IRS Feed

Just can't get motivated to do your taxes? You are not alone. It's April, but the pandemic has shifted the tax focus this year from filing, which has a new July 15 deadline, to the coronavirus economic relief payments. Still, if you're due a refund — and yes, some folks who get tax money back still dally when it comes to sending in their returns — you might want to go ahead and get to work on that 1040. The main reason to file is that you'll get your 2019 tax year refund. That's not going to happen until the... Read more →


The specifics on how and when the Internal Revenue Service will issue the payments created under the Coronavirus Aid, Relief and Economic Security (CARES) Act have been changing. First, older filers were going to have to file a special return form to get the money. Now, the Treasury Department says the IRS will use eligible recipients' Social Security information and directly deposit them without requiring any additional action. As for when that will happen, Treasury Secretary Steve Mnuchin said yesterday that the delivery timetable has been accelerated. The IRS will start getting the money out to some next week. However,... Read more →


Treasury backtracks and now says Social Security recipients who qualify for the COVID-19 payments will get the money without having to file a tax return. Never underestimate the power of the older population. The U.S. government learned that lesson this week, when the Treasury Department announced, contrary to its prior assurances (and a new law), that folks on Social Security would have to file a tax return if they wanted to get their share of the coronavirus relief payments. Last night, Treasury Secretary Steve Mnuchin reversed that requirement. (Yes, on April 1. No, it was no an April Fool's Day... Read more →


We definitely are no longer living in normal tax or other times. (Images from Young Frankenstein) April has always been a serious month for taxpayers. April 15 has been Tax Day for 65 years and since most of the millions of at-the-deadline filers tend to owe Uncle Sam, they're not very happy. This year, though, there is an even more solemn reason for no April fooling around. Things, tax and otherwise, have gotten very serious as the United States and the world fight the deadly coronavirus pandemic. On the tax front, new laws have been written and old ones adjusted... Read more →


Are you freaking out because you have to take a tax-mandated withdrawal from a retirement account on April 1? The Coronavirus Aid, Relief and Economic Security (CARES) Act has some good news for you. The new law that's gotten a lot of attention for the pandemic related stimulus checks that should be going out soon also offers a break to seniors who must take required minimum distributions, or RMDs. RMDs are waived for 2020 under the CARES Act. That means you can leave your money in your tax-deferred account this year or at least not take as much out as... Read more →


"No action needed" by most, says IRS, to get COVID-19 stimulus payments. But some, including Social Security recipients, will have tile a "simple" tax return to get the money. This has changed. See second update below in the Q&A section. Adobe Stock The coronavirus checks will soon be in the mail, or rather headed directly to your bank account. That's the official word from the Treasury Department and Internal Revenue Service. The agencies announced on Monday, March 30, that the economic impact payments authorized by the Coronavirus Aid, Relief and Economic Security (CARES) Act will begin going to eligible taxpayers... Read more →


Pixabay/CDC Coronavirus relief checks still are weeks away from arriving in our bank accounts or snail mail boxes, but crooks already are trying to trick us out of the money. The Better Business Bureau (BBB) says its ScamTracker already has detected crooks impersonating as government officials and calling about the money authorized under the just-enacted Coronavirus Aid, Relief and Economic Security (CARES) Act. New hooks, old scams: COVID-19 is a new bait, but the scam scenarios are out of the standard con artist playbook. You get an email or see an online post about a special COVID-19 government grant. All... Read more →


The law that created coronavirus stimulus payments just took effect yesterday and we're weeks at best from getting actual money. But tax planners have been thinking about COVID-19 tax intricacies since the illness exploded in the middle of this tax season. These payments just add a new tax filing wrinkle, since what we put on our 2019 returns could be a key part in the relief amount's ultimate dollar calculation. Tony Nitti, a CPA and tax partner with RubinBrown in Aspen, Colorado, has a good preview of what our tax filing actions now could mean to our potential coronavirus payments... Read more →


We're a third of the way to coronavirus relief checks. Last night (March 25), the Senate approved the massive measure, which includes in its 880 pages payments of $1,200 per person and $500 per dependent child. (More on this in a minute.) The bill, known as the Coronavirus Aid, Relief and Economic Security (CARES) Act, now goes to the House for approval. There may be some procedural stumbling blocks, but it's expected to pass there, probably by voice vote to avoid the congregating caused by a roll call on the chamber's floor. That probably will happen Friday. Then it heads... Read more →


Thank you, Internal Revenue Service. The tax agency has confirmed that 2019 tax year contributions to individual retirement arrangements (IRAs) and health savings accounts (HSAs) can be made as late July 15. These accounts are among the very few areas where a tax break doesn't have a Dec. 31 deadline. In normal tax seasons, contributions to an IRA or HSA can be made and claimed for the prior tax year as late as April 15, which is the usual tax filing deadline. However, this year, as everyone already knows, the chaotic convergence of COVID-19 and taxes prompted the IRS to... Read more →


Retailers aren't the only ones closing their doors to customers during the coronavirus crisis. So is the Internal Revenue Service and other tax-related operations. As cases of COVID-19 increased, the IRS has acted to protect not only taxpayers but its employees. The goal is the new global mantra — to flatten the curve of the potentially deadly virus' transmission. IRS in-person actions curtailed: "We're taking several immediate steps to protect employees while still delivering on the mission-critical functions," said IRS Commissioner Charles Rettig, in a message to his staff that also is posted on the tax agency's website. These virus-affected... Read more →


We're in what during normal times would be the annual tax season's big push to the end (or an extension). But these are not normal times. Instead, it feels more and more like we're living in a tax version of Bill Murray's classic "Groundhog Day." That's because for the second time in three days the Treasury Department and Internal Revenue Service have moved the deadlines for filing and paying taxes. Friday, March 20, morning Treasury Secretary Steve Mnuchin decided that an earlier decision that split the usual April 15 deadline for tax filing and paying should be changed. So he... Read more →


The Senate also addresses this year's tax filing and payment deadline, as well as those for 2020 estimated tax payments, in its coronavirus relief bill. Keep reading for more on this latest change and check out this Q&A for elaboration from the IRS on some specific tax considerations under the new mid-July deadlines. 2019 tax year returns and any due payments now will be due on July 15, 2020, according to a Treasury Department announcement this morning. And yes, I drew that sloppy circle and scribbled the info on my own calendar. I should have had a cup of coffee... Read more →


Unemployment claims are skyrocketing across the United States as more businesses close as a precaution to stem the spread of the coronavirus. The latest on claims for unemployment benefits was released today by the U.S. Department of Labor. For the week ending on March 14, around 281,000 Americans filed first-time claims for the benefits. That's up 33 percent from the 211,000 benefits claims the week before. Percentage wise, the increase was among the largest one-week spikes on record. Here in the Lone Star State, the Texas Workforce Commission reports that from March 8 to March 14 it received 16,038 unemployment... Read more →


UPDATE, 2:15 p.m. CDT, Wednesday, March 18, 2020: The Treasury and Internal Revenue Service have issued an official statement about the April 15 tax payment grace period. The portions that answer some of the questions raised earlier in this post are now added as yellow highlighted sections within the original post with any additional notations by me in red. Our world has been upended by the coronavirus pandemic, but we're still trying to hold on to some semblance of normal life. One of those life constants this time of year is taxes. Yesterday, March 17, Treasury Secretary Steve Mnuchin joined... Read more →


How are you feeling? That's the question everyone is asking themselves, family and friends as we adapt to the changes forced upon us by the coronavirus pandemic. Social distancing — limiting your interactions with others, either at work or in recreational (remember those?) settings — is the new norm. For the introverted hubby and me, it's simply our norm. We both work from home and don't go out much. We used to joke that our self-imposed isolation works against us when we do venture into the wider world. We don't have an immunity to basic ailments. The hubby gets a... Read more →


States also are coping with COVID-19 and tax return timing, with a handful already delaying some returns. UPDATE, March 21, 2020: Tax Day 2020 has changed again. Now taxpayers have until July 15 to file their 2019 returns and pay any due tax. This latest change was announced March 20 and the IRS issued some guidance on the changes on March 21. This window's timely admonition usually is good advice as April 15 nears. This year, however, Tax Day may be pushed back due to the spreading coronavirus. (Painted window in Harlingen, Texas, 1939, by Lee Russell; New York Public... Read more →


Happy Pi Day 2014. March 14 is the annual celebration of pi, usually indicated by the Greek letter π, since the 3/14 calendar format is a close representation of pi's first three digits. What exactly is pi? Naturally, I went to the internet to find out, so math experts please cut me a slice of slack here. The consensus is that pi is a number that originally was defined as the ratio of a circle's circumference to its diameter. It's a mathematical constant, meaning it isn't changed by the size of the numbers it is used to equate. It's also... Read more →


If you're freaking out about the approaching April 15 tax filing deadline, the Internal Revenue Service might have some welcome news for you. There's talk in Washington, D.C., of postponing the regular tax filing deadline. The reason (you guessed it) is the coronavirus that's spreading across the country. Mass gatherings — social, political and cultural — already have been halted or dramatically limited in many places. Such actions have hit home for me. Here in Austin, we're — well, they, not really we, as I long ago quit going to the thing — in mourning over the cancellation of South... Read more →


Vice President Mike Pence, left, discusses COVID-19 testing following a White House meeting with Donald J. Trump and health insurance executives on Tuesday, March 10. (Screenshot from The Hill coverage) The hubby and I get an annual flu shot. We also, after consulting with our health insurance, got the new two-part shingles vaccine last year. That part about talking with our insurer was key. We had received the older shingles vaccination years earlier. We wanted to make sure that didn't preclude the subsequent shots, which are supposed to be more effective. We were pleased to learn that the new shot... Read more →