e-News for Small Business, Issue 2020-7
- New IRS Get My Payment tool allows taxpayers to provide direct deposit information and gives payment date
- IRS launches tool to help non-filers register for Economic Impact Payments
- IRS needs your help spreading the word on Economic Impact Payments
- COVID-19 Tax Tips series begins
- Two new employer tax credits offer for relief and support for businesses
- Common errors to avoid on Form 7200
The IRS has launched a new Get My Payment tool with features to let taxpayers check on their Economic Impact Payment date and update direct deposit information. Get My Payment will show the projected date when a deposit has been scheduled, similar to the “Where’s My Refund tool” many taxpayers are already familiar with.
Get My Payment also allows people a chance to provide their bank information. People who did not use direct deposit on their last tax return will be able to input information to receive the payment by direct deposit into their bank account, expediting receipt.
For more information, see the Get My Payment IRS news release.
Last week the Treasury Department and the IRS launched a web tool allowing registration for Economic Impact Payments for those who don’t normally file a tax return. The non-filer tool was designed for people who don’t have a return filing obligation, including those whose income falls beneath the filing threshold.
The feature is available only on IRS.gov, and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool.
Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also go in the near future to those receiving Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) and Veterans Affairs beneficiaries.
General IRS information about the Economic Impact Payments is available at IRS.gov/EIP.
To get the word out about Economic Impact Payments (EIP), 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 EIP.
To help taxpayers understand issues related to COVID-19, the IRS started a special series of Tax Tips focused on the Economic Impact Payments, tax scams and other emerging issues.
The Tax Tips are short, plain language descriptions of important tax provisions that are important to individuals, self-employed taxpayers and businesses. We hope you will help share this information with employees, family and friends, clients and members of their professional organizations.
People interested in receiving these via email can sign up on the IRS e-news subscription page and select Tax Tips.
Many businesses that have been severely impacted by coronavirus (COVID-19) will qualify for two new employer tax credits:
- Credit for Sick and Family Leave
- Employee Retention Credit
Learn about these new employer tax credits at IRS.gov/coronavirus and share the information with employees, clients, and associates.
Employers are advised to use Form 7200 to request an advance payment of employer credits due to COVID-19. However, the IRS has noted some common errors in filling out the form, slowing the process:
- Missing Employer Identification Number (EIN)
- Checking more than one box for applicable calendar quarter
- Checking more than one box on Part 1, Line A
- Skipping Part 1, Line B
- Not completing Part 2 in full (can’t just put an amount on line 8)
- Inputting the number of eligible employees on lines in Part 2, instead of dollar amounts.
- Not checking the math on lines 4, 7 and 8 (i.e., subtracting instead of adding or vice versa)
- Not signing the form (automatic rejection)
More about Form 7200 and its use can be found on IRS.gov: About Form 7200, Advance Payment of Employer Credits Due to COVID-19.
Source:Internal Revenue Service (IRS) sent this bulletin at 04/23/2020 04:35 PM EDT