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August 25, 2020 | Posted in:

Fall 2020 Tax Deadlines and IRS Updates

What the IRS is Up To – Fall 2020

Adjustments to your income? Time for a paycheck checkup.

If you’re working, but have had changes in income due to the pandemic this year, you might want to take a look at the amount of income tax being withheld. The Internal Revenue Service is reminding taxpayers to use the IRS Tax Withholding Estimator available at www.irs.gov to avoid surprises when filing next year. The estimator offers workers, retirees, self-employed individuals, and other taxpayers a clear, step-by-step method to help determine if there is a need to adjust their withholding and submit a new Form W-4 to their employer. You should also check your withholding when life changes occur, such as marriage, childbirth, adoption, and buying a home. The latest update of the Tax Withholding Estimator provides detailed explanations for withholding recommendations on the Results Page.

PPP changes

The rules are ever-changing and there’s new legislation talk, but as of press time, here are some key pieces of information you should know about the PPP loan program. Be sure to stay in touch with your CPA and your lender for updates on the details of the PPP. If you have questions, please email solutions@alloysilverstein.com for assistance.

  • December 31, 2020, is the new deadline to spend loan proceeds.
  • 60% of loan proceeds are required to be spent on payroll in order to be eligible for forgiveness.
  • There is more flexibility than before in fully restoring the workforce.
  • Loan terms are extended from two to five years.

Interest rates on taxes decreasing in the third quarter of 2020

The Internal Revenue Service announced that interest rates will decrease for the calendar quarter beginning July 1, 2020. The rates for the third quarter will be:

  • Three (3) percent for overpayments [two (2) percent in the case of a corporation];
  • One-half (.5) percent for the portion of a corporate overpayment exceeding $10,000;
  • Three (3) percent for underpayments; and
  • Five (5) percent for large corporate underpayments.

Upcoming Tax Deadlines

September 15, 2020

Third quarter individual estimated tax payments for 2020 are due. Filing deadline for extended 2019 S-corporation and partnership returns.

October 15, 2020

Filing deadline for extended 2019 individual tax returns and calendar-year C-corporation returns.

During November

Estimate your 2020 income tax liability and review your options for minimizing your 2020 taxes. Call to schedule a tax planning review.

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