Today TaxMama® wants to give you some tax updates and tips now that the long-delayed first filing deadline for 2020 has arrived.
Dear Family,
Today may be a bit of a frantic day for those of us working through the last-minute filing requirements for July 15th. We were given a gift of 3 extra months to get our files in order.
Hopefully, people who were not working, or were working for fewer hours, you took advantage of that time to get your financial and tax lives in order. Either you have already filed – or today’s the day. Remember, if you are still not ready – you do have options – EXTENSIONS. (get details here)
If you owe money and cannot pay, consider putting your tax return on extension for three reasons:
- You delay the IRS’ collections actions
- You avoid the 5% non-filing penalty by getting an extension, instead of just avoiding filing because you owe the money.
- You get three extra months to try to find a way to either raise the money or reduce your taxes (legally).
Incidentally, I just finished the materials for a class on Estimated Tax Payments and Paying Payroll Taxes for CCH CPE Link that will be live on July 28th.
And ways for business owners to still reduce their 2019 taxes legally – in the July 21st class on Owners’ Fringe Benefits – in case either of these will help you after you file your extensions.
Alert for you from the IRS:
Due to COVID19, the IRS had put collections actions on hold until July 15th. But they are re-starting ALL collections activity.
- If you have a direct pay installment agreement it will automatically make payments on due after July 15th – otherwise, send in your payment
- If you still cannot afford to pay, due to unemployment, hardship, etc. you can revise it online – https://www.irs.gov/payments/online-payment-agreement-application or call the number on your notice
- Pending Offer in Compromise (OIC) – if it was in process and your periodic payments were suspended until July 15th – start making them again, to keep your OIC in effect while the IRS continues to review your application
- Accepted OICs – if payments were not made recently – you MUST catch them up by July 15th – or call the number on your notice if you are unable to pay.
- Private Debt Collection – The IRS did not send any new cases to them – but will start again on July 16th .
- Taxpayers who owe but cannot pay – set up an online installment agreement or try to call the IRS to get yourself put in Currently Not Collectible Status – better yet, file an extension to get more time before they start collections activity.
Advice for you from the Taxpayer Advocate, Erin M. Collins
The value of superseding a return – important – must be done by July 15th to be of any use
https://taxpayeradvocate.irs.gov/news/NTA_Blog_The_Value_of_a_Superseding_Tax_Return
A warning about relying on IRS information – and protecting the rights of taxpayers who rely on that information – please, please read this.
https://taxpayeradvocate.irs.gov/news/nta-blog-protecting-taxpayer-rights-FAQ
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 .
Reminder – Some Helpful IRS Links
Which IRS services are open and available – keep an eye on this link
https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue
IRS Electronic Options
IRS Online Assistance Available
Dealing with audit or collections issues – IRS is keeping this page up to date
Of course, all the filing and paying deadlines – including taxpayers overseas whose June 15th filing deadline has been pushed back to July 15th.
https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers?
And a great chart: How to Use the Tools on IRS.gov to Get Your Economic Impact Payment https://www.irs.gov/newsroom/how-to-use-the-tools-on-irsgov-to-get-your-economic-impact-payment
There are lots more things going on – watch the information in the IRS Newsroom – https://www.irs.gov/newsroom and TaxMama.com
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.
To make comments please drop into the TaxQuips Forum.
