Important Tax & Stimulus Updates 2021 & Filing Deadline Changed

IMPORTANT TAX AND STIMULUS UPDATES

Important Tax & Stimulus Updates 2021 & Filing Deadline Changed

IMPORTANT TAX AND STIMULUS UPDATES

PLUS

The Individual Tax Return (Form 1040) Filing Deadline Changed To May 17, 2021

DELAYS, DELAYS, DELAYS, AND MORE DELAYS! – THIS IS THE IRS IN 2021

The IRS is still backlogged with answering calls, notices, and letters due to the Government staffing issues and the frequent federal stimulus changes that have created a huge burden on the IRS and its staff. They are having many administrative delays, and our award-winning tax team at Unbehagen Advisors is working as diligently as possible to make sure your tax matters are not impacted due to the IRS setbacks. We appreciate your patience with us as we navigate the unusually difficult IRS process as diligently as possible for you.

The Treasury Department and Internal Revenue Service announced on Wednesday that the federal income tax filing due date for individuals (Form 1040) for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021.

This is only for Federal individual income tax returns. This extended filing due date does NOT include any other tax returns being extended, for example, corporate tax returns, state tax returns, and trust tax returns.

In general, taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties. Individual estimated tax payment dates have NOT changed either, and the first estimated tax payment, for those that pay them, is still due on April 15. So, tax planning for 2021 will still need to be considered for these payments to be made timely.

Extensions for individual tax returns filing are still through October 15 for those that need additional time to file past the May 17 deadline.

Read more information on this HERE.

 

OTHER IMPORTANT UPDATES:

¬∑¬†¬†¬†¬†¬†1040 Tax Organizers and ShareFile Secure Client Portal Set Up:¬†The shortened version of the 2020 tax year 1040 tax organizer was mailed to you in January (for existing clients). The full version is in your ShareFile Secure Client Portal under “Tax Documents” for you to use. Contact us for ShareFile set up instructions, or if you have not yet received your ShareFile link to do so (also, check your spam box in your email). Existing clients have been emailed this — to setup their ShareFile portal – it’s EASY! If you don’t have the information to do so, or you are a new client, please reach out to us! 727-934-7759 or¬†ja****@un***************.com

·     How to communicate to us to review and discuss your tax return this year: To schedule a 2020 tax return review, or for a 2021 tax planning meeting, simply contact our office. You may contact our office for these services once your tax return(s) are completed, and you have been provided with your review draft of the final tax return via email. We are able provide these services via Zoom meetings, screen sharing technology and/or by phone from the convenience of your home or office! You choose!

·     Your ShareFile Secure Client Portal: Click on the link below for more information on the ShareFile Secure Client Portal. The link also includes brief client tutorials to make this as easy as possible for you. You may also call or email us with ANY questions. 727-934-7759 or ja****@un***************.com

¬∑¬†¬†¬†¬†¬†PPP for “Sole Proprietors” – Recent Changes:¬†If your business entity has filed taxes in 2019 and/or 2020 as a sole proprietor (not¬†a corporation) the PPP is calculated on gross income now, and not net profit. Likely, leading to a larger PPP amount for sole proprietors, which are usually the very smallest of self-employed businesses. Contact a PPP lending bank and discuss your options with them soon, if you qualify for the PPP business stimulus for self employed taxpayers. You will need to have your 1040 Schedule C for 2019 and/or 2020 available when applying. Click¬†HERE¬†for more information.

¬∑¬†¬†¬†¬†¬†PPP Deadline:¬†The deadline for filing for the first and second round of PPP funding for businesses is still¬†March 31, 2021. So, apply soon if you have not yet, and you qualify. There is the “PPP Extension Act” being discussed to extend this deadline to¬†May 31, 2021. However, this has NOT been finalized as of today and it is unknown for certain if this extension will pass. Regardless of the deadline, if your business qualifies for the¬†first¬†or¬†second¬†draw of PPP, you should apply soon.

CLICK HERE: ShareFile Secure Client Portal Information

MORE ECONOMIC STIMULUS!

THE NEWLY PASSED COVID-19 RELIEF BILL (AMERICAN RESCUE PLAN ACT)

MUCH OF THIS BILL IS STILL BEING INTERPRETED BY GOVERNMENT AGENCIES, INCLUDING THE IRS. OUR FIRM IS BUSY STAYING ON TOP OF THE RESULTING, AND EVOLVING, TAX LAW CHANGES FROM THIS BILL – FOR YOU.

READ THE HIGHLIGHTS BY CLICKING THE BELOW

ARTICLE LINK FROM THE JOURNAL OF ACCOUNTANCY

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