WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

* Michael Cohn reports “New Taxpayer Advocate sees tax challenges from CARES Act” at ACCOUNTING TODAY –

“National Taxpayer Advocate Erin Collins released her first report to Congress Monday, discussing some of the difficulties confronting taxpayers and the IRS during the COVID-19 pandemic, which has only exacerbated problems with taxpayer service as the IRS struggled to implement the provisions of the CARES Act and the Taxpayer First Act.”

Two items of note from the TA’s report (highlight is mine) -

“Taxpayers who filed a 2019 paper return and are entitled to refunds may have a long wait ahead of them. The IRS needed to suspend the processing of paper tax returns, and as of May 16, it estimated it had a backlog of 4.7 million paper returns. While the IRS is still reopening some of its core operations, it’s not clear when the agency can open and process all the returns sitting in mail facilities.”

And -

“Individuals who didn’t receive some or all of their economic impact payments may have to wait until next year to receive them. To date, the IRS has taken the position that most taxpayers who did not receive their full payments must wait until they file their 2020 income tax returns to claim the amounts as credits against their 2020 tax liabilities, even though there is no legal constraint on the IRS’s ability to issue additional EIP amounts as advance refunds during 2020. Congress enacted the CARES Act both to provide emergency financial relief to taxpayers on an individual level and to boost spending on the national level. TAS will continue to urge the IRS to provide full EIPs to eligible taxpayers throughout 2020 as rapidly as possible. The report says that making taxpayers wait until next year to receive their EIPs harms the affected taxpayers and is inconsistent with congressional intent.”

Click here to read the entire report.

* The FORBES.COM “TaxGirl” Kelly Phillips Erb explains “July15 Estimated Payment Deadline Is Confusing: Here’s How It Works”.

This post provides answers to questions you may have about the first two 2020 federal estimated tax payments.  

*  And at KPE’s original TAXGIRL.COM blog we have her annual “Taxes A to Z” series.

* Russ Fox has begun his annual “Bozo Tax Tip” series at TAXABLE TALK.

* While I obviously do not believe self-employed taxpayers should use Turbo Tax software to prepare their tax returns – a software program is no substitute for a competent and qualified tax professional – I do suggest they check out the TURBO TAX BLOG’s “Self-Employed Coronavirus Relief Center”.

* Jeff Stimpson tells us “Deadline looms for unclaimed billions in federal refunds” at TAXPRO TODAY.

THE LAST WORD

There have been corrupt politicians and selfish politicians in Washington in the past.

But NEVER in the history of the United States has there EVER been a more ignorant, more incompetent, more corrupt, and more totally self-absorbed politician in Washington than Trump.

TTFN

HAPPY 4TH OF JULY!

AND WE OPPOSE AND DENOUNCE THOSE, LIKE TRUMP, WHO ARE TRYING TO DESTROY IT!

IT'S OFFICIAL

From IR-2020-134 dated June 29, 2020 (highlight is mine) ―

“The Department of the Treasury and IRS today announced the tax filing and payment deadline of July 15 will not be postponed. Individual taxpayers unable to meet the July 15 due date can request an automatic extension of time to file until Oct. 15.”

An automatic extension is requested on IRS Form 4868.  You can also request an extension online – go here,

FYI, the automatic extension extends the time to file, not the time to pay. If you think you will owe your “uncle” you should send a check with the extension to avoid penalties and interest.

July 15th is also the deadline for filing most state returns.

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

*  From the NTA Blog - “Keep an Eye on Your Mailbox: Millions of Backlogged Notices Are Being Mailed Over the Next Few Months, Some Reflect Expired Action Dates. But Don’t Panic, See Inserts Providing Extended Due Dates”

* Kay Bell reminds us that the “White House stimulus letter is an official IRS tax document you need to save” at DON’T MESS WITH TAXES.

The stimulus payment you received is NOT taxable income, but is “reconciled” when filing your 2020 Form 1040 (or 1040-SR) – you may be able to get an additional payment as a refundable credit on your 2020 tax return.

* Peter J Reilly “New August 31 Deadline To Return Required Minimum Distributions” -

“Notice 2020-51 grants relief. To the extent distributions taken from IRA and other retirement plans would have qualified as required minimum distributions - including those made prior to April 1 for people who turned 70 1/2 in 2019 to cover the 2019 RMD you now have until August 31 to put the money back. The move will not count as the one allowed rollover per year, so you may still do a rollover for some other purpose.”

* Jeff Stimpson reports “Tax deadlines extended for tornado victims” at ACCOUNTING TODAY -

“Victims of the April tornadoes, as well as the storms and flooding in Mississippi, Tennessee and South Carolina have until October to file various federal individual and business returns and make tax payments.”

*  According to the IRS (here) -

“Interest on individual 2019 refunds reflected on returns filed by July 15, 2020 will generally be paid from April 15, 2020 until the date of the refund. Interest payments may be received separately from the refund. By law, the interest rate on both overpayment and underpayment of tax is adjusted quarterly. The interest rate for the second quarter, ending on June 30, 2020, is 5% per year, compounded daily. The interest rate for the third quarter, ending September 30, 2020, is 3% per year, compounded daily.”

THE LAST WORD

Trump’s words and deeds are not “political” In nature in terms of a political philosophy or political beliefs.

Trump’s words and deeds come exclusively from his pathological need for attention, acknowledgement and adoration, his delusions of grandeur, and his intense desire to be a dictator or monarch.

Trump’s words and deeds are not those of a rational or mentally stable person.

If ever in our history the application of the 25th Amendment was called for it is today.

TTFN

NJ TAX FORMS DUE ON JULY 15

FYI – a review of the NJ state forms and returns that are due July 15, 2020.

Corporation Business Tax:

CBT-100/CBT-100U/CBT-100S/BFC-1 – Annual return for accounting periods ending December 31

CBT-150/BFC-150 – Installment payment of estimated tax originally due April 15

CBT-200-T/BFC-200-T – Tentative return and application for extension of time to file Corporation Business Tax return or Banking and Financial Corporation tax return for calendar year filers. Extension period is 6 months from original April 15 due date

CBA-1 – Notice of Business Activities report by foreign corporations with periods ending December 31

Gross Income Tax (Individual):

NJ-1040 – Resident return

NJ-1040-HW – Property Tax Credit/Wounded Warrior Caregivers Credit application

NJ-1040NR – Nonresident return

NJ-1040-ES – Installment payment of estimated tax for first quarter of current tax year

NJ-1041 – Fiduciary return for calendar year filers

NJ-1080C – Composite nonresident return NJ-630 – Application for extension of time to file resident, nonresident, or fiduciary return. Extension period is 6 months (5½ months for NJ-1041) from original April 15 due date

Partnerships:

NJ-1065/NJ-CBT-1065 – Partnership return for calendar year filers

PART-200-T – Partnership application for extension of time to file NJ-1065 for calendar year filers. Extension period is 5 months from original April 15 due date

CBT-206 – Partnership application for extension of time to file NJ-CBT-1065 for calendar year filers. Extension period is 5 months from original April 15 due date

TTFN

A MORON INDEED!