Prudence CPA

IRS delays start of tax filing season to Feb 12. Normally the filing period begins in late January. This year however, the IRS will need more time to prepare following the Covid relief act that took effect in late December. Please feel to contact us at (949) 325-7797 with any questions or advices. www.prudencecpa.com

Keep Economic Impact Payment notice with other tax records People who receive an Economic Impact Payment this year should keep Notice 1444, Your Economic Impact Payment, with their tax records. This notice provides information about the amount of their payment, how the payment was made and how to report any payment that wasn’t received. For security reasons, the IRS mails this notice to each recipient’s last known address within 15 days after the payment goes out. It’s especi...ally important for people to keep this notice if they think their payment amount is wrong. When they file their 2020 tax return, they can refer to Notice 1444 and claim additional credits, if they are eligible for them. Taxpayers should keep this notice filed with all their other important tax records. These include, W-2s from employers,1099s from banks and other payers, other income documents and virtual currency transaction records. All taxpayers should keep a copy of their past tax returns and supporting documents for at least three years. Key information from their prior year return may be required to file next year. Life changes like employment or marital status and financial gains or losses can affect a tax refund or the amount of taxes a person may owe. The tax filing deadline has been postponed to Wednesday, July 15, 2020. The IRS is processing tax returns, issuing refunds and accepting payments. Taxpayers who mailed a tax return will experience a longer wait. There is no need to mail a second tax return or call the IRS. Please call us at 949-325-7797 if you have any questions!

https://www.forbes.com//trump-signs-new-law-relaxing-ppp/

https://www.foxnews.com//house-passes-legislation-to-give-

Millions of people will get their Economic Impact Payment by prepaid debit card Nearly four million people are being sent their Economic Impact Payment by prepaid debit card, instead of paper check. The determination of which taxpayers receive a debit card was made by the Bureau of the Fiscal Service, another part of the Treasury Department that works with the IRS to handle distribution of the payments. These Economic Impact Payment Cards arrive in a plain envelope from Money... Network Cardholder Services. The Visa name will appear on the front of the card; the back of the card has the name of the issuing bank, MetaBank, N.A. Information included with the card will explain that the card is an Economic Impact Payment Card. Those who receive Economic Impact Payment by prepaid debit card can do the following without any fees: Make purchases online and at any retail location where Visa is accepted Get cash from in-network ATMs Transfer funds to their personal bank account Check their card balance online, by mobile app, or by phone This free, prepaid card also provides consumer protections available to traditional bank account owners, including protection against fraud, loss, and other errors. The card will come with instructions on how to activate and use it. Learn more at www.eipcard.com. See more

CARES Act tax provisions aim to stabilize pandemic-ravaged economy Please check our webpage for important information about the new CARES Act Tax Provisions. http://www.prudencecpa.com/blog.php