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2019 IRA, HSA, and Archer MSA Contributions

The IRS Questions and Answers posted yesterday state that relief has been provided to allow more time to contribute money to your IRA, HSA, or MSA for 2019. Contributions can be made to your IRA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns has been postponed to July 15, the deadline for making contributions to your IRA for 2019 is also extended to July 15, 2020….

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Families First Coronavirus Response Act

An emergency bill was signed into law on Wednesday, March 18th, and will go into effect on April 1, 2020. This law covers paid sick leave and expanded FMLA related to COVID-19 for companies under 500 employees. The Department of Labor has posted information at https://www.dol.gov/agencies/whd/pandemic/ffcraemployer-paid-leave explaining the 6 qualifiers for paying 80 hours of sick leave if an employee is unable to work or telework. An additional 10 weeks of partially paid leave may also be available to care for a child whose school or child care provider is closed…

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Tax Day has been moved to July 15th

In response to the COVID-19 pandemic, the IRS has issued Notice 2020-18 to provide relief from tax deadlines. The due date for filing Federal income tax returns has been postponed automatically from April 15, 2020 to July 15, 2020. Extension forms are NOT required. This applies to individual (Form 1040), fiduciary/trust (Form 1041), gift tax (Form 709), corporate (Form 1120), and retirement plan trust and IRA (Form 990-T) returns. Federal income tax payments that are normally due on April 15 have also been moved to July 15, 2020. This includes…

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Updated – Tax Filing Reminders

April 15th  Due date for 2019 gift tax return Originally April 15th –  These due dates have now been moved to July 15, 2020 Due date for 2019 individual income tax returns Due date for making 2019 IRA, HSA, and Archer MSA contributions Due date for 2019 calendar-year C corporation income tax returns Due date for 2019 calendar-year fiduciary income tax returns Due date for 2019 Forms 990-T for retirement plans and IRAs Due date for the first installment of 2020 estimated tax May 15th  Due date for Forms 990 and 990-T…

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Correction – 2019 Gift Tax Return Due April 15

The IRS Questions and Answers posted yesterday state that “normal filing and payment due dates continue to apply to estate and gift taxes.”  All other April 15 deadlines were moved to July 15, but the IRS is now stating that the Form 709 Gift Tax return deadline was not extended and is due as normal on April 15.  Taxpayers can request an extension until October 15 by filing Form 8892 to extend just the gift return or by filing Form 4868 to extend both the individual return and gift return….

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Tax Filing Reminders

February 28th Due date for payers to provide Forms 1099-MISC (other than box 7 Non-Employee Compensation) to the IRS Due date for payers to provide Forms 1095 to the IRS if paper filing (Note: the due date is March 31st if filing electronically) March 4th  Due date to send individuals 2019 Form 1095-B, Health Coverage, and 2019 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage March 16th Due date for 2019 calendar-year S corporation income tax returns Due date for 2019 calendar-year partnership returns Due date for calendar-year corporations to elect S corporation…

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Can You Write off Website Development Costs?

Despite the extensive use of the internet for business purposes, the IRS has issued little formal guidance regarding deductions in this area. The following discussion, however, sets forth a brief summary of some of the relevant factors that should be considered with respect to these expenses. Purpose of Website. If the website itself is the start-up of a new business (i.e., a new “.com” company), the website development costs generally are not deductible, unless an election is made to deduct the first $5,000 of such costs or the expenses otherwise…

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Form 1023 Is Now Required to Be Submitted Electronically

The IRS recently announced that it has revised Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, and its instructions, to help charities apply for 501(c)(3) tax-exempt status electronically for the first time. Beginning January 31, 2020, applications for recognition of exemption on Form 1023 must be submitted electronically online at www.pay.gov. The IRS will provide a 90-day grace period during which it will continue to accept paper versions of Form 1023 (Rev. 12-2017). The user fee for Form 1023 will remain $600 for…

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There still might be time to cut your tax bill with IRAs

If you’re getting ready to file your 2019 tax return, and your tax bill is higher than you’d like, there may still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA right up until the Wednesday, April 15, 2020, filing date and benefit from the resulting tax savings on your 2019 return. Do you qualify? You can make a deductible contribution to a traditional IRA if: You (and your spouse) aren’t an active participant in an employer-sponsored retirement plan, or…

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Tax Filing Reminders

January 31st  Due date for employers to furnish W-2 statements to employees and to file Forms W-2 with the Social Security Administration (both paper and electronic forms) Due date for payers to provide most Forms 1099-MISC to recipients and Forms 1099-MISC with box 7 Non-Employee Compensation to the IRS Due date for employers to file 2019 federal unemployment tax returns and pay any tax due February 28th Due date for payers to provide Forms 1099-MISC (other than box 7 Non-Employee Compensation) to the IRS Due date for payers to provide…

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