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Category: COVID-19

News for Your Week Ahead: May 28, 2021

Posted on by Walter Moore

On this weeks’ episode of MSATP TV Cliff Reiter of National Accounting Sales joins Executive Director Bill Feehley to tell us about how he can help you buy or sell your accounting practice!

Watch on YouTube. 

Coming Up: On Thursday, June 3rd at 10 a.m., we will have our Young Professionals Leadership Program (YPLP) Capstone Project winner on to tell you about themselves and all about our Signature YPLP Program.Tune in on Facebook for this episode and more!

Just a reminder our offices will be closed next week for the Annual Convention & Banquet. We can still be reached via email at info@msatp.com, walter@msatp.org, heather@msatp.org, or kebaugh@msatp.org. Our offices will reopen on June 7th.

There is still time to register for the individual classes virtually or in person at MSATP’s Annual Convention and Banquet. Please use the button below to register!

To learn more about the convention, click here.

Bob Jennings Teaches MSATP’s First In-Person Seminar Since Start of COVID-19 Pandemic

While things in the past year have been very difficult for everyone, we did enjoy a small sense of a return to normalcy this week with our first two in person seminars in Frederick, MD with Bob Jennings! Our seating was still socially distanced and attendees got to enjoy the small round table question and answer sessions throughout the presentation.

Coming this week we have both options, both in person and virtual, for classes during the Annual Convention & Banquet in Ocean City, MD. We hope to see you there.

For more information, please click here.

Interest Rates Remain the Same for the Third Quarter of 2021 | IR-2021-120

The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning July 1, 2021.
The rates will be:

  • 3% for overpayments (two (2) % in the case of a corporation),
  • 0.5% for the portion of a corporate overpayment exceeding $10,000,
  • 3% for underpayments and
  • 5% for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

For more information, click here.

Find Unclaimed Property with “The Franchot Bunch” | Annual Campaign Aims to Unite Marylanders with Their Money and Valuables

Using a popular 1970s family sitcom as this year’s theme, Comptroller Peter Franchot launched the annual unclaimed property campaign aimed at reuniting Marylanders with their money and valuable items.

The 2021 Maryland Unclaimed Property insert hits publications statewide beginning Sunday, May 30, and continuing through mid-June. This year, Comptroller Franchot joins with agency employees to form “The Franchot Bunch,” a spoof of the famous television show “The Brady Bunch” about a large, blended family.

“Unclaimed property is all about reuniting Marylanders with money or belongings that have, for various reasons, ended up in the state’s custody,” Comptroller Franchot said. “There may be stocks, rings of gold that were once your mother’s, and other items of quality. Being on the list may seem like a fantasy, but matching owners with their rightful property is truly a family effort in our agency.”

To use the Unclaimed Property database, click here.

The American Rescue Plan Includes Retroactive Tax Benefits That Can Help Taxpayers | COVID Tax Tip 2021-74

The IRS reminds taxpayers who still haven’t filed, that several provisions of the American Rescue Plan affect their 2020 tax returns.

One provision excludes up to $10,200 in unemployment compensation from income. Another provision benefits many people who purchased subsidized health coverage through either federal or state Health Insurance Marketplaces. The law also includes a third round of Economic Impact Payments, currently going out to eligible Americans, that are generally equal to $1,400 per person for most people. The IRS will automatically provide these benefits to eligible filers.

Most taxpayers who have already filed their 2020 returns should not file amended returns, file refund claims, or contact the IRS about obtaining these newly enacted tax benefits.  These actions will not speed up a future refund. In fact, they could even slow down an existing refund claim.

For more information, click here.

Checking Withholding Can Help Taxpayers Decide if They Need to Give Their Employer a New W-4 | Tax Tip 2021-75

All taxpayers should review their federal withholding each year to make sure they’re not having too little or too much tax withheld.

Employees, retirees and self-employed individuals can use the IRS Tax Withholding Estimator to help decide if they should make a change to their withholding. This online tool guides users, step-by-step through the process of checking their withholding, and provides withholding recommendations to help aim for their desired refund amount when they file next year. Taxpayers can check with their employer to update their withholding or submit a new Form W-4, Employee’s Withholding Certificate.

Adjustments to withholding

Individuals should generally increase withholding if they hold more than one job at a time or have income from sources not subject to withholding. If they don’t make any changes, they will likely owe additional tax and possibly penalties when filing their tax return.

Individuals should generally decrease their withholding if they qualify for income tax credits or deductions other than the basic standard deduction.

Either way, those who need to adjust their withholding must prepare a new Form W-4, Employee’s Withholding Certificate. They need to submit the new Form W-4 to their employer as soon as possible since withholding occurs throughout the year.

For more information, click here.

Tips for Troubleshooting Common After-Tax-Day Issues | COVID Tax Tip 2021-73

While the deadline to file and pay federal income taxes has passed for most people, some taxpayers may still be dealing with tax-related issues.

Here are some tips for taxpayers handling some of the most common after-tax-day issues.

Check refund status

Taxpayers can check on their refund using the Where’s My Refund? tool. It is available on IRS.gov and the IRS2Go app. Taxpayers without access to a computer can call 800-829-1954. To use this tool, taxpayers need their Social Security number, tax filing status and the exact amount of the refund claimed on their tax return. The tool updates once daily, so there’s no need to check more often.

Check withholding

All taxpayers are encouraged to check their withholding using the Tax Withholding Estimator on IRS.gov. This will help them make sure their employers are withholding the right amount of tax from their paychecks. Doing this now will help avoid an unexpected amount due and possibly a penalty when they prepare and file their taxes next year.

Taxpayers can use the results from the Estimator to help complete a new Form W-4 and adjust their income tax withholding with their employer. Taxpayers who receive pension income can use the results to complete a Form W-4P and submit to their payer.

For more information, click here.

Returning to the Office Part-Time? This may be a Tip for You!

Posted on by Walter Moore

by Walter Moore

As the new normal returns some of us may begin to return to office in a staggered or part-time fashion. While many of us have laptops now, one thing you may note is “I have all this equipment that connects to my computer now so what do I do? Do I need to plug all that in and unplug it all the time?” Well that is simple with an old solution, a docking station. This piece of equipment, while once a staple in the corporate world I’ve noticed with some offices, having all-in-one computers, virtual desktops and even still compact desktops, we moved away from laptops with a docking station.

A docking station connects to your laptop by a single port, typically by standard USB or even USB-type C connection (to my newer android users this is the same style cable you use to charge your phone). This connection allows your computer in many cases to charge, utilize up to 3 or even 4 screens using various connections depending upon the docking station, internet access and even expand the amount of USB ports your laptop has. Best of all you can leave everything plugged in at home and have a second docking station at your office. Your new one plug connection allows you to plug in and have full access to your equipment.

One thing to be sure of is to make sure the docking station matches your laptop. With their being so many laptops and specifications available I highly recommend contacting the laptop manufacturer or your IT department to determine which is best. I hope this professional blog helps you as you make the best possible transition into your new normal.

– Walter Moore

MSATP Education Update, Notarization Requirements Updated, & Loan Tracker Website

Posted on by Navaal Mahdi

MSATP Education Update

MSATP is modifying our 2020-2021 educational offerings to ensure that you, our valued members, stay safe during this time of uncertainty. As always, we will keep you updated on issues that matter most to you as tax and accounting professionals.

Please stay tuned to our website and follow us on social media for the latest information on updates as they are issued. In the coming weeks, we will also be sharing valuable tools and instructions to assist you in learning how to use new technology platforms as we move from an in-person education delivery to a virtual one.

We appreciate your patience and understanding as we work through these difficult times. If you have any questions, please don’t hesitate to call us at 1-800-922-9672 or email info@msatp.org.

 

In-Person Notarization Requirement Waiver Guidance Updated | Maryland Office Of The Secretary Of State

The Governor’s Emergency Order No. 20-03-30-04 authorizes remote notarizations and the Secretary of State’s temporary guidance issued March 30, 2020 and as amended April 10, 2020. The contents of this document are temporary guidelines that apply during the emergency waiver of the in-person requirement. All other requirements for performing notarial acts are in full force and effect.

You must do the following in order to perform a remote notarization:

  • You must be a current notary in good standing.
  • You must notify the Office of the Secretary of State of your intent to use remote notarizations
  • You must identify the communications technology vendor you will use and confirm that the vendor allows you to, in real time, (1) view the remotely located individual and (2) compare for consistency the information and photos presented as identification credentials.
  • For each notarial act conducted remotely, you must create and retain an audio-visual recording of the performance of the notarial act.
  • For each notarial act conducted remotely, you must note on the notarial certification and in your notary log or journal that the notarial act was performed for a remotely located individual using communications technology.
  • You may NOT charge more than $4 for each remote online notarial act using communication technology, which is the same fee that may be charged when performing an in person notarial act. The $4 fee is the maximum fee that the Secretary of State may allow for an original notarial act as set forth in Section 18-112, State Government Article, Annotated Code of Maryland.

For more details and requirements, continue reading here.

Loan Tracker | View Status of Loan Payments

A group of small business owners concerned about their businesses and the timeline for receiving loans from the government via the SBA have created this website to track all loans related to the current environment.

Maryland Biz Relief Wizard, IRS Extends More Deadlines, & New Tax Relief Pages

Posted on by Navaal Mahdi

Maryland Business Relief Wizard | Find the Right COVID-19 Support Resources for Your Business

There are numerous local and national programs for businesses in need of emergency support, but understanding which options are relevant for your organization can be a challenge.

The Maryland Business Relief Wizard is a tool that helps connect businesses with the resources and programming for which they’re eligible, streamlining the process of finding support.

Click here to get started.

 

IRS Extends More Tax Deadlines | IR-2020-66

To help taxpayers, the Department of Treasury and the Internal Revenue Service announced that Notice 2020-23 (PDF) extends additional key tax deadlines for individuals and businesses.

Last month, the IRS announced that taxpayers generally have until July 15, 2020, to file and pay federal income taxes originally due on April 15. No late-filing penalty, late-payment penalty or interest will be due.

Yesterday’s notice expands this relief to additional returns, tax payments and other actions. As a result, the extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. Individuals, trusts, estates, corporations and other non-corporate tax filers qualify for the extra time. This means that anyone, including Americans who live and work abroad, can now wait until July 15 to file their 2019 federal income tax return and pay any tax due.

For more details, click here

New Tax Relief & Economic Impact Payments Pages | IRS

Due to the current condition, the IRS has created the following Tax Relief & Economic Impact Payments pages to help individuals receive the answers they need:

Maryland Stay-At-Home Order

Posted on by Navaal Mahdi

MSATP’s Position on the Stay-At-Home Order

All persons living in the State of Maryland are ordered, effective as of 8:00 p.m. on March 30, 2020, to stay in their homes or places of residences (20-03-30-01).

Tax preparation, accounting, payroll, and bookkeeping are still essential businesses. However, it may be necessary for these businesses to provide a letter under company letterhead to each employee (if they are still working from the office) stating that they are employed with their company and must work from the office. If they have employee IDs or business cards, we recommend the employee has them as well. All of this information can be used as verification if the employee is stopped by the authorities to confirm they are under the essential Executive Order.

Concerning clients, the Executive Order that was announced on March 30, 2020 only states the following reasons for people to be on the road under section II (b):

  • Supplies for self, family, household members, pets, or livestock; such as groceries, supplies for needs for the home, laundry
  • Medical and prescriptions
  • Caring for a family member in another household or location – groceries, medical, etc
  • Traveling for picking up meals/carry out, free lunches, etc
  • Exercise – walking, hiking, running or biking; but only in compliance of the CDC

Non-essential businesses must stay closed; however, business owners are permitted to do the following (under Section II (iii) 1) which is considered minimal operations:

  • Checking on equipment which allows other staff to work from home (telework)
  • Maintaining essential property (in other words, checking to make sure a pipe did not break, etc)
  • Payroll or picking up mail
  • If you have live animals in labs, feeding them

There is concern regarding whether clients can pick up their tax return, but we would advise against seeing any clients as the no gatherings rule is being enforced.

Again, this is MSATP’s opinion on the situation. To read the full Executive Order, click here.

People First Initiative, State Tax Filing Guidance, & DE & WV Filing Deadlines

Posted on by Navaal Mahdi

IRS Unveils New People First Initiative | COVID-19 Effort Temporarily Adjusts, Suspends Key Compliance Programs (IR-2020-59)

To help people facing the challenges of COVID-19 issues, the IRS announced a sweeping series of steps to assist taxpayers by providing relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions.

These new changes include issues ranging from postponing certain payments related to Installment Agreements and Offers in Compromise to collection and limiting certain enforcement actions. The IRS will be temporarily modifying the following activities as soon as possible; the projected start date will be April 1 and the effort will initially run through July 15. During this period, to the maximum extent possible, the IRS will avoid in-person contacts. However, the IRS will continue to take steps where necessary to protect all applicable statutes of limitations.

Read the highlights and FAQs on the issues here.

 

Delaware & West Virginia Determine Updated Tax Filing Dates

In the last 48 hours, Delaware and West Virginia have made decisions on their respective tax filing dates. Click here for Delaware’s decision, and click here for West Virginia’s decision.

 

State Tax Filing Guidance | AICPA

The AICPA has done an incredible job developing a chart that provides the latest developments on the state tax filings due to the coronavirus.

This link is updated daily, so we recommend that you bookmark the page. We want to commend the AICPA for the great job they are doing to keep everyone in the accounting and tax profession up-to-date on this unprecedented event.

PA Filing Deadline Extended, IRS Q&A, MD Tax Preparers Deemed “Essential Service”

Posted on by Navaal Mahdi

Pennsylvania Extends Personal Income Tax Return Filing Deadline to July 15, 2020

The Department of Revenue today announced the deadline for taxpayers to file their 2019 Pennsylvania personal income tax returns is extended to July 15, 2020. This means taxpayers will have an additional 90 days to file from the original deadline of April 15.

The Department of Revenue will also waive penalties and interest on 2019 personal income tax payments through the new deadline of July 15, 2020. This extension applies to both final 2019 tax returns and payments, and estimated payments for the first and second quarters of 2020.

Read more about the extension here.

 

Property Tax/Rent Rebate Program Application Deadline Extended to End of Year

In response to the COVID-19 outbreak, the deadline for older adults and Pennsylvania residents with disabilities to apply for rebates on rent and property taxes paid in 2019 has been extended from June 30 to Dec. 31, 2020, the Department of Revenue announced today.

Read more about the extension here.

 

Filing and Payment Deadlines Questions and Answers | IRS

Q: I already filed my 2019 income tax return that would have been due on April 15 and scheduled a payment of taxes for April 15, 2020. Will this payment be automatically rescheduled to July 15, 2020?

A: No, the payment will not be automatically rescheduled to July 15. If you do nothing, the payment will be made on the date you chose. Here is information on how to cancel and reschedule your payment:

  • If you scheduled a payment through IRS Direct Pay, you can use your confirmation number from the payment to access the Look Up a Payment feature. You can modify or cancel a scheduled payment until two business days before the payment date. The email notification you received when you scheduled the payment will contain the confirmation number.
  • If you scheduled a payment through Electronic Federal Tax Payment System (EFTPS), click on Payments from the EFTPS home page, login, then click Cancel a Tax Payment from the left menu and follow the instructions. You must do so at least two business days before the scheduled payment date.
  • If you scheduled a payment as part of filing your tax return (authorizing an electronic funds withdrawal), you may revoke (cancel) your payment by contacting the U.S. Treasury Financial Agent at 888-353-4537. You must call to make a payment cancellation request no later than 11:59 p.m. ET two business days prior to the scheduled payment date.
  • If you scheduled a payment by credit card or debit card, contact the card processor to cancel the card payment

For more frequently asked questions about filing and payment deadlines, click here.

 

Tax Preparers Deemed “Essential Service” Under Executive Order | Comptroller of Maryland

Comptroller Peter Franchot today clarifies that tax preparation services are considered an “essential service” and may remain open for business during the State of Maryland’s response to the COVID-19 pandemic.

Below is a statement from Comptroller Franchot:

“Tax preparation services fall under ‘financial services’ as outlined in the list of exempt businesses in Governor Hogan’s March 23rd executive order, and therefore should remain open as a critical infrastructure sector.

“Our agency regards tax preparers as a vital financial service that is available to taxpayers. Earlier this month, I announced extensions to deadlines for individual and corporate income tax filings and payments to July 15 and for business-related tax payments to June 1. However, taxpayers and businesses will still rely on professional tax preparers to help manage their finances during these challenging economic times. Preparers also help individuals who have yet to file their returns, but are counting on tax refunds to survive the economic downturn.

“Even with delayed due dates, continued assistance from these services to both individual and business taxpayers will help ensure that the tax filing and payment processes remain timely and accurate.”

Continue reading the press release here.

Closing All Non-Essential Businesses in MD, & COVID-19 Resources

Posted on by Navaal Mahdi

Closing All Non-Essential Businesses | Order of the Governor of the State of Maryland

Maryland Governor Larry Hogan announced today that he is ordering all non-essential businesses in the state to close. For information on which businesses are allowed to remain open, view the press release from the Governor’s office here. Accounting and Bookkeeping firms are allowed to remain open (See H).

 

Keep Up-to-Date on Tax Issues | Wolters Kluwer IntelliConnect

Don’t waste time searching various resources for crucial news and information amid the COVID-19 tax changes.

CCH® IntelliConnect®, the Wolters Kluwer TaxAware Center, has all the state and federal tax news, information, and tools necessary for today’s tax professional in one, easy resource, and as an MSATP member, you get 24/7 access for FREE!

To register, visit your MSATP member portal at msatp.org. Once you’re logged in, go to member discounts, and then click “CCH TaxAware” for new, simplified directions on how to register. If you are not a member but would like to take advantage of this opportunity, join now or call us at 1-800-922-9672.

 

COVID-19 Resources For Businesses

On March 12, Governor Hogan issued an executive order that requires the Maryland State Department of Assessments and Taxation (SDAT) extend all expiration and renewal dates to the 30th day after the date on which the state of emergency is terminated. SDAT is automatically extending the Annual Report Filing and/or Personal Property Return filing date from April 15 to July 15th for all entities, although it may take a few days for this to be reflected online. SDAT will soon provide additional information related to the delay of due dates for trade name renewals/expirations, penalty due dates, and any other related items.

For more information, click here.

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