BUZZ BUZZ – THE BUZZ IS BACK!

* I personally have not been following the rules for the PPL (Payroll Protection Program), as I have enough to do to keep up with actual 1040 tax law, but fellow tax professional blogger Jason Dinesen has, and provides information for Schedule C filers who could benefit from the program in two posts at DINSESN TAX TIMES -  “How Do Sole Proprietors Prove Usage of Funds for PPP Loan Forgiveness?” and “Sole Proprietors and PPP Loan Forgiveness: Beware”

* Yellow rose of taxes Kay Bell lists “6 ways to know your COVID-19 check is real” at DON’T MESS WITH TAXES.

One way is – “The COVID-19 payment checks will have a special note at the lower left side of the check, next to the Statue of Liberty image. It says ‘Economic Impact Payment President Donald J. Trump’."  It is certainly no surprise that despicable and deplorable and ignorant and incompetent malignant narcissist Trump wasted government money to have his name printed on the check.

* A reminder – please see my previous post “Where Is It?”.

* From FORBES.COM’s TaxGirl Kelly Phillips Erb – "Frustrated With The Stimulus Check Portal? IRS Says Try Again".

I had problems with Get My Payment the first time I attempted to use it when it first appeared, but last Thursday I was told that my check would be mailed out on April 24^th.

* According to the CARES Act you do not have to take a “Required Minimum Distribution” (RMD) from an IRA or other retirement account in calendar year 2020.  But this was announced on March 27^th.  What if you had already taken your 2020 RMD?

All is not lost, as Ed Slott explains in Q+A article from AARP "IRA Expert Answers More Questions On Required Minimum Distributions" (highlight is mine) –

“However, on April 9, the IRS issued Notice 2020-23, indirectly providing limited relief by allowing an extension of the 60-day rollover period. Any distribution (including unwanted RMDs) taken between Feb. 1, 2020, and May 15, 2020, can still be rolled over if done by July 15, 2020.”

So if you took an RMD in February or March before the waiver was announced you can put it back.  But you must put the entire amount back.  If there was any tax withheld you must return these amounts as well or you will be taxed on the withholding.  If the RMD was $100,000 and you had $25,000 in federal and state tax withheld so that you only got $75,000 "in pocket" you MUST rollover $100,000.

If you took the RMD in January you are screwed.

TTFN

WHERE IS IT!

FYI - if you have not yet received your stimulus payment DO NOT contact your tax preparer to ask where it is.

We do not work for the IRS or the federal government and have no information about or knowledge of the status of your payment.

Go to the IRS website - https://www.irs.gov/coronavirus/economic-impact-payments.

TTFN

THIS JUST IN - GIVE THE IRS YOUR DIRECT DEPOSIT INFORMATION

The IRS “Get My Payment” tool is now available to allow you to enter direct deposit information for your stimulus payment.

Go here –

https://www.irs.gov/coronavirus/get-my-payment

TTFN

Although this year April 15 has no meaning – it is NOT the federal and state tax return filing deadline – I am taking the day off.  No 1040s today.

Every year the tax filing season ends for me on April 14 – or the day before the extended deadline if the 15^th is on a week-end or state holiday.  I do not work on the actual deadline to honor the memory of Maurice “Moe” Barry.

https://www.forbes.com/sites/peterjreilly/2011/09/10/the-wandering-tax-pros-911-tribute

THIS JUST IN

I just learned this -

Information Release IR-2020-68 states “The IRS is not currently able to process individual paper tax returns.  If you already have filed via paper but it has not yet been processed, do not file a second tax return or write to the IRS to inquire about the status of your return.  Paper returns will be processed once processing centers are able to reopen.”

So, if you have filed a paper federal income tax return, as I have done for all my clients, and are expecting a refund it will be delayed. 

Or if you are wondering why you have not received your refund check yet – this is why.

And if you filed a paper return you will probably not be able to get a proper answer regarding the status of your federal refund at the IRS website’s “Where’s My Refund” tool.

If you are entitled to a refund do not hold up mailing a paper return.  Sign and mail the return now - even if the IRS cannot process it, they will have a record of when it was received.

TTFN

IRS UPDATES

Here is the latest news on the stimulus payments and COVID-19 federal tax relief -

* If you don’t file a tax return due to low income and you do not receive Social Security or Railroad Retirement benefits you can use the new "Non-Filers: Enter Your Payment Info Here" application at the IRS website to provide simple information so you can get your payment.

Go to https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here.

* The IRS will also be introducing a "Get My Payment" application at the website in mid-April to check your payment status, confirm your payment type (direct deposit or check) and enter your bank account information for direct deposit if the IRS does not have this information from your tax return.  I will let you know here when this application is available.   

* Per recent IRS Notice 2020-23, the June 15 deadline for federal estimated tax payments is postponed to July 15, and the deadline for filing an amended 2016 federal tax return to claim a refund, normally April15, is extended to July 15.

TTFN

VERY IMPORTANT!

PLEASE, PLEASE, PLEASE -

For your own personal health and safety and that of your family - DO NOT LISTEN TO ANYTHING TRUMP SAYS ABOUT THE PANDEMIC during his daily back-patting sessions.

Listen to your Governor and true medical professionals, like Dr. Fauci, ONLY for information and updates.

IT'S ABOUT FEKKING TIME!

NJ has finally joined New York and Pennsylvania, and many other states, to extend the filing deadline for the NJ-1040 from April 15 to July 15.

Here is an excerpt from the joint statement by Murphy and the state’s Senate President and Assembly Speaker -

“The ongoing COVID-19 pandemic has caused hardships, financial strain, and disruptions for many New Jerseyans and New Jersey businesses.  As part of our response, we have reached agreement that the state income tax filing deadline and the corporation business tax filing deadline will be extended from April 15th to July 15th.”

TTFN