Beacon Accountancy and Business Services

So this year's tax filings were interrupted by COVID, just like the rest of life. Unfortunately those interruptions were just a temporary delay for taxes and the new deadline is coming up in about 5 weeks.just a few things on the to-do list... * Get extensions or returns filed * Make 2018 IRA contributions * Pay any 2018 taxes still outstanding... * Pay your 1st quarter 2020 estimates * Pay your 2nd quarter 2020 estimates See more

HR 7010 - Moving the PPP targets again. The senate has approved the Paycheck Protection Program Flexibility Act of 2020, changing the deadlines, qualified forgiveness, and repayment terms once again. And there are a few issues that congress has already identified some technical changes they will be addressing in future bills. What can you do to make sure you are ready?... * Keep documentation for qualified expenses (rent, interest, utilities) * Keep tracking employee wages and hours * Keep copies of payroll reports and bank statements * Get a copy of your signed lease or mortgage See more

With many businesses still closed or workers telecommuting, some frequent questions we are still being asked: Q: Can I deduct my household expenses if I am working from home? A: Probably not. The 2018 tax changes suspended misc itemized deductions like unrembursed employee expenses, but it may be deductible on your state return... Q: If I am working from out of state can I avoid CA Income Tax? A: No. you would need to permanently sever ties with the state to claim you are a non-resident. The safe-harbor threshold is 18 months. Q: Can you do anything to lower my tax? A: Maybe, but you are also in luck. Since the IRS deadlines were moved to July 15th so were the funding deadlines for retirement accounts. So you can still open an IRA and deduct it on your 2019 return.

From the Small Business Administration - SBA is unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. EIDL applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. There is a bill currently in congress to increase this funding, but until this is passed they are not accepting applications for either program.

The IRS has released a new tool on their website that allows Non-Filers to get their information into the systems for the stimulus payments. But wait a second before you rush over there. What this tool is actually doing is taking your information and feeding it into the Free File Fillable Forms as a 2019 form 1040. Great for anyone that is not a dependent and made less than the filing threshold. But if your situation is just that you are behind or not ready to file using this... tool will force you to file an amending return for 2019. If you need to update your mailing address or banking information please wait for the upcoming GET MY PAYMENT tool that the IRS has promised will be ready by 4/17. This one should allow you to do things like update your direct deposit or mailing address. If you need the Non-Filers tool, it is available at https://www.irs.gov/coro/non-filers-enter-payment-info-here

Today's new tax change - the IRS has confirmed taxpayers on Social Security will automatically receive their Economic impact payments (the $1,200 stimulus) even if they have not filed a 2018 or 2019 tax return.

An excerpt below that addresses commonly asked questions concerning the stimulus: The IRS does not have my direct deposit information. What can I do? In the coming weeks, 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.... I am not typically required to file a tax return. Can I still receive my payment? Yes. People who typically do not file a tax return will need to file a simple tax return to receive an economic impact payment. Low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return will not owe tax. How can I file the tax return needed to receive my economic impact payment? IRS.gov/coronavirus will soon provide information instructing people in these groups on how to file a 2019 tax return with simple, but necessary, information including their filing status, number of dependents and direct deposit bank account information. I have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment? Yes. The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return.

Yes, much has changed in the tax world over the past 7-10 days.All 4/15 filings and payments have been moved to July 15th, and there is significant help available for small businesses due to the current pandemic. Once catch is the individual stimulus checks. Since these are based on 2018 and 2019 tax returns, we are concentrating on helping our more delinquent clients get current with their filings. But we are still available to answer any questions our client may have about this new law.

Just to clarify - the deadline for Paying taxes has been extended, bit not for filing them. Your tax return or extension must still be filed by April 15th.

The Franchise Tax Board (FTB) today announced special tax relief for California taxpayers affected by the COVID-19 pandemic. Affected taxpayers are granted an extension to file 2019 California tax returns and make certain payments to June 15, 2020, for all tax filings and payments due between March 15, 2020, through June 15, 2020.

Do you need a business license? Every year we have clients surprised that their new source of income qualifies them as a small business owner - Uber & Lyft drivers, Instacart & postmates delivery gigs, selling crochet ski hats on Etsy - all of these newer gig-economy professions are subject to local city licenses. Do you need to apply for a license before they find you and penalize you?

Still waiting on that final W-2? The IRS is not going to step in until after Feb 18th, so keep working with your former employers to obtain a copy. But if you haven't received a complete and correct W-2 from the employer by February 18, you can call IRS customer service toll-free at 1-800-829-0922 M - F 7am - 7pm local time and speak with a representative for a W-2 complaint. You'll need to provide the full business mailing address.

So, congress decided to mess with us all a little and passed a bill extending several expired tax credits and deduction retroactively. This means some of you taxpayers out there may be able to go back and amend your 2018 tax returns for things like Tuition Deduction and Mortgage interest - But as always there is a catch. The IRS has been concentrating on getting the 2019 efile system up and running, so they did not make these retroactive changes to the 2018 files yet. If you need to amend it is fine since that is done on paper, but if your 2018 return is late and you want to efile the IRS will not be able to accept it if it includes any forms affected by these extenders. Earliest estimates from the IRS is mid-February before their system is updated.