Our world feels like it has changed overnight. In many ways, it has. Moreover, it will likely take a considerable amount of time for things to feel like they are going back to normal. Of course, the one thing that we can always count on is having to pay taxes.
That said, this terrible COVID-19 pandemic has caused the Internal Revenue Service (IRS), as with other government agencies, to make some significant changes to accommodate those who are struggling with the day-to-day challenges of the pandemic.
In this article, we will cover the many things that the IRS is doing to try to make life just a little bit easier these days. In that vein, to make things that much easier for you, we welcome you to consider contacting us at Doane & Doane, PA for tax planning advice and assistance.
We are ready to handle any issue regarding your taxes in Palm Beach County, Florida. Let us assist you, even during this challenging time. Please can contact us at 561-656-0200 or fill out our online contact form. Let us help you plan your future with proper tax planning.
The Big Ticket Item: The Deadline for Federal Tax Returns
As you most likely already know, the biggest thing that the IRS did for the country is to postpone the deadline for taxpayers to file their federal tax returns. (In that same vein, the tax departments of most, if not all, states have followed the IRS’s lead). Instead of April 15, the new deadline to file your federal tax return is July 15.
The real benefit of that is a simple one. With all of the things, we have to worry about with the COVID-19 pandemic, not having to worry about filing a tax return until July is invaluable in clearing mental space for other pressing priorities.
The Stimulus Check: Do I Owe Taxes on It?
You should have already received, if you were eligible, the $1,200 stimulus check from the U.S. Treasury that was the result of the CARES Act, passed by Congress to help Americans during this national crisis.
The stimulus check, also called an “economic impact payment” was sent to any taxpayer who filed a tax return in 2018 and 2019 (and other eligible taxpayers who are not required to file a tax return, such as disability recipients) for those who make less than $75,000 salary, or $150,000 for married couples. The payment then tapered off for individuals making between $75,000 and $99,000.
Now that you have received your payment, you are likely wondering if you will have to give some of it back in next year’s tax return as income. The good news – it is not considering income for tax purposes. Therefore, you do not need to claim the stimulus check as income in next year’s tax return. That is a little silver lining in this devastating crisis.
Other COVID-19 Measures Taken By the IRS
In order to allow people to keep their focus where it needs to be – on their and their family’s health – the IRS started a new program called the “IRS People First Initiative.” The initiative makes a fair number of adjustments to tax policy that are intended to help the average taxpayer.
For a complete list of benefits under this new initiative, you should consult an experienced tax planning attorney. Here are just a few of the benefits of the IRS’s People First Initiative.
1. Ease of Starting New Installment Agreements. If the pandemic has put you in a position that you now will have difficulty paying a tax debt, then you should go to IRS.gov to enter into a monthly payment arrangement. By making a payment plan with the IRS, you get ahead of any tax debt you have and you are providing yourself with some predictability.
2. Offers in Compromise (OIC). The IRS has given all pending OIC applications until July 15 (instead of April 15), to close their OIC deals. Also, the IRS will, until July 15, allow individuals to suspend their OIC payments, and the IRS will not default on those who are delinquent in filing their tax returns for the 2018 tax year.
3. Existing Installment Agreements. For those who are currently paying tax debt through an installment agreement with the IRS, any payments due between April 1 and July 15, 2020 have been suspended. That is very good news. Call your local tax planning attorney for additional information.
In sum, the IRS’s People First Initiative has a lot of choices to assist taxpayers during this difficult time. To understand all of the benefits available to you, it is important to reach out to a tax planning law firm in Florida, such as Doane & Doane.
Doane & Doane To Help You With Your Taxes in Palm Beach County, Florida
There are very few guarantees in life. But as long as you are around, you have to pay taxes. As a person who has to pay taxes in Palm Beach County, Florida, you need not worry and lose sleep over managing your tax obligations. Doane & Doane, with its experienced tax planning lawyers, can assist you and your company in managing and handling your tax obligations with astute planning. Our proactive approach towards keeping in sync with the changing tax laws and complicated tax issues makes Doane & Doane your best option.
Our managing partners combine certified public accountancy experience with cutting edge tax planning techniques to help businesses and individuals with all aspects of tax planning.
Doane & Doane, P.A. provides tax planning services to a substantial client base of businesses and individuals. Whether your business is a sole proprietorship, small business, limited liability company, or a large corporation, you need to understand how to plan for all kinds of tax situations.
Our tax planning lawyers at Doane & Doane have solid experience in all things related to tax. You name it, we have handled cases on the topic.
- Tax returns.
- Tax credits.
- Tax deductions.
- Capital gains taxes.
- Palm Beach, Florida sales tax.
- Charitable contributions.
- Starting a business.
- Buying a business.
- Terminating a business.
- Selling a business.
At Doane & Doane, we are prepared to give you sound, accurate advice. You can rely on us to ensure your legal affairs will be handled properly and professionally. Call the Palm Beach County tax planning attorneys at Doane & Doane today, at 561-656-0200.