News & Tech Tips

Updates on PPP Recipients and IRS Facility Openings

Kathleen Hargrove on June 25, 2020

There have been important updates from the SBA and the IRS this week that we wanted to pass along to you. Here is a summary of each update:

 

PPP Recipients Published

 

The SBA and Treasury have agreed to publish the names and amount ranges for all recipients of PPP loans of $150,000 or more.

 

In a news release, Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza said they had reached an agreement with the bipartisan leaders of the Senate Small Business Committee to make public additional data regarding the PPP.

 

Specifically, the SBA will disclose the business names, addresses, North American Industry Classification System (NAICS) codes, ZIP codes, business type, demographic data, not-for-profit information, jobs supported, and loan amount ranges as follows:

  • $150,000 to $350,000
  • $350,000 to $1 million
  • $1 million to $2 million
  • $2 million to $5 million
  • $5 million to $10 million

These categories account for nearly 75% of the loan dollars approved, according to the SBA and Treasury. For loans below $150,000, the SBA will release totals aggregated by ZIP code, by industry, by business type, and by various demographic categories.

 

 

IRS Facilities Opening

 

IRS Commissioner Charles Rettig has announced that additional IRS facilities will open on June 29 and that facilities in all remaining states will open on July 13.

 

Although the current message doesn’t specify the names of the four states, a previous message from Rettig indicated that those states are Indiana, Ohio, California and Oregon.

 

For the majority of employees who can perform their duties at home, IRS’s telework policy will remain in effect for the foreseeable future to ensure social distancing. Rettig instructs IRS employees to remain in their current work status, whether teleworking or on weather and safety leave, until hearing directly from their manager.

 

 

 

SOURCES: Journal of Accountancy

IRS.gov

 

Balance Due Notice Mailings: Due Dates Extended to Help Taxpayers

Kathleen Hargrove on June 17, 2020

Due to the COVID-19 pandemic, the IRS was unable to mail some previously printed balance due notices as a result of office closures. As IRS operations continue to reopen, these notices will be delivered to taxpayers in the next few weeks.

 

Some of the notices may reflect due dates that have already passed. The IRS assures taxpayers the due dates have been extended to July 10 or July 15, 2020, depending on the type of tax payment and original due date. The correct due date will appear on an additional insert mailed with each notice. Taxpayers who have questions can call the number provided on their notice.

 

For more information, go to IRS.gov: IRS operations during COVID-19 mission critical functions continue.

IRS Explains How Ineligible Taxpayers Should Return Stimulus Payments

Kathleen Hargrove on May 8, 2020

The IRS has posted information on how people who weren’t supposed to receive their economic impact payments for the coronavirus pandemic should return the money.

 

The CARES Act included provisions for sending economic impact payments of at least $1,200 to individuals, and $2,400 to married couples, plus $500 per dependent child.

 

The program, however, has been seen some issues since it was rolled out. The IRS had to rely on information from taxpayers’ 2018 and 2019 tax returns to send the money. In some cases, the IRS sent money to the families of deceased taxpayers or people who live abroad and don’t qualify for the payment. Undocumented and incarcerated taxpayers also aren’t considered to be eligible.

 

A Frequently Asked Questions page has been setup on the IRS website about the economic impact payments, and information has been added about which taxpayers are ineligible and how to return the payments if money was received.

 

If the payment was a paper check, the IRS gave the following instructions:

 

  1. Write “Void” in the endorsement section on the back of the check.

 

  1. Mail the voided Treasury check immediately to the appropriate IRS location listed below.

 

  1. Don’t staple, bend, or paper clip the check.

 

  1. Include a note stating the reason for returning the check.

 

If the payment was a paper check and the taxpayer has cashed it, or if the payment was a direct deposit, the IRS recommended that taxpayers:

 

  1. Submit a personal check, money order, etc., immediately to the appropriate IRS location.

 

  1. Write on the check/money order made payable to “U.S. Treasury” and write 2020EIP, and the taxpayer identification number (Social Security number, or individual taxpayer identification number) of the recipient of the check.

 

  1. Include a brief explanation of the reason for returning the payment.

 

Further information on returning payments and ineligible recipients can be found on the IRS website here. 

 

The IRS has not issued clear penalties for those who do not return these payments. At this time, it appears the IRS is strongly recommending the return of payments, however, it is not suspected they will pursue individuals legally. This has not been confirmed.

We will continue to monitor this for additional updates and keep you informed on any changes. Please contact your Whalen advisor for further questions regarding this announcement.

IRS Launches “Get My Payment” Tool

Kathleen Hargrove on April 16, 2020

You’ve heard all the recent buzz regarding Economic Impact Payments, but are you still wondering when you are going to receive yours?

The IRS has launched its “Get My Payment” tool, which allows taxpayers to check the status of their Economic Impact Payment.

The tool provides information about a taxpayer’s payment status, payment type, and whether the IRS needs more information, such as a bank account and routing number.

To use the tool, taxpayers will need to enter their name, Social Security number, date of birth, and address. If a bank account is not on file, the taxpayer can enter that information after verifying the AGI and refund amount (or amount owed) on his or her most recently filed tax return.

The “Get My Payment” tool can be accessed on the IRS website.

 

Individuals who are not required to file a 2018 or 2019 tax return can also enter their payment information on the IRS website.

Not sure if you are eligible for an Economic Impact Payment? Check out the eligibility requirements here.

As always, feel free to reach out to your Whalen advisor with any questions regarding these payments or anything else.
SOURCES: Thomson Reuters, IRS.gov

IRS Issues Warning About Coronavirus-Related Scams

Kathleen Hargrove on April 3, 2020

The IRS is urging taxpayers to be on the lookout for a surge of calls and email phishing attempts about the Coronavirus, or COVID-19. These contacts can lead to tax-related fraud and identity theft.
Taxpayers should watch not only for emails but, text messages, websites and social media attempts that request money or personal information.

“History has shown that criminals take every opportunity to perpetrate a fraud on unsuspecting victims, especially when a group of people is vulnerable or in a state of need,” said IRS Criminal Investigation Chief Don Fort. “While you are waiting to hear about your economic impact payment, criminals are working hard to trick you into getting their hands on it. The IRS Criminal Investigation Division is working hard to find these scammers and shut them down, but in the meantime, we ask people to remain vigilant.”

Don’t Fall Prey to Coronavirus Tricks

The IRS and its Criminal Investigation Division have seen a wave of new and evolving phishing schemes against taxpayers. In most cases, the IRS will deposit economic impact payments into the direct deposit account taxpayers previously provided on tax returns. Those taxpayers who have previously filed but not provided direct deposit information to the IRS will be able to provide their banking information online to a newly designed secure portal on IRS.gov in mid-April. If the IRS does not have a taxpayer’s direct deposit information, a check will be mailed to the address on file. Taxpayers should not provide their direct deposit or other banking information for others to input on their behalf into the secure portal.

The IRS also reminds retirees who don’t normally have a requirement to file a tax return that no action on their part is needed to receive their $1,200 economic impact payment. Seniors should be especially careful during this period. The IRS reminds retirees – including recipients of Forms SSA-1099 and RRB-1099 −  that no one from the agency will be reaching out to them by phone, email, mail or in person asking for any kind of information to complete their economic impact payment, also sometimes referred to as rebates or stimulus payments. The IRS is sending these $1,200 payments automatically to retirees – no additional action or information is needed on their part to receive this.

The IRS reminds taxpayers that scammers may:

  • Emphasize the words “Stimulus Check” or “Stimulus Payment.” The official term is economic impact payment.
  • Ask the taxpayer to sign over their economic impact payment check to them.
  • Ask by phone, email, text or social media for verification of personal and/or banking information saying that the information is needed to receive or speed up their economic impact payment.
  • Suggest that they can get a tax refund or economic impact payment faster by working on the taxpayer’s behalf. This scam could be conducted by social media or even in person.
  • Mail the taxpayer a bogus check, perhaps in an odd amount, then tell the taxpayer to call a number or verify information online in order to cash it.
Reporting Coronavirus-Related or Other Phishing Attempts
Those who receive unsolicited emails, text messages or social media attempts to gather information that appear to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), should forward it to phishing@irs.gov.

Taxpayers are encouraged not to engage potential scammers online or on the phone. Learn more about reporting suspected scams by going to the Report Phishing and Online Scams page on IRS.gov.

 
SOURCE: IRS.gov

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