Random Tax News You can Use

by Mar 29, 2021Tips & Tricks

Extended personal tax due dates for 2020

IRS:     Federal tax returns (1040) are now due on Monday, May 17th.

IRS:     If you are normally required to pay 1st quarter estimated taxes for the current year (2021) on April 15th, they are still due on April 15, 2021.

States: PA and surrounding states (DC, DE, MD, NJ, NY) have also extended due dates to Monday, May 17th.

Local Taxes: If you are required to file local tax returns, check with the locality directly to see if tax due date was extended.

The craziest work from home expenses of 2020 There is very little humor about COVID-19 and working from home, but “Emburse”, an expense management software company, has released some outlandish and humorous expenses. We have chosen a half dozen for you to peruse and laugh about.

Facelift $7,600:  Facelift procedure to be expensed as repairs and maintenance, despite one’s need to look their best during Zoom meetings. NOT APPROVED

Branded coffee mugs $1,250: To boost team morale for weekly coffee chats. APPROVED

Case of wine $389: For online networking events. NOT APPROVED

Private jet charter $20,000+: Required to limit COVID-19 exposure when visiting international clients. APPROVED

Tea service at home $265: In the office tea was supplied for free as a company perk. NOT APPROVED

Peloton Bike $1,895: Deducted as health and wellness for an employee. APPROVED

Will tax audits and enforcement increase to make up for pandemic shortfalls?

The pandemic and shutdowns, along with trillions of dollars in stimulus, have all affected the amount of money various governments have available to spend. These losses will need to be made up from taxes in various different ways.

Sales and use taxes: There already has been a concerted effort from states and municipalities to enforce sales and use taxes. This has helped sales and use tax software companies such as Avalara, Vertex and CCH become successful. Massachusetts has recently released a budget that will require sales taxes to be remitted faster.

Income taxes: Expect more audits and enforcement of current taxes. along with increased examinations of losses and deferrals. The IRS has already announced that it is planning to focus on high net worth taxpayers which could yield trillions of dollars in new revenue. And the IRS announced that they will resume tax visits to suspected high income tax avoiders.

All of these audit and enforcement efforts are contingent upon the various taxing authorities having the resources and personnel to accomplish these goals.

The most important things for businesses and taxpayers to have at their disposal is the proper software to comply with the new tax changes and accounting and legal help to advise them on relevant tax matters.