Tax Filing Due Date Extended
The IRS and Treasury have announced that the tax filing due date for individuals for the 2020 tax year will be automatically extended to May 17, 2021, from April 15, 2020. Individual taxpayers do not need to file any forms or call the IRS to qualify for this automatic extension. This does NOT apply to estimated tax payments that are due on April 15, however, nor does it affect the due date of state tax returns.
Economic Impact Payments Made
The IRS recently disbursed 90 million Economic Impact Payments via direct deposit, for a total of $242 billion. Those who used direct deposit information for a 2019 or 2020 tax refund, or used the Non-Filers tool last year for an earlier EIP saw deposits begin processing on Friday, March 12. Another $442 million went out as paper checks to another 150,000 people. This week another 37 million payments were processed with a total value of nearly $83 billion. Additional batches of payments will be sent in the coming weeks as direct deposits, mailed checks, or debit cards.
EIP Fraud Investigations Continue
The IRS’ Criminal Investigation Division remains committed to investigating COVID-19 fraud. The agency has investigated more than 350 tax and money laundering cases related to EIPs, Paycheck Protection Program (PPP), and Employee Retention Credit. The public is encouraged to share information regarding known or suspected fraud attempts through any of the Coronavirus Aid, Relief and Economic Security (CARES) Act programs here.
Protective Equipment Is Tax Deductible
The IRS has clarified that personal protective equipment whose primary purpose is preventing the spread of coronavirus, is a deductible medical expense. This includes masks, hand sanitizer, and sanitizing wipes. Such equipment is also eligible to be reimbursed under various health and medical savings arrangements.