UPDATE ON RECENT IRS PRONOUNCMENTS AND STIMULUS PAYMENTS

Dear clients and friends,

The IRS intends to begin issuing stimulus payments to individuals next week. The payments are $1,200 per individual and $500 per dependent. The payments are phased out based upon income so higher income taxpayers will receive reduced payments or no payment at all. If you filed a return for 2018 or 2019, the IRS has the information to issue the payment. If you provided your bank account information when filing the returns, you will receive a direct deposit to your bank account. If you have not provided your bank account information, the IRS will mail the payments. However, the IRS is anticipating that those payments will not go out until sometime in June.

If you did not file a return, or have a family member or friend who did not file a return, the IRS has just activated a link on their website (irs.gov) “Non-filers: Enter payment info”. Therein you can provide the information necessary for the IRS to process the stimulus payment.

The IRS will be using records from Social Security to issue stimulus payments to retirees who have not filed a tax return. However, that program is still being developed and the payments/checks will be issued at a later date. People in that group can utilize the “Non-Filers” program to enter their information to accelerate receipt of the stimulus payment.

The IRS is currently developing a second new tool: “Get my Payment”. It is similar to the “where is my refund” tool whereby you can click on this link and the IRS will provide the status of your payment, including the date the payment is scheduled to be deposited into the bank account. This link is slated to be available on April 17, 2020. Taxpayers who do not have direct deposit information on file with the IRS can use this tool to provide the information to the IRS and thereby receive a direct deposit of the stimulus payment rather than waiting for the IRS to issue and mail a check.

On April 9, 2020, the IRS announced that all return filing due dates and payment due dates originally scheduled to be due between April 1, 2020 and July 15, 2020 have been extended to July 15, 2020. For the vast majority of taxpayers, this means that the second quarterly estimated tax payment previously due June 15, 2020 has been extended until July 15, 2020. This follows the previous deferral of payments due with the 2019 tax return and the first quarterly estimated tax payment for 2020 until July 15, 2020. The filing due date for regular C corporations is also extended from April 15, 2020 to July 15, 2020.

Thank you, take care and be safe,

McCarthy Kaster Guerrero CPAs

mkgcpas.com

The above is taken from the McCarthy Kaster CPAs & Business Advisors newsletter which has been a great source of COVID19 financial information. I recommend anyone looking to keep up to date with the constantly changing financial tools associated with the current pandemic to visit their site and join their newsletter. - Jason Whaley, Vice President