California Tax Relief Due to Coronavirus

On March 12, the Governor of California declared tax relief that delays the deadline for state tax filing by 60 days for individuals and businesses unable to file on time based on compliance with public health requirements related to COVID-19 filings.

This relief follows the Governor's March 5th declaration of a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the state prepare for broader spread of COVID-19. (www.gov.ca.gov/wp-content/uploads/2020/03/3.4.20-Coronavirus-SOE-Proclamation.pdf)

The Governor's March 5th declaration states that employers statewide directly affected by the new coronavirus (COVID-19) may request up to a 60-day extension of time from the EDD to file their state payroll reports and/or deposit payroll taxes without penalty or interest. Written requests for extension must be received within 60 days of the original delinquent date of the payment or return to file/pay.

Wilson Tax Law Group endorses any tax relief efforts being sought to assist those communities, industries, businesses and individuals negatively affected by the outbreak. Although tax relief doesn’t solve the problem it helps mitigate the finacial fallout. If you or your business has comments or concerns or is seeking professional and diligent legal tax help, contact the Wilson Tax Law Group at 949-397-2292.

Possible US Tax Relief Due to Coronavirus

Reports have emerged that White House officials are considering deferring taxes for the cruise, travel and airline industries to stem the economic fallout from the outbreak. The tax deferrals for the travel industry are being considered as airlines cut back on routes and warn about declining ticket sales.

Hotel chains are struggling with vacancies in Asia and are bracing for similar waves in the United States. Business travel is falling, and trade shows, music festivals and conventions are being canceled from San Francisco to Chicago to Austin to Miami. Families and college students are reconsidering spring break excursions and distant summer plans.

Other countries have already enacted tax relief for their hardest-hit industries. On Sunday, Italy announced a tax credit for any company that has seen revenue decline by more than a quarter. That is on top of Italy’s announcement last month that companies and individuals in areas affected by the “epidemiological emergency” would be granted an extension on spring tax filings.

Congress should consider tax filing and payment extensions, medical tax credits for household and other virus prevention and recovery costs, capital loss carry-back extensions, and more.

Wilson Tax Law Group endorses any tax relief efforts being sought to assist those communities, industries, businesses and individuals negatively affected by the outbreak. Although tax relief doesn't solve the problem it helps mitigate the finacial fallout. In addition to the Feds, the State of California and other states should consider tax relief to individuals and businesses due to the outbreak. If you or your business has comments or concerns or require professional and diligent legal tax help, contact the Wilson Tax Law Group at 949-397-2292.

Tax Flash - IRS Ramps Up Audits of High Earners

The IRS is planning to audit more high-income taxpayers, Treasury Secretary Steven Mnuchin told House lawmakers this week. The plan comes on the heels of recent reports that the IRS has conducted more audits of lower-income taxpayers largely because of the increased complexity and resources needed for high-income examinations. In doing so, the Trump administration’s FY 2021 budget request proposes $12 billion in base funding for the IRS, which would provide an increase from currently enacted levels of $11.5 billion.

If you or your business have legal questions or concerns regarding a state or federal tax audit, the professionals at Wilson Tax Law Group are available to assist and can be reached at 949-397-2292. Wilson Tax Law has offices in Newport Beach and Yorba Linda, California. Wilson Tax Law assists clients throughout California, the United States and worldwide.

Feds Gut Alimony Deduction but State of California Still Allows

With respect to payments required under divorce or separation instruments that is executed after Dec. 31, 2018, the Tax Cut and Jobs Act (TCJA) eliminates the deduction for alimony payments and recipients of affected alimony payments will no longer have to include them in taxable income. These changes solely apply to federal tax returns.

California law does not conform to changes made by the TCJA regarding alimony and separate maintenance payments made under any divorce or separation agreement executed after December 31, 2018, or executed on or before December 31, 2018, and modified after that date (If the modification expressly provides that the amendments apply). Thus, deduction for alimony payments are still deductible and recipients of alimony payments are still required to include them in taxable income under California law.

If you or your business have legal questions or concerns regarding your state or federal tax filings, the professionals at Wilson Tax Law Group are available to assist and can be reached at 949-397-2292. Wilson Tax Law has offices in Newport Beach and Yorba Linda, California and assists clients worldwide.

IRS "Beefs Up" Identify Theft Resources for Tax Professionals and Clients

The IRS has announced the launch of "Identity Theft Central", a resource designed to improve online access to information on identity theft and data security protection for taxpayers, tax professionals and businesses. The resource provides information on how to report identity theft, how taxpayers can protect themselves against phishing, online scams and more. It is located on the IRS website and is available 24/7.

The IRS, state tax agencies and the nation’s tax industry, all working in partnership under the Security Summit banner, have made substantial progress in the fight against tax-related identity theft since 2015. However, thieves are still constantly looking for ways to steal the identities of individuals, tax professionals and businesses in order to file fraudulent tax returns for refunds. As a part of the effort to help educate and improve protections for taxpayers, tax professionals and businesses, the IRS has redesigned the information into a new, streamlined page- Identity Theft Central. The following information is available to taxpayers on the page:

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  Taxpayer Guide to Identity Theft, including what to do if someone becomes a victim of identity theft.

  
  


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  Identity Theft Information for Tax Professionals, including knowing responsibilities under the law.

  
  


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  Identity Theft Information for Businesses, including how to recognize the signs of identity theft.

  
  

Moreover, the IRS has advised tax professionals and others to bookmark Identity Theft Central and check their specific guidance periodically for updates. Finally, the page features videos on key topics that can be used by taxpayers or partner groups, including a video message from the IRS Commissioner on warning signs for phishing email scams.

If you are the subject of identity theft and/or have questions or concerns regarding your tax filings, the professionals at Wilson Tax Law Group are available to assist and can be reached at 949-397-2292.

 

 

Did your business recently receive Summary of Account Notice from the FTB? Not to Worry

In late January/early February 2020, we began mailing FTB 3713 Summary of Account Payments, Transfers, and Credits to business entities who made an Estimated Tax Payment(s) or Estimated LLC Fee payment during the 2019 tax year.

This account summary provides:

• Payment

• Transfer

• Credit information

• Payment amounts and effective dates

The notification letter provides the same data available internally to FTB call center agents and proactively addresses the most common reason tax professionals contact the Tax Practitioner Hotline: calling to verify payments.

For 2020, the FTB added “This is Not a Bill” to the top of the letter for added clarity and to discourage recipients from remitting payment with the notice. Finally, payment information is also available online to businesses and their tax representatives who register for a MyFTB account.

Contact Wilson Tax Law Group at 949-397-2292 if you have IRS or FTB tax concerns.

Tax Flash- Special Tax Return now Available for Seniors

Please note the availability of a new tax form, Form 1040-SR, featuring larger print and a standard deduction chart making it easier for older Americans to read and use. All lines and checkboxes on Form 1040-SR mirror the Form 1040, and both forms use all the same attached schedules and forms. The revised 2019 instructions cover both Forms 1040 and 1040-SR. Taxpayers born before January 2, 1955, have the option to file Form 1040-SR whether they are working, not working or retired. The form allows income reporting from other sources common to seniors including investment income, Social Security and distributions from qualified retirement plans. Moreover, married taxpayers filing a joint return can use the Form 1040-SR regardless of whether one or both spouses are aged 65 or older or retired. Finally, the form can be used to file the 2019 federal income tax returns, which is due April 15, 2020.



Contact Wilson Tax Law Group at 949-397-2292, if need assistance.