Another new update for you regarding the US government's efforts to financially assist it's people during COVID 19. While it may not be of benefit to everyone, I am sure that it will benefit many who are worried about their income taxes due. 

So, while I will try to simplify it and give you the most important info, I always recommend that you defer to your own tax preparer, or go directly to the IRS for assistance in your own case. 

This new provision is called "IRS People First Initiative." It is important to know the name as it establishes law and guideline to reference when you do discuss with IRS, etc. (Just like a lawyer might reference case law to apply). 

The key actions of this initiative include: 

• Existing Installment Agreements, payments due between April 1, 2020 and July 15, 2020 are suspended. If you are unable to comply with the terms of an Installment Payment Agreement, you may suspend payments during this period if you prefer. The IRS will not default your agreement during this period. However, interest will continue to accrue on your unpaid balances. 
• Offers in Compromise (OIC) - there are a number of things affected here. If you have an OIC in the process, etc, then please go to the IRS website for more detailed info. 
• Non Filers - go to the IRS website for more detailed info
• Field Collection Activities - Liens, levies initiated by Revenue Officers will be suspended during this time. However, they will continue to pursue high-income non filers and other similar activities as warranted.
• Automated Liens & Levies - New, automatic, systemic liens and levies will be suspended during this time period.
• Passport Certifications to State Dept. - new Certifications to the State Dept for seriously delinquent taxpayers will be suspended during this period. 
• Private Debt Collection - New delinquent accounts will not be forwarded by the IRS to private collection agencies to work during this period. 
• Field, Office, and Correspondence Audits - New correspondence exams, field, and office audits will not be started during this period. For more info, go directly to the IRS website.
• Other topics that I recommend you go to the IRS website for more info include Earned Income Tax Credit and Wage Verification Reviews, Independent Office of Appeals, Statute of Limitations, and Practitioner Priority Service. 

So, basically when all else fails, you will need to refer to the IRS' website and go to their Covid-19 topic. 
Additionally, a word of caution - be aware of potential scammers. No one from the IRS will call you unless you are already in contact with one, and likely if you are a unique case or high tax due, etc.  Otherwise, it is likely a scam and you should never give out any information over the phone. If in doubt, hang up, and call the IRS directly - from a phone number that you obtain independently. 

More to come - we are looking forward to updating you on the US Congress' passing of additional relief.
#COVID19 #taxrelief #irspayplan

I know, it is the last thing you want to think about. Me too. But, it is unavoidable. COVID-19. Taxes. At the same time.
The State of California has already released extended due dates for tax returns and payments. I think one can reasonable expect (hope) the US Treasury (IRS) to follow within the next few days. 
I am sending you a link to Governor Newsom's order on 03/12/2020 regarding the extensions of time to file and pay business and personal taxes. There are other parts of the order that you may find helpful as well. Govenor Newsom's executive order is https://www.gov.ca.gov/wp-content/uploads/2020/03/3.12.20-EO-N-25-20-COVID-19.pdf

• March 15 (16th) deadlines will now be due to file and pay by June 15.
• Individuals due on April 15 are now due by June 15 (file and pay).
• Additionally, quarterly estimates due on April 15 will be due by June 15. 

The FTB may push the June 15 deadlines back further, if the IRS grants a longer time period. 
I am also sending you a link to the FTB's press release about the nuances of the additional time to file. The FTB's press release may be found here: https://www.ftb.ca.gov/about-ftb/newsroom/news-releases/2020-2-more-time-to-file-pay-for-california-taxpayers-affected-by-the-covid-19-pandemic.html
In case you are thinking that you are not directly affected regarding taxes. You are incorrect. If you are now self isolating, your business is closed, or reduced hours, you are affected. If you children are now home and you are unable to do your work as usual, you are affected. If you are caring for someone else who is ill - no matter what type, you are affected. AND, your tax preparer - that is me, has been affected because of the additional time needed to help other clients to prepare for the impacts to their businesses. So, as far as I am concerned,  - you are affected. 
While I am continuing to work diligently on your tax returns, please understand that I also have demands that were unanticipated - from learning about the relief available to both businesses and employees, to helping to create plans and to discuss other risk mitigation with clients. We are all working together to keep each other afloat in these challenging times. 
What this means for you, is that if I haven't yet filed your tax returns, you may be under the extended due date set by California. Since, for pass-through entity purposes, you will not have a Federal tax due, because of the nature of pass-through entities, I may have to use the extended due date per the FTB and Gov. Newsom's order. Please do not be worried by this. 
And, if you are curious what measures we are taking, my normal prevention practices are strong and multi layered to keep me healthy during tax season, which already includes minimizing public contact, getting good sleep, a bit of exercise outside, and supporting my immunity through whole foods, vitamins, etc.  During the next few weeks ( I hope that is it), I will continue to limit in person meetings to only those if there is no other way. All other meetings will continue to be done via phone and / or Zoom. 
Having said this, I want to take a moment to remind everyone that the strengths of our local economy is built on the backs of small businesses. So, if you are thinking about buying anything, please consider your source. Let's keep supporting each others' local businesses as much as possible. Those dollars tend to be spent within our community, not sent out of state, or out of country to a large organization who frankly, will be better able to weather this event. 
I hope that you understand, and that you keep yourself and your family healthy.  
#COVID19 #CaTaxduedates