Coronavirus Tax Relief
The IRS and Arizona have extended the due date to July 15, 2020, both for filing Federal income tax returns and for payments due April 15 for individuals and other unincorporated entities.
Associated interest, additions to tax, and penalties for late payment will also be suspended until July 15, 2020. Taxpayers will not need to appy for relief from penalties and interest for payments made during this time.
The IRS established a special webpage at IRS.gov/coronavirus for tax-related information. For more information, see Tax Day now July 15 and Treasury and IRS Issue Guidance on Deferring Tax Payments Due to COVID-19 Outbreak (Notice 2020-17).
AzDOR slides available
The slides presented by AzDOR at the January meeting are available here, for those who requested copies of this treasure trove of information and for those who missed the meeting.
AZ passes conformity at last
In the “better late than never maybe” category, the Arizona legislature passed conformity to the federal tax code at the end of May 2019. The law, HB 2757, fully conforms Arizona to the federal tax reform law retroactively to 2018. The conformity for 2018 created an estimated $155 million windfall for the state, which the state is keeping. For 2019, tax brackets and numerous other changes attempt to restore the tax situation to close what Arizona’s tax burden was before than reform conformity. For more info:
Travel ID for federal buildings
There has been a lot of publicity recently about the “gold star” travel ID that will be required to board an airline starting in October. But did you know that it also will be required to enter federal buildings? If you anticipate needing to visit the IRS office on behalf of your clients, you have an extra reason to obtain a new “gold star” driver’s license. For more information, visit https://getthegoldstar.com/ or http://www.aztravelid.com/
IP PIN now available for everyone
Anyone in Arizona and 19 other states now can obtain an IP PIN (Identity Protection Personal Identification Number).
Originally just for victims of identity theft, the IP PIN is being expanded by IRS. As part of the IRS’ fraud prevention efforts, it now is an option for anyone even if they haven’t had identity problems. See IRS’ new Pub 5367 for details.
Improved Tax Withholding Estimator helps workers plan
The IRS has launched a new Tax Withholding Estimator to help workers plan for the right amount of federal income tax to be taken out of their pay.
The IRS completely redesigned the W-4 form for 2020. Income tax withholding is no longer based on an employee’s marital status and withholding allowances. Instead, income tax withholding is generally based on the worker’s expected filing status and standard deduction for the year. In addition, workers can choose to have itemized deductions, the Child Tax Credit and other tax benefits reflected in their withholding for the year.
Pima College EA Certificate
Pima Community College has launched an Enrolled Agent Certificate program within its accounting department. Instead of SACEA presenting a SEE prep class this year, some of our members will be teaching the SEE prep classes at Pima. If you know someone who could benefit by becoming an Enrolled Agent, encourage them to look into the EA program at https://pima.edu/programs-courses/credit-programs-degrees/business-careers/accounting/accounting-enrolled-agent-cert.html
IRS announcements & guidance
- Tax Cuts & Jobs Act (TCJA) Center
- Pub 5307, Tax Reform Basics for Individuals and Families
- 20% Qualified Business Income Deduction
- 2019 inflation adjustments: Rev.Proc. 2018-57
- 2019 mileage rates
- Deducting business meals: Notice 2018-76
- FAQ on 20% Deduction for Qualified Business Income
- Section 199A guidance
- Arizona Booklet X
Latest handy numbers
Where can you find the 2019 mileage rates, 2019 tax brackets and 2018 AZ Standard deductions, and oodles of other juicy numbers? At the FAQ page on the AzSEA website, of course.