February 18, 2021
Earlier this month, the IRS issued notices to approximately 260,000 taxpayers stating they haven’t filed their 2019 federal tax return.
These notices, referred to as CP59 notices, are issued yearly to identified taxpayers who have failed to file tax return that was due the prior calendar year (Tax Year 2019).
Due to pandemic related shutdowns, the IRS has not completed processing all 2019 returns at this time.
Therefore, the CP59 notices should not have been sent because some portion of the recipients may actually have filed a return that is still being processed.
People who filed their 2019 return but nevertheless received the CP59 notice, can disregard the letter and do not need to take to take any action. There is no need to call or respond to the CP59 notice because the IRS continues to process 2019 tax returns as quickly as possible.
The IRS regrets any confusion caused by this mailing.
The IRS encourages those who have yet to file their 2019 return to promptly do so.
Here are reasons people should file a 2019 tax return; Economic Impact Payment, tax credits available for some. https://go.usa.gov/xwMS9
Addition to June 2020 Newsletter - RMD
Want to put your RMD (Required Minimum Distribution) back? This year, and only this year (we hope), due to COVID-19, you can if done by August 31, 2020. Great news from IRS!
Here’s the scoop:
Normally, once you hit (age 70 ½ old rules) age 72 (new rules) you have to start taking a RMD each year from your IRA’s (and usually 401k’s). Children or others who inherited an IRA, must take RMD’s regardless of age. The CARES Act said you don’t need to take RMD’s for 2020. But what if you already took it? Normally, once per year, you can have IRA money and put it back within 60 days. But when the CARES Act waiver came along it was already over 60 days for some people (such as me) and so we thought we were out of luck. But new IRS Notice 2020-51, now says we can put back into IRA these dollars that were taken, even if more than 60 days have passed. And we can do this for several distributions (not just once in this year) as long as they are put back by August 31, 2020.
In addition, the IRS has recently expanded COVID eligibility for loans from IRA’s and 401(k)’s and payback.
Also note our article in our newsletter about Roth conversions.
And remember you can send money directly to a charity, if in RMD age, and it never is included in your taxable income.
If you have questions about any of these items, please contact us.
Important Reminder - From the U.S. Department of Treasury website:
If you receive calls, emails, or other communications claiming to be from the Treasury Department and offering COVID-19 related grants or stimulus payments in exchange for personal financial information, or an advance fee, or charge of any kind, including the purchase of gift cards, please do not respond. These are scams. Please contact the FBI at www.ic3.gov so that the scammers can be tracked and stopped.
Fraud involving payment of Federal taxes should be reported to the Treasury Inspector General for Tax Administration.
March 23, 2020
COVID-19 MEMO NUMBER 2
TO OUR CLIENTS AND FRIENDS,
Iowa Governor Kim Reynolds announced the creation of the Iowa Small Business Relief Fund at her press conference on March 23, 2020. This program will provide relief to small businesses that have suffered business disruption due to COVID-19. Grant funds of $5000-$25,000 will be available to businesses that employed from 2 to 25 employees prior to 3/17/2020. If you get a grant, you automatically qualify for a deferral of payment of state withholding and sales tax until July 31, 2020. For all other employers, you may be eligible for deferral of the same taxes within this application process.
There will be one application for both and will be available on the Iowa Economic Development website (www.iowaeconomicdevelopment.com)at 8 a.m. on March 24, 2020. The deadline for filing the application will be March 31, 2020.
The Iowa Workforce Development is allowing delay until July 31, 2020 of unemployment tax payments for the first quarter of 2020 for employers with fewer than 50 employees.
There may be more funds available in the future according the Debi Durham, Director of the Iowa Economic Development Authority.
March 18, 2020
TO OUR FRIENDS AND CLIENTS,
Many of you have felt an immediate economic impact as a result of the closures and limitations caused by the recent Disaster Declaration due to COVID-19. We are monitoring the various government websites with all of you in mind. The following information may be helpful:
You can visit www.iowaworkforcedevelopment.gov for more information.
You can visit www.dol.nebraska.gov for more information.
You can visit SD Department of Labor and Regulation, www.dlr.sd.gov for more information.