1/?
Short thread on what we know, and what we don't know, so far, about #COVID19-related tax relief.
First, what we know for 'sure' (although even "sure" isn't 100% b/c nothing's in writing yet)...
Taxpayers owing $1 million or less have the ability to delay making payments...
Short thread on what we know, and what we don't know, so far, about #COVID19-related tax relief.
First, what we know for 'sure' (although even "sure" isn't 100% b/c nothing's in writing yet)...
Taxpayers owing $1 million or less have the ability to delay making payments...
2/
for 2019 income tax liabilities for 90 days beyond the standard April 15, 2020 deadline.
The stated reason for the $1 million figure is that is would cover a "lots of pass-throughs and small businesses." Frankly, a tax bill of >$1 million covers the OVERWHELMING majority...
for 2019 income tax liabilities for 90 days beyond the standard April 15, 2020 deadline.
The stated reason for the $1 million figure is that is would cover a "lots of pass-throughs and small businesses." Frankly, a tax bill of >$1 million covers the OVERWHELMING majority...
3/
...of small biz owners.
We also know that taxpayers will not have to do anything special to receive this relief. They just have to file their tax return and the relief will automatically be applied.
The same relief applies to corps with a tax bill of $10 million or less...
...of small biz owners.
We also know that taxpayers will not have to do anything special to receive this relief. They just have to file their tax return and the relief will automatically be applied.
The same relief applies to corps with a tax bill of $10 million or less...
4/
Unfortunately, that's pretty much all we know for sure. There are, frankly, a lot of open questions.
We don't know, for instance, whether this relief will also push back the filing date. As of now, I think the only proper course of action is to assume it does NOT...
Unfortunately, that's pretty much all we know for sure. There are, frankly, a lot of open questions.
We don't know, for instance, whether this relief will also push back the filing date. As of now, I think the only proper course of action is to assume it does NOT...
5/
until we have confirmation from the administration otherwise. I think the big issue is that the IRS does not want to delay filing deadline for everyone and have extended returns due next January.
Doing so would likely interfere w/ the...
until we have confirmation from the administration otherwise. I think the big issue is that the IRS does not want to delay filing deadline for everyone and have extended returns due next January.
Doing so would likely interfere w/ the...
6/
preparation for the 2021 tax filing season (for 2020 returns). I posted an easy way to solve this issue and provide some current relief. Seems logical, so chances of it happening are small, at best😋
This shouldn't be a huge concern for most...
preparation for the 2021 tax filing season (for 2020 returns). I posted an easy way to solve this issue and provide some current relief. Seems logical, so chances of it happening are small, at best😋
This shouldn't be a huge concern for most...
7/
taxpayers/preparers b/c 6-month automatic extension is generally available.
That said, if a CPA has #COVID19, or is caring for someone who does, or can't reach an afflicted taxpayer to confirm an extension is desired, it could be an issue.
Also issues w/ the volunteer...
taxpayers/preparers b/c 6-month automatic extension is generally available.
That said, if a CPA has #COVID19, or is caring for someone who does, or can't reach an afflicted taxpayer to confirm an extension is desired, it could be an issue.
Also issues w/ the volunteer...
8/
income tax assistance program which helps low-income taxpayers. Many sites are shut down b/c of #COVID19.
It is also unclear whether the relief will be extended to account for 2020 Q1 estimates. I'm bearish on this right now, b/c Treasury is operating on a 'budget' of...
income tax assistance program which helps low-income taxpayers. Many sites are shut down b/c of #COVID19.
It is also unclear whether the relief will be extended to account for 2020 Q1 estimates. I'm bearish on this right now, b/c Treasury is operating on a 'budget' of...
9/
$300 billion for allowable deferred tax payments, and the main relief would seem to eat most of that up.
Also SUPER-important for people to understand that this guidance only applies to the FEDERAL tax liability, and NOT TO ANY STATE TAX LIABILITY...
$300 billion for allowable deferred tax payments, and the main relief would seem to eat most of that up.
Also SUPER-important for people to understand that this guidance only applies to the FEDERAL tax liability, and NOT TO ANY STATE TAX LIABILITY...
10/
Whether states will conform will be a state-by-state decision so...
that should be fun for us all in the coming weeks🤪
...Lastly, if you already filed w/ debit scheduled to be pulled from checking (or similar) account, you can cancel your payment. Your best bet...
Whether states will conform will be a state-by-state decision so...
that should be fun for us all in the coming weeks🤪
...Lastly, if you already filed w/ debit scheduled to be pulled from checking (or similar) account, you can cancel your payment. Your best bet...
11/11
may be to call IRS e-file Payment Services 24/7 at 1-888-353-4537 (Hat tip @dannyimdanny). For more, see irs.gov/payments/pay-t…
People are desperate for any but of good news right now.
So, spread the word.👊
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may be to call IRS e-file Payment Services 24/7 at 1-888-353-4537 (Hat tip @dannyimdanny). For more, see irs.gov/payments/pay-t…
People are desperate for any but of good news right now.
So, spread the word.👊
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