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PPP Loan Application Deadline Extended to August 8th

2020 – 07/06 On July 4, President Trump signed a bill that gives businesses more time to seek federally backed loans. It extends the Paycheck Protection Program (PPP) loan application date to Aug. 8, 2020. The PPP was established by the CARES Act in response to the COVID-19 pandemic, authorizing the Small Business Administration to…

To File or Not to File?

2020 – 07/06 Not everyone is required to file a tax return. But as the deadline to file for 2019 approaches (July 15), it may pay to file anyway. Here are reminders from the IRS: You may be due a refund if tax was withheld, if you made estimated payments or if you applied last…

Steer clear of the Trust Fund Recovery Penalty

2020 – 07/06 If you own or manage a business with employees, you may be at risk for a severe tax penalty. It’s called the “Trust Fund Recovery Penalty” because it applies to the Social Security and income taxes required to be withheld by a business from its employees’ wages. Because the taxes are considered…

Will the IRS Forgive Tax Debts?

2020 – 07/02 With the July 15 federal tax filing and payment deadline fast approaching, as part of its People First Initiative, the IRS has posted answers to FAQs on tax balances due and payment options. One question on the top of many taxpayers’ minds is: Will the IRS forgive tax debts? The answer: No….

July 15th Tax Deadline

2020 – 07/01 The IRS has announced that the July 15 income tax filing and payment deadline WON’T be postponed. Taxpayers who need more time to file their federal income tax return can get an extension until October 15 by filing Form 4868, “Application for Automatic Extension of Time to File U.S. Individual Income Tax…

Assessing productivity as you cope with the pandemic

2020 – 07/01 The COVID-19 crisis is affecting not only the way many businesses operate, but also how they assess productivity. How can you tell whether you’re getting enough done when so much has changed? There’s no easy, one-size-fits-all answer, but business owners should ask the question so you can adjust expectations and objectives accordingly….

Coronavirus & Our Parents’ Taxes

2020 – 07/01 Do you think your mom or dad is showing signs of dementia?  Does that same forgetful parent normally file the taxes?  Are you worried that coronavirus could’ve affected your parents’ ability to file this year?  Teresa Walker, CPA, CSA shares tax filing steps for families on the dementia journey. If you’ve been…

Tax Refund Identity Theft

2020 – 06/30 Identity theft tax refund fraud remains a concern, according to a report by the Electronic Tax Administration Advisory Committee. The committee’s “2020 Annual Report to Congress” praised the efforts of the Security Summit (a coalition of IRS, state tax agencies and the private sector tax industry) in combatting identity theft tax refund…

July 15th Tax Deadline

2020 – 06/29 Taxpayers were given extra time to file and pay current tax liabilities, in response to the COVID-19 pandemic. Absent another extension, the deadline of July 15, is almost here. Those who owe a 2019 income tax liability as well as estimated tax for quarters one and two of 2020, must make two…

Social Security Benefits and Federal Income Tax

2020 – 06/26 A reminder: Taxpayers receiving Social Security (SS) benefits may have to pay federal income tax on a portion of those benefits. For example, up to 85% of a taxpayer’s benefits may be taxable if he or she is: 1) filing single, head of household or qualifying widow or widower with more than…

Qualified Business Income Deduction

2020 – 06/25 The IRS has issued final regulations regarding the qualified business income (QBI) deduction. The regs provide guidance on the treatment of previously suspended losses included in QBI and the determination of the Sec. 199A deduction for taxpayers that hold interests in regulated investment companies (RICs) and certain estates and trusts. The final…

RMDs and the CARES Act

2020 – 06/24 The IRS may have good news for some retirement account owners. Generally, taxpayers with certain retirement accounts must take required minimum distributions after reaching a certain age or face stiff penalties. The CARES Act enables taxpayers with an RMD due in 2020 from an IRA or a defined-contribution retirement plan, including a…

10% Penalty Waived

2020 – 06/24 Generally, taxpayers who take distributions from tax-favored retirement accounts before age 59½ must pay a 10% tax penalty. They must also include those funds in their taxable income for the year. Thanks to the CARES Act, for those affected by the COVID-19 virus, the 10% penalty is waived on distributions of up…

©2020 Bland Garvey CPA