The tax deadline of July 15, 2020 for filing and paying for 2019 income taxes, and paying the first two vouchers of 2020 estimated taxes, is fast approaching. The traditional due dates were extended due to the Covid-19 pandemic.
This postponement provided temporary tax relief in response to the COVID 19 pandemic. You may still get an extension of time for filing your 2019 income taxes (but no extension exists for paying) to October 15. You may apply for this extension through your tax professional or by filing IRS Form 4868.
A list of forms due July 15 is on the Coronavirus Tax Relief: Filing and Payment Deadlines page. Electronic payment options are the optimal way to make a tax payment.
Additional electronic payment options:
Payment options are available at IRS.gov/payments:
For taxpayers paying separately from when they file their tax return, the more secure and quicker way to send a payment to the IRS is by going to IRS.gov/payments and choosing an electronic payment option to submit the payment. Taxpayers should continue to use electronic options to support social distancing and speed the processing of tax returns, refunds and payments.
Reviewing federal tax information online
Individual taxpayers can go to IRS.gov/account to securely access information about their federal tax account. They can view the amount they owe, access their tax records online, review their payment history and view key tax return information for the most recent tax return as originally filed.
PPP (Payroll Protection Program) Loans – this just in:
According to Accounting Today magazine, “The U.S. Senate passed by unanimous consent a five-week extension of the Paycheck Protection Program (PPP) on Tuesday night just a few hours before the application window on the program was scheduled to close.
The House of Representatives would have to pass the measure and President Donald Trump would have to sign it before the extension would take effect. Both chambers of Congress are expected to adjourn by the end of the week for a two-week recess.
The surprise move is intended to provide more time for small businesses to apply for approximately $129 billion in PPP funding remaining. The PPP was launched in early April as the COVID-19 pandemic battered the U.S. economy and forced many businesses to close. The program provides forgivable loans that small businesses and other qualifying entities can use to cover payroll and other select costs.”
Please note that if you are self-employed with no payroll, you will likely qualify for this loan. Loan proceeds are based on your net profit from your self-employment activities reported on your 2019 income tax return.
Also note that you cannot collect unemployment benefits if you received proceeds from the PPP loan. Check with your bookkeeper or tax pro for determining the amount you may apply for and for restrictions on the use of the loan proceeds. Or go to: SBA PPP Loan FAQs.
Stay safe and healthy!
Taxpertise is located at 450 2nd Street West Sonoma, CA 95476 707.935.1755 Bonnie Lee and Angela Andrews are Enrolled Agents licensed to prepare taxes and represent taxpayers at all levels within the Internal Revenue Service