The coronavirus (COVID-19) pandemic has caused the value of some retirement accounts to decrease because of the stock market downturn. But if you have a traditional IRA, this downturn may provide a valuable opportunity: It may allow you to convert your traditional IRA to a Roth IRA at a lower tax cost. The key differences … Read More
The IRS has issued FAQs for C corporations that are interested in carrying back net operating losses (NOLs) to years in which the alternative minimum tax (AMT) applies. The Coronavirus Aid, Relief and Economic Security (CARES) Act amended the tax code to provide for a carryback of any NOL arising in a tax year starting … Read More
Many people’s estates typically include IRAs. Be aware that two major laws passed into law recently, the Setting Every Community Up for Retirement Enhancement (SECURE) Act and the Coronavirus Aid, Relief, and Economic Security (CARES) Act, have had a direct effect on IRAs. In a nutshell, the CARES Act waives required minimum distribution (RMD) rules … Read More
American taxpayers who live and work abroad have extra time to file and pay their 2019 federal income tax. The usual deadline is June 15, but due to the COVID-19 pandemic, this date has been postponed to July 15, 2020. This relief also applies to nonresident aliens and foreign entities with a U.S. filing and … Read More
How has the COVID-19 pandemic affected the U.S. federal budget? Estimates of the effects were outlined in a recent letter from the Congressional Budget Office (CBO) to Sen. Rick Scott (R-FL), a member of the Senate Budget Committee. Some of the deferred revenue “will be collected in July, some will be collected in later years, … Read More
Some Economic Impact Payments (EIPs) were sent on prepaid debit cards. These EIP cards were sent in plain envelopes from “Money Network Cardholder Services.” Some recipients thought the envelopes were junk mail and they threw them in the trash. The IRS now explains that individuals who have lost or destroyed their cards may request free … Read More
The IRS recently issued Notice 2020-23, expanding on previously issued guidance extending certain tax filing and payment deadlines in response to the novel coronavirus (COVID-19) crisis. This guidance applies to specified filing obligations and other “specified actions” that would otherwise be due on or after April 1, 2020, and before July 15, 2020. It extends … Read More
Did you receive an Economic Impact Payment (EIP) that you need to return? EIPs are amounts sent by the IRS to eligible recipients to help defray the economic effects of COVID-19. With millions of EIPs sent, inevitably, some were sent in error to persons who are deceased or otherwise ineligible. These EIPs must be returned. … Read More
The novel coronavirus (COVID-19) pandemic has adversely affected the global economy. Companies of all sizes in all industries are faced with closures of specific locations or complete shutdowns; employee layoffs, furloughs or restrictions on work; liquidity issues; and disruptions to their supply chains and customers. These negative impacts have brought the “going concern” issue to … Read More
In a website message, IRS Commissioner Charles Rettig explained that the agency is reopening facilities in various states after curtailing operations because of the COVID-19 pandemic. The IRS is now bringing more employees back into its offices to do work that can’t be performed remotely. The first phase includes certain employees in Kentucky, Texas and … Read More