We want to make sure you are up to date on some of the most recent changes that have happened during this week.
Change in Tax Filing Due Date to May 15 for Individual Taxpayers
In our last update, we informed you that we anticipated the IRS would push back the due date of tax returns originally due on April 15, 2021. As you might have heard in the news, on Wednesday, March 17, the IRS has in fact changed the due date for individual tax returns and the payments due with those returns to May 15, 2021.
On the surface, this seems like a good thing, and we believe it is a partial step forward. However, as with much that the IRS does, they seemed to confuse the situation further. They did not extend the due date for all taxpayers with a due date of April 15, as Trusts, Not for Profits, and Corporations with a due date of April 15 are still due on that date. In addition, any individual taxpayers that are required to make quarterly estimated tax payments (roughly 9.5 million taxpayers) are still required to make their 1st quarter estimated tax payment by April 15, one month prior to their tax return being due. This seems to have made the system more complex, rather than providing relief to those taxpayers who need it most.
We, along with our National Organization the AICPA, are continuing to push for a June 15, 2021, due date and are asking Congress to step in and push for some real relief needed for all individuals and entities subject to the April 15 due date. So, for now, May 15 is the new due date for some individual taxpayers. Stay tuned as we will keep you updated should the situation change.
Unemployment Exclusion of $10,200
For those taxpayers that will benefit from the recently passed unemployment compensation exclusion of $10,200, the IRS has posted on their website the instructions for claiming this exclusion for those who have not yet filed their tax returns. For those who have already filed tax returns prior to the exclusion coming into law, the IRS has stated that taxpayers should not file Amended tax returns, they will issue refunds to those taxpayers who qualify. We will also monitor this situation, and should the refunds fail to start coming to those due refunds, we will let you know of any revised procedures.
PPP Loan Submission Date Looks to be Extended through May 31
For those businesses and organizations that are eligible for the new round of PPP loans, it looks like the date for applying for the next round of loans will be extended from March 31, 2021, to May 31, 2021. With the changes recently made for Sole Proprietorships & Single member LLC’s, this will provide some extra time for those needing assistance to keep businesses running.
The House has unanimously passed this Bill and it has moved on to the Senate, so hopefully this will pass shortly. We will update you as we hear news on the final passage.
Should you have any questions on any of these or any other items that relate to your situation, do not hesitate to contact us and we will be happy to discuss with you directly.