IRS postpones April 15 tax-filing deadline by one month— but there’s one caveat

IRS postpones April 15 tax-filing deadline by one month— but there’s one caveat

The Internal Revenue Service said it’s pushing the tax-filing deadline from April 15 2021 to May 17 2021.

“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” IRS Commissioner Charles Rettig said in a statement Wednesday.

The May 17 deadline is the deadline to pay any taxes owed, and it is the deadline to submit a return. People can still get an extension to Oct. 15, but that’s only more time to send in a return and does not afford more time to pay taxes.

One caveat to IRS announcement
There is one caveat, however. The IRS notes the extended deadline only pertains to federal income tax payments. It doesn’t affect a state’s income tax deadline.

IRS extends Economic Impact Payment deadline to Nov. 21 to help non-filers

IRS extends Economic Impact Payment deadline to Nov. 21 to help non-filers

The Internal Revenue Service announced today that the deadline to register for an Economic Impact Payment (EIP) is now November 21, 2020. This new date will provide an additional five weeks beyond the original deadline.

The IRS urges people who don’t typically file a tax return – and haven’t received an Economic Impact Payment – to register as quickly as possible using the Non-Filers: Enter Info Here tool on IRS.gov. The tool will not be available after November 21.

“We took this step to provide more time for those who have not yet received a payment to register to get their money, including those in low-income and underserved communities,” said IRS Commissioner Chuck Rettig. “The IRS is deeply involved in processing and programming that overlaps filing seasons. Any further extension beyond November would adversely impact our work on the 2020 and 2021 filing seasons. The Non-Filers portal has been available since the spring and has been used successfully by many millions of Americans.”

Special note: This additional time into November is solely for those who have not received their EIP and don’t normally file a tax return. For taxpayers who requested an extension of time to file their 2019 tax return, that deadline date remains October 15.

To support the ongoing EIP effort, many partner groups have been working with the IRS, helping translate and making available in 35 languages IRS information and resources on Economic Impact Payments.

To help spread the word, the IRS sent nearly 9 million letters in September to people who may be eligible for the $1,200 Economic Impact Payments but don’t normally file a tax return. This push encourages people to use the Non-Filers tool on IRS.gov.

“Time is running out for those who don’t normally file a tax return to get their payments,” Rettig added. “Registration is quick and easy, and we urge everyone to share this information to reach as many people before the deadline.”

While most eligible U.S. taxpayers have automatically received their Economic Impact Payment, others who don’t have a filing obligation need to use the Non-Filers tool to register with the IRS to get their money. Typically, this includes people who receive little or no income.

The Non-Filers tool is secure and is based on Free File Fillable Forms, part of the Free File Alliance’s offering of free products on IRS.gov.

The Non-Filers tool is designed for people with incomes typically 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 the arrival of their payment by choosing to receive it by direct deposit. Those not choosing this option will get a check.

Beginning two weeks after they register, people can track the status of their payment using the Get My Payment tool, available only on IRS.gov.

IRS postpones April 15 tax-filing deadline by one month— but there’s one caveat

Just a Reminder, Tax Day is July 15th

The outbreak of COVID-15 is forcing people to make changes all around the world, and taxes couldn’t be an exception. That’s why the Internal Revenue Service determined to extend the filing deadline and federal tax payments from April 15 to July 15, 2020.

This measure aims to offer relief to American taxpayers that may have been affected by the outbreak, and may be experiencing difficulties filing their taxes.

An Automatic Measure

You don’t have to contact the IRS send any new forms, or take any additional action to take advantage of this extension. The new date will be automatically applied to all taxpayers, including individuals, trusts, estates, corporations, and other non-corporate tax filers as well as those who pay self-employment tax.

The IRS encourages tax payers who are owned a refund to file as soon as possible, as refunds are issued within 21 days. IRS Commissioner Chuck Rettig advises that filing electronically and with direct deposit is the quickest way to get your refund.

As part of this relief package, taxpayers will also be able to defer federal income tax payments to July 15, 2020, without penalties or interests regardless of the amount owed. Remember that these measures apply to federal taxes, so it’s advisable to check with a tax expert to know more about deadlines and possible extensions for state taxes.

If you would like to request an extension to file your taxes after July 15, you should use Form 4868 with the assistance of a tax professional or using tax software. Companies looking for an extension should use Form 7004.

Get More Information

The situation and measures related to COVID-19 in the United Stated are fluid. The IRS has created a website with specific information about this topic. You can check it here to read the most recent updates and information about relief measures for taxpayers. If you wish to obtain more general information regarding COVID-19, check this official page from the United States government where you’ll find information, resources as well as the latest official news. Go here: https://www.irs.gov/coronavirus

Who Qualifies as a Dependent on Taxes?

Who Qualifies as a Dependent on Taxes?

Deciding if Someone Qualifies as a Dependent on Your Tax Return

How Do I Know if I Can Claim Someone as a Dependent?
To start, there are a few basic requirements that need to be met to claim someone else as a dependent:

No one else can claim you, or your spouse if you’re filing a joint return, as a dependent. Even if the person chooses not to claim you as a dependent, the fact that they could makes you ineligible.
You generally can’t claim anyone who is married and files a joint return. However, there are exceptions if the person only files a joint return to get back income taxes that were withheld from paychecks or estimated tax payments.
The person you’re claiming must be a U.S. citizen, resident alien (which can include undocumented residents), U.S. national, or resident of Canada or Mexico. There are also some exceptions for adopted children who lived with you in the U.S.
These general rules apply to everyone. Additionally, the person you’re claiming must meet all the requirements to be your qualifying child or qualifying relative.

The Two Types of Qualifying Tax Dependents
Children and relatives can qualify as tax dependents—but their definitions are broader than you may suspect.

In addition to your birth child or an adopted child, your foster child, siblings, half-siblings and step-siblings (along with all the siblings’ descendants) can be qualifying children. And your son-in-law, mother-in-law, parents, grandparents and in-laws could all be qualifying relatives.

A person doesn’t even need to be a relative to count as a qualifying relative. A girlfriend, boyfriend or roommate could be your dependent as long as the person is a member of your household for the entire year and meets all the other requirements.

The IRS’ Publication 17, chapter 3, has a complete list of which relationships can qualify someone as a child or relative for dependent purposes.

In addition to the relationship requirement, the qualifying child or qualifying relative has to pass a series of “tests.”

Qualifying Children
There are four tests for qualifying children:

The child must be 19 or younger at the end of the tax year and younger than you (and your spouse if you file a joint return). Qualifying children can be up to 24 years old if they’re also full-time students for at least five months of the year, or they can be any age if they’re permanently and totally disabled.
The child has to live with you for at least half the year. There are exceptions for temporary absences, such as when you or the child are away from home for school, business, vacation or military service.
The child can’t provide more than half of his or her own support during the year (scholarships don’t count as support).
The child can’t file a joint tax return unless the only reason for filing is to get back the taxes that were withheld from his or her pay or were part of estimated tax payments.
The rules for who can claim a qualifying child can get fairly complex when both parents can claim the child as a dependent but they aren’t married, or they file their tax returns using the married filing separately status.

Some parents switch off, letting one person claim the child one year and the other parent claim the child the next. The IRS also has an official series of tiebreaker rules (see page 30 of Publication 17) to determine who can claim the child if you can’t come to an amicable agreement.

Qualifying Relatives
There are three additional tests for your qualifying relatives:

The person can’t be anyone’s qualifying child.
The person’s gross income must be below $4,150. Income could include money, property, goods or services they received, and it may include Social Security benefits. However, there are exceptions for people with disabilities who received income from certain tax-exempt schools.
You have to provide more than half of the person’s support for the year.
If working through all the tests sound like too much work, you could also try the IRS’ interactive tool, which can help you determine if you can claim someone as a dependent.

DISCLAIMER: Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular
circumstances. For this reason, you are advised to consult with your own attorney, CPA, and/or other advisor regarding your specific situation. 

Have further questions?  Please contact our office and make an appointment.

IRS postpones April 15 tax-filing deadline by one month— but there’s one caveat

President Trump Signs Taxpayer First Act to Reform the IRS

On July 1, President Trump signed the Taxpayer First Act (H.R. 3151). This bipartisan legislation aims to modernize and improve the IRS by creating an independent office of appeals, requiring the IRS to submit to Congress a plan to redesign and restructure the agency, enhancing cybersecurity efforts, and implementing other changes to better serve taxpayers. Several provisions were supported by APA’s Government Relations Task Force through meetings with congressional staff.

Payroll Provisions

Here are some of the payroll provisions in the Taxpayer First Act.

·Lowered electronic filing threshold. The IRS currently requires electronic filing when a business files at least 250 information returns (e.g., Forms W-2 or 1099-MISC). The legislation lowers the threshold to 100 in calendar year 2021 and then to 10 thereafter.

·Internet platform for Form 1099 filing. The legislation requires the creation of an online platform for businesses to prepare and file Forms 1099. The legislation directs the IRS to develop the platform with a user interface and functionality similar to SSA’s Business Services Online and to implement it by January 1, 2023.

·Authentication of e-Services users. The legislation requires the IRS to verify individuals who apply to open an e-Services account before they can use its tools.

·Independent Office of Appeals. The law creates a new position, Chief of Appeals, who will report directly to the IRS Commissioner and oversee the Independent Office of Appeals to resolve tax controversies without litigation.

·Cybersecurity and identity protection. Referred to as “21st Century IRS,” the legislation requires the IRS to collaborate with the private sector to protect taxpayers from identity theft refund fraud.

To learn more about federal and state laws, regulations, and information to keep your company’s payroll operations in compliance, give us call at 714-400-9201 or visit our website at www.Alvareztaxinc.com

 

NET LOGIN






Forgot password?