Category: Taxes

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Taxes

IRS Backlog Will Be Frustrating

Well here we go! Thanks to covid and an aging digital infrastructure, the IRS has a large backlog of work to wade through this year. Be sure to file your return early to get any refund due you as quickly as possible.

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From the folks at Marketwatch:

This year’s income tax filing season has started, and the IRS says it’s going to be a ‘frustrating’ one

By Andrew Keshner24

Taxpayers should be ready for delays processing 2021 tax returns, IRS officials say.

Ready for your 2021 tax refund? It’s closer than ever, because tax season is underway and the Internal Revenue Service started accepting and processing 2021 returns on Jan. 24. The 2022 tax season will run until Monday, April 18.

But that refund may not be coming as fast as you would like. The Treasury Department and Internal Revenue Service have warned taxpayers to brace themselves for potentially sluggish service as the underfunded, understaffed and backlogged IRS juggles another filing season.

The 2022 filing season arrives as Capitol Hill negotiations over the Biden administration’s Build Back Better bill seem stalled. The bill would include adding $80 billion over a decade to the IRS budget for more staff and better technology to catch tax cheaters, as well as funding to improve customer service.

“In many areas, we are unable to deliver the amount of service and enforcement that our taxpayers and tax system deserves and needs. This is frustrating for taxpayers, for IRS employees and for me,” IRS Commissioner Chuck Rettig said Jan. 10.

Exhibit A: telephone customer service for taxpayers or preparers who have questions for the IRS. Less than 15,000 IRS staffers were available to field more than 240 million calls through the first half of 2021, Treasury officials said.

[more…]

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Read the full story here: https://www.marketwatch.com/story/this-years-income-tax-filing-season-starts-jan-24-and-the-irs-says-its-going-to-be-a-frustrating-one-11641835408

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Community Financial Literacy Retirement Taxes

Seminar: Lifetime and Legacy Charitable Planning 2021

Thank you to the Sacramento LGBT Community Center for hosting our seminar “Introduction to Lifetime and Legacy Charitable Giving and Tax Planning”. The event was well-received and we were able to provide excellent information to the attendees. We look forward to doing it again next year!

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Financial Literacy SoeFin Taxes

Seminar: Tax Planning for Planners

Thank you to all the amazing planners who attended!

The seminar was really well received, and based on the awesome feedback from all of you, we hope to be able to give this one again every year 🙂

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SoeFin Taxes

Seminar: Tax Planning For the Self-Employed

Thanks to all you awesome folks who attended! Extra special thanks to the folks at Futures Explored for hosting 🙂

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Covid Taxes

State By State Guide To Tax Deadlines For Filing & Payments During COVID-19

Forbes has put together an excellent guide to state-by-state tax filing and payment deadlines. We encourage all our Soesbe Financial clients, as well as the general taxpaying population, to file their taxes sooner rather than later, to ensure that any refunds you are owed can be disbursed in a timely manner.

Your Guide To State Tax Deadlines For Filing Returns & Making Estimated Payments During COVID-19

by Kelly Phillips Erb Senior Contributor Taxes

(Updated: June 12, 2020)

On March 20, 2020, Treasury Secretary Mnuchin extended the tax filing and payment deadline for federal income tax to July 15, 2020. This relief includes estimated payments for the first and second quarters. You can find more information and guidance here.

Some states have also extended filing and payment deadlines – but not all of them are extended to July 15, 2020. Additionally, not all state filing extensions apply to estimated payments (you’ll see the information about estimated payments in bold below). Here’s what we know so far:

Alabama: For taxpayers affected by the coronavirus (COVID-19), the due date for filing state income tax, FIET, and BPT returns and making state income tax, FIET, and BPT payments due on or after April 1, 2020, and before July 15, 2020, is postponed to July 15, 2020. Extension payments and Estimate payments due on April 15, 2020, have been postponed to July 15, 2020. However, the Order does not include estimated payments due after April 15, 2020. For example, a calendar year taxpayer’s second-quarter payment is still due June 15, 2020.

Alaska: Alaska does not have a personal income tax.

Arizona: The Arizona Department of Revenue (ADOR) announced it has moved the deadline for filing and paying state income taxes from April 15 to July 15, 2020. This includes individual, corporate, and fiduciary tax returns. Taxpayers who need more time beyond the July 15 deadline to file state income taxes should consider filing for an extension. Arizona’s delay in filing and paying state income taxes does not include an extension to pay estimated tax payments.

Arkansas: Governor Hutchinson announced the state deadline to file and pay individual income taxes has been extended to July 15, matching the federal extension. Arkansas did not extend the 2020 estimated tax payments. 

California: FTB has postponed until July 15, the filing and payment deadlines for all individuals and business entities for 2019 tax returns, 2019 tax return payments, 2020 LLC taxes and fees, and 2020 Non-wage withholding payments. California has also extended 2020 1st and 2nd quarter estimate payments to July 15.

Colorado: The income tax payment deadline has been extended for all Colorado taxpayers to July 15, 2020. All income tax returns that were required to be filed by April 15, 2020, are granted a six-month extension and are due on or before October 15, 2020. EO D 2020 010 grants an extension of time to pay until July 15, 2020, for any estimated payment due between April 15, 2020, and June 15, 2020, without penalty.

Read the full article here:

https://www.forbes.com/sites/kellyphillipserb/2020/06/10/your-guide-to-state-tax-deadlines-for-filing-returns–making-estimated-payments-during-covid-19/#2c324e2c33c9

Categories
Covid Taxes

Treasury and IRS Issue Guidance on Deferring Tax Payments Due to COVID-19 Outbreak

The government has pushed back the payment deadline to July 15th. It’s unclear whether existing interest and penalties up until April 15th will be waived. For the full and latest information on deferred payments, go directly to the IRS website:

https://home.treasury.gov/news/press-releases/sm948

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Covid Taxes

IRS Quietly Closing Offices During COVID-19 Crisis

For a full list of services and resources still being made available to citizens, visit the IRS’s Coronavirus Tax Relief page at https://www.irs.gov/coronavirus

Kelly Phillips Erb, Senior Contributor Taxes

The Internal Revenue Service (IRS) isn’t shutting down completely – but it’s getting close. Some IRS call centers and return processing centers are closing in response to COVID-19.

COVID-19 is the official name for the infectious disease caused by the most recently discovered coronavirus. According to Johns Hopkins, as of March 23, 2020, there are 353,692 confirmed cases of COVID-19 in 167 territories and countries. The United States has 35,345 confirmed cases with reported cases in every state; only China and Italy have more confirmed cases.

As a result, on March 13, 2020, the President of the United States issued an emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. 

Additionally, several Governors have issued stay-at-home orders. 

Read the full article by clicking directly through to:

https://www.forbes.com/sites/kellyphillipserb/2020/03/23/irs-quietly-closing-offices-during-covid-19-crisis-but-union-says-its-not-enough/#13a7c49e5cf0

Categories
Covid Taxes

Treasury and IRS Delay Federal Tax Day from April 15 to July 15 Due to COVID-19 Outbreak

Tax Day now July 15: Treasury, IRS extend filing deadline and federal tax payments regardless of amount owed. Even though the tax filing deadline has been extended, if you are expecting a refund, the sooner you file, the sooner you will get your money back!

For full and up to date information on the new IRS filing deadline, please visit the IRS website directly at:

https://home.treasury.gov/news/press-releases/sm953