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IRS News Release
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Economic impact payments: What you need to know
Check IRS.gov for the latest information: No action needed by most people at this time
WASHINGTON – The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment.
Who is eligible for the economic impact payment?
Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.
Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.
How will the IRS know where to send my payment?
The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.
For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.
The IRS does not have my direct deposit information. What can I do?
In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.
I am not typically required to file a tax return. Can I still receive my payment?
Yes. People who typically do not file a tax return will need to file a simple tax return to receive an economic impact payment. Low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return will not owe tax.
How can I file the tax return needed to receive my economic impact payment?
IRS.gov/coronavirus will soon provide information instructing people in these groups on how to file a 2019 tax return with simple, but necessary, information including their filing status, number of dependents and direct deposit bank account information.
I have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?
Yes. The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return.
I need to file a tax return. How long are the economic impact payments available?
For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these economic impact payments will be available throughout the rest of 2020.
Where can I get more information?
The IRS will post all key information on IRS.gov/coronavirus as soon as it becomes available.
The IRS has a reduced staff in many of its offices but remains committed to helping eligible individuals receive their payments expeditiously. Check for updated information on IRS.gov/coronavirus rather than calling IRS assistors who are helping process 2019 returns.
Unemployment Insurance Tax Wage Reports and Payments Now Deferred to June 2020
To further assist Louisiana employers during the COVID-19 (Coronavirus Disease) national emergency, the Louisiana Workforce Commission (LWC) is now deferring the deadline to submit 1Q 2020 wage and tax reports until June 30, 2020.
This latest deferral now makes June 30, 2020, the deadline for BOTH wage and tax report submissions as well as 1Q 2020 unemployment tax payments.
No penalty or interest will be assessed as long as unemployment taxes are paid in full by June 30, 2020.
You can begin filing your quarterly wage and tax report on April 1. Both filing of your quarterly report as well as payment of your unemployment taxes should be done as usual though our web-based LAWATS portal, https://laors2.laworks.net/lawats/.
If you have any questions, please contact our Employer Help Center at 225-326-6999, or email UITax@lwc.la.gov.
Please take care and stay safe.
Louisiana Workforce Commission
Louisiana Workforce COVID-19 Information
The Louisiana Workforce Commission (LWC) has released information for workers in Louisiana who have been impacted by COVID-19. Those who are eligible to receive Unemployment Insurance benefits will also qualify for SNAP benefits. As a worker, you may be eligible for unemployment insurance if:
* Your work hours have been reduced because of lack of work due to Coronavirus.
* Your workplace closes temporarily, and you are not being compensated.
* You have been instructed not to go to work, and you are not being paid while at home.
If any of these situations apply to you, you can file a claim for unemployment insurance by visiting www.louisianaworks.net/hire or calling 866-783-5567.
Be sure to answer “yes” to the question, “Are you filing for Unemployment Insurance benefits for reasons related to COVID-19 ?” This will provide needed information to the LWC to help process your claim. Find more information at: http://www.laworks.net/Downloads/PR/COVID_19_Information.pdf
Filing Deadline Extended to July 15
U.S. Treasury Secretary announces on Twitter
This morning, U.S. Treasury Secretary Steven Mnuchin announced via Twitter: "At @realDonaldTrump’s direction, we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties."
We expect the IRS will issue official guidance today or Monday, officially extending the deadline.
As we noted in yesterday's TAXPRO Weekly, individuals and small businesses can also delay paying any federal income tax payments up to $1 million and $10 million, respectively, until July 15, 2020. At this time, we don't know if the IRS will increase the tax payment limitations.
IRS Clarifies Payment Extension
Due date remains April 15
The IRS issued Notice 2020-17 clarifying the recent announcement by Treasury Secretary Mnuchin extending tax payments. The due date for filing 2019 federal income tax returns remains April 15 absent a valid extension. We do not know if there will be a failure to file penalty if an extension or return is not submitted by April 15.
This is what we know for sure:
Individuals and small businesses can delay paying any federal income tax payments until July 15, 2020.
- Interest and penalties are waived
- Applies to federal income tax up to $1 million
- Includes self-employment tax
- Includes federal estimated income tax payments due on April 15, 2020
- Corporations can delay paying any federal income tax payments until July 15, 2020.
- Interest and penalties are waived
- Applies to federal income tax up to $10 million
- Does not apply to corporations that file a consolidated return
At this time, penalties and interest will begin to accrue on July 16, 2020 (assuming no further relief is provided). No extension is provided for payment or deposit of any other type of federal tax, or for the filing of any tax return or information return.
The guidance does not cover Form 2210, so if a client did not pay 2019 estimated taxes, they will still need to file Form 2210 and pay that penalty. However, if they owe a balance due, there is relief if they pay by July 15.
The guidance in Notice 2020-17 is specific and narrow in scope and we can only rely on what is provided to date. Bear in mind that all other due dates remain in place until we know otherwise.
March 18, 2020 — Volume 27 No. 14
We are calling on the Department of the Treasury to immediately give taxpayers an extension of the April 15th filing deadline — and we need your help.
Please email Treasury Secretary Steven Mnuchin today at firstname.lastname@example.org. To save you time, you can copy and paste this draft email:
Treasury must act immediately by extending the April 15th filing deadline to July 15th.
Unfortunately, the important payment relief that was announced Tuesday and formalized in today’s notice does not apply to the filing of tax returns and does not reflect the real-world difficulties tax practitioners and their clients are facing.
Cities across the country are having to shut businesses down because of the coronavirus pandemic, and it is impossible for every taxpayer and their tax adviser to prepare returns in this environment.
Nearly 60% of all taxpayers turn to a tax practitioner to prepare and file their tax returns, and individual and business tax filing deadlines are fast approaching. We need immediate action.
We understand that these are uncertain and challenging times for the Treasury Department, and the CPA profession wants to help the system function well. To do that, we need payment and filing relief together.
Thank you for your work to guide the country through these difficult days.
You may also want to copy your Congressional delegation on your email. You can find your U.S. Senators’ and Representatives’ contact information at GovTrack.com.
Thank you for adding your voice to this important call for tax relief clarity.
90-Day Relief for Tax Payments Due
Mnuchin announces during press conference
Today during the White House’s daily coronavirus briefing, Treasury Secretary Steven Mnuchin announced that tax payments up to $1 million for individuals can be deferred for 90 days.
The $1 million threshold was chosen for those who report pass-through business income on their individual return. Corporations are able to defer up to $10 million in tax payments. Penalties and interest that would otherwise apply during this nearly three-month period will be waived.
Mnuchin is encouraging Americans who can file taxes by the April 15 deadline to do so. He also noted that refund issuance will not be affected for those who file.
This news comes on the heels of NATP submitting a letter to IRS Commissioner, Charles Rettig, in support of an extension of the 2020 tax season for a minimum of 90 days. The letter addresses challenges we are hearing from members who are experiencing the reality of navigating tax season amid the current COVID-19 situation.