The IRS has announced a new form to report non-employee compensation named the 1099-NEC. It's actually an old form being revived to report service providers. Accountingweb has a summary of the particulars for the form including a different due date than the other 1099 forms. Click here to view the summary.
Now that Joe Biden is the President-elect, we can surmise what policies he will direct his focus to put his fingerprints on . Well we can't but Kiplinger can. Although most are not tax specific, many are tax influencing so we have some some curiosity, correct? Click here to see what policies we can expect a focus on according to Kiplinger.
The IRS recently announced the latest tool they are enacting to reach those who have yet to receive their stimulus payment. The IRS will be sending letters to those they believe may be eligible to receive an Economic Impact Payment but have not received a payment yet. The announcement stipulates that receiving a letter does not indicate eligibility. The announcement provides a copy of the letter that will be sent from an IRS address and instructions on how to check your eligibility for a payment using the tool on the IRS website. Be aware that their is an October 15 deadline to apply for your payment. Click here to see the announcement.
Recently, the IRS released it's annual "Dirty Dozen" of methods scammers use to take advantage of the public's apprehension in dealing with the IRS. Due to the COVID-19 pandemic, scammers have additional opportunities with the Economic Impact Payments and other pandemic specific tax relief. Click here to visit the IRS website and prepare yourself to be on guard for these scams.
Our last post identified stumbling blocks in the distribution of stimulus checks and how to overcome those stumbling blocks. A lot has changed since then and yet the words "stumbling blocks" are still in play. The IRS help page for the stimulus payments has mushroomed into a seemingly endless collection of FAQs but somehow all the questions have not been answered. If you have not received your stimulus payment yet, click here to visit the trove of FAQs and hopefully you will find the answer you are searching for. One last note, the IRS does provide a phone number for questions about the stimulus payments. That number is (800)919-9835.
If the provisions of the CARES Act including the individual stimulus checks hasn't been anything else, it's been chaotic for sure. As a result, the IRS is trying to smooth the bumps by developing a dedicated page at IRS.gov to find out the status of your stimulus check and to provide direct deposit information if your check hasn't been sent yet. Although the button hasn't been made active yet, the fact that it is there gives hope that it will be live soon. Click here to go straight to the IRS page to check on your stimulus.
Soon the first set of Stimulus Payments are set to go out. These are the payments you have all heard a lot about in the news. With these payments set to go out I thought it would be good to write and try to separate fact from fiction concerning these payments. There is a lot of information out there about these, some good, some bad. I will try to explain what I know about these payments in the bullet points below:
o $2,400 for married filing joint taxpayers
o $500 for each child listed as a dependent who is under 17
o For head of household it begins at $112,500 and total phase out is at $136,500
o For MFJ it begins at $150,000 and total phase out is at $198,000
o Paper Check: If the IRS does not have a “bank of record” they will issue a paper check to the address on the latest return (2018 or 2019) filed. If you have changed addresses since then you need to submit a Form 8822 to IRS as soon as possible. You can find this form at www.irs.gov.
As always know we are here for you should you have any questions. Take care and stay safe. This will be over soon.
J. Alan Hayes, CPA
In an effort to keep liquidity in the economy and to allow businesses to endure the shutdowns and lack of traffic during this COVID-19 pandemic, the Treasury has made loans available to small businesses. The two main loans are the Economic Injury Disaster Loan (EIDL) which is administered by the Small Business Administration and the Paycheck Protection Program (PPP) which is administered by local banks and credit unions approved as SBA 7(a) lenders. To find more information about the EIDL loan including starting an application, visit the Small Business Administration's website via this link. To find more information about the PPP loan including the terms and forgiveness provisions, contact your local SBA 7(a) lender or visit the Small Business Administration's page about the PPP via this link. The Treasury has also posted PPP loan information including an overview, information for lenders, information for borrowers, and an application to give an idea of information needed. Click here and then select the applicable PDF for your situation.
Tennessee released Notice #20-07 on March 30, 2020 outlining the extension of the Business Tax filing and payment due date from April 15, 2020 to June 15, 2020. It is important to note that the extended due date is different than the extended Franchise and Income Tax and Hall Income Tax due dates. Click here to view the notice from the state.
Following in the footsteps of the IRS once again, the Tennessee Department of Revenue has moved the filing and payment due dates for Hall Income Tax returns. Click here for the notice from the state.
J. Alan Hayes