The IRS recently released additional information on their Economic Impact Payment (EIP) Information Center webpage regarding the eligibility of deceased taxpayers. The updated information addresses payments issued to deceased taxpayers declaring their ineligibility of the EIP (Q10) and how to return funds (Q41). Please note IRS FAQs are not legal authority or formal guidance and can change at any time. In addition, the FAQs do not address how or when enforcement of the repayment will be handled. Considering the language used within the FAQs, that the payment “should be returned” rather than “must be” or “is required to be returned”, recipients of these payments, on behalf of deceased taxpayers, may want to consider holding off taking immediate action until further authoritative guidance is made available. We will continue to monitor the updates and information as it is made available. For those clients with specific questions related to their situation, please call the office to speak with one of our tax professionals.
Bureau of Unemployment Compensation – Pandemic Unemployment Assistance (PUA): Important information for anyone that is self-employed!
Unemployment is opening May 1, 2020 at 8 a.m. for self-employed individuals. Follow the link below to see full details on Maine.gov.
Governor Mills has announced the gradual reopening of Maine businesses with a four stage plan scheduled to begin May 1st. Read more at this link https://www.maine.gov/covid19/restartingmaine Complying with CDC and State recommendations, the Smith & Associates office will be re-opening to the public on June 1st. This decision is subject to change based on State and CDC monitoring of COVID-19 progress. Smith & Associates will continue to practice social distancing in the office while disinfecting workspace’s and common areas and surfaces for the protection of our clients and staff. We encourage communication during this time by email firstname.lastname@example.org and phone 207-846-8881.
Also known as Stimulus Payments, the below link will take you to the most up to date information from irs.gov.
The IRS has updated guidance related to the rebates under the CARES Act. Payments will be made initially based on a qualifying individual’s most recently filed tax return (2018 or 2019). The payment is an advance on a refundable credit on your 2020 return. Individuals who otherwise do not qualify for the credit based on phase out limits on their 2018 or 2019 return may find that income on their 2020 return results in receiving the rebate when they file in 2021.
Rebates equal $1,200 per qualifying individual plus $500 for each qualifying child (generally children under 17 who qualify for the child tax credit). Phase outs begin when AGI exceeds: $75,000 for individuals; $112,500 for head of household; and $150,000 for joint filers.
Additional information is available at the IRS website including updates for how to change your direct deposit information or payment method.
This is a must read for any small business owner! Click on link below:
Gov. Janet Mills said Thursday that Maine’s income tax return filing deadline will be extended to July 15, 2020. The new deadline applies to any final and estimated Maine income tax payments that were due by April 15th. Any failure-to-pay penalties and interest will be abated for the period of April 16 through July 15.
The links below are regarding the CARES Act, H.R. 748:
As changes are happening quickly, we will update you with relevant information as it becomes available. We wish health and safety during this time, and know we will get through this!
In our continuous effort to keep Smith & Associates employees and clients safe and healthy, we are closing our office to the public until further notice. We will communicate with clients via email, phone, fax, and the United States Postal Service. We provide the opportunity to submit and retrieve documents through a personalized secure client portal. If you don’t already have access to a portal but would like to, please e-mail or call for further instructions. We will be utilizing Zoom web conferencing services or phone calls as an alternative to in person meetings. Rest assured; we are working to complete tax returns as quickly as possible and anticipate, at this point, that we will be able to accommodate completing these by the April 15th for those of you who have submitted documentation by our March 20th deadline. Auditing and accounting services are also moving forward with little delay; however, we will be working to find solutions to our standard onsite visit for the time being. As everyone is adapting to this, we are also learning to adapt, and we truly appreciate your patience and understanding during this time.
You may find the following link to the AICPA’s COVID-19 Resource Center page interesting and helpful.
As we continue to monitor the rapidly unfolding COVID-19 developments, we are closely following the direction of federal, state, and local authorities and other health experts and trusted advisors. This is a rapidly changing situation, and we are responding to new developments, with the health and well-being of our employees and clients as our top priority.
In an effort to do our part of trying to slow the spread of the virus we are implementing the following for the 2020 filing season:
Beginning on Wednesday, March 18, 2020, Smith & Associates will postpone all in person client meetings until further notice. We will offer meetings via telephone as we continue to prepare tax returns for the anticipated deadline.
Returns will be mailed to clients when they are completed rather than being picked up or they will be sent via our online platforms if the client requests.
Clients are encouraged to communicate with us through email or phone with any questions. Monica our Administrative Manager will respond to emails within 24-48 hours. email@example.com
In This Issue
- The Risk within Your Audit Risk Assessment
- PRIMA Update
- AE Benchmark Reporting
- Not Documented, Not Done
- Enhancements to Reviewer Search
- Peer Review Process in PRIMA
- Analytical Procedures in a Review Engagement
- Administrative FAQs
- Becoming a Peer Reviewer
- Accessing Help in PRIMA
- PRIMA Help Articles