Belz Taxes & More

IRS adds QR technology to key balance due notices to help taxpayers WASHINGTON For the first time, the IRS is adding barcode technology to notices sent to millions of taxpayers. Starting this month, the CP14 and CP14 IA notices that inform taxpayers that they owe money on unpaid taxes and their payment options are now equipped with QR bar codes to help those taxpayers securely and easily navigate to the IRS.gov website.... Taxpayers can now use their smartphones to scan a QR code in the CP14 or CP14 IA to go directly to IRS.gov and securely access their account, set up a payment plan or contact the Taxpayer Advocate Service. Scanning the QR code on the CP14 or CP14 IA gives the taxpayer direct access to the information they need on IRS.gov to resolve their account balance online without the need to call or interact with the IRS directly. These codes will give taxpayers immediate access to the most important information for them to pay their balances, set up payment agreements or reach out for help, said Darren Guillot, the IRS Small Business/Self-Employed Deputy Commissioner for Collection and Operations Support. We understand there’s a lot of information on the web, and we want to give taxpayers more secure tools that can more easily help them resolve their tax situations. The IRS generally sends more than 8 million CP14 notices each year to taxpayers. They are the first legal notice alerting them that they have a balance due. Adding a QR code to the notice provides access to an up-front resolution for millions of taxpayers. This will help make the entire process easier for taxpayers, Guillot said. The IRS is assessing the possibility of adding other QR codes to other balance due notices in the future.

Worried about your identity for next years tax filing - Request an identity protection pin! The IRS Identity Protection Personal Identification Number (IP PIN) is a six-digit number assigned to eligible taxpayers to help prevent the misuse of their Social Security number (SSN) on fraudulent federal income tax returns. An IP PIN allows the IRS to verify a taxpayer’s identity at the point of filing, preventing someone else from filing a tax return using the IP PIN holder’s SSN. Starting mid-January, the IRS plans to expand the eligibility for its IP PIN program to all taxpayers. Previously, this program was only available in 20 states. When the IRS opens the program, taxpayers will be able to use the Get an IP PIN tool, pass the secure access authentication process and immediately access a six-digit IP PIN.

Applications are still being taken. Please note the requirements to apply on their website. Your business must have been affected by COVID negatively. Not all businesses will qualify!

An extension to file is not an extension to pay taxes......remember that as the tax deadline is coming up July 15th. Need an extension, just let me know. Still need the prepared, I can do that too.

Rules are still changing day by day. Call me if you have any questions or concerns. I’d be happy to help!!

Taxpayers have until May 13th to register for stimulus direct deposit. If you haven’t gotten your stimulus yet and want direct deposit, be sure to go to IRS.gov and clink on Get My Payment

Progress is being made to allow PPP expenses to remain deductions and still not count the PPP funds as income. Future news to come so stay tuned!

As things are changing everyday, new tax implications are coming into play regarding the PPP money. The CARES Act indicated that the PPP money isn’t taxable, however, that may also mean the expenses paid with those funds are not deductible. See below for recent IRS disclosure. IRS Say PPP Loan Forgiveness Makes Expenses Not Deductible May 1, 2020 As we struggled through the Paycheck Protection Program (PPP) loan applications this last month, something didn’t make sense in t...he way that the loan forgiveness worked. The recurring question we came up with was How are expenses treated if they are paid with tax-free money? We asked and the IRS answered. In Notice 2020-32, the IRS says that no deduction is allowed for an expense that is otherwise deductible if the payment of the expense results in forgiveness of a PPP loan. A recipient of a PPP loan can receive forgiveness of indebtedness on the loan in an amount equal to the sum of payments made for the following expenses during the 8-week period beginning on the loan’s origination date: (1) payroll costs, (2) any payment of interest on a covered mortgage obligation, (3) any payment on a covered rent obligation, and (4) any covered utility payment (CARES 1106(b)). CARES specifically states that the forgiveness of the PPP loan is not includible as COD income or otherwise includible under 61. But, the IRS points out in its notice that CARES did not address whether deductions for payments of eligible expenses by a recipient of a PPP loan are allowed if the PPP loan is subsequently forgiven as a result of the payment of those expenses. Citing 265(a)(1) and 1.265-1, the IRS states in Notice 2020-32 that no deduction is allowed to a taxpayer for any amount otherwise allowable as a deduction to such taxpayer that is allocable to one or more classes of income other than interest wholly exempt from the taxes imposed by subtitle A of the Code.

I’ve recently had some clients reach out for other payment options given everything currently going on in the economy today. Below is a link to pay thru PayPal and I can also accept payment through Facebook. If you have any questions or problems, just let me know. Stay safe during these times