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January 14, 2021

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Issue Number:  COVID Tax Tip 2021-02


Millions of taxpayers will receive their second Economic Impact Payments by debit card

The Treasury Department and the IRS are issuing millions of second Economic Impact Payments by prepaid debit card to speed delivery of the payments to as many people as possible.

If the Get My Payment tool on IRS.gov shows a date that a recipient’s payment was mailed, they should watch their mail for either a paper check or debit card. The debit cards arrive in a white envelope that prominently displays the U.S. Department of the Treasury seal.

The prepaid debit card, called the Economic Impact Payment card, is issued by Treasury's financial agent, MetaBank®, N.A. The IRS does not determine who receives a card.

The form of payment for the second mailed EIP may be different than the first mailed EIP. Some people who received a paper check last time might receive a prepaid debit card this time, and some people who received a prepaid debit card last time may receive a paper check.

EIP Cards are safe, convenient and secure
These cards provide certain protections against fraud, loss and other errors. They can be used to make purchases online or in stores anywhere Visa® Debit Cards are accepted.

Cardholders can also use the cards to do any of the following without paying a fee:

  • Transfer funds to a personal bank account
  • Make signature or PIN-debit purchases anywhere Visa Debit
  • Cards are accepted — in stores, online or over the phone
  • Get cash back with a PIN debit purchase where available
  • Get cash from in-network ATMs
  • Get a replacement EIP Card, if needed
  • Check their card balance online, through a mobile app or by phone

People should watch their mail carefully
EIP Cards are being sent in a white envelope that prominently displays the U.S. Department of the Treasury seal. The envelope also states “Not a bill or an advertisement. Important information about your Economic Impact Payment.” The EIP Card has the Visa name on the front of the card and the issuing bank name, MetaBank®, N.A. on the back. Each mailing will include instructions on how to securely activate and use the EIP Card. These cards are being issued to eligible recipients across all 50 states and the District of Columbia. Residents of the western United States are generally more likely to receive an EIP Card.

People can check the status of their payment using the Get My Payment tool on IRS.gov.

More information
EIP debit cards
Economic Impact Payments

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January 6, 2021

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Issue Number:    IR-2021-04

Inside This Issue


Eligible Paycheck Protection Program expenses now deductible

WASHINGTON – The Treasury Department and the Internal Revenue Service issued guidance today allowing deductions for the payments of eligible expenses when such payments would result (or be expected to result) in the forgiveness of a loan (covered loan) under the Paycheck Protection Program (PPP).

Today’s guidance, Revenue Ruling 2021-02, reflects changes to law contained in the COVID-related Tax Relief Act of 2020, enacted as part of the Consolidated Appropriations Act, 2021 (Act), Public Law 116-260, which was signed into law on Dec. 27, 2020.

The COVID-related Tax Relief Act of 2020 amended the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to say that no deduction is denied, no tax attribute is reduced, and no basis increase is denied by reason of the exclusion from gross income of the forgiveness of an eligible recipient’s covered loan. This change applies for taxable years ending after March 27, 2020.

Revenue Ruling 2021-02 obsoletes Notice 2020-32 and Revenue Ruling 2020-27. This obsoleted guidance disallowed deductions for the payment of eligible expenses when the payments resulted (or could be expected to result) in forgiveness of a covered loan.

For more information about this, the COVID-related Tax Relief Act of 2020, and other tax changes, visit IRS.gov.

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January 7, 2021

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Issue Number:    IR-2021-06

Inside This Issue


Treasury issues millions of second Economic Impact Payments by debit card 

WASHINGTON – Starting this week, the Treasury Department and the Internal Revenue Service are sending approximately 8 million second Economic Impact Payments (EIPs) by prepaid debit card.

 

These EIP Cards follow the millions of payments already made by direct deposit and the ongoing mailing of paper checks that are delivering the second round of Economic Impact Payments as rapidly as possible.

 

For those who don’t receive a direct deposit, they should watch their mail for either a paper check or a prepaid debit card. To speed delivery of the payments to reach as many people as soon as possible the Treasury’s Bureau of Fiscal Service is sending payments out by prepaid debit card.

 

IRS and Treasury urge eligible people who don’t receive a direct deposit to watch their mail carefully during this period. The prepaid debit card, called the Economic Impact Payment card, is sponsored by the Bureau of the Fiscal Service and is issued by Treasury’s financial agent, MetaBank®, N.A. The IRS does not determine who receives a prepaid debit card.

 

Taxpayers should note that the form of payment for the second mailed EIP may be different than the first mailed EIP. Some people who received a paper check last time might receive a prepaid debit card this time, and some people who received a prepaid debit card last time may receive a paper check.

 

More information about these cards is available at EIPcard.com.

 

EIP Cards are safe, convenient and secure. EIP Card recipients can make purchases online or in stores anywhere Visa® Debit Cards are accepted. They can get cash from domestic in-network ATMs, transfer funds to a personal bank account and obtain a replacement EIP Card if needed without incurring any fees. They can also check their card balance online, through a mobile app or by phone without incurring fees. The EIP Card provides consumer protections including certain protections against fraud, loss and other errors.

 

EIP Cards are being sent in a white envelope that prominently displays the U.S. Department of the Treasury seal. The EIP Card has the Visa name on the front of the Card and the issuing bank name, MetaBank®, N.A. on the back of the card. Each mailing will include instructions on how to securely activate and use the EIP Card.

EIP Debit Card Image

EIP Envelope Image

EIP Cards are being issued to eligible recipients across all 50 states and the District of Columbia. Residents of the western part of the United States are generally more likely to receive an EIP Card.

 

The swift issuance of this second round of payments follows the successful delivery of more than $270 billion in CARES Act Economic Impact Payments earlier this year. To check the status of a payment, visit IRS.gov/GetMyPayment. For more information about Economic Impact Payments visit IRS.gov/EIP.

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Issue Number:    IR-2021-01

Inside This Issue


Economic Impact Payments on their way, visit IRS.gov instead of calling

WASHINGTON – The Internal Revenue Service today urged people to visit IRS.gov for the most current information on the second round of Economic Impact Payments rather than calling the agency or their financial institutions or tax software providers. IRS phone assistors do not have additional information beyond what’s available on IRS.gov.
 
The IRS and the Treasury Department began issuing a second round of Economic Impact Payments, often referred to as stimulus payments, last week. 

The direct deposit payments may take several days to post to individual accounts. Some Americans may have seen the direct deposit payments as pending or as provisional payments in their accounts before the scheduled payment date of Jan. 4, 2021, which is the official date funds are available.

Paper checks also began going out and will continue to be sent through January. Some people will be mailed debit cards in January, and the IRS urges people to carefully check their mail. Mailed payments will require more processing and mailing time. Those who reside abroad will have longer wait times for checks as disruptions to air travel and mail delivery in some countries will slow delivery.

The IRS emphasizes that there is no action required by eligible individuals to receive this second payment. The payments are automatic, and people should not contact their financial institutions or the IRS with payment timing questions.

Eligibility
Generally, U.S. citizens and resident aliens who are not eligible to be claimed as a dependent on someone else’s income tax return are eligible for this second payment. Eligible individuals will automatically receive an Economic Impact Payment of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child. Most people who have an adjusted gross income for 2019 of up to $75,000 for individuals and up to $150,000 for married couples filing joint returns and surviving spouses, will receive the full amount of the second payment. For filers with income above those amounts, the payment amount is reduced.

Checking the status of a payment
Starting today, people can check the status of both their first and second payments by using the Get My Payment tool, available in English and Spanish only on IRS.gov.

Payment not received or less than expected? Claim on 2020 tax return
Payments started going out last week and will continue through mid-January. Direct deposit payments are being made first to those that have valid routing and account information on file for direct deposit purposes. Because of the speed at which IRS issued this second round of payments, some payments may have been sent to an account that may be closed or no longer active. By law, the financial institution must return the payment to the IRS, they cannot hold and issue the payment to an individual when the account is no longer active. While the IRS is exploring options to correct these payments, if you have not received your full payment by the time you file your 2020 tax return, you may claim the Recovery Rebate Credit on your tax return.

The credit is figured like the Economic Impact Payment, except that the credit eligibility and the credit amount are based on the 2020 tax year information, including income.

For people who received a partial Economic Impact Payment, they can take the Recovery Rebate Credit for any remaining amount they’re eligible for by completing line 30 of the 2020 Form 1040 or 1040-SR.

Changing bank account or mailing information
The IRS cannot change payment information, including bank account or mailing information. If an eligible taxpayer does not get a payment or it is less than expected, it may be claimed on the 2020 tax return as the Recovery Rebate Credit. Remember, Economic Impact Payments are an advance payment of what will be called the Recovery Rebate Credit on the 2020 Form 1040 or Form 1040-SR.

More information
For more information about Economic Impact Payments and the 2020 Recovery Rebate Credit, visit IRS.gov/eip. Starting next week, people can check the status of their payment at IRS.gov/GetMyPayment. For other COVID-19-related tax relief, visit IRS.gov/Coronavirus.

Treasury and IRS begin delivering second round of Economic Impact Payments to millions of Americans

IR-2020-280, Dec. 29, 2020

WASHINGTON – Today, the Internal Revenue Service and the Treasury Department will begin delivering a second round of Economic Impact Payments as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 to millions of Americans who received the first round of payments earlier this year.

The initial direct deposit payments may begin arriving as early as tonight for some and will continue into next week. Paper checks will begin to be mailed tomorrow, Wednesday, Dec. 30.

The IRS emphasizes that there is no action required by eligible individuals to receive this second payment. Some Americans may see the direct deposit payments as pending or as provisional payments in their accounts before the official payment date of Jan. 4, 2021. The IRS reminds taxpayers that the payments are automatic, and they should not contact their financial institutions or the IRS with payment timing questions.

As with the first round of payments under the CARES Act, most recipients will receive these payments by direct deposit. For Social Security and other beneficiaries who received the first round of payments via Direct Express, they will receive this second payment the same way.

Anyone who received the first round of payments earlier this year but doesn’t receive a payment via direct deposit will generally receive a check or, in some instances, a debit card. For those in this category, the payments will conclude in January. If additional legislation is enacted to provide for an additional amount, the Economic Impact Payments that have been issued will be topped up as quickly as possible.

Eligible individuals who did not receive an Economic Impact Payment this year – either the first or the second payment – will be able to claim it when they file their 2020 taxes in 2021. The IRS urges taxpayers who didn’t receive a payment this year to review the eligibility criteria when they file their 2020 taxes; many people, including recent college graduates, may be eligible to claim it. People will see the Economic Impact Payments (EIP) referred to as the Recovery Rebate Credit (RRC) on Form 1040 or Form 1040-SR since the EIPs are an advance payment of the RRC.

“Throughout this challenging year, the IRS has worked around the clock to provide Economic Impact Payments and critical taxpayer services to the American people,” said IRS Commissioner Chuck Rettig. “We are working swiftly to distribute this second round of payments as quickly as possible. This work continues throughout the holidays and into the new year as we prepare for the upcoming filing season. We urge everyone to visit IRS.gov in the coming days for the latest information on these payments and for important information and assistance with filing their 2021 taxes.” 

Authorized by the newly enacted COVID-relief legislation, the second round of payments, or “EIP 2,” is generally $600 for singles and $1,200 for married couples filing a joint return. In addition, those with qualifying children will also receive $600 for each qualifying child. Dependents who are 17 and older are not eligible for the child payment.

Payments are automatic for eligible taxpayers

Payments are automatic for eligible taxpayers who filed a 2019 tax return, those who receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits as well as Supplemental Security Income (SSI) and Veterans Affairs beneficiaries who didn’t file a tax return. Payments are also automatic for anyone who successfully registered for the first payment online at IRS.gov using the agency’s Non-Filers tool by Nov. 21, 2020 or who submitted a simplified tax return that has been processed by the IRS.

Who is eligible for the second Economic Impact Payment?

Generally, U.S. citizens and resident aliens who are not eligible to be claimed as a dependent on someone else’s income tax return are eligible for this second payment.  Eligible individuals will automatically receive an Economic Impact Payment of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child.  Generally, if you have adjusted gross income for 2019 up to $75,000 for individuals and up to $150,000 for married couples filing joint returns and surviving spouses, you will receive the full amount of the second payment. For filers with income above those amounts, the payment amount is reduced. 

How do I find out if the IRS is sending me a payment? 

People can check the status of both their first and second payments by using the Get My Payment tool, available in English and Spanish only on IRS.gov. The tool is being updated with new information, and the IRS anticipates the tool will be available again in a few days for taxpayers.

How will the IRS know where to send my payment? What if I changed bank accounts?

The IRS will use the data already in our systems to send the new payments. Taxpayers with direct deposit information on file will receive the payment that way. For those without current direct deposit information on file, they will receive the payment as a check or debit card in the mail. For those eligible but who don’t receive the payment for any reason, it can be claimed by filing a 2020 tax return in 2021. Remember, the Economic Impact Payments are an advance payment of what will be called the Recovery Rebate Credit on the 2020 Form 1040 or Form 1040-SR.

Will people receive a paper check or a debit card?

For those who don’t receive a direct deposit by early January, they should watch their mail for either a paper check or a debit card. To speed delivery of the payments to reach as many people as soon as possible, the Bureau of the Fiscal Service, part of the Treasury Department, will be sending a limited number of payments out by debit card. Please note that the form of payment for the second mailed EIP may be different than for the first mailed EIP. Some people who received a paper check last time might receive a debit card this time, and some people who received a debit card last time may receive a paper check.

IRS and Treasury urge eligible people who don’t receive a direct deposit to watch their mail carefully during this period for a check or an Economic Impact Payment card, which is sponsored by the Treasury Department’s Bureau of the Fiscal Service and is issued by Treasury’s financial agent, MetaBank®, N.A. The Economic Impact Payment Card will be sent in a white envelope that prominently displays the U.S. Department of the Treasury seal. It has the Visa name on the front of the Card and the issuing bank, MetaBank®, N.A. on the back of the card. Information included with the card will explain that this is your Economic Impact Payment. More information about these cards is available at EIPcard.com.

Are more people eligible now for a payment than before?

Under the earlier CARES Act, joint returns of couples where only one member of the couple had a Social Security number were generally ineligible for a payment – unless they were a member of the military. But this month’s new law changes and expands that provision, and more people are now eligible. In this situation, these families will now be eligible to receive payments for the taxpayers and qualifying children of the family who have work-eligible SSNs. People in this group who don’t receive an Economic Impact Payment can claim this when they file their 2020 taxes under the Recovery Rebate Credit. 

Is any action needed by Social Security beneficiaries, railroad retirees and those receiving veterans’ benefits who are not typically required to file a tax return?

Most Social Security retirement and disability beneficiaries, railroad retirees and those receiving veterans’ benefits do not need take any action to receive a payment. Earlier this year, the IRS worked directly with the relevant federal agencies to obtain the information needed to send out the new payments the same way benefits for this group are normally paid. For eligible people in this group who didn’t receive a payment for any reason, they can file a 2020 tax return.

I didn’t file a tax return and didn’t register with the IRS.gov non-filers tool. Am I eligible for a payment?

Yes, if you meet the eligibility requirement. While you won’t receive an automatic payment now, you can still claim the equivalent Recovery Rebate Credit when you file your 2020 federal income tax return. 

Will I receive anything for my tax records showing I received a second Economic Impact Payment?

Yes. People will receive an IRS notice, or letter, after they receive a payment telling them the amount of their payment. They should keep this for their tax records.

Where can I get more information?

For more information about Economic Impact Payments and the 2020 Recovery Rebate, key information will be posted on IRS.gov/eip. Later this week, you may check the status of your payment at IRS.gov/GetMyPayment. For other COVID-19-related tax relief, visit IRS.gov/Coronavirus.

-30-

El Tesoro y el IRS comienzan a entregar la segunda ronda de pagos de impacto económico a millones de estadounidenses

IR-2020-280SP, 29 de diciembre de 2020

WASHINGTON - El Servicio de Impuestos Internos y el Departamento del Tesoro hoy comenzarán a entregar una segunda ronda de Pagos de Impacto Económico como parte de la Ley de Asignaciones Suplementarias en Respuesta y Alivio al Coronavirus del 2021 a millones de estadounidenses que previamente recibieron la primera ronda de pagos a principios de este año.

Los pagos iniciales del depósito directo pueden comenzar a llegar hoy para algunos y continuarán hasta la próxima semana. Los cheques en papel comenzarán a enviarse por correo mañana, miércoles 30 de diciembre.

El IRS enfatizó que las personas elegibles no tienen que hacer absolutamente nada para recibir este segundo pago. Algunos estadounidenses podrán ver los pagos de depósito directo como pendientes o como pagos provisionales en sus cuentas antes de la fecha de pago oficial del 4 de enero del 2021. El IRS recuerda a los contribuyentes que los pagos son automáticos y que no deben comunicarse con sus instituciones financieras o el IRS con preguntas sobre la fecha de pago.

Así como la primera ronda de pagos bajo la Ley CARES, la mayoría de los beneficiarios recibirán estos pagos por depósito directo. Para los beneficiarios de Seguro Social u otros quienes recibieron la primera ronda de pagos mediante la tarjeta de débito Direct Express, recibirán este segundo pago de la misma manera.

Cualquier persona que recibió en la primera ronda de pagos a principios del año, pero no recibe un pago vía depósito directo recibirá un cheque en papel, o en algunas instancias, una tarjeta de débito. Para las personas en esta categoría, los pagos comenzarán a enviarse por correo la próxima semana y estos envíos terminarán en enero. Si se promulga una nueva legislación para proveer un monto adicional al Pago de impacto económico, estos se completarán lo antes posible.

Las personas elegibles que no recibieron ni el primer ni el segundo Pago de impacto económico este año – pueden reclamarlo cuando presenten su declaración de impuestos del 2020 en el 2021. El IRS pide a los contribuyentes que no recibieron un pago este año que revisen los requisitos de elegibilidad cuando declaren sus impuestos del 2020; muchas personas, incluidos los universitarios recién graduados, pueden ser elegibles para recibirlo. Las personas verán que los Pagos de impacto económico (EIP) se refieren como el Crédito de recuperación de reembolso (RRC) en su Formulario 1040 o Formulario 1040-SR ya que los EIP son un pago por adelantado de RRC.

 “Durante este año de retos, el IRS ha trabajado día y noche para proveer los Pagos de impacto económico y servicios importantes a los contribuyentes estadounidenses”, dijo Chuck Rettig Comisionado del IRS. “Estamos trabajando rápidamente para distribuir el segundo pago lo antes posible. Nuestro trabajo continuará durante las festividades del fin de año y seguirá al entrar al año nuevo ya que nos preparamos para la próxima temporada de declaración de impuestos. Le pedimos a todos los contribuyentes que visiten IRS.gov durante los próximos días para ver las últimas actualizaciones acerca de estos pagos y, a la vez, ver importante contenido y asistencia con sus declaraciones de impuestos del 2021”.

Autorizado por la reciente legislación de la ayuda COVID, la segunda ronda de pagos, o “EIP 2,” es generalmente de $600 para individuos y $1,200 para parejas casadas que presentan declaraciones de impuestos conjuntamente. Además, aquellos con hijos calificados recibirán $600. Los dependientes mayores de 17 años no son elegibles para este pago.

Los pagos son automáticos para los contribuyentes elegibles

Los pagos son automáticos para los contribuyentes elegibles que presentaron una declaración de impuestos del 2019, aquellos que recibieron beneficios de jubilación del Seguro Social, sobrevivientes o beneficios por incapacidad (SSDI, por sus siglas en inglés), de jubilación ferroviaria, así como Ingreso de Seguro Suplemental (SSI, por sus siglas en inglés) y los beneficiarios de Asuntos de Veteranos que no presentaron una declaración de impuestos. Los pagos también son automáticos para toda persona que se inscribió exitosamente para recibir el primer pago en línea en IRS.gov, usando la herramienta Non-Filers antes del 21 de noviembre del 2020 o quienes presentaron una declaración simplificada y fue procesada por el IRS.

¿Quién es elegible para el segundo Pago de impacto económico?

Generalmente, los ciudadanos de EE. UU. y residentes extranjeros, que no son reclamados como dependiente en una declaración de impuestos de otra persona, son elegibles para este segundo pago. Los individuos elegibles automáticamente recibirán un Pago de impacto económico de hasta $600 para individuos o $1,200 para las parejas casadas y hasta $600 para cada hijo calificado. Por lo general, si declaró ingreso bruto ajustado en el 2019 de hasta $75,000 para individuos y hasta $150,000 para las parejas casadas que declaran impuestos en conjunto y cónyuges sobrevivientes, recibirá el monto completo del segundo pago. Para las personas que declaran impuestos por encima de estos ingresos, la cantidad del pago será reducida.

¿Cómo puedo informarme si el IRS me enviará un pago?

Las personas pueden verificar los estados del primer y segundo pago usando la herramienta Obtener mi pago en IRS.gov. La herramienta se está actualizando con nueva información, y el IRS anticipa que la herramienta estará disponible nuevamente para los contribuyentes en unos días.

¿Cómo sabrá el IRS a dónde enviar mi pago? ¿Qué pasa si cambié de cuenta bancaria?

El IRS usará los datos que ya están en nuestra base de datos para enviar los nuevos pagos. Los contribuyentes con información de depósito directo registrada recibirán el pago de esa manera. Para aquellos que no tengan la información actual sobre el depósito directo en la base de datos, recibirán el pago con cheque en papel o tarjeta de débito por correo. Para aquellos elegibles pero que no reciben el pago por algún motivo, cuando presenten su declaración de impuestos del 2020 en el 2021 pueden solicitar el pago. Recuerde, los Pagos de impacto económico son un pago por adelantado de lo que se llamará el Crédito de recuperación de reembolso en el 2020 Formulario 1040 o Formulario 1040-SR.

¿Recibirán las personas un cheque en papel o una tarjeta de débito?

Para aquellos que no reciben un depósito directo a principios de enero, deben buscar en su buzón un cheque o una tarjeta de débito. Para acelerar la entrega de los pagos y alcanzar a la mayor cantidad de personas lo antes posible, el Buró de Servicio Fiscal, que es parte del Departamento del Tesoro, enviará un número limitado de pagos con tarjeta de débito. Tenga en cuenta que el segundo envío del EIP puede ser diferente al primer EIP enviado por correo. Algunas personas que recibieron un cheque en papel la última vez pueden recibir una tarjeta de débito en esta ocasión, y algunas personas que recibieron una tarjeta de débito la última vez pueden recibir un cheque en papel.

El IRS y el Tesoro instan a las personas elegibles que no reciben un depósito directo a vigilar cuidadosamente su correo durante este período para obtener un cheque o una tarjeta de pago de impacto económico, que está patrocinado por el Buró de Servicio Fiscal del Departamento del Tesoro y es emitido por el agente del departamento financiero del Tesoro, MetaBank®, NA La tarjeta del Pago de impacto económico se enviará en un sobre blanco que muestra el sello del Departamento del Tesoro de los EE. UU.  Al frente de la tarjeta aparece el nombre de Visa y al reverso dice que la tarjeta es emitida por el banco, MetaBank®, N.A. La información incluida con la tarjeta le explica que este es su Pago de impacto económico. Más información sobre estas tarjetas está disponible en EIPcard.com.

¿Existen más personas elegibles ahora para un pago que antes?

Según la Ley CARES anterior, las declaraciones conjuntas de parejas en las que sólo un miembro de la pareja tenía un número de seguro social generalmente no eran elegibles para un pago, a menos que fueran miembros de las fuerzas armadas. Pero la nueva ley de este mes cambia y amplía esa disposición, y ahora más personas son elegibles. En esta situación, estas familias ahora serán elegibles para recibir pagos para los contribuyentes y los hijos calificados de la familia que tienen un número de seguro social (SSN, por sus siglas en inglés) elegibles para trabajar. Las personas de este grupo que no reciben un Pago de impacto económico pueden reclamarlo cuando presenten sus declaraciones de impuestos del 2020 bajo el Crédito de recuperación de reembolso.

¿Es necesaria alguna acción por parte de los beneficiarios del Seguro Social, los jubilados ferroviarios y los que reciben beneficios de veteranos que normalmente no están obligados a presentar una declaración de impuestos?

La mayoría de los beneficiarios de jubilación y discapacidad del Seguro Social, jubilados ferroviarios y aquellos que reciben beneficios de veteranos no necesitan hacer absolutamente nada para recibir un pago. A principios de este año, el IRS trabajó directamente con las agencias federales relevantes para obtener la información necesaria para enviar los nuevos pagos de la misma manera que normalmente se pagan los beneficios para este grupo. Para las personas elegibles de este grupo que no recibieron un pago por algún motivo, pueden presentar una declaración de impuestos del 2020.

No presenté una declaración de impuestos y no me registré con la herramienta Non-Filer en IRS.gov. ¿Soy elegible para un pago?

Sí, si usted cumple con los requisitos de elegibilidad. Si bien no recibirá un pago automático ahora, aún puede reclamar el Crédito de recuperación de reembolso equivalente cuando presente su declaración de impuestos federales del 2020.

¿Recibiré un comprobante para mis registros tributarios que demuestre que recibí un segundo pago de impacto económico?

Si. Las personas recibirán un aviso del IRS, o una carta, después de recibir un pago informándoles el monto de su pago. Deben guardar este documento con sus registros tributarios.

¿Dónde puedo obtener más información?

Para obtener más información sobre los pagos de impacto económico y el reembolso de recuperación del 2020, la información clave se publicará en IRS.gov/es/eip.  Durante la semana, podrán revisar el estado de su pago en IRS.gov/GetMyPayment. Para otros alivios tributarios relacionados con COVID-19, visite IRS.gov/es/Coronavirus.

IRS Newswire December 29, 2020

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Issue Number:    IR-2020-280

Inside This Issue

Treasury and IRS begin delivering second round of Economic Impact Payments to millions of Americans

WASHINGTON – Today, the Internal Revenue Service and the Treasury Department will begin delivering a second round of Economic Impact Payments as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 to millions of Americans who received the first round of payments earlier this year.

The initial direct deposit payments may begin arriving as early as tonight for some and will continue into next week. Paper checks will begin to be mailed tomorrow, Wednesday, Dec. 30.

The IRS emphasizes that there is no action required by eligible individuals to receive this second payment. Some Americans may see the direct deposit payments as pending or as provisional payments in their accounts before the official payment date of Jan. 4, 2021. The IRS reminds taxpayers that the payments are automatic, and they should not contact their financial institutions or the IRS with payment timing questions.

As with the first round of payments under the CARES Act, most recipients will receive these payments by direct deposit. For Social Security and other beneficiaries who received the first round of payments via Direct Express, they will receive this second payment the same way.

Anyone who received the first round of payments earlier this year but doesn’t receive a payment via direct deposit will generally receive a check or, in some instances, a debit card. For those in this category, the payments will conclude in January. If additional legislation is enacted to provide for an additional amount, the Economic Impact Payments that have been issued will be topped up as quickly as possible.

Eligible individuals who did not receive an Economic Impact Payment this year – either the first or the second payment – will be able to claim it when they file their 2020 taxes in 2021. The IRS urges taxpayers who didn’t receive a payment this year to review the eligibility criteria when they file their 2020 taxes; many people, including recent college graduates, may be eligible to claim it. People will see the Economic Impact Payments (EIP) referred to as the Recovery Rebate Credit (RRC) on Form 1040 or Form 1040-SR since the EIPs are an advance payment of the RRC.

“Throughout this challenging year, the IRS has worked around the clock to provide Economic Impact Payments and critical taxpayer services to the American people,” said IRS Commissioner Chuck Rettig. “We are working swiftly to distribute this second round of payments as quickly as possible. This work continues throughout the holidays and into the new year as we prepare for the upcoming filing season. We urge everyone to visit IRS.gov in the coming days for the latest information on these payments and for important information and assistance with filing their 2021 taxes.”

Authorized by the newly enacted COVID-relief legislation, the second round of payments, or “EIP 2,” is generally $600 for singles and $1,200 for married couples filing a joint return. In addition, those with qualifying children will also receive $600 for each qualifying child. Dependents who are 17 and older are not eligible for the child payment.

Payments are automatic for eligible taxpayers

Payments are automatic for eligible taxpayers who filed a 2019 tax return, those who receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits as well as Supplemental Security Income (SSI) and Veterans Affairs beneficiaries who didn’t file a tax return. Payments are also automatic for anyone who successfully registered for the first payment online at IRS.gov using the agency’s Non-Filers tool by Nov. 21, 2020 or who submitted a simplified tax return that has been processed by the IRS.

Who is eligible for the second Economic Impact Payment?

Generally, U.S. citizens and resident aliens who are not eligible to be claimed as a dependent on someone else’s income tax return are eligible for this second payment. Eligible individuals will automatically receive an Economic Impact Payment of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child. Generally, if you have adjusted gross income for 2019 up to $75,000 for individuals and up to $150,000 for married couples filing joint returns and surviving spouses, you will receive the full amount of the second payment. For filers with income above those amounts, the payment amount is reduced.
How do I find out if the IRS is sending me a payment?

People can check the status of both their first and second payments by using the Get My Payment tool, available in English and Spanish only on IRS.gov. The tool is being updated with new information, and the IRS anticipates the tool will be available again in a few days for taxpayers.

How will the IRS know where to send my payment? What if I changed bank accounts?

The IRS will use the data already in our systems to send the new payments. Taxpayers with direct deposit information on file will receive the payment that way. For those without current direct deposit information on file, they will receive the payment as a check or debit card in the mail. For those eligible but who don’t receive the payment for any reason, it can be claimed by filing a 2020 tax return in 2021. Remember, the Economic Impact Payments are an advance payment of what will be called the Recovery Rebate Credit on the 2020 Form 1040 or Form 1040-SR.
Will people receive a paper check or a debit card?

For those who don’t receive a direct deposit by early January, they should watch their mail for either a paper check or a debit card. To speed delivery of the payments to reach as many people as soon as possible, the Bureau of the Fiscal Service, part of the Treasury Department, will be sending a limited number of payments out by debit card. Please note that the form of payment for the second mailed EIP may be different than for the first mailed EIP. Some people who received a paper check last time might receive a debit card this time, and some people who received a debit card last time may receive a paper check.

IRS and Treasury urge eligible people who don’t receive a direct deposit to watch their mail carefully during this period for a check or an Economic Impact Payment card, which is sponsored by the Treasury Department’s Bureau of the Fiscal Service and is issued by Treasury’s financial agent, MetaBank®, N.A. The Economic Impact Payment Card will be sent in a white envelope that prominently displays the U.S. Department of the Treasury seal. It has the Visa name on the front of the Card and the issuing bank, MetaBank®, N.A. on the back of the card. Information included with the card will explain that this is your Economic Impact Payment. More information about these cards is available at EIPcard.com.

Are more people eligible now for a payment than before?

Under the earlier CARES Act, joint returns of couples where only one member of the couple had a Social Security number were generally ineligible for a payment – unless they were a member of the military. But this month’s new law changes and expands that provision, and more people are now eligible. In this situation, these families will now be eligible to receive payments for the taxpayers and qualifying children of the family who have work-eligible SSNs. People in this group who don’t receive an Economic Impact Payment can claim this when they file their 2020 taxes under the Recovery Rebate Credit.

Is any action needed by Social Security beneficiaries, railroad retirees and those receiving veterans’ benefits who are not typically required to file a tax return?

Most Social Security retirement and disability beneficiaries, railroad retirees and those receiving veterans’ benefits do not need take any action to receive a payment. Earlier this year, the IRS worked directly with the relevant federal agencies to obtain the information needed to send out the new payments the same way benefits for this group are normally paid. For eligible people in this group who didn’t receive a payment for any reason, they can file a 2020 tax return.

I didn’t file a tax return and didn’t register with the IRS.gov non-filers tool. Am I eligible for a payment?

Yes, if you meet the eligibility requirement. While you won’t receive an automatic payment now, you can still claim the equivalent Recovery Rebate Credit when you file your 2020 federal income tax return.
Will I receive anything for my tax records showing I received a second Economic Impact Payment?

Yes. People will receive an IRS notice, or letter, after they receive a payment telling them the amount of their payment. They should keep this for their tax records.

Where can I get more information?

For more information about Economic Impact Payments and the 2020 Recovery Rebate, key information will be posted on IRS.gov/eip. Later this week, you may check the status of your payment at IRS.gov/GetMyPayment. For other COVID-19-related tax relief, visit IRS.gov/Coronavirus.

Jessica L. Jeane, J.D., Director of Public Policy & Strategic Communications

December 21, 2020

The bipartisan push on Capitol Hill for Paycheck Protection Program (PPP) deductibility has succeeded.

Lawmakers confirmed late in the day on December 20 that a provision clarifying the congressional intent for the PPP that ordinary and necessary business expenses are deductible, even if paid with from a forgiven or forgivable PPP loan, will be included in a COVID-relief package expected to clear Congress today.

Additionally, Treasury Secretary Steven Mnuchin has confirmed that PPP deductibility will be included in the soon-to-be released economic relief measure, which stands in contrast with Mnuchin’s consistently stated view that allowing the deductions would be “double dipping." The legislation would largely override Treasury and the IRS’s guidance on the issue.

“Businesses that received PPP loans would be able to take tax deductions for the expenses covered by forgiven loans, overcoming objections from Treasury Secretary Steven Mnuchin,” Sen. John Cornyn, R-Tex., said in a December 21 tweet. Similar language to Cornyn’s bipartisan Small Business Expense Protection Act, (S. 3612) is expected to be included in the forthcoming economic and small business relief package.

Authorization for a second round of PPP loans for qualifying small businesses will also be included under the new bill, as well as other PPP forgiveness and tax provisions. As of this morning, legislative text of the approximately $900 billion measure, which will be attached to a fiscal year 2021 appropriations package, has not yet been released.

The National Society of Accountants continues to monitor these developments and will provide members with the legislation once released. Procedurally, it is expected to be a long day on Capitol Hill. Votes are expected midday in the House and later this evening in the Senate. President Donald Trump has signaled he will sign the measure once it reaches his desk.

In the meantime, House Small Business Committee Republicans have released a general summary of the relief package’s small business provisions. The two-page summary can be located here.

Per US Department of Treasury Memorandum dated December 11, 220, the IRS has extended through June 2021 its temporary authorization of electronic or digital signatures for 18 tax forms that ordinarily require handwritten signatures.  The extension is effective for the following forms that are signed and postmarked from January 1, 2021 through June 30, 2021:

• Form 3115, Application for Change in Accounting Method;

• Form 8832, Entity Classification Election;

• Form 8802, Application for U.S. Residency Certification;

• Form 1066, U.S. Income Tax Return for Real Estate Mortgage Investment Conduit;

• Form 706, U.S. Estate (and Generation-Skipping Transfer) Tax Return;

• Form 706-NA, U.S. Estate (and Generation-Skipping Transfer) Tax Return;

• Form 709, U.S. Gift (and Generation-Skipping Transfer) Tax Return;

• Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related       Persons;

• Form 1120-RIC, U.S. Income Tax Return for Regulated Investment Companies

• Form 1120-C, U.S. Income Tax Return for Cooperative Associations;

• Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts;

• Form 1120-L, U.S. Life Insurance Company Income Tax Return;

• Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return;

• Form 1128, Application to Adopt, Change or Retain a Tax Year;

• Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts;

• Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner;

• Form 8453 series, Form 8878 series, and Form 8879 series regarding IRS e-file Signature Authorization Forms; and

• Form 8038 series, pertaining to tax-exempt bonds.

See NYT updates:  https://www.nytimes.com/news-event/coronavirus?campaign_id=154&emc=edit_cb_20201203&instance_id=24693&nl=coronavirus-briefing&regi_id=129281114&segment_id=46030&te=1&user_id=6a71a742dcf8f55ee1382724053b5710

Security Summit partners warn of new COVID-related text scam


The IRS, state tax agencies and the tax industry this week warned of a new text scam created by thieves that trick people into disclosing bank account information under the guise of receiving the $1,200 Economic Impact Payment. The Security Summit reminded taxpayers that neither the IRS nor state agencies will ever text taxpayers asking for bank account information so that an EIP deposit may be made.

“Criminals are relentlessly using COVID-19 and Economic Impact Payments as cover to try to trick taxpayers out of their money or identities,” said IRS Commissioner Chuck Rettig. “This scam is a new twist on those we’ve been seeing much of this year. We urge people to remain alert to these types of scams.”

Client affected by COVID? It’s now easier to set up payment agreements


The IRS announced a number of changes designed to help struggling taxpayers impacted by COVID-19 more easily settle their tax debts with the IRS. The IRS assessed its collection activities to see how it could apply relief for taxpayers who owe but are struggling financially because of the pandemic, expanding taxpayer options for making payments and alternatives to resolve balances owed.

“We want people to know our IRS employees are committed to continue helping taxpayers wherever possible, including offering many options for those struggling to pay their tax bills,” said Darren Guillot, the IRS Small Business/Self-Employed Deputy Commissioner for Collection and Operations Support. Guillot discussed the new relief options in a new edition of IRS “A Closer Look.”

IRS Fiscal 2021 Focus Guide


The IRS Small Business/Self-Employed division released its Fiscal 2021 Focus Guide -- It’s Still the Time -- laying out its compliance and service strategies for the coming year. This document provides an overview for both internal and external audiences to understand the agency operational priorities for SB/SE audit and collection activities, which continue to focus on the health and safety of employees and taxpayers. Like the SB/SE Annual Report, the purpose of the Fiscal Focus Guide is to provide transparency to the public and employees on the operational direction and assessment of SBSE responsibilities.

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Reminder: Work Opportunity Tax Credit available


The Work Opportunity Tax Credit is a tax credit available to employers who hire long-term unemployment recipients and others certified by their state workforce agency if the individual began or begins work for the employer after Dec. 31, 2014 and before Jan. 1, 2021.

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IRS reminds business owners and self-employed individuals of the employer credits available to them during COVID-19. These credits were specially created to help small business owners during this unprecedented time.

Employee Retention Credit FAQs and Paid Family Leave and Sick Leave FAQs answer many common questions. Updates on the implementation of the Employee Retention Credit and other information can be found on the Coronavirus page of IRS.gov.

The Internal Revenue Service reminds business owners and self-employed individuals of three employer credits available to them during COVID-19. During Small Business Week, the IRS wants to ensure all eligible people know about the relief these credits provide.

The Employee Retention Credit is designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.

The Paid Family Leave and Sick Leave Credit is designed to allow business to get a credit for an employee who is unable to work (including telework) because of Coronavirus quarantine, self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis.

Employees are also entitled to paid family and medical leave equal to 2/3 of the employee's regular pay, up to $200 per day and $10,000 in total. Up to 10 weeks of qualifying leave can be counted towards the Family Leave Credit.

The IRS is reminding individuals to consider taking the home office deduction if they qualify.

The home office deduction is available to qualifying self-employed taxpayers, independent contractors and those working in the gig economy. However, employees who receive a paycheck or a Form W-2 exclusively from an employer are not eligible for the deduction, even if they are currently working from home.

There are two basic requirements to qualify for the deduction. The taxpayer needs to use a portion of the home exclusively for conducting business on a regular basis and the home must be the taxpayer’s principal place of business.

Additional information on the home office deduction can be found in IRS Publication 587, Business Use of Home (Including Use by Daycare Providers) or Form 8829, Expenses for Business Use of Your Home.

The IRS is processing a backlog of mail due to COVID-19, and paper checks mailed to the IRS, either with or without a tax return, may still be unopened.

Taxpayers in this situation should not cancel their checks and should make sure funds remain available so the IRS can process them to avoid potential penalties and interest.

Notice 2020-65 provides guidance to employers for allowing deferred withholding and payment of an employee’s portion of the Social Security tax if their wages are below a certain amount. This relief generally applies to wages paid between September 1, 2020, through December 31, 2020.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) allows qualifying small business owners to receive Paycheck Protection Program (PPP) loans in order to stay in business and pay their employees during the Coronavirus epidemic. 

Recipients of these loans are eligible for forgiveness of all – or a portion of these loans – if the loan proceeds are used in accordance with the CARES Act.

Announcement 2020-12 notifies lenders who make PPP loans (that are later forgiven under the CARES Act) should not file information returns or furnish payee statements to report the forgiveness.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) allows qualifying small business owners to receive Paycheck Protection Program (PPP) loans in order to stay in business and pay their employees during the Coronavirus epidemic. 

Recipients of these loans are eligible for forgiveness of all – or a portion of these loans – if the loan proceeds are used in accordance with the CARES Act.

Announcement 2020-12 notifies lenders who make PPP loans (that are later forgiven under the CARES Act) should not file information returns or furnish payee statements to report the forgiveness.

HELPFUL ARTICLES

https://www.uchealth.org/today/how-to-prevent-superspreader-events-this-fall-and-winter/?utm_source=UCHealth%20Today&utm_medium=email&utm_campaign=UT093020

COVID-RELATED, CARES ACT, and FFCRA NEWS

BUSINESSES:

Treasury, IRS issue guidance on reporting qualified sick and family leave wages paid

·         The Treasury Department and the IRS provided guidance in Notice 2020-54 to employers requiring them to report the amount of qualified sick and family leave wages paid to employees under the Families First Coronavirus Response Act (FFCRA) on Form W-2.

IRS is sending letters to those experiencing a delay with advance payment of employer credits

·         The IRS has started sending letters to taxpayers who have experienced a delay in the processing of their Form 7200, Advance Payment of Employer Credits Due To COVID-19.

·         A taxpayer will receive letter 6312 if the IRS either rejected Form 7200 or made a change to the requested amount of advance payment due to a computation error.

IRS provides guidance on recapturing excess employment tax credits

·         The IRS issued a temporary regulation and a proposed regulation to reconcile advance payments of refundable employment tax credits and recapture the benefit of these credits when necessary.

INDIVIDUALS:

Major changes to retirement plans due to COVID-19

·         Qualified individuals affected by COVID-19 may be able to withdraw up to $100,000 from their eligible retirement plans, including IRAs, between January 1 and December 30, 2020.

ECONOMIC IMPACT PAYMENTS

Economic Impact Payments: Partner and Promotional Materials

·         SEE: Reaching People Who Are Eligible for a Payment and Don’t Normally File a Tax Return

EIP RESOURCES

·         Economic Impact Payment Information Center (EIP FAQs)

·         Get My Payment FAQs

TIP:  When a question is added or updated, it will say “added July 2”, or “updated July 10”.  Use Ctrl F to search for the words “added”, “updated”, or “July”. This will help you find new or updated questions.

As we add new questions, sometimes an FAQ gets a new number. Use Ctrl F to find the FAQ using key words for that topic.

HELPFUL LINKS

Payroll

1.  Deferral of employment tax deposits and payments through December 31, 2020

https://www.irs.gov/newsroom/deferral-of-employment-tax-deposits-and-paymentsthrough-december-31-2020

2.  Coronavirus Tax Relief for Businesses and Tax-Exempt Entities 

https://www.irs.gov/coronavirus/coronavirus-tax-relief-for-businesses-and-tax-exemptentities 

Employees

3.  Coronavirus Tax Relief and Economic Impact Payments

Extension of Time to File Your Tax Return

4.  Filing and Payment Deadlines Questions and Answers

https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers 

5.  Non-Filers:  Enter Info Here

6.  IRS Operations During COVID-19:  Mission-critical functions continue 

7.  Helping victims of the COVID[19 outbreak?  The IRS can help you to do it through a legitimite charity.

8.  IRS issues warning about Coronavirus-related scams; watch out for schemes tied to economic impact payments

9.  Electronic Filing Options for Individuals

RECOMMENDED READING RE FINANCIAL PLANNING DURING COVID-19 PANDEMIC:  http://quickreadbuzz.com/2020/09/30/estate-gift-succession-planning-angela-sadang-covid-19/

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