The governor announced on the 3/19 that Missouri would follow the federal tax deadlines. The Department of Revenue has updated their information to reflect the same. So the good news is, we know Missouri and Federal deadlines for the tax returns and payment of the returns are both due May 17. However, the estimated payments for 2021 are still due April 15. Also we are still waiting for state guidance on how they will handle the American Relief Act. We are specifically waiting to see if … [Read more...]
Recovery Rebate Credit
If you missed out on the first two economic impact payments there is still a chance to receive those funds. This can be done through the Recovery Rebate Credit. If your income in 2020 was less than the return, your economic impact payments were based on you can claim a credit on your return to get the funds. We have seen taxpayers receive partial or even full credit for these payments that they missed out on during the year. To get this credit you need to make sure your tax preparer … [Read more...]
IRS Extending More Deadlines Helps Nonprofits
Many accountants have been waiting for this announcement. The IRS has issued an extension of time for file form 990-series. Typically for a calendar year nonprofit the tax return is due May 15 following the end of the year. This year due to the relief for COVID-19, the IRS has announced that deadline will be moved to July 15. If the nonprofit is unable to file at that time an extension will need to be filed. The release says "the extensions generally now apply to all taxpayers that have … [Read more...]
Economic Impact Payments (Stimulus Payments)
The IRS has posted more information about the stimulus payments. While the IRS website still says "Stimulus payment checks: No Information available yet, no sign-up needed" there is a brief update of how it will work in the format of question and answer. What you need to know: ELIGIBILITY: You are eligible to receive the payment if you are single with gross income under $75,000 or married with gross income under $150,000. If under these amount you will receive $1,200 per person. If over … [Read more...]
Stimulus and Business Relief Update
I thought I would write this post to give you an update about what we know so far about both the stimulus money and some relief available to businesses. The stimulus bill did pass for the stimulus money and it will be based on tax returns either the 2018 or 2019 if filed. There is a max earnings amount and a phase out on earnings that will determine the amount of funds received.That being said, the IRS is who handles these payments and it has not posted anything regarding the specifics; so … [Read more...]
Latest News: Changes to Installment Agreements and Collections
The latest from the IRS was posted the afternoon of March 25, 2020. This is related to relief for taxpayers under installment agreements or anybody receiving notices for liens and levies. The IRS is suspending payments due between April 1 to July 15 for existing installment agreements. Taxpayers unable to pay the amounts in their installment agreements can defer their payments without being in default. However, based on federal law, interest will still continue to accrued. If you owe … [Read more...]
Estimated Tax Payments Delayed
We have been getting questions about estimated tax payments and when those should be paid. First let me explain the purpose for estimated tax payments and how they should be calculated. Estimates are used to pay your taxes in evenly throughout the year if you do not have income that has federal or state taxes withheld. For the purpose of this post we will discuss federal only. The payments are used to avoid penalties. If you pay taxes late you can incur interest and penalties from the … [Read more...]
Missouri Tax Deadline
Missouri Department of Revenue updated the filing deadline and due dates to match the IRS deadline of July 15, 2020. In a press release Saturday Governor Parsons announced that Missouri would mirror the federal guidance issued by the Internal Revenue Service and provide special filing and payment relief to individuals and corporations. The relief comes in the way of a filing deadline change and payment deadline change to July 15, 2020 without any extension being filed. In addition the … [Read more...]
Small Business Disaster Loan Assistance
There is help for small businesses that are affected by the Coronavirus. Many small businesses have had to close or provide limited services due to the need for social distancing. The US Small Business Administration has an option for these small business to borrow money to help with this. The loans can be maximum $2 million with an interest rate not to exceed 4 percent. While this is a small business loan you apply for this loan online. This is not done through a bank. To register and … [Read more...]
Tax Filing Date Change
On March 20 the Internal Revenue Services posted that the tax filing deadline has now been delayed and now matches the tax payment deadline of July 15, 2020. No extension is required to be filed on April 15 for taxpayers. You can find more information at https://www.irs.gov/pub/irs-drop/n-20-18.pdf . Also additional relief was issued for businesses to be able to recover costs associated with providing Coronavirus-related leave for employees. The IRS states "Reimbursement will be quick and … [Read more...]
