The IRS has announced that Monday, January 29, 2024 is the official start date of the nation’s 2024 Tax Season. It is when the agency will begin accepting and processing 2023 tax returns. However, people can start working on their taxes prior to that, either with a tax professional or software company. January 29th is the first day that the 2023 individual tax returns can be electronically filed with the IRS.
The filing deadline for most taxpayers to submit 2023 individual tax returns, pay any taxes or file an extension is Monday, April 15, 2024. Because of the Patriots’ Day holiday on April 15 in Maine and Massachusetts and the Emancipation Day holiday on April 16 in the District of Columbia, taxpayers who live in Maine or Massachusetts have until April 17, 2024 to file their returns.
The income tax filing deadline is now July 15. Treasury Secretary Steven Mnuchin announced in a tweet that all taxpayers and businesses will have additional time to file income tax returns and make any payments, without facing interest on payments or penalties for late filing.
Taxpayers may delay filing and paying 2019 Federal income taxes that would have been due on April 15. The new due date is July 15, 2020. This delay applies to taxes due of up to $1 million. This relief applies to all taxpayers, including trusts and estates. Corporations may also delay paying taxes of up to $10 million. Many states, including Massachusetts, have announced that they will follow Federal relief guidelines.
On the MA DOR website, it says: “In the event the Internal Revenue Service (IRS) issues tax relief to taxpayers with federal filing obligations, DOR is prepared to follow the IRS in offering similar relief for taxpayers with Massachusetts tax filing obligations. “
The due date for Federal estimated tax payments that would have been due on April 15 for 2020 is also postponed to July 15.
These measures are being enacted to help Taxpayers navigate through the economic effects of COVID-19 (coronavirus). Individual Taxpayers and Businesses will be able to use the money they would have paid to the IRS to meet other needs during the economic crisis related to COVID-19 containment measures.
Due to the COVID-19 (coronavirus) pandemic, we want to keep you safe and minimize your risk of exposure to the virus. One way to do this is to provide you with great client service by using our secure portal, mail, phone, conference calls or email, instead of having you come to our office location.
The health of our clients, our team, all of our families and the community is of utmost importance to us. Therefore, we are implementing the recommendations and restrictions from our local, state, and federal government, as much as possible, while still delivering personal service and attention to our clients and providing professional and quality accounting, tax, financial and consulting services. We strive to be trusted advisors and consultants to all our clients, even in these difficult times.
Our challenge is to continue to meet the needs of our clients while limiting in-person contact and following social distancing and public health recommendations. Thankfully much of our work can be done using mail, email, secure portal and teleconferences. As a precaution and to limit the possibility of transmittal while meeting the needs of our clients, we are not having any in-person meetings. This meeting policy will remain in effect until further notice.
We believe that these reasonable and responsive steps are the best way to protect our clients, our team, their families, and the community at large. If you have any questions or concerns about our new policy feel free to reach us by email or phone.
Stay safe and healthy!
Included as part of a government spending bill that was signed into law December 20, 2019, The Setting Every Community up for Retirement Enhancement Act of 2019 (the Secure Act) changes the age at which individuals must begin taking the required minimum distributions (RMDs) from retirement accounts. The SECURE Act increases the age at which individuals must begin taking RMDs to 72 from 70 1/2. However, the new law only applies to people who turned 70 1/2 after December 31, 2019. If a person turned 70 1/2 in 2019, or have already been required to take RMDs, the law does not apply.
The IRS issued a Tax Tip (Issue Number 2020-25) on reasons taxpayers should electronically file (e-file) their taxes.
The IRS top reasons why taxpayers should file electronically are:
It’s safe and secure.
E-file is often free.
It’s available through many convenient options.
It’s accurate and easy.
People who e-file get faster refunds.
It can be used whether a taxpayer is getting a refund or needs to make a payment.
See the IRS Issue Number: Tax Tip 2020-25 for more details.
The Tax Cuts and Jobs Act (TCJA) significantly changed the U.S. tax code. As a result of TCJA, the new tax withholding tables, which tell employers how much to withhold from employee’s paychecks, were issued to incorporate the changes. In the first year, the IRS probably had employers not withhold enough from employees, as the Administration wanted taxpayers to see an increase in their paychecks throughout the year, due to the tax law change. Many taxpayers probably did not really notice the increase, but they did notice getting less of a refund, or owing money when they filed their 2018 tax returns. Unknowingly, many taxpayers did not have enough money withheld from their wages, which is why they received less of a refund or owed money.
All taxpayers should review their withholdings to make sure that they are paying in enough. The IRS has a Tax Withholding Estimator that they recommend all taxpayers use. The IRS has been promoting their estimator and the new Form W-4, Employee’s Withholding Certificate, so that taxpayers do not have the same unexpected surprises when they file their 2019 tax returns.
Check Your Withholding
IRS Paycheck Checkup – Taxpayers should use the IRS Tax Withholding Estimator to perform a Paycheck Checkup and adjust their withholdings by filing a new Form W-4 with their employer, if needed.
Many tax professionals have been working with their clients to make sure their withholding for the year is enough to cover their expected tax liability. Taxpayers can also make quarterly estimated tax payments to cover the payment of additional tax expected to be owed.
Check your annual withholding using the IRS Tax Withholding Estimator or checking in with your tax professional.
Refunds may be delayed due to the partial government shutdown. Many IRS employees have been recalled, but some employees are claiming hardship exemptions. After not getting paid for a month, employees can actually not afford to go to work without pay, because they have no money to commute to work and pay for child care.
Under their union contract, IRS employees are allowed to miss work, if they suffer a hardship during a shutdown. The hardship exemption allows IRS employees not to have to use sick days to be absent from work.
With many employees claiming hardship and not working, the government’s ability to process refunds timely may be affected. We recommend filing returns electronically with direct deposit as a way to mitigate any possible delays.
The filing deadline to submit 2018 tax returns is Monday, April 15, 2019 for most taxpayers. Because of the Patriots’ Day holiday on April 15 in Maine and Massachusetts and the Emancipation Day holiday on April 16 in the District of Columbia, taxpayers who live in Maine or Massachusetts have until April 17, 2019 to file their returns.
The Internal Revenue Service has announced that the tax season will officially begin Monday, January 28, 2019. This is the day that the IRS will begin accepting electronic tax returns and processing paper tax returns. Most software companies and tax professionals will be accepting tax returns before January 28, and then will submit the returns when IRS systems open.
To prepare for filing your tax return, as you receive your 2018 tax documents, please collect them and keep them with your tax organizer. These documents include such items as your W-2s, Form 1099s, K-1s, brokerage statements, health insurance tax documents, etc. Your check register may also include pertinent information. When you have gathered all your tax information, please set-up an appointment or mail/submit the tax organizer, along with your various tax forms to us.