Today TaxMama® wants to talk to you about some of the information and updates from the IRS. They have been sending out news constantly. Let’s filter through the noise, OK?
On a personal note, a family friend, from my babyhood, just had his 100th birthday yesterday – attended via Zoom. Appropriately, his name is Simcha – which means joy. So, happy 100th birthday – and may he, and all of you, remain healthy, safe and frisky.
So, tax news.
You heard about the new legislation passed by Congress this week.
The Paycheck Protection Program and Health Care Enhancement Act, HR 266. The good news – they are adding more money to the overall system. Also good news – many major corporations who received millions in loans have agreed to return/repay the money right away, making it available to more small businesses. (Weird news/note: In the TCJA, Congress defined a “small business” as having a 3-year average of $25 million in sales, increased annually by inflation. Which explains why SMALL businesses are not getting the funds.) Even more good news – they didn’t include any new tax law changes. What a relief!
As you know, everything is still closed in most of the country. The IRS campuses are closed, so there is no point in mailing any paper forms or documents right now. Your submissions will just be added to the growing pile of paper and probably start breaking down from the weight, like at all dump sites.
TaxMama’s recommendation for paper communications?
a) If you MUST send something – wait until late June (or after you learn that the IRS is processing the paper) to send things in.
Then, send it with proof of delivery – certified mail has been recommended by a CPA. I don’t think anyone can sign for it. So I recommend USPS Priority Mail, or UPS/FedEx/DHL with tracking.
b) See if you can use the variety of IRS electronic tools to look things up and to submit certain kinds of information. For the majority of US taxpayers, those who have been filing tax returns every year, you should have no problem using the online log-in systems. If you haven’t filed since 2017, you won’t have access at all.
You WILL have problems if you don’t have a cell phone with a dedicated account (i.e. if you use prepaid phones, Google or other online phone systems). You won’t be able to receive the IRS codes.
You may have a problem if you have locked your credit accounts – the IRS needs to tap into that information to verify your identity. So release the lock before trying to set up or log into the IRS services.
c) Try to use other ways to get your info into the hands of the IRS. For instance, if you want to harvest the Net Operating Losses (that could be a 2 to 3-hour conversation – and there are webinars about this topic), you can file the forms using a set of new IRS fax numbers. They just opened these lines on April 17th so you can submit these two forms to request tentative refunds, to be issued within 45-60 days:
- Form 1139 (corporations) – 844-249-6236
- Form 1045 (individuals) – 844-249-6237
d) ACS – The IRS’ Automated Collections System is open. So, taxpayers with balances due can contact them for assistance. And tax professionals are able to submit their Powers of Attorney forms to ACS to get access to transcripts for new clients, in your e-services accounts. (Yes, I know they are doing this. And tax pros can use Call EnQ to get through the phone lines faster.)
The Enrolled Agents Examination
Prometric sites will not be opening in the month of May. We hope they will open by June 1st. In the meantime, here’s everything else you need to know about the EA Exam. https://iTaxMama.com/EverythingAbout_EA__Exam
Regardless, WE are starting our class on Saturday morning, May 2nd – so sign up right away. You’ll be ready to pass when the testing opens!
Please, join us!
Helpful IRS Links
Which IRS services are open and available – keep an eye on this link
Dealing with audit or collections issues – IRS is keeping this page up to date
Of course, all the filing and paying deadlines
And a great chart: How to Use the Tools on IRS.gov to Get Your Economic Impact Payment
And remember, you can find answers to all kinds of questions about taxes and business issues, and Enrolled Agent tax education, free. Where? Where else? At www.TaxMama.com.
Incidentally, I don’t know if you know – TaxMama.com® is a free resource for people to get answers to tax questions BEFORE they make major, costly moves.
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