Expedition Tax & Insurance Services

The end of tax season 2020 has finally come. It's been a doozy of a season for our office, and quite frankly, we're glad it's done. And we have faced it together, haven't we? Through it all, we've held together -- and we hope we've been a small part of you and your family holding it together too.... THANK YOU for your trust. It is no small matter to place your financial life in front of another, and that's especially true during a season of so much disruption and pain. That's why we work so hard to be people that you can trust for more than a mere "filling out some forms" service. We look forward to years of service to come.

Today is July 15th. We FINALLY made it to the tax deadline of the longest. tax. season. ever. We'd like to hope that the second half of the year will be better than the first half. Let's all help make it that way. Let's finish 2020 strong.

Today is an extremely busy day for us -- we're still working on behalf of our clients. Because this week -- in the middle of July -- is tax deadline week. Estimated taxes for two quarters are also due. (Tomorrow, btw.) If your paperwork isn't yet ready, you can still file an extension until October 15th. But tomorrow is your last day to file that extension and pay what you think you owe.

For struggling small businesses facing the tax deadline in two days, here is some timely information to help you along. We are here to help!

For federal income tax purposes, unemployment compensation IS taxable. This includes your state benefits and the $600 payment from the feds, if you received that. To help manage the tax due, you can choose to have federal income tax withholding on your benefits or consider making estimated payments during the year.

With all of the financial chaos roiling around us, there's a good chance YOUR state is in financial trouble. Unlike, say, the federal government, the states cannot print money, so they are forced to go hunting for it. And they get it from a few primary sources: sales tax, income tax, property tax and "other" taxes (fishing licenses, driver's licenses, etc.). The most volatile -- and COVID-affected -- of these sources is the income tax. Sales tax has obviously taken a hit as ...well as property taxes. Here's why we're bringing this up: YOU are your state's "economic stimulus plan". Make no mistake ... the next couple years will find MOST states finding ways to grab revenue from you. So don't accept "software defaults" for your state taxes. Let the pros ensure that you don't become your state's piggy bank. Legally, ethically ... and with your full financial picture in mind.

The July 15th tax deadline is upon us. Make arrangements now to file or apply for an extension for your 2019 taxes. Here is what is coming due in one week. - 2019 taxes - 1st quarter estimated taxes - 2nd quarter estimated taxes... - IRA contributions to be counted on 2019 taxes - Final day to max out contributions for your 2019 HSA - Last day to claim any refund money from an unfiled 2016 return - Most states' tax deadlines also fall on the 15th (but not all) See more

At the end of last week, the House approved the Senate's action of extending the PPP loan availability for 5 more weeks, and the President signed it shortly thereafter. This means that approximately $129B in remaining PPP funds can be tapped by businesses who have failed to do so yet. Don't forget, there is NO prepayment penalty and the interest rate is only 1% if it is not forgiven. How to apply for it? The best way is to contact your local bank and see who, at that bank, is... heading this project up. Feel free to pass this info along to your network, as we are still receiving inquiries about these programs from business owners.

Most states' tax deadlines fall on July 15th (but not all). Check your state's deadlines here, and share with those who might also need to know. We are here to help...

Here's what to do if you can't pay all of your taxes due on July 15th (REMEMBER -- 2019 taxes are due AND 1st quarter estimated payment AND 2nd quarter estimated payment): 1) Pay as much as you possibly can right now. 2) You can ask for (and often receive) an extension of up to 120 days to PAY. It requires a phone call to the IRS. ... 3) "Financial hardship" delay: This is if paying your tax bill would demonstrably affect your ability to pay your other bills. Interest and penalties still accrue, but it's better to register this with the IRS than to simply ignore the bill. 4) Installment payment plan: If you owe less than $50K in taxes, you should usually be able to get an installment payment plan of up to 72 months, simply by asking for it. If this is something you are considering, please let's talk it over to make sure we come up with the best plan. 5) Negotiate: This is NOT something to try on your own. We can help, but the number of "Offers in Compromise" that get accepted each year are quite small and a knowledge of how the system works is important. 6) Use existing credit sources (credit card, HELOC, private loans). This is a last resort. If you've exhausted the options above, do this instead... 7) Sell something you don't need anymore. Always a pretty good plan anyway.

The 2019 tax deadline is approaching in LESS THAN TWO WEEKS. If you need more time to get your paperwork complete, you need to file for an extension with the IRS by the end of the day on July 15th. This gives you an automatic three-month (until October 15, 2020) extension of time to file. But understand that an "extension of time to file" is not an "extension of time to pay", unfortunately. The extension simply gives you an automatic three months of additional time to get yo...ur paperwork together and file that return. But, if you owe more than what you paid with your estimate, you'll be accumulating penalties and interest on the difference -- so PLEASE don't take the entire three months to do this! So, when filing your extension, you'll need to estimate what you think you owe to the IRS. This should not be pulling numbers out of thin air. You'll still need to go through your receipts and tax documents and get them "somewhat" organized. We can do all of this on your behalf through our office. Let us know if you need some help.

Did you know that one of the few acceptable debt consolidation uses of the Economic Injury Disaster Loan (EIDL) is to pay off IRS debt? If you owe back taxes, this might be a VERY simple way to get out from under it. Here is where you apply. It only recently re-opened to non-agricultural businesses, so don't miss your chance while you can, if you need it. https://bit.ly/39AvbtK

The SBA is expected to release business and nonprofit NAMES, addresses, North American Industry Classification System (NAICS) codes, ZIP codes, business type, demographic data, not-for-profit information, jobs supported, and loan amount ranges of every business that received a PPP loan over $150K. Be prepared for this, as it is expected to come this week.