This Quarter’s Topics

Our New Location

Late Refunds

RMD’s Waived

Stimulus

Filing Extension

Late Refunds

The IRS stopped processing paper returns when quarantines were implemented. They have been returning workers to processing centers, but they are subject to State and Local orders on workplaces. By late June ten states had reopened IRS offices. The offices in the remaining 40 states were set to open by July 15. The IRS said they are estimating at least an 8-week timeframe before they catch up on opening their mail. If your return has been processed it is unlikely you will know it because they are not updating their website regularly. It is a wait-and-see game right now. The IRS is asking people not to call and ask about their refund, and not to file a second return.

If you were due a refund, the IRS will pay interest on delayed refunds for returns filed by the mid-July deadline. Interest will accrue from April 15 until the date of the refund.  The IRS says you may receive the interest in a separate payment from the refund. Any interest will need to be reported on next year’s return.

RMD’s Waived

The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, waives RMDs during 2020 for IRAs and retirement plans, including for beneficiaries with inherited accounts.

Individuals who took RMDs in 2020 have the option of returning the distribution to their account or other qualified plan.   IRA owners, beneficiaries or workplace retirement plan participants who received a Required Minimum Distribution (RMD) have until August 31 to rollover or repay the distribution to avoid paying taxes.

Since the RMD rule is suspended, RMDs taken in 2020 are considered eligible for rollover. Therefore, RMDs can be rolled over to another IRA, another qualified retirement plan, or returned to the original plan by August 31, to avoid paying taxes on that distribution.

Stimulus

The IRS is encouraging individuals with qualifying children to use the Non-Filers Tool, August 15 through September 30 to apply to receive the supplemental $500 payments.  Those eligible to provide this information include people with qualifying children who receive Social Security retirement, survivor or disability benefits, Supplemental Security Income (SSI), Railroad Retirement benefits and Veterans Affairs Compensation and Pension (C&P) benefits and did not file a tax return in 2018 or 2019.

The IRS also reminds people with little or no income and who are not required to file tax returns that they remain eligible to receive an Economic Impact Payment. People in this group should also use the Non-Filers tool. October 15 is the deadline to receive payment this year.

https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here

If you filed a tax return and have not received an Economic Impact Payment or have receive a reduced payment, you should not use this tool. You will be able to apply for the credit on your 2020 return. This would include the $500 credit for qualifying children.

Extension of Time to File

If you applied for an extension of time to file your taxes, they are due October 15. Please make sure your tax information packet is in our office by September 25. This will allow time for us to prepare your return and mail it back to you before the deadline.

Sincerely in Christ,

James W. Rickard

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