2019 & 2020 Federal Tax Deadlines Extended
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A Publication of Tax News & Tips™ Mid Year 2020
151 SE 223rd Ave Gresham OR 97030
ph 503-666-7909 • fx 503-666-2235
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151 SE 223 Ave Gresham OR 97030 • ph 503-666-7909 • fx 503-666-2235 • OBTP#13862
2019 & 2020 Federal Tax Deadlines Extended
TAX NEWS & TIPS
The deadlines to FILE and
PAY federal income taxes are
extended to July 15, 2020.
individual rebate checks, another
$500 billion to support businesses
and industries that have seen
and $500 for qualifying children
under the age of 17 will be
available to single filers whose
Taxpayers can their operations affected, $400 adjusted gross income (AGI) is
defer billion in tax credits to less than $75,000, to
federal businesses for wages joint filers with AGI
income tax and payroll tax relief, The less than $150,000 and
payments $300 billion to support Deadlines for head of household
due on April various state and local filers with AGI less
15, 2020, governments and $150
To File & than $115,500.
to July 15, billion to support the Pay Federal What about
2020, without health care system. Income taxpayers with AGI
penalties above the threshold
and interest, INDIVIDUAL Taxes Are amounts? Based on
regardless of the PROVISIONS Extended To a phase out formula,
amount owed.
Recovery Rebates July 15, 2020 the rebates will be
This deferment completely phased out
applies to all taxpayers, including are payments for single filers with
individuals, trusts and estates, being made AGI of $99,000, joint
corporations, and other non- directly to individuals and filers with AGI of $198,000 and
corporate tax filers as well as families below certain $136,500 for heads of households.
those who pay self-employment income thresholds. The Taxpayers with qualifying
tax. Penalties and interest will rebate is an advance children will be subject to higher
begin to accrue on any remaining refund of a newly AGI limits before the rebate is
unpaid balances as of July 16, created 2020 tax completely phased out.
2020. You will automatically credit. The rebate What if the taxpayer’s income
avoid interest and penalties on amounts of $1,200 for drops below the AGI threshold
the taxes paid by July 15. an individual; $2,400
for a married couple See “Deadlines” on Page 2 >
This relief also includes
estimated tax payments for tax
year 2020. The first estimate Proposed Relief Rebate
installment originally due April in the CARES Act
15, 2020 has been extended Proposed Individual
Economic Relief
to July 15, 2020. The second
Rebate By
installment which was due 15, 2020 are suspended. Further,
Filing Status
June 15, 2020, has also been the IRS will not default any
postponed until July 15, 2020; Installment Agreements during
however, the third installment this period. By law, interest will
remains due September 15, 2020, continue to accrue on any unpaid
and the fourth final installment is balances.
due January 15, 2021.
Individual taxpayers who need Coronavirus Aid,
additional time to file beyond the 4 Relief and Economic
July 15 deadline can request a filing Security Act of 2020
extension by filing Form 4868. (CARES Act)
Businesses who need additional In response to the economic
time must file Form 7004. harm that the COVID19 virus
has caused, Congress passed
Current Installment the Coronavirus Aid, Relief and
4 Agreements Economic Security (CARES) Act of
I N S I D E T H I S I S S U E O F TA X N E W S & T I P S
For taxpayers under an existing 2020. The Act initially provides an • “CARES” Act ................................1 • Your Tax Calendar .......................3
Installment Agreement, payments estimated $2 trillion in assistance,
due between April 1 and July including almost $500 billion in • Truth vs. Myth ..............................3 • Got My Payment?........................4
Page 2 A Publication of Tax News & Tips™ Mid Year 2020
“Deadlines” from Page 1 > made to a qualified individual per 365-day period, so you must compensation is increased
in 2020, even if their income for pre-59 ½ distributions from not have done a rollover in the by $600 per week. States can
was too high for the cash flow retirement accounts but would prior 365 days and you will not increase the unemployment
assistance provided by the still be subject to regular be allowed to do one for the next benefits they pay by up to $600
immediate cash payment? While income taxes. 365 days. per week for up to four months
people in this situation will These distributions may be If you are already outside of using Federally provided dollars.
receive the help, the provision is repaid over three years by your 60-day window and you are Unemployment compensation
designed to provide a credit that redepositing any or all the able to meet the definition for a is extended by 13 weeks.
will be available on the 2020 tax distribution back into their coronavirus-related distribution,
retirement account. as described earlier, you would BUSINESS
The funds can have three years to return the PROVISIONS
be returned as a amount you initially distributed
single contribution as an RMD. While the definition
or as a series of of this distribution type is overly Paycheck Protection
contributions made broad, it is not unlimited and
4 Program and
over the three-year not everyone will be able to Forgivable Loans
time frame starting qualify for it, such as non-spouse The Paycheck Protection Program
the day after the inherited IRAs. is a loan program that allows
distribution is taken.
A taxpayer can Enhanced
elect to have all the 4 Tax
income reported in Benefits for
2020 or may split it Charitable
evenly between the Contributions
2020, 2021 and 2022 The CARES Act
tax years allows a charitable
return when completed in 2021,
nonetheless. cash contributions
Loans From deduction of up to
Conversely, if a taxpayer’s 4 Employer-Sponsored $300 for taxpayers
income was low enough to
qualify in 2018 or 2019 but their Retirement Plans that do not itemize.
income was above the threshold Employer-sponsored plans, such
in 2020, the tax credit will NOT as 401(k)s and 403(b)s, may Student
contain loan provisions. If you 4 Loan
be called back when their 2020
return is filed. participate in a plan that includes Relief
The Treasury Department a loan provision, the CARES Act Student loan
indicates that the “as soon as expanded the availability of these payments are
possible” guidance provided by types of loans to the lesser of deferred until
the Act means payments will 100% of the account balance or September 30, 2020 under the lenders to issue Small Business
start to get into taxpayer’s hands $100,000. CARES Act and no interest will Administration (SBA) 7(a) small
in April and continue into May Loan repayment can be accrue during this time. business loans up to a maximum
and beyond. Those taxpayers delayed for up to one year on of $10 million or 2.5 times
that do not have direct deposit loans made through December Unemployment the average monthly payroll
information with the IRS may be 31, 2020. 4 Compensation costs over the previous year to
waiting from 1-4 months for their Benefits Expanded businesses that have fewer than
Required Minimum 500 employees.
physical checks to arrive. The Act 4 Distributions (RMDs)
Under Pandemic Unemployment
These “businesses”
indicates that the IRS will send a Assistance, self-
confirmation letter within 15 days Waived in 2020 employed individuals include sole
RMDs on all retirement plans are and others who are
Any Debt/ proprietorships and
of having made the payment,
which will provide a phone suspended for 2020. This includes typically ineligible Loan food service business
number to report any payment Traditional, SEP, and SIMPLE IRAs, for unemployment Forgiveness Is that employ fewer
issues. and employer plans such as 401(k) or have run out of than 500 people per
s, 403(b)s and governmental such insurance will be Not Included physical location.
Elimination of 10% 457(b)s. In Taxable The loan
4 Additional Tax for If you already took your RMD
eligible for up to 39
weeks of benefits due proceeds may be
Coronavirus-Related for 2020 and wish to return
Income used for payroll
to this provision.
Retirement Plan those funds to the account to The Federal costs, group health
Distributions avoid paying tax, there are two Government has offered to pay insurance premiums or other
An exception to the 10% options. If the initial distribution states to provide unemployment healthcare costs, salaries and /
distribution penalty is was taken within the last 60 days, compensation immediately, or commissions, rent, mortgage
provided by the CARES Act you may return the funds to the foregoing the one-week waiting interest and utilities.
for “coronavirus-related” account as a 60-day rollover. You period. Borrowers are required to
distributions of up to $100,000 are only allowed one rollover Regular unemployment make a good-faith certification
A Publication of Tax News & Tips™ Page 3
that the loan is necessary due
to the uncertainty of current
economic conditions caused by
COVID-19.
The initial round of funding
of $350 billion was exhausted in
2 weeks. Congress approved an
additional $310 billion in funding
on April 23.
Loan Forgiveness
4 The amount of the loan
eligible to be forgiven is the relief also applies to the employer in 2019. The option also exists
amount spent during the first 8 portion of self-employment taxes. to make an election to take the
weeks after the loan is made on This provision is not available to entire refundable credit amount
the following items: businesses who participate in the in 2018. The application for a
payroll costs, excluding SBA loan forgiveness program. tentative refund must be filed
amounts for individuals with before December 31, 2020.
compensation greater than Net Operating Loss
$100,000; rent due to a lease 4 Carrybacks
in force prior to February 15, benefits, or Supplemental
Net operating losses (NOL) that Security Income (SSI) or
2020; electricity, gas, water, were accrued in 2018, 2019 or
transportation, phone and/ Railroad Retirement and
2020 can now be carried back Survivor Benefits.
or internet access for services up to five years. Unused losses
which began before February If you receive these benefits,
can still be carried forward the IRS will already have your
15, 2020 and group health indefinitely. NOLs are also able
insurance premiums and other information and you will
to offset up to 100% of taxable receive your Recovery Rebate.
healthcare costs. income in 2018, 2019 and 2020
To be eligible for forgiveness, Non-Filers: Special Note: People in these
(up from 80%).
the business must keep the same Myth: groups who have qualifying
These changes allow companies
number of employees from If you are not required to file children under age 17 can use
with NOLs to amend their prior
February 15, 2020 through June a federal income tax return, this application to claim the
years’ returns to claim refunds
30, 2020 that it had from you will not be eligible for the additional $500 payment
of amounts previously paid to
January 1, 2020 through Recovery Rebate. per child.
further enhance their current
February 14, 2020. Truth: If you do not file
cash flow picture.
Any debt forgiven is not taxes, use the IRS.Gov website Filers:
included in taxable income. and go to “Non-Filers: Enter Myth: I cannot get the
Minimum Tax Credit
4 is Accelerated
Your Payment Info Here” Recovery Rebate by direct
Employee Retention application to provide simple deposit since the IRS does
4 Credit
The CARES Act allows business information so you can get not have my bank account
to claim outstanding Minimum your payment. You should
The CARES Act provides a Tax Credits (MTCs) starting information and my payment
payroll tax credit as an incentive use this application if you will be delayed.
in 2019 (originally 2021). The have a social security number
to encourage businesses from CARES Act allows corporations Truth: Filers can access the
making layoffs. and cannot be claimed as a “Get Your Payment” section
to claim 100% of AMT credits dependent of another taxpayer
To be eligible for the credit the on IRS.Gov to check payment
operations of the company need – AND – status and confirm payment
to have been fully or partially type. You can enter your bank
suspended due to governmental you did not file a 2018 or 2019 account information for direct
intervention because of the Your Tax Calendar federal income tax return deposit if the IRS does not have
coronavirus OR revenue in 2020 because your gross income was your direct deposit information
Jul 15 2019 Individual Income Tax under $12,200 ($24,400 for
is less than 50% of the revenue Returns due. and has not sent your
from the same quarter in 2019. married couples). This includes payment yet.
Jul 15 Tax Due without penalty & people who had no income.
interest for 2019 Individual Myth: I have not filed my 2019
Payment of Payroll – OR –
4 Taxes Deferred
Tax Returns. Tax Return yet, so I will not get
Jul 15 1st quarter (original due you were not required to file the Recovery Rebate check.
Employers are eligible to defer date 4/15/20) estimated tax
a 2018 or 2019 federal income Truth: Everyone who is eligible
payroll taxes due from March 27, payments due.
tax return for other reasons. will receive the Recovery
2020 through December 31, 2020. Jul 15 2nd quarter (original due
Do not use this application Rebate check. If you have not
50% of the payroll tax liability is date 6/15/20) estimated tax
payment due. if you receive benefits from filed for 2019 yet, then the IRS
due December 31, 2021 and 50%
Social Security retirement, will use your 2018 return to
is due on December 31, 2022. This Sep 15 3rd quarter estimated tax
payments due. disability (SSDI), survivor estimate your credit.
© 2020 TAX NEWS & TIPS
Do I Need To Use The Non-Filers Tool? What Can The “Get My Payment”
Tool Do For Me?
Track the status: You can use the “Get My Payment” tool on
IF you are required to file a federal income tax return No, do not use Non-Filers, for this entire column. IRS.gov to track the status of your Economic Impact Payment once
for 2019 or 2018... the IRS has processed your tax return, for this entire column.
Add direct deposit information: If you don’t choose direct de-
File your 2019 individual tax return electronically. Choose direct posit when you file your return, you may be able to use the “Get
…and you have not filed a tax return for either 2019 or 2018 deposit for a faster refund. Your Economic Impact Payment will My Payment” tool on IRS.gov to provide direct deposit account
but expect to receive a tax refund. be sent in the same way you choose to receive your refund unless information after the IRS has processed your return. If this tool
you specify otherwise. doesn’t offer you the option to provide your deposit information,
it means the IRS will mail your Economic Impact Payment.
File your 2019 federal tax return. Your Economic Impact Payment Add direct deposit information: If you don’t choose direct de-
will not be reduced – even if you owe tax. posit when you file your return, you may be able to use the “Get
… and you have not filed a tax return for either 2019 or 2018 File electronically for the quickest processing. My Payment” tool on IRS.gov to provide direct deposit account
and you expect to owe tax on the return(s). information after the IRS has processed your return. If this tool
For information about paying the tax due with your return, doesn’t offer you the option to provide your deposit information,
visit IRS.gov/payments. it means the IRS will mail your Economic Impact Payment.
rn Address (for Mailing Flap)
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STANDARD
US POSTAGE PAID
PORTLAND, OR
rd PERMIT NO. 3540
151 SE
151 SE 223
223 rd Avenue
Avenue
Gresham, OR 97030-8478
Gresham OR 97030
Do I Need To Use The Non-Filers Tool? What Can The “Get My Payment”
Tool Do For Me?
Track the status: You can use the “Get My Payment” tool on
IF you are required to file a federal income tax return No, do not use Non-Filers, for this entire column. IRS.gov to track the status of your Economic Impact Payment once
for 2019 or 2018... the IRS has processed your tax return, for this entire column.
…and you filed a return for 2019 or 2018 You don’t need to do anything else to get your Economic Impact
with direct deposit information for your tax refund, Payment. You will automatically get your payment deposited
and the direct deposit information is current and accurate. directly into your account.
Generally, if you designated direct deposit on your 2018 or 2019
tax return, the Economic Impact Payment will go to the account Note: “Get My Payment” cannot update bank account
… and you filed a return for 2019 or 2018 with direct deposit number you designated. If the account is no longer active, the IRS information after an Economic Impact Payment has been
information for your tax refund but the information is not will automatically mail your payment to your address of record scheduled for delivery. To help protect against fraud, the tool
current or accurate. (this is generally the address on your last return or as updated also does not allow people to change bank account
through the United States Postal Service [USPS]). information already on file with the IRS.
Add direct deposit information: You may be able to use the
You don’t need to do anything else to get your Economic Impact “Get My Payment” tool on IRS.gov to provide direct deposit
… and you filed a tax return for 2019 or 2018, but you owed tax Payment in the mail. You may be able to provide direct deposit account information once the IRS has processed your return.
or didn’t choose direct deposit for tax refund. information to the IRS to get your payment in your If this tool doesn’t offer you the option to provide your direct
bank account instead. deposit information, it means the IRS will mail your Economic
Impact Payment.
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