New, Revised PPP Forgiveness Applications

The Small Business Administration (SBA), in consultation with Treasury, has released both a new EZ and revised, full Paycheck Protection Program (PPP) loan forgiveness application.

The new and revised forms come on the heels of a recent request made by over 40 bipartisan senators to simplify the forgiveness filing process for certain borrowers. Additionally, the updated forms released on June 17 follow updated PPP guidance released last week.

The updated guidance and forms move to implement the Paycheck Protection Program Flexibility Act (PPPFA), which President Trump signed on June 5, 2020. The PPPFA aims to expand usability of the Coronavirus Aid, Relief, and Economic Security (CARES) Act’s PPP for small businesses.

Notably, both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or the PPPFA’s extended 24-week covered period, according to Treasury’s June 17 press release. However, the EZ application requires fewer calculations and less documentation for eligible borrowers.

The new EZ forgiveness application can be located here.

The revised, full forgiveness application can be located here.

Wilson Tax Law Group, APLC (www.wilsontaxlaw.com) is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal tax defense.  Firm founder,  Joseph P. Wilson, is a former Federal tax prosecutor, trial attorney for the IRS and trial attorney for the Franchise Tax Board.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Newport Beach and Yorba Linda, California

Tel: (949) 397-2292 (Newport Beach Office)

Tel: (714) 463-4430 (Yorba Linda Office)

 

 

IRS Reminds Taxpayers to File Taxes Electronically; Use Direct Deposit for Tax Refund

The IRS has reminded taxpayers who have not filed their 2019 federal tax return to file electronically and choose direct deposit for their refund. Further, taxpayers who owe taxes for 2019 or need to pay 2020 estimated taxes originally due for the first quarter on April 15 or the second quarter on June 15 can schedule an electronic payment up to the July 15 due date. The Service has urged taxpayers to use electronic options to support social distancing and speed the processing of tax returns, refunds and payments. Moreover, a list of forms due July 15 is on the Coronavirus Tax Relief: Filing and Payment Deadlines page.

For 2016 tax returns, the normal April 15 deadline to claim a refund is now July 15, 2020. The Service has also advised taxpayers to use direct deposit to deposit their refund into one, two or even three accounts. In addition, taxpayers can file and schedule their federal tax payments up to the July 15 due date. When paying federal taxes electronically taxpayers should remember that IRS Direct Pay allows them to pay online directly from a checking or savings account for free, and to schedule payments up to 365 days in advance. Individual tax filers, regardless of income, can use IRS Free File to electronically request an automatic tax-filing extension which gives them until October 15 to file their tax return. To get the extension, the taxpayers must estimate their tax liability on the extension form and should pay any amount due. Alternatively, taxpayers can get an extension by paying all or part of their estimated income tax due and indicate that the payment is for an extension using IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a credit or debit card. The IRS has requested taxpayers to use the Interactive Tax Assistant (ITA) and go to IRS.gov/COVIDtaxdeadlines to get their tax-related queries addressed.

Wilson Tax Law Group, APLC (www.wilsontaxlaw.com) is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. The firm was founded in 2014 by Joseph P. Wilson, a former Federal tax prosecutor, trial attorney for the IRS and trial attorney for the Franchise Tax Board.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Newport Beach and Yorba Linda, California

Tel: (949) 397-2292 (Newport Beach Office)

Tel: (714) 463-4430 (Yorba Linda Office)

IRS Rules Encourage Leave-Based Donation Programs for Victims of COVID-19

The IRS has provided relief to support employer leave-based donation programs to aid victims of the COVID-19 (coronavirus) pandemic. Under these programs, employees may forgo vacation, sick or personal leave in exchange for cash payments the employer makes to charitable organizations providing relief for the victims of the pandemic.

An employer’s donations under a leave-based donation program are not gross income or wages for the employees who surrendered leave so long as the donations are made in cash to a charitable organization for the relief for victims of the COVID-19 pandemic, before January 1, 2021. Similarly, the employee does not receive income or wages from the opportunity to forgo leave. Thus, the employer does not have to report its leave-based donations on the employee’s Form W-2.

An employee may not claim a charitable contribution deduction for the value of leave that is surrendered in a leave-based donation program and excluded from the employee’s wages. However, the employer can deduct its cash payments as a charitable contribution under Code Sec. 170 or as a ordinary and necessary business expense under Code Sec. 162 if the employer otherwise meets the respective requirements.

Wilson Tax Law Group, APLC (www.wilsontaxlaw.com) is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. The firm was founded in 2014 by Joseph P. Wilson, a former Federal tax prosecutor, trial attorney for the IRS and trial attorney for the Franchise Tax Board.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Newport Beach and Yorba Linda, California

Tel: (949) 397-2292 (Newport Beach Office)

Tel: (714) 463-4430 (Yorba Linda Office)

California—Property Tax: Assessment Appeals Filing Periods Set for 2020

The regular appeals filing periods for 2020 for California county property tax assessments have been certified. The regular appeals filing periods will begin on July 2 and end on either:

• September 15; or


• November 30.

The end date a county uses depends on whether the county assessor mails assessment notices by August 1 to all taxpayers with property on the secured roll.

Letter to County Assessors, No. 2020/026, California State Board of Equalization, June 2, 2020

Wilson Tax Law Group, APLC (www.wilsontaxlaw.com) is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. The firm was founded in 2014 by Joseph P. Wilson, a former Federal tax prosecutor, trial attorney for the IRS and trial attorney for the Franchise Tax Board.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Newport Beach and Yorba Linda, California

Tel: (949) 397-2292 (Newport Beach Office)

Tel: (714) 463-4430 (Yorba Linda Office)

Tax Court Resumes Accepting Copy Requests; Proceedings Conducted Remotely

The Tax Court has announced that it will resume accepting requests for copies of court records from non-parties (copy requests) beginning June 1, 2020. The Tax Court also announced that all proceedings will be conducted remotely until further notice due to the Covid-19 pandemic.

Copy Requests

Until further notice, all copy requests must be made by telephone and will be fulfilled electronically by email. The Tax Court’s fees with respect to these copy requests will be $0.50 per page, with a per-document cap of $3.00. The Records Department can be reached at (202) 521- 4688. Litigants registered for electronic access continue to be able to electronically file and view documents in their cases without charge. Additional information can be obtained here.

Remote Proceedings

Administrative Order 2020-02 provides information regarding remote proceedings. Further, Administrative Order 2020-03 can be reviewed for obtaining information regarding Limited Entries of Appearance. More information can be found here.

Wilson Tax Law Group, APLC (www.wilsontaxlaw.com) is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. The firm was founded in 2014 by Joseph P. Wilson, a former Federal tax prosecutor, trial attorney for the IRS and trial attorney for the Franchise Tax Board.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Newport Beach and Yorba Linda, California

Tel: (949) 397-2292 (Newport Beach Office)

Tel: (714) 463-4430 (Yorba Linda Office)

 

IRS’s People First Initiative Unveiled

The IRS announced that it unveiled the People First Initiative on March 25, 2020 to ease the burden on people facing tax issues as much as possible and to enable them to better focus on the well-being of themselves and others during the COVID-19 pandemic. This initiative is an unprecedented effort to temporarily scale back many collection and enforcement activities by the IRS during the COVID-19 global pandemic.

The IRS, in consultation with its partners, will continue to review the initiative and modify or expand it as necessary during this situation.

The People First Initiative modified numerous IRS compliance programs by providing taxpayers relief from the following programs:

• Existing Installment Agreements,


• New Installment Agreements,


• Offers in Compromise (OIC),


• Field Collection Activities - Liens and levies,


• Automated Levies, and Systemic Liens and Levies,


• Certifications of seriously delinquent tax liabilities to the State Department (impacting the issuance or renewal of a passport),


• Private Debt Collection, and


• Field, Office and Correspondence Audits.

Further, the IRS announced that while the IRS Independent Office of Appeals continues to work its cases, it would not hold in-person conferences with taxpayers. However, they may hold conferences over the telephone or by videoconference. Moreover, the IRS urged those who owe back taxes to take this opportunity to file delinquent returns and resolve any outstanding liabilities. Taxpayers can visit the IRS website for more information about payment options, including several options for taxpayers who may be unable pay the full amount now. Finally, additional information may be obtained at the following sites: IRS People First Initative FAQs, Coronavirus Tax Relief, Employee Retention Credit FAQs.

Wilson Tax Law Group, APLC (www.wilsontaxlaw.com) is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. The firm was founded in 2014 by Joseph P. Wilson, a former Federal tax prosecutor, trial attorney for the IRS and trial attorney for the Franchise Tax Board.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Newport Beach and Yorba Linda, California

Tel: (949) 397-2292 (Newport Beach Office)

Tel: (714) 463-4430 (Yorba Linda Office)

E-File Your Amended Tax Return? Yes

WASHINGTON — The Internal Revenue Service announced yesterday that later this summer taxpayers will for the first time be able to file their Form 1040-X, Amended U.S Individual Income Tax Return, electronically using available tax software products.

Making the 1040-X an electronically filed form has been a goal of the IRS for a number of years. It's also been an ongoing request from the nation's tax professional community and has been a continuing recommendation from the Internal Revenue Service Advisory Council (IRSAC) and Electronic Tax Administration Advisory Committee (ETAAC).

Currently, taxpayers must mail a completed Form 1040-X to the IRS for processing. The new electronic option allows the IRS to receive amended returns faster while minimizing errors normally associated with manually completing the form.

"This new process is a major milestone for the IRS, and it follows hard work by people across the agency," said IRS Commissioner Chuck Rettig. "E-filing has been one of the great success stories of the IRS, and more than 90 percent of taxpayers use it routinely. But the big hurdle that's been remaining for years is to convert amended returns into this electronic process. Our teams have worked diligently to overcome the unique challenges related to the 1040-X, and we look forward to offering this new service this summer."

About 3 million Forms 1040-X are filed by taxpayers each year.

The new electronic filing option will provide the IRS with more complete and accurate data in an easily readable format to enable customer service representatives to answer taxpayers' questions. Taxpayers can still use the "Where's My Amended Return?" online tool to check the status of their electronically-filed 1040-X.

When the electronic filing option becomes available, only tax year 2019 Forms 1040 and 1040-SR returns can be amended electronically. In general, taxpayers will still have the option to submit a paper version of the Form 1040-X and should follow the instructions for preparing and submitting the paper form. Additional enhancements are planned for the future.

"Adding amended returns to the electronic family also complements our partnership with the tax software industry, which continues to work with us to provide better ways to help taxpayers," said Ken Corbin, Commissioner of the IRS Wage and Investment division.

Wilson Tax Law Group, APLC (www.wilsontaxlaw.com) is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal tax defense.  Firm founder and managing shareholder, Joseph P. Wilson, is a former Federal tax prosecutor, trial attorney for the IRS and trial attorney for the Franchise Tax Board.  The firm is entirely comprised of ex-IRS attorneys and Assistant US Attorneys.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Newport Beach and Yorba Linda, California

Tel: (949) 397-2292 (Newport Beach Office)

Tel: (714) 463-4430 (Yorba Linda Office)

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