Tax Snacks

The perfect portion of tax news and information.

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The 2021 tax filing deadline is now May 17th

The IRS recently announced that the 2021 tax filing deadline will be automatically extended from April 15th to May 17th. The decision affords the tax preparation industry time to ensure services conform with the recent changes to federal tax laws that occurred with passage of the Consolidated Appropriations Act, which was signed into law on December 27, 2020.

IRS begins delivering third round of stimulus payments

The IRS announced yesterday that the third round of Economic Impact Payments will begin reaching Americans over the next week. No action is needed by most taxpayers; the payments will be automatic and, in many cases, similar to how people received the first and second round of Economic Impact Payments in 2020. People can check the Get My Payment tool on IRS.gov on Monday to see the payment status of the third stimulus payment.

Claiming the Recovery Rebate Credit on 2020 return

If you were eligible to receive the first or second round stimulus payment and did not receive one or both (or you did not receive the full amount), you may claim the Recovery Rebate Credit on this year's tax return to receive the payment(s).

IRS provides tax inflation adjustments for tax year 2021

The Internal Revenue Service today announced the tax year 2021 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2020-45 provides details about these annual adjustments.

IRS begins accepting returns Friday, Feb. 12th

The IRS began accepting and processing 2020 tax year returns Friday, February 12, 2021. People who are ready to begin filing their returns should strongly consider using one of the free tax assistance services to do so, which includes the Free File program and MilTax. Choosing direct deposit is the quickest and safest way for individuals to receive their refunds.

BIG NEWS FOR BUSINESSES!

The IRS and Treasury Department issued guidance today that allows a business to deduct eligible expenses paid for with Paycheck Protection Program (PPP) loan funds, regardless of whether the business's PPP loan is ultimately forgiven. The new guidance---a big win for small businesses---reflects the changes in the COVID-related Tax Relief Act of 2020, enacted into law on December 27, 2020.

IRS approves temporary use of e-signatures for certain forms

The IRS announced it will temporarily allow the use of digital signatures on certain forms that cannot be filed electronically, including Form 8453 series, Form 8878 series, and Form 8879 series regarding IRS e-file Signature Authorization Forms.

Charitable contribution deduction available to all in 2020

Under the CARES Act (enacted earlier this year in response to the COVID-19 pandemic), taxpayers may now deduct up to $300 for cash contributions made to qualifying organizations in 2020. Taxpayers may claim the deduction even if they take the standard deduction (normally this option is only available to those who itemize deductions).

New filing requirements to report nonemployee compensation

Do you own a business and pay or receive nonemployee compensation? Beginning January 1, 2020, taxpayers must complete Form 1099-NEC (Nonemployee Compensation) to report any payment of $600 or more made to a person in the course of their trade or business. Generally, payers must also file all Forms 1099-NEC with the IRS by January 31st.

IRS extends EIP registration deadline for non-filers to Nov. 21st

On October 5th, the IRS extended the deadline for non-filers to register to receive an Economic Impact Payment (EIP) to November 21st. The deadline extension applies specifically to non-filers, that is, people who do not normally file a tax return and have not filed a 2019 tax return. The extension also covers only these individuals who have not received an EIP yet.

$500 per Child Catch-up Payment - Deadline Today!

Today is the deadline for individuals who do not typically have a tax filing requirement ("Non-Filers") to register their qualifying children in order to receive a $500 per child catch-up payment. This includes individuals who have not yet received their Economic Impact Payment (Stimulus Check).

Tax relief for victims of Hurricane Laura

Those affected by Hurricane Laura may be eligible for certain tax deadline extensions. Affected individuals and businesses now have until December 31, 2020 to file tax returns and pay any taxes that were originally due after August 22, 2020. The relief does not apply to returns and payments that were due on July 15th.

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