The Tax Center

It is official. The IRS announced yesterday that they are extending the tax deadline to May 17th for filing and paying your 2020 taxes. If you have not already filed your taxes you can relax a little. https://www.irs.gov//tax-day-for-individuals-extended-to-m

The Internal Revenue Service (IRS) has announced that tax season will open on Friday, February 12, 2021. Yes, on a Friday. The IRS will begin accepting paper and electronic tax returns that day. This is about three weeks later than it has been in prior years. The delay allows the IRS time to do additional programming and testing of IRS systems following the December 27 tax law changes - especially those involving a second round of stimulus checks (Economic Impact Payments, or EIPs).

Today, the Internal Revenue Service and the Treasury Department will begin delivering a second round of Economic Impact Payments as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 to millions of Americans who received the first round of payments earlier this year. The initial direct deposit payments may begin arriving as early as tonight for some and will continue into next week. Paper checks will begin to be mailed tomorrow, Wednesday, Dec...Continue reading

Congress passed a 5593 page bill yesterday and it appears the president will sign it. Someday some of them may read it, but I doubt that. There are some major issues with the PPP loan program. First, this legislation makes clear that there will be no tax on the PPP loan forgiveness and you will be able to deduct the expenses you paid with the money.... This is a huge reversal from the IRS position that the expenses would not be allowed. Second there is a new round of PPP loan money available. To qualify for the new loan you will have to show that your revenue was down 25% in any 2020 calendar quarter from the same quarter in 2019. The limit for most businesses is the same as the original 2.5 times your average monthly payroll. For restaurants the amount is raised to 3.5 times your average monthly payroll. The bill directs the SBA to issue updated guidance and loan applications within 17 days. I am sure we will see guidance from the SBA as well as your bank or other lender in the near future. The bill also simplifies the loan forgiveness process for loans of $150,000 or less. There will be a new one page request for forgiveness that will not require you to provide documentation. The SBA is directed to have this process in place within 24 days. Merry Christmas!

IRS designates November 10 National EIP Registration Day The IRS has designated Tuesday, November 10, National EIP Registration Day. This is part of the agency’s final push to encourage everyone who doesn't normally file a tax return to register to receive an Economic Impact Payment. This special event will feature support from IRS partner groups including those that work with low-income and underserved communities. These groups will help spread the word about the new Novemb...er 21 deadline and, in some cases, provide special support for people who still need to register for the payments. The IRS has already sent nearly 9 million letters to people who may be eligible for the $1,200 Economic Impact Payments but don't normally file a tax return. The letters along with the special November 10 event urge people to use the Non-Filers: Enter Info Here tool, available only on IRS.gov. While most eligible U.S. taxpayers have automatically received their Economic Impact Payment, others who don't have a filing obligation should use the Non-Filers tool to register with the IRS to get their money. Typically, this includes people who receive little or no income. Who should use the Non-Filers tool The tool is designed for people with incomes below $24,400 for married couples, and $12,200 for singles who could not be claimed as a dependent by someone else. This includes couples and individuals who are experiencing homelessness. Anyone using the Non-Filers tool can speed up the arrival of their payment by choosing to receive it by direct deposit. Those not choosing this option will get a check. People can track the status of their payment using the Get My Payment tool beginning two weeks after they register. The IRS urges everyone to share this information to help the agency reach as many people before the November 21 deadline. https://www.irs.gov//irs-designates-november-10-national-e