phased out by 5% ($5 for every $100 over the limit) for AGIs exceeding:... $150,000 for MFJ phased out at $198,000 if there are no children; $112,500 for HOH filers phased out at $146,500 if the HOH has one child; $75,000 for all other taxpayers phased out at $99,000; and For every child claimed, add an additional $10,000. For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The stimulus payment will be deposited directly into the same banking account reflected on the return filed; For taxpayers who did not provide direct deposit information, in the coming weeks the Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online so that individuals can receive payments immediately as opposed to checks in the mail; and For individuals who did not file a 2018 or 2019 return, the IRS is developing a simplified process for them to file. Here is a link to the IRS's FAQs on these payments: www.irs.gov//economic-impact-payments-what-you-need-to-know

Applications for Paycheck Protection Program loans available to businesses and sole proprietorships (with employees) who are impacted by COVID-19 will open on Friday, April 3. The portion of the loans used to cover payroll costs, mortgage/rent, and utilities may be forgiven. The loans are on a first-come, first-serve basis, so make sure you and your clients apply ASAP. Applications should be made through a local bank. More information is available at:... www.sba.gov//coronavirus-r/paycheck-protection-program-ppp Loan applications for independent contractors and self-employed individuals (with no employees) will be accepted starting April 10, 2020.

Tax Return Filing Deadline Moved To July 15 In Light Of Virus By Joshua Rosenberg Law360 (March 20, 2020, 10:46 AM EDT) -- Treasury Secretary Steven Mnuchin announced Friday that the 2019 tax return filing deadline for individuals and businesses will be moved from April 15 to July 15 in light of the coronavirus pandemic.... https://assets.law360news.com//8861d34aa5b6e814e6c891fd6ca After only extending the payment deadline to July 15, Treasury Secretary Steven Mnuchin extended the filing deadline as well (AP). Mnuchin, who had said earlier in the week that the Internal Revenue Service would extend the payment deadline, but not the return filing deadline, to July 15, made the announcement after lawmakers pressed the administration to extend the filing deadline as well. At the direction of President Donald Trump, we are moving Tax Day from April 15 to July 15, Mnuchin said on Twitter. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties. The IRS on Wednesday released a notice pushing back to July 15 the tax payment deadline for people and pass-through businesses with tax liabilities of less than $1 million and corporations with tax bills of up to $10 million. That notice, however, left in place the April 15 tax return filing deadline.

The filing deadline for tax returns remains April 15, 2020. The IRS urges taxpayers who are owed a refund to file as quickly as possible. If you owe, you have an additional 90 days to pay your tax due.

IRS announces 90-day payment extension (03-17-20) At a press conference held today, U.S. Treasury Secretary Mnuchin announced the following extensions for federal income tax payments: Individuals and businesses with an April 15 filing deadline will be given an additional 90 days to pay taxes;... Individuals will be able to defer up to $1 million of tax liability; and Corporations get an extension for up to $10 million. Mnuchin was not specific about late-filing penalties for either the March 15 or April 15 deadlines, but it appears interest and penalties will be waived automatically. He stated, "All you have to do is file your taxes. You will automatically not get charged interest and penalties." We will provide additional information when formal guidance is issued by the IRS. In light of this information from the IRS, the FTB is looking at their extension to June 15, and we will let you know if the due date for California is extended to 90 days as well.

On March 13, 2020, the FTB announced special tax relief for California taxpayers affected by the COVID-19 pandemic. Affected business and individual taxpayers are granted an extension to file 2019 California tax returns, and make certain payments, until June 15, 2020. This relief is in line with the Executive Order issued by the Governor on March 12, 2020. For calendar-year taxpayers, this is a three-month automatic extension for partnerships and S corporations, and a two-month extension for all other taxpayers. The FTB's June 15 extended due date may be pushed back even further if the Internal Revenue Service grants a longer relief period.