Monday, April 27, 2020
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 24th.
* 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 27th. 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.