Can’t Wait Until 2020 Ends !
As we enter into the final calendar quarter on 2020, many are looking forward to this year ending. At least we didn't get hit with the "Killer Hornets" (knocking on wood) and hopefully we can still count our blessings in many ways. This month we are introducing a slightly different newsletter/blog to you that is designed to not only provide QuickBooks Tips & Tricks, but small business important information. We are planning to keep this newsletter in a smaller format, with fewer major topics. In this way we hope it will only take you a few minutes to review the information. Plus, please let us know what you think at the bottom of each newsletter, and especially any other topics you would like to have included in the next one. We are always here to help small businesses succeed and be profitable.
Upcoming Important Tax Deadlines
- October 15 extended due date for federal individual tax returns for 2019.
- Late-filing penalty.
- Interest on tax due.
Because of the COVID-19 pandemic emergency, the IRS postponed the original due date for filing 2019 returns to July 15, 2020. If you could not complete your 2019 tax return by July 15 and filed a request for additional time to file, that extension expires on October 15, 2020. Failing to file before the extension period runs out may cost you late-filing penalties.
There are no additional extensions available (except in designated disaster areas), so if you do not or will not have all of the information needed to complete your return by October 15, please call this office so that we can explore your options for meeting your extended filing deadline.
If you are waiting for a K-1 from a partnership, S-corporation or fiduciary return, the extended deadline for those returns is September 15 (September 30 for fiduciary returns); so you should probably make inquiries if you have not received that information yet.
Late-filed individual federal returns are subject to a penalty of 5% of the tax due for each month (or part of a month) for which a return is not filed, up to a maximum of 25% of the tax due. If you are required to file a state return and do not do so, the state will also charge a late-file penalty. The filing extension deadline for individual returns is also October 15 for most states.
In addition, interest continues to accrue on any balance due, currently at the rate of 3% per year. This rate is subject to quarterly adjustment.
If this office is waiting for some missing information to complete your return, we will need that information at least a week before the October 15 due date. Please call this office immediately if you anticipate complications related to providing the needed information so that we can determine a course of action to avoid the potential penalties.
Additional October 15, 2020 Deadlines - In addition to being the final deadline to file 2019 individual returns on extension in a timely manner, October 15 is also the deadline for the following actions:
- FBAR Filings - Taxpayers with foreign financial accounts exceeding an aggregate value of $10,000 at any time during 2019 must file a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR) electronically with the Treasury Department. The original due date for the 2019 report was April 15, but individuals have been granted an automatic extension to file until October 15, 2020.
- SEP-IRAs - October 15, 2020 is the deadline for a self-employed individual to set up and contribute to a SEP-IRA for 2019. The deadline for contributions to traditional and Roth IRAs for 2019 was July 15, 2020, instead of the usual April 15 contribution due date because of the COVID-19 emergency, but no further extension is available.
- Special Note: Disaster Victims - If you reside in a presidentially declared disaster area, the IRS and most states provide additional time to file various returns and make payments.
Please call this office for information on extended due dates of other types of filings and payments as well as extended filing dates in disaster areas.
Payroll Protection Loan Information
As we get closer to the end of the year, we also are getting closer to the deadline to request the PPP Loan (if you got one) to be forgiven.
If you were one of the earlier recipients of the loan, you may have already sent in your documentation for the eight weeks following the date you received the money deposited into your account. If not, the forgiveness requirements have changed, and there may be possibility the requirements may change again.
There is talk that according to two bank lobbying organizations and Treasury Secretary Steve Mnuchin, borrowers with loans under $150,000 should not have to go through the forgiveness process. This would mean that more than 86% of all PPP loans would be automatically forgiven, according to data provided by the SBA.
However, being an election year, the replacement of a SCOTUS hearings, and other issues facing Congress, it may not get changed in time for the current year end deadline.
Also, keep in mind that even if the SBA forgives your loan, that is for Federal Tax Purposes, and there may be some additional restrictions with the actual expenses you incurred and documented for business expenses on your tax return, and definitely how States will handle the forgiveness as well.
Financial Insights & Improving Your Business
If you are a Collision Shop, we would like to give you our latest eBook titled, Financial Insights & Improving Your Business... For The Collision Industry Owner.
This valuable resource is specifically designed for the Collision Industry Owner.
The Second Quarter eBook will be released soon. It will build upon the basics covered in this eBook ... so if you haven't already read this one, you should before the next becomes available.
Just click the cover below.
(Click the Image)
Please take the time to review this new resource, as well as the other free eBooks we have created to help you. This latest eBook includes additional tools we are sure your will find valuable.
Our company AEII, QuickBooks R Us, is always here to assist any small business with a full range of services, and provide the training and support needed to achieve excellent results. We have assisted businesses worldwide ... And we specialize in the collision repair and service industry
Schedule a free session to discuss any QuickBooks or small business needs you may have below:
We have a large library of helpful QuickBooks Tips & Tricks, you can catch up on past issues by Clicking Here.
We also have a free self-help site with helpful procedures and videos at: QbHelp.us
Thank You and I look forward in sharing small business and QuickBooks Tips and Tricks with in the future ...