Earlier this week the IRS posted that to obtain the Recovery Rebate that seniors and others would have to file a tax return. When news of that got out–especially given that the law that was passed says otherwise–organizations representing seniors and tax professionals were not amused.
Late yesterday, the Department of the Treasury issued a press release titled, “Social Security Recipients Will Automatically Receive Economic Impact Payments.” Treasury Secretary Steven Mnuchin stated,
Social Security recipients who are not typically required to file a tax return do not need to take an action, and will receive their payment directly to their bank account.
The IRS website has also been updated with this information.
Next, small businesses and sole proprietorships impacted by the virus can apply for loans under the federal Paycheck Protection Program starting Friday, April 3rd. From the Journal of Accountancy:
The application can be found here on the Treasury site, along with details for borrowers and lenders. Treasury urged those in need of funding to apply quickly, noting that the program has a cap and demand is likely to be high.
Independent contractors and the self-employed can apply beginning April 10th. The program has a cap of $349 billion.
Finally, New Jersey has extended their tax deadline to July 15th. It’s unclear if New Jersey has extended estimated tax payments (as best as I can tell, they haven’t). This extension is for both individual and corporate tax which was due on April 15th.
Tags: 2020.Tax.Season