Suheyla Ciftci, CPA, Inc., A Professional Accountancy Corporation

IRS: PEOPLE WITH FOREIGN ACCOUNTS REMINDED OF THE EXTENSION TO FILE 2019 FBAR BY OCT. 31, DEC. 31 IF IMPACTED BY CERTAIN NATURAL DISASTERS The Internal Revenue Service reminds U.S. citizens, entities and resident aliens with a foreign bank or financial account that they have until Oct. 31, 2020, to file their 2019 Report of Foreign Bank and Financial Accounts (FBAR). The IRS coordinated the extension from the usual Oct. 15 deadline with the Financial Crimes Enforcement Networ...k (FinCEN) for this year only to filers for 2019 calendar year FBARs. FBAR filers impacted by the California Wildfires, the Iowa Derecho, Hurricane Laura, the Oregon Wildfires and Hurricane Sally continue to have until Dec. 31, 2020, to file their FBARs. This requirement applies to, among others, U.S. citizens and anyone with dual citizenship. It also applies to legal entities, such as corporations, partnerships, limited liability companies, estates and trusts. In addition, U.S. citizens, entities and resident aliens should check to see if they have a U.S. tax liability and a federal tax return filing requirement. Those required to file should check to ensure all income is reported and federal tax return filing requirements are met regarding the reported accounts. In general, the filing requirement applies to anyone who had an interest in, or signature or other authority, over foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2019. Because of this threshold, the IRS encourages U.S. persons or entities with foreign accounts, even relatively small ones, to check if this filing requirement applies to them. The FBAR, FinCEN Form 114, is only available through the BSA E-Filing System website. Here are key points regarding the FBAR to keep in mind: Deadline for reporting foreign accounts: By law, the deadline for filing the FBAR is the same as for a federal income tax return. This means that the FBAR, FinCEN Form 114, normally must be filed electronically with FinCEN by April 15. U.S. persons or entities who want to paper-file their FBAR must call FinCEN’s Regulatory Helpline to request an exemption from e-filing. People and entities who miss the April 15 deadline have an automatic extension until Oct. 15 to file the FBAR. This extension is granted without any required action by the U.S. persons or entities. For 2019 only, that deadline is further extended to Oct. 31, 2020, for most filers, and to Dec. 31, 2020, for those impacted by the California Wildfires, the Iowa Derecho, Hurricane Laura, the Oregon Wildfires and Hurricane Sally. Taxpayers should never file the FBAR with individual, business, trust or estate tax returns. For more information, see the FBAR Fact Sheet posted on IRS.gov.

IRS REMINDS BUSINESSES TO E-FILE PAYROLL TAX RETURNS The next quarterly payroll tax return due date is Oct. 31, and the Internal Revenue Service urges business owners to use the speed and convenience of filing the returns electronically. IRS Forms 940, 941, 943, 944 or 945 are used to report employment tax information. The IRS recommends electronic filing, or e-filing, of these returns for many reasons.... E-filing saves taxpayers time by performing calculations and populating forms and schedules using a step-by-step process. Once submitted, the information is quickly available to the IRS, thus reducing processing time. E-filing is the most accurate method to file returns. Those who e-file receive missing information alerts. Electronically filed returns have fewer errors, which reduces a taxpayer's chance of receiving an IRS notice. The IRS takes safeguarding personal information seriously, and e-filing security is a top priority at the agency. E-file security standards ensure tax information is protected from security breaches. The IRS requires all authorized IRS e-file providers to ensure only authorized users have access to secure information. The IRS acknowledges receipt of e-filed returns within 24 hours. The agency retains the information on the tax return. Unlike filing a return on paper, e-filing assures the filer that the tax return is with the IRS and not misplaced or lost in the mail. There are two options for electronically filing payroll tax returns: Self-file o Businesses purchase IRS-approved software. A list of providers offers options based on the relevant tax year. o Business owners may need to pay a fee to electronically file their returns. o The tax software requires a signature. The taxpayer has the option to apply for an online signature PIN or to scan and attach Form 8453-EMP, Employment Tax Declaration for an IRS e-file Return. Tax professional file on behalf of the business o Use the Authorized IRS e-file Provider Locator Service to find a tax professional who offers this service. Only the business owner, authorized signers and reporting agents can apply for an online signature PIN. Third parties, such as attorneys, CPAs, tax return preparers or other tax professionals can't request a PIN on behalf of the business, nor can they use the PIN to sign returns on behalf of their clients. For more information on electronic filing of payroll tax returns, see the E-file Employment Tax Forms Page. Source: IRS

IRS PROVIDES TAX INFLATION ADJUSTMENTS FOR TAX YEAR 2021 IR-2020-245, Oct. 26, 2020 The Internal Revenue Service today announced the tax year 2021 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2020-45 provides details about these annual adjustments....Continue reading

IRS PROVIDES TAX RELIEF FOR VICTIMS OF SEPTEMBER WILDFIRES IN CALIFORNIA; OCT. 15 DEADLINE, OTHER DATES EXTENDED TO JAN. 15 Victims of the California wildfires that began on Sept. 4 now have until Jan. 15, 2021, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. The IRS is offering this relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. C...Continue reading