Ronald P. Perez Tax Consulting

The IRS is sending out the second round of stimulus payments. Here are the answers to some FAQs https://www.irs.gov/coronavirus/second-eip-faqs#General

Stimulus payments have started hitting people's bank accounts. If you have any questions about whether you qualify or when to expect payment, the IRS website is a good resource at: https://www.irs.gov/coronavirus-tax-relief-and-economic-imp

Here is the latest from the IRS website about the stimulus payments. You can read the entire article at: https://www.irs.gov//economic-impact-payments-what-you-nee ECONOMIC IMPACT PAYMENTS... IR-2020-61, March 30, 2020 WASHINGTON The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some taxpayers who typically do not file returns will need to submit a simple tax return to receive the economic impact payment. Who is eligible for the economic impact payment? Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return. Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child. How will the IRS know where to send my payment? The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible. 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 economic impact payment will be deposited directly into the same banking account reflected on the return filed. 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

We’re still at work, just not seeing people in the office. You can drop off or pick up taxes between 10am and 4pm, M-Sat. Just ring the doorbell and we’ll safely take care of you. We wish you all well and look forward to being on the other side of this!!

This is an old post from the IRS website but serves as a good current reminder. Beware of any emails or phone calls asking for your personal information - the IRS will never do this. Bad folks prey on innocent people during times of crisis, so keep your guard up. https://www.irs.gov//security-summit-warns-of-new-irs-impe

Here is the latest from the IRS website about the stimulus payments. You can read the entire article at: https://www.irs.gov//economic-impact-payments-what-you-nee ECONOMIC IMPACT PAYMENTS... IR-2020-61, March 30, 2020 WASHINGTON The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some taxpayers who typically do not file returns will need to submit a simple tax return to receive the economic impact payment. Who is eligible for the economic impact payment? Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return. Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child. How will the IRS know where to send my payment? The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible. 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 economic impact payment will be deposited directly into the same banking account reflected on the return filed. 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

STIMULUS CHECKS. This is the best article we’ve seen so far. We will try to keep you all updated. As soon as the IRS website has official information posted, we’ll let you know.

We’re still at work, just not seeing people in the office. You can drop off or pick up taxes between 10am and 4pm, M-Sat. Just ring the doorbell and we’ll safely take care of you. We wish you all well and look forward to being on the other side of this!!

From CNBC: Taxpayers will get a three-month reprieve pay the income taxes they owe for 2019, Treasury Secretary Steven Mnuchin said on Tuesday at a press conference. As part of its coronavirus response, the federal government will give filers 90 days to pay income taxes due on up to $1 million in tax owed, Mnuchin said in Washington. The reprieve on that amount would cover many pass-through entities and small businesses, he said. Corporate filers would get the same length of ...time to pay amounts due on up to $10 million in taxes owed, Mnuchin said. During that three-month deferral period, taxpayers won’t be subject to interest and penalties, he said. The tax deadline delay pushes the due date for last years taxes from April 15 to July 15. You should still get your 2019 income tax return in to the federal government as soon as possible, especially if you’re due a refund and need cash.

For now we are open and doing business as usual, while additionally attempting to follow current CDC protocol for businesses. That includes following all recommendations for keeping our office sanitized and practicing "social distancing" as appropriate. In spite of this, we understand that you may not be comfortable showing up in person and are offering the following options: Drop off your documents at our office by quickly handing them off at the front desk or by slidin...g them under the door (there is about a 1" gap under the door). Fax your documents to (310)378-2884 Scan and email your information to [email protected] You can have your documents sent via FedEx/UPS/USPS Priority mail to the office. Things seem to be evolving by the hour. Please rest assured we will continue to update you as we are informed. We are committed to avoiding any additional stress for our clients and will try to be as flexible as possible! We hope you are holding up well during this crazy time. It certainly is a first for us! Ron, Andrea, Rick and Paul

The final personal income tax extension deadline is October 15th - just 2 1/2 week from now! Please contact us ASAP if you haven’t yet filed your 2018 taxes.

It’s April 1st and you all know what that means..2 weeks to the tax deadline! If you haven’t done your taxes yet, we can talk about filing an extension. Just keep in mind, it’s an extension to file, but not an extension to pay.

TAX PLANNING FOR OUR SELF-EMPLOYED OR FREELANCE CLIENTS Ron usually suggests self-employed clients put aside at least one third of what they earn to cover taxes and other obligations. Independent contractors have to pay both the employer and employee portion of Social Security and Medicare taxes, or roughly 15.3% instead of the 7.65% regular workers pay. That’s in addition to whatever federal, state and local income taxes owed. They should make quarterly estimated tax payment...s because ours is a pay as you go system. Employees typically have those taxes withheld, but independent contractors must make quarterly estimated tax payments by Jan. 15, April 15, June 15 and Sept. 15. (The deadlines are moved to the following Monday if those dates fall on a weekend.) Waiting to file the annual tax return to pay, may result in penalties being assessed. See more

https://www.latimes.com//la-fi-new-tax-rules-confusion-201

Happy New Year everyone! It's not too early to set your 2018 tax prep appointment. Call or email the office if you would like to get on Ron's calendar. Our tax organizer worksheets should be in the mail by the end of the week. Hopefully the IRS will be back to work very soon...

We get calls from from clients who have received suspicious phone calls from people claiming to be the IRS. It's important to know that the IRS only initiates contact through the US mail. Here's a link with more information: https://www.irs.gov/privacy-disclosure/report-phishing

Update on new tax laws (kind of...) We know it’s hard to plan when so much is still up in the air. We will try to keep you posted. http://enewspaper.latimes.com/infinity/latimes/default.aspx