TAX DEADLINE: The IRS Finalizes The July 15 Deadline

The IRS will not consider auto-extending the tax deadline beyond July 15 this tax season, but options are still available.

Many have been calling it the never-ending tax season. 

The changing tax deadline, along with a variety of potential tax incentives resulting from the COVID-19 pandemic, remains at the point of conversation during this tax season.

Until now, it has been unclear whether this tax season’s deadline would change yet again to help US citizens cope with the financial setbacks brought about by the coronavirus this year.

Background On This Tax Deadline

tax deadline COVID-19

Due to economic downturns created by the coronavirus, the IRS and US Treasury officials changed the tax deadline from April 15 to July 15 back in March.  

Until last week, the further postponement of the US tax deadline has remained a topic of discussion.

On March 13, 2020, the President of the United States issued an emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic (Emergency Declaration). The Emergency Declaration instructed the Secretary of the Treasury “to provide relief from tax deadlines to Americans who have been adversely affected by the COVID-19 emergency”.

On March 18, 2020, the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) issued Notice 2020-17 providing relief under section 7508A(a), which postponed the due date for certain Federal income tax payments from April 15, 2020, until July 15, 2020. 

For an affected taxpayer concerning specified filing and payment obligations, the due date for filing specified forms and making specified payments was automatically postponed to July 15, 2020. 

This relief was automatic; affected taxpayers did not have to call the IRS or file any extension forms, or send letters or other documents to receive this relief.

[Footnote 1]

IRS Keeps July 15 Tax Deadline

tax deadline

Treasury Secretary Steven Mnuchin announced the change in the tax return deadline back in March and continued to discuss the possibility of pushing the tax deadline beyond July 15 until recently.

The IRS has now confirmed that the deadline will not automatically extend to October 15.

The US Treasury department has drawn the line at the administration’s consideration of such a move.

The IRS won’t extend the deadline, but they will provide payment options to help taxpayers in need as stated below:

“The IRS understands that those affected by the coronavirus may not be able to pay their balances in full by July 15, but we have many payment options to help taxpayers,” IRS Commissioner Chuck Rettig said in a statement. [Footnote 2]

How do I file an extension for my tax deadline to October 15?

tax deadline

If you need extra time beyond the IRS deadline of July 15, you can file an IRS extension.  

Taxpayers who may continue to need additional time to file could choose to submit the appropriate extension form by July 15, 2020, to obtain an extension to file their return. The extension date will not go beyond the original statutory or regulatory extension date of October 15, 2020.

Here is information on how to apply for an extension of time to file. 

Please be aware that:

  • An extension of time to file your return does not grant you any extension time to pay your taxes. 
  • You should estimate and pay any owed taxes by your regular deadline to help avoid possible penalties.
  • You must file your extension request no later than the regular due date of your return.

READ MORE: 5 Reasons Why Your Best Crypto Tax Firm Choice Is Donnelly Tax Law

How may we help you?

At Donnelly Tax Law, we take care of filing an extension for our clients, just to make sure we always have plenty of time. 

Let us help you meet your tax needs. Talk with us today. 

Or do-it-yourself with our resources for doing your taxes, from e-books to online courses.

Be sure to join our conversation on Twitter and follow us @CryptoTaxFixer.

What Clients Are Saying About Donnelly Tax Law

Clients of Donnelly Tax Law are reporting top-notch crypto and expat tax reporting results with Clinton Donnelly and his expert staff of Enrolled Agents.

At Donnelly Tax Law, we believe every crypto taxpayer can have a “Bulletproof Crypto Tax Return.” Our website offers powerful do-it-yourself resources and full-service crypto tax preparation services. 

We’ve helped taxpayers owning cryptocurrencies:

  • Avoid over $40 million in gains by using Like-Kind Exchange calculations. 
  • Prepared over 850 anti-money laundering reports required for many crypto traders. 
  • Prepared over 1025 tax amnesty returns needed by crypto traders correcting back filings. (Our acceptance rate is 100% success.)
  • Moreover, we’re one of the few firms with experience defending crypto returns at an IRS audit.
  • We are experts at filing returns for expats and foreign corporations.
  • We have clients in 48 countries. 

But don’t just take our word for it.

Here’s what clients are saying about Donnelly Tax Law:

Clinton's expert advice helped me utilize international tax treaties to avoid double-taxation by the IRS. I will continue using Clinton as my tax professional for the years ahead and would recommend him to any US citizen living abroad as well as any US citizen who is involved in trading cryptocurrency.
Donnelly Tax Law Client
David
Sweden
The process was very easy. I feel confident my taxes have been done correctly and would like to thank him for the peace of mind this brings me.
Donnelly Tax Law Testimonial
Claire
Spain
Clinton took the bottomless headache of the crypto [currency] documentation required for taxes, and condensed it to a simple set of instructions.
US crypto tax services
Nathan
Saudi Arabia
Clinton assisted me in handling a complex cryptocurrency filing, for several digital currencies including Bitcoin, Ethereum, and Litecoin. His support allowed me to benefit from the financial growth opportunity of cryptos while conforming with developing US tax laws. It pays to stay on the right side of the law, and Clinton made it as easy and straightforward as possible. Thanks, Clinton!
US crypto tax services
Marc
Nevada
[Clinton] demonstrated deep understanding in a specialized area of tax law and is helping me achieve a great result – we’ve been able to go back and fix 5 years of mistakes and errors made by previous advisors that created significant financial impact. He’s also taken less time to complete the same work previously done by a small group of professionals. I’d be happy to recommend him to any American living overseas.
Donnelly Tax Law Client
Aaron
Norway
Clinton is very knowledgeable and has hands-on experience in dealing with international taxation matters specifically related to Canada/US reporting. Clinton was able to identify several mistakes in a prior return that was actually prepared by one of the Big 4 accounting firms.
Donnelly Tax Law Client
Umair
Michigan
Clinton is very knowledgeable and saved me money with my tax return.
US crypto tax services
Julie
Puerto Rico
He resolved my tax needs quickly and found discrepancies my last tax guys completely missed and saved me thousands of dollars in taxes. I wish I had found Clinton Donnelly years ago. Can't recommend him enough!
US crypto tax services
Emran
Texas
I had no idea about how to sort out my American taxes as an ex-pat living in the UK. Clinton made it easy and painless to get caught up on filing back tax returns.
US crypto tax services
Skye
UK
As a US expat working in Europe, I highly recommend Clinton Donnelly to help you file/declare taxes!
US crypto tax services
Danielle
Spain
I really recommend him to any American who is looking forward to sleep in peace regarding Tax Return filing in the States while leaving abroad.
US crypto tax services
Rafael
Panama
Not only did he simplify the process immensely, but he was clear, fast and professional. If you're an expat looking tax help, I strongly recommend connecting with Clinton Donnelly.
US crypto tax services
Max
Spain
Clinton helped me a ton with cryptocurrency related matters on my tax filing this year. He works quickly and professionally and has a well-honed process every step of the way.
US crypto tax services
Matthew
New York
Clinton relieved the stress of figuring out the taxes due on my Bitcoin trading last year. He was efficient and timely. He answered all my questions related to my wallet and international tax laws on reporting.
US crypto tax services
Todd
Arizona
Clinton saved us money on our first encounter! 
US crypto tax services
Deanna
Mexico
Mr. Donnelly was extremely professional, answered any questions, and gives exceptional service. I appreciate the attention to details and the handling of my taxes in such timely manner.
US crypto tax services
Rachel
Panama
I highly recommend Clinton if folks have foreign businesses or accounts in a foreign land as he is well versed with these types of returns and masters them.
US crypto tax services
Siddharth
Texas
I highly recommend Clinton if folks have foreign businesses or accounts in a foreign land as he is well versed with these types of returns and masters them.
US crypto tax services
Tyler
New York
I highly recommend Clinton for preparing tax returns for anyone with international interests.
US crypto tax services
Stuart
Texas
I thought do-it-yourself tax online tax preparation was straight forward but working with Clinton has definitely opened a new door for me.
US crypto tax services
Erich
Singapore
Clinton is extremely clever and truly knows the law environment you are working in. In our case, he even reviewed international tax treaties to improve our tax report, which ended up saving us a lot of money in taxes.
US crypto tax services
Santiago
Venezuela
I went through a dozen accountants, CPAs, and accounting partners. None of them were able to get my taxes filed, and after much searching and frustration, I finally found Clinton.
US crypto tax services
Ashray
Portugal
If you are an American expat it is imperative that you speak with Clinton about your situation before the IRS gets ahold of you. The IRS wants your money. Clinton can show you how to keep the IRS off your back and put more money in your pocket. Highly recommended.
US crypto tax services
Chuck
Panama
If you are an American expat it is imperative that you speak with Clinton about your situation before the IRS gets ahold of you. The IRS wants your money. Clinton can show you how to keep the IRS off your back and put more money in your pocket. Highly recommended.
US crypto tax services
Rudi
Panama
If you have distributed assets and income or are concerned about succession planning, Clinton will accurately guide you through the legal minefield of international laws taking into consideration your country of residence, source of income, source location of income, citizenship, time in country as well as other factors to determine your tax status and I trust his guidance implicitly.
US crypto tax services
Jim
Columbia
I would highly recommend Clinton for anyone working overseas and specifically anyone looking to utilize the Foreign Earned Income Tax Exemption. I simply cannot say enough good things about Clinton and have recommended him to numerous people.
US crypto tax services
Michael
Hong Kong
For months I tried tracking down an accountant or anyone who had the experience and brain to be be willing to do the work and help me out with my situation. So I contacted [Clinton] - 15 minutes later he had the information I needed to sort everything out!
US crypto tax services
Pascal
Malaysia
Without any hesitation, I recommend that anyone with a US tax issue and who is “technologically and paperwork challenged”.
US crypto tax services
Mary
Panama
He's very professional, explains things in a clear manner and has a system set up which makes it far easier to communicate via the internet, which is important to us since we live in a different city than Mr. Donnelly does.
US crypto tax services
Karin
Panama
I went through a dozen accountants, CPAs, and accounting partners. None of them were able to get my taxes filed, and after much searching and frustration, I finally found Clinton.
US crypto tax services
Benedict
Germany
[Clinton] saved me thousands on my taxes this past year. He is wise beyond belief of the complexities of the tax code and he is also patient and concise in explaining it to the people who think the tax code is tangle of complexities.
US crypto tax services
Patty
Digital Nomad
Clinton took care of my tax return twice so far, and I’m glad he did. He provided excellent advises with a very smooth communication. He masters his area of expertise, I definitely recommend him.
US crypto tax services
Melissa
Panama
Clinton took care of my tax return twice so far, and I’m glad he did. He provided excellent advises with a very smooth communication. 
US crypto tax services
Mehdi
Switzerland
Clinton was extremely helpful at explaining with great detail all the peculiarities of my situation and was very timely at returning all of my emails.
US crypto tax services
Ignacio
New York
Clinton prepared all the paperwork required and represented me whenever required to the IRS. He is extremely knowledgeable and a pleasure to work with.
US crypto tax services
Sandy
Canada
Clinton has been handling my taxes for the past 3 or 4 years. He's been a godsend! He provides clear and concise answers, excellent advice and amazing service. In today's political climate it's best to have all your bases covered with the IRS and Clinton's amazingly good at making sure you do.
Rebecca
Panama

Be A Happy Tax Client With Donnelly Tax Law

Now that you’ve heard from others who have benefitted from Donnelly Tax Law, consider becoming a happy client as well. 

Schedule a consultation today. 

Or do-it-yourself with our resources for doing your taxes, from e-books to online courses.

Follow Donnelly Tax Law On Twitter

Taxes Are Sexy! Transcribed Interview Between Clinton Donnelly and Paul Jordan

Get excited to learn about taxes in this podcast interview between Clinton Donnelly and Paul Jordan. Find out why taxes are sexy!

Taxes. Do they have intrigue? Can they be interesting? Excitingly appealing? Even sexy?  

We think so! At Donnelly Tax Law, we believe taxes are sexy because the knowledge that can save you big money on your taxes is desirable. 

In this interview on Life, Love, and Coffee with Paul Jordan, we provide clarity on how you can get your taxes right because of how quickly everything is changing moment by moment. 

Paul says, you’ve got to make sure you stay on top of those types of things, so he wanted to talk about where we are now and where we should be when it comes to taxes.

What makes crypto taxes complicated?

taxes

Clinton Donnelly: Well, Paul, I talk to a lot of crypto traders. A lot of crypto traders are unique because this is the only time they’ve ever invested.

Until getting involved with cryptos, their tax lives had been simple. 

They took their documents to a tax professional, or they used Turbo Tax, plugged in the numbers, and filed a return. 

But once they started trading cryptos, they moved into the echelon of a complex tax return. 

It’s a complicated tax return because:

  • the accountants don’t know what to do with a crypto tax return
  • the tax software packages like TurboTax and TaxAct don’t know what to do with a crypto tax return

So crypto traders wind up on their own. And it’s scary for everybody. 

What hit me in these last couple of months is that most people don’t know how to do a tax return in general. 

Before using tax software, you went down to the post office, and they would have racks of tax forms. 

You’d go home, fill out the forms, sign it, and mail it in. You had a basic familiarity with these things.  

But now, people have no idea how to read them.

By relying on high volume tax preparer companies and depending on tax software packages, we’ve made ourselves ignorant about how taxes work and how they operate. 

That’s why many younger crypto traders are overwhelmed by the impact of their crypto trading on their taxes.

Getting Back To Basics With Your Taxes

I’ve developed some educational things, and this is my passion. I realized I don’t need to teach people how to do crypto taxes; I want to teach people how to do taxes in general. Nobody’s ever done that.

We’re creating courses at DonnellyTaxLaw.com to help you overcome your fear of the IRS and learn to do your taxes. 

Paul Jordan: Oh yeah, say more.

Clinton Donnelly: There are a lot of topics to cover. One is, what is tax? Is it our income? Is it our profit? What are those things? And then we move into what are the forms? And then, how do you submit the documents? Do I use a preparer or do it myself? And then what happens if I get a letter from the IRS? 

I’m excited about teaching people to do their taxes and taking control of their lives so that taxes are not a thing that makes you terrified before the taxes are due in April.

When I was growing up, nobody ever taught me about the most significant expense I’d have in my entire life: taxes. Or how to fill out my tax form. The forms that are the most considerable interaction I’d ever have with the U.S. government.

And today, my issue with the accounting profession is that they’ve entirely abandoned crypto owners. Most accountants will not accept any responsibility for your crypto tax return.

Taxes Fall Into Three Categories

Clinton Donnelly: The first category would be an income tax. You’re taxed on income that you make. Many people hate this tax, but I would rather make a million dollars and pay $200,000 in taxes than make $20,000 and pay no taxes. So taxing my income, that’s not bad. I can swim faster than they can come after me.

The second tax category is a consumption tax. This would be a sales tax, or licenses and things like that, or excise tax. They consume you with buying things. When we think of the Boston Tea Party, there was a 2% excise tax placed on the sale of tea, and they decided to protest on that 2%.

The third category of taxes is a wealth tax. Now, this is a very harsh tax, in my opinion. It taxes you every year because you own something. You didn’t earn money; you didn’t consume it; you just have it. This would be property taxes. For example, your home in the United States.

Crypto Traders and Taxes

Bitcoin halving

My mini-courses will teach you to think differently about taxes, about retirement, about your assets, and how to report cryptocurrencies. 

Education can help you overcome your fears, and most people are just afraid of taxes.

There are a couple of things that crypto traders need to understand: when you trade with cryptocurrencies, every time you trade from coin one to coin two, that’s a taxable event. 

Now, what do I mean by a taxable event? Well, if you made money on that coin. 

If you bought the original coin in U.S. dollar terms, and you bought it for $1,000 and you sold it for $2,000,then that’s a $1,000 gain, right? 

Let’s say you flip it around the other way. You bought it at $2,000 and it went down to $1,000 when you sold it. That’s a negative gain. That’s a negative $1,000 gain, or we might call it a loss. There’s a positive gain or there’s a negative gain.

Now, I’m not saying taking the cash out. I’m just saying that if I jump from coin A to coin B. When I do that conversion, I’m selling coin A. I have to look at what I bought coin A for, and that’s the gain. Every single one of those, every single gain, is a taxable event, positive and negative. 

We add them all up, you net it out at the end of the year, and you have to pay taxes on the gain. It does not matter whether you took those profits out in cash to your bank account. That is not relevant because it is a gain nonetheless. 

Many crypto traders are starting to become aware of the fact, “Oh yeah, well, if I have gains, I’ve got to pay taxes on the gain.” But guess what? If you had a loss, those losses are negative gains. Those negative gains reduce how much you have to pay on the positive gains because you add them all together. You want negatives to offset your positives.

I helped a guy reduce his taxable gains by $15,000 last week by claiming all his losses. That’s about $4,000 that he cut off his tax bill from losses.

Paul Jordan: Wow. Wow.

Most Americans Still Need To File Their Taxes

I did a poll recently, and about 70% of Americans haven’t done their taxes. I encourage Americans to give it a try on their own.

Taxes are the most significant expense that you’re ever going to have in your life. One-third of everything you earn is going to go to taxes. It’s time to start thinking about it.

If you need a consultation, if you want us to do your taxes, or you have a question, sign up for a consultation, and we will talk. My website is donnellytaxlaw.com. 

I have an advanced law degree in international financial regulation, including taxation. I’m an enrolled agent. I’ve specialized in complex tax returns, particularly crypto tax returns and tax returns for ex-pats, people living outside the U.S. We also specialize in doing foreign corporation reporting. 

Cryptocurrencies have a lot in common with people outside the United States because you’re investing in crypto exchanges outside the United States. You start to run afoul of a whole slew of U.S. anti-money laundering laws, so really focus on the anti-money laundering compliance because this is the easiest way for the IRS to crush anybody on their crypto taxes.

I’ve done over 1,000 tax amnesty returns and about 800 crypto returns. My largest trader is up into like 200,000 transactions a year, that type of thing. So we will never reach a point of being paralyzed.

Tax Returns That Are Bulletproof Against The IRS

taxes

An excellent tax preparer pays for themselves. 

You can have a bulletproof crypto tax return, a tax return that keeps you safe from the IRS when they shoot their bullets, which is my focus. Not only do we do tax returns, but I defend crypto tax returns before the IRS.

We have one going on right now where we’re protecting them. We’re on top of the research, the legal analysis, and all that stuff. You might be surprised to hear this, but 98% of all tax preparers have never defended a tax return before the IRS. That’s like getting in the car with a taxi driver who just got his license yesterday.

Paul Jordan: Right.

Clinton Donnelly: So that’s the difference in our company: we love what we do, we love helping people. My biggest passion right now is to help as many people as possible, so I’m creating these tools to empower people to build their own crypto bulletproof tax returns.

So that’s a bit about me and Donnelly Tax Law. Love to help anybody, set up a call if you have a question.

Paul Jordan: That’s fantastic. Well, I think that’s an excellent jumping-off point. I want to thank you so much for coming on the podcast today, educating us, and getting us to move forward on taking care of our tax responsibilities.

Listen To The Podcast

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COVID-19 Alert: The Silver Linings This Tax Season

Learn about the COVID-19 precautions we’re taking and some of the latest news and tips for enduring the pandemic and saving you money on your taxes.

Right now, times are uncertain with the spread of COVID-19.  

Unpredictable emotions are running high, with massive changes forced on your everyday routines due to the Coronavirus. 

But the human race is resilient and we are in this together as a global community.  

In times like this, when things seem rather bleak, there is always a silver lining to be found.  

We look forward to doing our part at Donnelly Tax Law to help you see those good things this tax season.

We know this year will be like no other and the last thing we want to add to your worry is interruptions to completing your taxes.  

So, while we all learn to deal with this new COVID-19 pandemic together, we want to let you know you can continue to count on your tax family here at Donnelly Tax Law to get you through this trying time.

Practices That Make Us Strong During COVID-19

COVID-19 world map

We are putting your safety above all else in the upcoming weeks.

As the COVID-19 pandemic forces changes in our everyday routines, our priority at Donnelly Tax Law is to ensure the safety of our staff and to solve the tax concerns of our customers.

Donnelly Tax Law was built intentionally for a robust operation that is resilient to virus threats, both medical and electronic.

Our work will not be slowed down by the pandemic. Even in normal times, we automatically file extensions for our clients so that the April 15th deadline is extended until October 15th. Read further for more information about the filing and payment deadlines being extended by the IRS. 

Donnelly Tax Law is a team of remote workers and therefore we are not exposed to the health risks of a typical shared physical office. We will continue to work on your behalf, even with regional lockdowns.

Precautions We Are Taking During COVID-19

COVID-19 face masks

We are implementing quarantine procedures for deliveries we receive. This safety measure will add a couple of days to the paper return filing procedure, but it will keep us working happily and healthily on your returns.

  • All of our systems and data are cloud-based on highly-secure systems. 
  • All data is encrypted. 
  • All of our systems require two-factor authentication for extra security. 

We are in communication with our vendors to make sure all critical systems remain available. We do not expect any unplanned outages.

COVID-19 Resources and How to Save A Lot Of Money With Your Tax Returns

We are still working hard for you! Donnelly Tax Law has a staff of eight people. We have always worked remotely, so the pandemic has not disturbed our business processes.

We also have a staff backup strategy, so that if any team member, including myself, needs to take sick leave, we have a backup so the work can continue.

Save 20% By Paying Your Invoice With Bitcoin

Bitcoin

From now until April 15th, we are offering a 20% discount to current and future clients for any portion of your invoice that you pay or prepay with Bitcoin. 

Our team is standing by to get you more details on how to take advantage of that special pricing.  

Don’t have any Bitcoin? Start an account at Coinbase or Kraken.

Due To COVID-19, IRS Delay Filing And Paying By Three Months

anti-money laundering

To help cope with the COVID-19 Coronavirus, the IRS has delayed payments and filing by three months. July 15th is now the new due date for filing individual tax returns and making the final payment on 2019 taxes. There is no penalty for extra interest because of the three-month delay. We already automatically extend the filing deadline to October 15th for all of our customers. 

The good news is that now there is extra time to pay!

If you are a client and your tax payment is scheduled already for auto-debit and you want to delay it, you will need to cancel the debit following the instructions in this link.

READ MORE: Tax Filing Deadline Extended To July 15th Due To COVID-19

Making The Most Of The COVID-19 Isolation

don't give up sign

If you are part of our tax community, you can take advantage of the extra free time to finish gathering all your tax documents and crypto records. 

Once completed, upload them to your secure ShareFile folders and let our client manager know so we can proceed with preparing your taxes.  

You can also use this time to learn more about US expat taxes and cryptocurrency taxes with the various ebooks I’ve written about each topic. Visit our online ebook store and discover additional crypto tax tools at our site CryptoTaxAudit.com.  

Learn about other important COVID-19 news from our blog. If you haven’t already, you can subscribe to our newsletter so you get notified of our latest posts.

READ MORE: Coronavirus Relief Package Signed Into Law – More To Come

Clinton Donnelly In The News

One last note, we are excited to report that I’ve been staying at the top of crypto news this tax season. I’ve taken part in multiple interviews with several national and international crypto podcasters, such as crypto pioneer Charlie Shrem, Brad Kimes, Ivan on Tech and more.

WATCH NOW: Crypto Tax Amnesty? CPA Clinton Donnelly Shares Critical Insights on How to Talk to the IRS and File

Coronavirus Relief Package Signed Into Law – More to Come

The Families First Coronavirus Response Act (H.R. 6201) has been signed into law to provide Coronavirus relief to many. Read more to learn the latest.

The Families First Coronavirus Response Act (H.R. 6201) is now law, and attorneys, accountants, and other professionals are poring over it. What are its main provisions, and how might this coronavirus relief affect you?

The Society for Human Resource Management and other outlets have highlighted the following provisions:

Paid Family Leave From Coronavirus Relief

The law provides 12 weeks of qualifying family and medical leave at two-thirds of their salary when employees can’t work because their minor child’s school or child care service is closed due to a public health emergency.

Those on the payroll for at least 30 calendar days are eligible. Benefits are capped at $200 a day (or $10,000 total) and expire at the end of the year.

Paid Sick Leave From Coronavirus Relief

sick leave

Employers have to provide 80 hours of paid-sick-leave benefits in various scenarios, including a situation in which an employee has been ordered by the government to quarantine or isolate or has been advised by a health care provider to self-quarantine. The payment is capped at $511 a day and expires at year-end.

Covered employers that are required to offer emergency FMLA or paid sick leave are eligible for refundable tax credits. Employers with fewer than 50 workers can apply for an exemption from providing paid family and medical leave and paid sick leave if it “would jeopardize the viability of the business.” According to the SHRM, “Gig-workers and other self-employed workers will be eligible for a tax credit to cover the benefits.”

A notable exemption is companies with more than 500 employees. The thinking on Capitol Hill was that such companies are capable of providing benefits without direct government help.

Part-Time Workers

Uber driver

They are also covered. According to the New York Times, such employees will receive the amount they typically earn in a two-week period. The self-employed — from freelance writers to Uber drivers — “should calculate their average daily self-employment income for the year, then claim the amount they take as a tax credit (they can reduce their estimated quarterly tax payments in the meantime).

LEARN MORE: The Families First Coronavirus Response Act (H.R. 6201)

Is everyone getting a check?

tax evading

There are a lot of rumors floating around about everyone getting a relief check. The government is still working on who gets a check and how much — and how to get the money to everyone who is eligible. As these proposals take a more solid form, we’ll have more details.

For now, keep in mind that the legal situation can change as quickly as the health situation, and ruling and reinterpretations of laws can change suddenly, modifying the advice in this article. We’ll be keeping an eye on authoritative sources in the coming days.

© 2020

READ MORE: Tax Filing Deadline Extended to July 15 Due to COVID-19

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Telecommuting, Coronavirus and You

We provide some helpful tips regarding telecommuting, coronavirus, and your business. If you have employees or are now working from home, learn these tips.

Usually, when companies begin moving from an office-based to a virtual model, they do it gradually, with plenty of planning and training. However, because of the COVID-19, many businesses are seeing the need to quickly empty out offices and send everyone home to keep the virus from spreading. No one knows how long the emergency will last, but you want to make sure the telecommuting system you hurried to implement keeps your business running until the coronavirus pandemic passes.

To make telecommuting work, even temporarily, you must keep in mind the needs of both your customers and your employees, all of whom have to get used to the new system on short notice. Every company will have different needs, but here are some general guidelines.

Make Sure Everyone Has The Technology

telecommuting

You may assume that today everyone has a late-model computer at home, with a high-speed connection. But not everyone does, or if they do, they have to share their resources with other family members. So be prepared to rent or purchase laptops for your staff and help them set up an internet connection.

Take Charge of Security

telecommuting

This will vary widely from business to business, and from employee to employee. In the office, you may have a highly secure intranet that encompasses your files, customer accounts, financial records and more. It will have to be extended so everyone has access from remote locations. You can simplify the task by giving employees access to only the information they need.

Your HR director needs access to employee files but probably not to sales figures, for example. Each remote computer needs its own security software to ensure no single machine becomes the weak link in the chain.

Rethink Your Meetings

telecommuting

You won’t be able to casually meet with staff the way you did in the office. Even formal meetings will be different. You’ll need to rethink the way you interact with your staff, and the way they interact with each other. Skype and other messaging software can be used for quick notes or video calls. Zoom is good for conferences. Evernote allows employees to share and collaborate on various projects — it’s easy to use and inexpensive. There are other choices as well, depending on your needs.

Some companies like visual conferences, and there are economical choices. But keep in mind that each employee’s background may be a messy living room rather than a well-ordered office.

Also, no matter how sophisticated your software, you cannot perfectly replicate the in-office experience. Each employee will have to work more independently. Of course, you can — and should — ask for progress reports and encourage regular communication.

Be Flexible and Understanding

telecommuting

Finally, be flexible and understanding. Many employees may not have a dedicated home office, so the voices of spouses — also working from home — and children may become part of any meeting, despite everyone’s best efforts. You will need to be understanding. But if everyone remains open to experimenting with ways to make telecommuting work, there’s a very good chance your company can weather this enforced situation.

Indeed, you may find that many, even most, of your employees adapt so well that this can become a permanent arrangement for them. This will not only improve employee morale and give you a recruiting edge, but reduce your real estate costs. Good luck with the transition!

© 2020

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IRS Offers Identity Protection PIN

The IRS is gradually rolling out a new identity protection program that prevents anyone who has stolen your Social Security from misusing it. Learn more.

Identity protection is of even more concern these days when it comes to taxes. The IRS can now give eligible taxpayers an “IP PIN,” a six-digit code to help prevent the misuse of Social Security numbers on fraudulent federal income tax returns. As the IRS explains, this PIN helps the agency verify a taxpayer’s identity and accept his or her electronic or paper tax return.

Who's Eligible For The Identity Protection PIN

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Not everyone can get one yet. If you are a confirmed victim of identity theft and the IRS has resolved your tax account issues, the agency will mail you a CP01A Notice with your IP PIN.

Also, to be eligible for 2020, you must have filed a federal return last year as a resident of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Illinois, Maryland, Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Rhode Island, Texas or Washington. This is as of February; the list will grow in the future.

Taxpayers eligible for the IP PIN Opt-In Program must use the online Get an IP PIN tool, explains the IRS. If you do not already have an account on irs.gov, you must register to validate your identity. Before attempting to register, read about the secure access identity authentication process. Taxpayers cannot obtain an IP PIN by calling the IRS.

How Do You Use An IP PIN?

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Enter the six-digit IP PIN when prompted by your tax software product or provide it to your trusted tax professional preparing your tax return. An incorrect or missing IP PIN will result in the rejection of your e-filed return or a delay of your paper return until it can be verified.

Do not reveal your IP PIN to anyone. It should be disclosed only to your tax professional and only when you are ready to sign and submit your return. The IRS will never ask for your IP PIN. Avoid phone, email or text scams trying to trick you into revealing your IP PIN.

For more details on using the IP PIN and the latest updates, go to the IRS IP PIN page. It also contains a FAQ that answers the most common questions.

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