Tax Updates for the End of September

Tax Relief For Disaster Victims

The IRS has provided tax relief to victims of the Oregon wildfires that began on September 7, as well as those affected by Hurricane Sally on September 14. Taxpayers in these FEMA-designated areas now have until January 15, 2021 to file returns and make any payments that were due after the September 7 or 14 date. This means those who filed extensions to file their 2019 taxes by October 15 now have until the January deadline to file. Updated relief information can always be found at the IRS’ disaster relief page.

100% Depreciation Rules Finalized

The IRS has issued final guidelines regarding the implementation of the 100% additional first year depreciation deduction that allows businesses to write off the cost of most depreciable business assets in the year they are placed in service. This deduction was created by the Tax Cuts and Jobs Act (TCJA) in 2017 and applies to depreciable business assets with an expected recovery of 20 years or less, such as computers, machinery, furniture, and appliances. Rules for used equipment and self-constructed components were also included.

Non-Filers: Do You Qualify For Economic Impact Payments?

The IRS has released a state-by-state breakdown of the number of people they’re attempting to contact this month, to encourage them to see if they’re eligible to receive an Economic Impact Payment (EIP) , including more than 350,000 in the Carolinas. Those who do not usually have to file a tax return and haven’t received an EIP can check their eligibility and register to receive the payment. The due date for registration is October 15, 2020. The IRS is attempting to send letters to over 8 million potentially eligible individuals.

IRS Reminds Extension Filers: Due Date Approaches

Taxpayers who were granted an extension on filing their 2019 taxes have until October 15, 2020, to file their tax return. There are convenient electronic filing options available, as well as direct deposit for refunds and multiple options for scheduling and making electronic tax payments.