Tag: IRS

blog&news

E-FILE AMENDED RETURNS (1040-X)

Now you can E-file 1040-X. This is a major milestone in tax administration, the Internal Revenue Service announced today that taxpayers can now submit Form 1040-X electronically. This will help Taxpayers correct tax returns with ease and speed up processing tremendously.

E-filing as a whole has consistently grown each year and the 1040-X, Amended U.S. Individual Income Tax Return, has been one of the major individual tax forms that needed to be paper-filed. Today’s announcement follows years of effort by the IRS, and this enhancement allows taxpayers to quickly electronically file corrected, previously filed tax returns. Each year around 3 million 1040-X are filed by the taxpayers and so the ability to file Form 1040-X electronically has been an important long-term goal of the IRS. Click Here to read the full article.

Taxpayers still have the option to submit a paper version of the Form 1040-X and should follow the instructions for preparing and submitting the paper form. Those filing Form 1040-X electronically and on paper can use Where’s My Amended Return? online tool to check the status of their amended return.

We will be rolling out E-filing for the 1040-X over the next several weeks. We anticipate enabling the ability in the software by end of October. We will post updates as we roll out the product.

blog&news

PTIN FEES ARE BACK 😼

The IRS set $21 fee per PTIN application or renewal (plus $14.95 fee payable to contractor)

The Internal Revenue Service announced today the annual fee for 2021. Tax return preparers will have to pay to obtain or renew their Preparer Tax Identification Number (PTIN) for the 2021 tax season. Anyone who prepares or substantially helps prepare any federal tax return or claim a refund for compensation must have a valid PTIN from the IRS. Failure to have and use a valid PTIN may result in penalties. The IRS estimates that more than 800,000 tax return preparers will apply for or renew a PTIN this year.

IRS determined that the full cost to administer the PTIN program going forward is $21 per application or renewal. This amount includes costs relating to PTIN misuse and maintaining the integrity of PTINs. The third-party contractor fee, $14.95, pays for several functions including processing applications, renewals, and operating a call center. PTINs expire on December 31 of the year for which they are issued. PTINs generally can be renewed beginning in mid-October and are valid for the following calendar year. Click Here to read the full article.

blog&news

PAYCHECK PROTECTION PROGRAM (PPP)

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks, and the money is used for payroll, rent, mortgage interest, or utilities.

Loans from the Paycheck Protection Program will be available for amounts equaling 2.5 times the average monthly payroll for a business, up to $10 million.

Who can apply for PPP?

If your business is any of the following, you can apply for PPP.

Sole Proprietorship, Independent Contractor, Self-employed, Single-member LLC

Corporation, Professional Corporation, General Partnership, LLC, Nonprofit

Which Documents will you need to apply for the PPP loan application?

Most of our businesses will fall under the first category, and so if your business is Sole Proprietorship, Independent Contractor, Self-employed, Single-member LLC, you will need the following.

If you have employeesNo Employees
Government Issued ID (Front and Back)Government Issued ID (Front and Back)
2019 1040 Schedule C**2019 1040 Schedule C**
2019 IRSForm W-31099-MISC for Independent Contractors
2019 IRS Form 9402020 invoice, bank statement or
book of record to establish you were operating effective
2/15/2020
W2s for any employees earning more than $100,000
Payroll statement covering 2/15/2020

Your most recent statement from your outstanding Economic Injury Disaster Loan, if you have received or been approved for an EIDL loan.

Most importantly, to apply for PPP, you should contact the bank that you are currently banking with; this will make the process lot faster, but in case you do not have that option, we suggest that you apply with KABBAGE. 

To apply for Paycheck Protection Program with Kabbage (CLICK HERE)

blog&news

IRS “GET MY PAYMENT” Tool

The IRS Get My Payment information tool is now LIVE on the IRS website. Taxpayers can use the Get My Payment site to:

Check on the status of their Economic Impact Payment.

Confirm their payment type (direct deposit or mailed check).

Add their direct deposit information if it has not already been provided to the IRS.

Taxpayers will not be able to update their mailing address using the Get My Payment site as the IRS had previously announced. Economic Stimulus Payments will be mailed to the address filed on the 2019 tax return. If a 2019 return has not been filed, the IRS will mail the payment to the taxpayer’s address as filed on their 2018 tax return.

The Get My Payment site will require the users SSN, DOB, Street Address and Zip Code. It’s our understanding the user will have three attempts to enter this info as it appears on their tax return. After three failed attempts, it locks the user out for 24 hours. Due to high traffic volume, we would not be surprised if the site crashes at some point today. 

blog&news

CARES ACT UPDATE

Economic Impact Payment Information

As the IRS prepares to issue approximately 175 million Economic Impact Payments, We have been working closely with the industry leaders to develop a strategy that gets refunds into taxpayer’s hands without creating a burden on tax professionals.

What your clients can expect?

A taxpayer who filed through your office and paid for tax preparation with the Refund Transfer, and qualifies for the Economic Impact Payment may receive their payment 1 of 2 ways. Note: This is information subject to change and we will provide updates once more details are available.

Taxpayer who selected Refund Transfer Direct Deposit

The IRS will issue Direct Deposit to the taxpayer who selected “Refund Transfer Direct Deposit” such as SBTPG DIRECT or REFUND ADVANTAGE ERD

Check mailed to the Taxpayer

An IRS-issued check may be mailed to taxpayers that selected any Refund Transfer option other than Direct Deposit options listed above.

Taxpayer’s who wants to update their bank info

The U.S. Department of the Treasury and IRS will launch the “Get My Payment” web application sometime this week. The FREE app—which will be found at IRS.gov (CLICK HERE)—will allow taxpayers who filed their tax return in 2018 or 2019 but did not provide their banking information on their return to submit direct deposit information. Once they do, they will get their Economic Impact Payments in their bank accounts quickly, instead of waiting for a check to arrive in the mail. “Get My Payment” will also allow taxpayers to track the status of their payment.