Do you need to return your stimulus check to the IRS?

“To be clear, the IRS hasn’t outlined any consequences for not returning a stimulus check it sent by mistake. More than half of the 150 million stimulus payments earmarked for Americans have already been delivered. There’s a good chance some people who got stimulus checks in error may have already spent the cash.

The newly released guidance says you “should” return the money “immediately,” but there’s no official mandate. The CARES Act has no clawback provision allowing the IRS to take back money it has already disbursed during the coronavirus national emergency.”

Here is the link to the IRS website with return information, and the link to an article that explains more.

IRS

Article

Important Message from Musselman Tax

We at Musselman Tax understand there is so much information out there and it changes daily, sometimes hourly. So, in efforts of helping you navigate this labyrinth here are some links.

 

FOR THE MOST UP TO DATE INFO FROM:

IRS:  https://www.irs.gov/coronavirus

State of Michigan:   https://www.michigan.gov/coronavirus/

US Dept of the Treasury:  https://home.treasury.gov/coronavirus

Small Business Administration:  https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

Michigan Unemployment:  https://www.michigan.gov/leo/0,5863,7-336-78421_97241—,00.html

Local Chambers are a good source of information as well. Like Flint & Genesee County Chamber or Alcona Chamber.

ECONOMIC IMPACT PAYMENTS:

Economic Impact Payments: What you need to know

https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know

o DEPENDENTS:

Currently this package covers dependents 16 and under

There is a bill trying to cover “adult” dependents 17 and over, watch for the “All Dependents Count Act” this would expand the definition of a dependent that is qualified for the $500 increase to include dependent children over 16 and other adult dependents. (This is currently NOT passed)

o NON-FILERS:

You DO NOT need to file if you aren’t required. The IRS will work with the Social Security Administration and use the Form SSA-1099 or Form RRB-1099. The Payments will be sent to the same account your Social Security Benefits are currently sent to.

In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail. (This is currently NOT open)

o SCAM ALERT: People are calling and asking for banking information to process your impact checks.

WAIT FOR THE PORTAL – The IRS WILL NOT call you.

GENERAL FILING QUESTIONS:

Federal & State of Michigan and Michigan Cities FILING & PAYMENT deadlines have been extended to July 15, 2020 from April 15, 2020.

These Impact Checks will be available for the rest of the year, so if you have NOT filed your 2018 or 2019 taxes you still have time.

IF you are currently paying Installment agreement payments, they have been suspended from April 1st to July 15th. (Interest will still accrue, but you won’t be penalized for not paying) If you are having them automatically withdrew – you can cancel them:

 https://www.irs.gov/newsroom/installment-agreement-direct-debit-frequently-asked-questions

 UNEMPLOYMENT:

 WE ADVISE YOU TO HAVE TAXES TAKEN OUT IF YOU FILE FOR UNEMPLOYMENT!!!

 We understand that even 1099 clients and business owners are going to be able to file for unemployment, BUT the system did go down last week so please go to the unemployment website for the latest information on that. (rumor has it, best times to try and file are between 8pm and 8am) There are specific days you can file dependent on your last name.

HEALTH CARE:     https://www.michigan.gov/coronavirus/0,9753,7-406-98163-524638–,00.html

 

Coronavirus Loans and Relief Program Information

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SMALL BUSINESSES, SELF-EMPLOYED, RENTAL OWNERS

If you need Profit & Loss Statements or have questions about your tax information, please feel free to call the office. We will get back with you ASAP.

Most of the applications for grants and loans are business specific and cannot be filed by Musselman Tax. If you run into specific tax questions, we will be happy to help you.

Self Employed and Rental owners:  this is for those that file a Schedule C (sole prop) or Schedule E (rentals), in which the business or rentals are a significant income source. Most of the grants and loans are asking for proof of loss of income.

Small Businesses:  if you need to know if you are an S corp or C corp, please call us we will let you know.

If they ask if you are Public or Private: most likely you are private,

PUBLIC: shares of your business are publicly traded on the markets

QUARTERLY PAYMENTS for 2020 Tax Year:

1ST QUARTER:  Regularly due on April 15th has been pushed out to July 15th

2nd QUARTER:  Has NOT been changed – it is still due on June 15th, which means that 2nd quarter payment is still due before 1st quarter payment. (This may be changed later, but I wouldn’t count on it at this time)

3rd & 4th QUARTER: due dates have not been changed ( Sept 15th & Jan 15th )

Please read through these initiatives, programs and credits to see if your business qualifies.

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options

PAYCHECK PROTECTION PROGRAM: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

EMPLOYEE RETENTION CREDIT: https://www.irs.gov/newsroom/irs-employee-retention-credit-available-for-many-businesses-financially-impacted-by-covid-19

The Treasury Department and the Internal Revenue Service today launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll.

FAMILY FIRST INITIATIVE:  https://www.irs.gov/newsroom/covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-and-midsize-businesses-faqs

The FFCRA provides businesses with tax credits to cover certain costs of providing employees with required paid sick leave and expanded family and medical leave for reasons related to COVID-19, from April 1, 2020, through December 31, 2020.

ECONOMIC INJURY DISASTER LOAN:   https://www.sba.gov/disaster-assistance/coronavirus-covid-19#section-header-1

The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19).