IRS Issues Draft Form 941 and Instructions

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The Coronavirus Aid, Relief and Economic Security (CARES) Act as well as the Families First Coronavirus Response Act (FFCRA), both enacted in March, 2020, provide employers with substantial incentives that are realized through payroll tax reductions. To properly determine the economic value of these incentives, it is necessary to modify historical payroll deposit procedures. Ultimately, […]

IRS Requires Return of Stimulus Checks Sent to Decedents

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The Internal Revenue Service confirmed on May 6, 2020, that deceased taxpayers are not eligible for the coronavirus stimulus payment checks (economic impact payments) issued under the CARES Act. The confirmation was presented in the addition of two questions (#10 and #41) in the Internal Revenue Service’s Economic Impact Payment Information Center. This determination is […]

Tax Deadline Extension Now Includes Exempt Organizations

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In deference to fairness, on April 9, 2020, the Internal Revenue Service issued Notice 2020-23, which extended the tax filing and payment deadline to now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. In addition to tax-exempt organizations, individuals, trusts, […]

Social Security Recipients Without Prior Year Tax Returns to Automatically Receive Economic Impact Payments

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On April 1, 2020, the U.S. Department of the Treasury and the Internal Revenue Service  announced that Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return to receive an Economic Impact Payment. Instead, payments will be automatically deposited into their bank accounts. The announcement […]

IRS Releases Guidance on Employee Retention Credit

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Internal Revenue Service guidance on various aspects of the recently passed economic stimulus bills continues to be released on a fast and furious pace. The most recent release, Notice IR-2020-62, adds clarification to the Employee Retention Credit (ERC) included in the Coronavirus Aid, Relief and Economic Security (CARES) Act, enacted on March 27, 2020. This […]

Start Date Set for FFCRA Employment Tax Credits

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The Internal Revenue Service has issued Notice 2020-21 announcing start dates for the employment tax credits for paid qualified sick leave and family leave wages required by the Families First Coronavirus Response Act (FFCRA). As per the guidance, the credits will apply to wages and compensation paid for periods beginning on April 1, 2020, and […]

IRS Extends Due Date for Estate and Gift Taxes

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The IRS has announced that the due date for filing returns and making payments for federal gift and generation-skipping transfer tax has been extended until July 15, 2020.  This additional coronavirus relief guidance was released in Notice 2020-20, which updates the previously-released Notice 2020-18. These estate and gift tax returns would have been due on […]

Additional Guidance on Extension of Federal Tax Return Due Dates

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The Department of the Treasury and the Internal Revenue Service issued Notice 2020-17 on March 18, 2020, which postponed the due date for certain Federal income tax payments from April 15, 2020, until July 15, 2020. (see related posts below) Just two days later, this Notice was “superseded” by Notice 2020-18, which was released to […]

Federal Tax Filing Deadline Moved to July 15

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In response to an intense push by taxpayers and tax professionals over the last several days, Secretary of the Treasury Steven Mnuchin announced on March 20, 2020, that the 2019 income tax filing deadline (which was April 15, 2020) will be moved to July 15, 2020.  The 90-day delay matches the previously announced extension to […]

Senate Republicans Release Trillion Dollar Stimulus Package

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In an attempt to ward off a potential recession in the U.S. economy as a result of federal and state actions intended to thwart the impact of the novel coronavirus (COVID-19), Senate Republican, released a massive economic stimulus bill on March 19, 2020. The cost of the package is currently estimated to be a staggering […]