This week the IRS announced that it was abating certain penalties relating to the 2019 and 2020 tax periods. Taxpayers who have already paid these penalties could be seeing a refund check in the mail. What Penalties Will be Abated? The following penalties for tax periods 2019 and 2020 if filed before September 30, 2022 … Read more
On March 11, 2021 the $1.9 trillion American Rescue Plan was signed into law. Among other things, the Plan provides for additional Economic Impact Payment (aka stimulus payments). When will you receive the 3nd stimulus check? The first batch of payments will be sent by direct deposit, which some recipients started receiving as early as … Read more
From IRS.gov. Most individuals eligible for the Recovery Rebate Credit have already received the full amount in two rounds of payments, known as Economic Impact Payments. If we issued you the full amount of each Economic Impact Payment, you won’t need to claim the Recovery Rebate Credit or include any information related to it when … Read more
Congress recently voted to authorize another round of stimulus checks due to the economic fallout from Covid-19. The second stimulus check will be up to $600 per adult and $600 for each child dependent. A child dependent is defined as a child that is 16 years old or younger. There is no cap on the … Read more
On June 25, 2020, Senate Finance Committee Ranking Member Ron Wyden, D-Ore, and Senator Maria Cantwell, D-Wash introduced legislation to expand affordable housing among admist the COVID-19 pandemic and economic crisis. The bill is known as the Emergency Affordable Housing Act Senator Wyden describes why this legislation is needed: “The lack of affordable housing was … Read more
The IRS largely shut down in late March due to Covid-19. The shutdown has resulted in massive backlogs for the agency. IRS service centers are now open in Kentucky, Texas, and Utah earlier this month. Some Austin, Texas facilities were temporarily closed after an employee tested positive for Covid-19. While the IRS has begun processing … Read more
The IRS has stated that 159 million stimulus checks have been processed in the past two months, totaling almost $267 billion. Out of those 159 million payments, 120 were sent via direct deposit, 35 million by check, and 4 million by pre-paid debit cards. Non-filers have until October 15 to claim their payments The IRS … Read more
On its website, the IRS listed some common scenarios to help explain why your stimulus check was less than expected. You did not file a 2019 tax return or the IRS has not processed your 2019 return The IRS automatically sent payments to taxpayers who filed their 2018 or 2019 tax returns. The IRS used … Read more
On May 12, 2020, House Democrats introduced the HEROES Act which intends to “protect workers and uplift families during the COVID-19 crisis.” Key measures include income and benefits security, more stimulus checks, support for the unemployed, child and family care for essential workers, and emergency assistance for individuals and families. The Act would cost $3 … Read more
Tens of thousands of deceased taxpayers and incarcerated taxpayers received stimulus payments which may need to be returned. The IRS updated its FAQ on May 6, 2020 to provide guidance for such taxpayers. Deceased taxpayers are ineligible for payment Any payments that were made to persons who died before receipt of the payment should be … Read more