Category: IRS News

IR-2020-75: Veterans Affairs recipients will receive automatic Economic Impact Payments; Step follows work between Treasury, IRS, VA

17 Apr 20
Kim Manuel
No Comments

WASHINGTON – The Internal Revenue Service, working in partnership with the Treasury Department and the Department of Veterans Affairs, announced today that recipients of VA benefits will automatically receive automatic Economic Impact Payments.

Veterans and their beneficiaries who receive Compensation and Pension (C&P) benefit payments from VA will receive a $1,200 Economic Impact Payment with no further action needed on their part. Timing on the payments is still being determined.

Moving VA recipients into the automatic payment category follows weeks of extensive cooperative work between VA, Treasury, IRS as well as the Bureau of Fiscal Services.

“Since many VA recipients typically aren’t required to file tax returns, the IRS had to work with these other government agencies to determine a way to quickly and accurately deliver Economic Impact Payments to this group,” said IRS Commissioner Chuck Rettig. “Additional programming work remains, but this step simplifies the process for VA recipients to quickly and easily receive these $1,200 payments automatically. We deeply appreciate the sacrifices and service to our country by each and every veteran and their families, as well as the assistance of VA and the Bureau of Fiscal Services in this effort.”

No action needed by most taxpayers
Earlier this month, the IRS took a similar action to ensure those receiving Social Security retirement or disability benefits, Supplemental Security Income and Railroad Retirement benefits can receive automatic payments of $1,200. While these groups receive Forms 1099, many in this group don’t typically file tax returns. Many people in these groups are expected to see the automatic $1,200 payments later this month, with SSI payments expected to start in early May.

For eligible taxpayers who filed tax returns for 2019 or 2018, they will also receive the payments automatically. About 80 million payments are hitting bank accounts this week.

For benefit recipients with dependents, extra step needed to claim $500 for children; Register now for earlier delivery
The law provides eligible taxpayers with qualifying children under age 17 to receive an extra $500. For taxpayers who filed tax returns in 2018 or 2019, the child payments will be automatic.

However, many benefit recipients typically aren’t required to file tax returns. If they have children who qualify, an extra step is needed to add $500 per child onto their automatic payment of $1,200 if they didn’t file a tax return in 2018 or 2019.

For those who receive these benefits – including VA, Social Security retirement or disability benefits (SSDI), Railroad Retirement benefits or SSI – and have a qualifying child, they can quickly register by visiting “Non-Filers: Enter Payment Info” available only on IRS.gov. For those who can use this tool as soon as possible, they may be able to get earlier delivery of the child payments by having these added to their automatic payments. (Note:  You can also do this via an EIP2020 return in your TaxSlayer application of FSA Kiosk application)

By quickly taking steps to enter information on the IRS website about them and their qualifying children, they can receive the $500 per dependent child payment in addition to their $1,200 individual payment. If beneficiaries in these group do not provide their information to the IRS soon, they will receive their $500 per qualifying child at a later date, depending on when they complete the registration process.

The Treasury Department, not the VA, will make these automatic payments.  Recipients will generally receive the automatic payments the way they receive their current benefits.

For more information related to veterans and their beneficiaries who receive Compensation and Pension (C&P) benefit payments from VA, please visit VA.gov.

IRS Outreach Connection: Issue 2020-2

17 Apr 20
Kim Manuel
No Comments

The IRS is taking steps to help taxpayers, preparers and partners with Economic Impact Payments

To get the word out about Economic Impact Payments, the IRS compiled a variety of information and outreach materials that can be shared with your families, friends, partners and clients, posted to your websites, included in your internal newsletters and employee emails and shared on social media.

The IRS has prepared a special new page devoted to materials that can be shared by anyone. These materials are available at www.irs.gov/EIPpartners.

For other information on COVID-19 issues and the CARES Act, new information appears regularly on IRS.gov/coronavirus, including the latest on Economic Impact Payments (EIP).

Your assistance is vital in helping taxpayers during this critical time, and the IRS appreciates your help and support.

IR-2020-73: Supplemental Security Income recipients will receive automatic Economic Impact Payments; step follows work between Treasury, IRS, Social Security Administration

15 Apr 20
Kim Manuel
No Comments

WASHINGTON – The Internal Revenue Service, working in partnership with the Treasury Department and the Social Security Administration, announced today that recipients of Supplemental Security Income (SSI) will automatically receive automatic Economic Impact Payments.

SSI recipients will receive a $1,200 Economic Impact Payment with no further action needed on their part. The IRS projects the payments for this group will go out no later than early May.

Moving SSI recipients into the automatic payment category follows weeks of extensive cooperative work between SSA, Treasury, IRS as well as the Bureau of Fiscal Services.

“Since SSI recipients typically aren’t required to file tax returns, the IRS had to work extensively with these other government agencies to determine a way to quickly and accurately deliver Economic Impact Payments to this group,” said IRS Commissioner Chuck Rettig. “Additional programming work remains, but this step simplifies the process for SSI recipients to quickly and easily receive these $1,200 payments automatically. We appreciate the assistance of SSA and the Bureau of Fiscal Services in this effort.”

No action needed by most taxpayers
Earlier this month, the IRS took a similar action to ensure those receiving Social Security retirement or disability benefits and Railroad Retirement benefits can receive automatic payments of $1,200. While these groups receive Forms 1099, many in this group don’t typically file tax returns. People in these groups are expected to see the automatic $1,200 payments later this month.

Eligible taxpayers who filed tax returns for 2019 or 2018 will also receive the payments automatically. About 80 million payments are hitting bank accounts this week.

For benefit recipients with dependents, extra step needed to claim $500 for children
The law provides eligible taxpayers with qualifying children under age 17 to receive an extra $500. For taxpayers who filed tax returns in 2018 or 2019, the child payments will be automatic.

However, many benefit recipients typically aren’t required to file tax returns. If they have children who qualify, an extra step is needed to add $500 per child onto their automatic payment of $1,200 if they didn’t file a tax return in 2018 or 2019.

For those who receive Social Security retirement or disability benefits (SSDI), Railroad Retirement benefits or SSI and have a qualifying child, they can quickly register by visiting special tool available only on IRS.gov and provide their information in the Non-Filers section. By quickly taking steps to enter information on the IRS website about them and their qualifying children, they can receive the $500 per dependent child payment in addition to their $1,200 individual payment. If beneficiaries in these groups do not provide their information to the IRS soon, they will have to wait until later to receive their $500 per qualifying child.

The Treasury Department, not the Social Security Administration, will make these automatic payments to SSI recipients. Recipients will generally receive the automatic payments by direct deposit, Direct Express debit card, or by paper check, just as they would normally receive their SSI benefits.

For those with dependents who use Direct Express debit cards, additional information will be available soon regarding the steps to take on the IRS web site when claiming children under 17.

IRS Quick Alert: Modernized e-File (MeF) Unscheduled Maintenance Window (Resolved)

15 Apr 20
Kim Manuel
No Comments

Update:

The MeF Production and Assurance Testing System (ATS) environments are fully operational. The unscheduled maintenance is complete.

Thank you for your patience. We apologize for any inconvenience.

Please monitor the MeF Operational Status page  for any future updates.

——————————————————————————————————————————————————————–

The MeF Production and Assurance Testing System (ATS) environments are currently unavailable due to unscheduled maintenance.

A follow-up Quick Alert will be issued when both environments are fully operational.

Please refrain from accessing the MeF Systems during this maintenance.

Please monitor the MeF Operational Status page  for any future updates.

What does this mean to you?

You can send us returns, but they will not be processed until the IRS MeF system comes back on line.  We also cannot receive any outstanding acks.  This includes the transmission of EIP2020 returns.

COVID Tax Tip 2020-41: Most Social Security and Railroad Retirement recipients don’t need to file a return or provide information to get an Economic Impact Payment

15 Apr 20
Kim Manuel
No Comments

Many people are receiving Economic Impacts Payments to help with the effects of the Coronavirus (COVID-19) pandemic. Among people getting payments for $1,200 are those who receive Social Security retirement, disability (SSDI), or survivor benefits and Railroad Retirement benefits. This includes those who don’t normally file a tax return and are not claimed as a dependent on someone else’s return.

Here are some things for these folks to know about the payment:

  • Eligible Social Security (including SSDI) and Railroad Retirement beneficiaries whose benefits are reported on a Form 1099 SSA or RRB will not need to file a tax return or provide information to receive a payment. However, those recipients who have qualifying children under age 17 must provide information through the Non-Filers: Enter Payment Info tool to claim the $500 payment per child.

Note:  You can assist your taxpayers using your TaxSlayer application

  • Even though these beneficiaries are not typically required to file a tax return, they will still receive a payment.
  • Social Security (including SSDI) and Railroad Retirement beneficiaries who don’t file a tax return who have qualifying children under age 17 must use Non-Filers: Enter Payment Info to claim the $500 payment per child.
  • Economic Impact Payments will be sent automatically to this group of people the same way they receive their Social Security retirement, disability (SSDI), or survivor benefits or their Railroad Retirement benefits.

The IRS continues to explore ways to see if Economic Impact Payments can be made automatically to SSI recipients and those who receive veteran’s disability compensation, pension or survivor benefits from the Department of Veterans Affairs and who did not file a tax return for the 2018 or 2019 tax years. People in these groups can either use Non-Filers: Enter Payment Info option now or wait as the IRS continues to review automatic payment options to simplify delivery for these groups.

IRS Quick Alert: Changing Direct Debit Payments from April 15 to July 15

13 Apr 20
Kim Manuel
No Comments

Paying when filing electronically

Taxpayers who filed electronically and scheduled their payment with an Electronic Funds Withdrawal, and want to reschedule their payment to the July 15 due date, can call the IRS e-file Payment Services automated line at 888-353-4537 to cancel their payment no later than 11:59 p.m. Eastern time two business days prior to the scheduled payment date. This means taxpayers who originally scheduled their payment on April 15 and want to reschedule it for July 15, need to take action no later than Monday, April 13 at midnight Eastern time. Taxpayers are reminded that they will need to schedule their tax payment for the new tax deadline date of July 15.

IRS Quick Alert: Update for Tax Professionals (Paper Tax Returns)

13 Apr 20
Kim Manuel
No Comments

The IRS is unable to process paper tax returns, respond to paper correspondence or staff toll-free live service lines. Please use all electronic options available to you on IRS.gov or through your tax software provider.

Note:  Paper returns include 1040X returns and “replacement” returns

IRS operations to process third-party authorizations are now closed. Please do not fax requests for Centralized Authorization File (CAF) numbers until further notice.

The Income Verification Express Service also is temporarily on hold. Possible alternative for tax administration purposes: clients can go to Get Transcript Online, create an account to verify their identities and immediately review or print a tax transcript.

Our efforts to protect IRS employees, taxpayers and our stakeholders mean extremely limited services are currently available.

 

Fact Sheets for SPEC Partners and Employees

06 Apr 20
Kim Manuel
No Comments

Click here to access Fact Sheets

Background:

Although most of our partners have decided to suspend or cancel their free volunteer tax programs this year, many site coordinators and volunteers wish to continue serving their communities while ensuring the health and safety of their volunteers and clients. Additionally, the U.S. Department of the Treasury has announced the extension of the filing and payment deadline to July 15, 2020 (for tax year 2019 returns), extending the filing season by an additional 90 days.

Alternative Filing Fact Sheets:

In order to assist our partners with this effort, SPEC has created two fact sheets to provide general guidelines for partners who wish to continue offering free tax services to their communities:

  • Publication 5408: Expanded Virtual VITA/TCE Process for the Remainder of 2020 Filing Season
  • Publication 5410: FSA Remote Process for Partners