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McFarlane Law

A Tax Law Firm - 480.991.0032

The honeymoon is over – Part III

In previous blogs The Honeymoon is Over – It’s Time to Think Taxes! and It's Time to Prepare and File your 2019 Tax returns, I discussed the upcoming, looming tax return filing and payment deadline of July 15. You can extend the time to file, but not to pay – so budget accordingly.

Other extension, deffal or benefits bestowed to Taxpayers due to COVID-19 also expire July 15 or the end of this month. For example, federal IRS tax returns are due or can be extended to October 15. 2019 taxes are due. The $600/month supplemental unemployment payments end. The 2020 tax year estimated tax payments are due. And, anyone who had an installment agreement and deferred monthly payments must now resume those monthly payments or be found in default. (more…)

Do you have a foreign bank account or own an interest in foreign real estate or in a foreign entity?

The IRS continues its pursuit of “US Citizens” who own a foreign bank account, foreign real estate, interests in a foreign company, and other assets such as brokerage accounts with credit card access. They are looking for US Citizens with foreign based assets who fail to report the existence of those assets. (more…)

Nursing Homes and Care Facilities and Economic Impact Payments

There has been stories that nursing homes and other care facilities have been taking their resident’s/patient’s Economic Impact Payments (EIPs).

If you have a loved-one in a nursing home or other care facility, check to see that the facility has not absconded with the EIP. If so, you may to hire an attorney to send a demand letter to recoup the EIP. Under the IRS guidelines, the EIPs belong to the recipients, not any organizations providing care for the recipients. Be aware and check on this as there has been stories that people and businesses may be taking advantage of vulnerable populations who received the EIPs.


The IRS can garnish your Social Security

If you or your spouse collects social security benefits and have been assessed past due taxes or have other debts, those SS benefits may be subject to collection action by the Internal Revenue Service (IRS) and the Arizona Department of Revenue (ADOR). This can be particularly distressing if you are retired and in debt and your only source of income is social security.


Keep Economic Impact Payment Notice with Your 2020 Tax Records

If you received an economic impact payment in 2020 need to keep Notice 1444, entitled Your Economic Impact Payment, with your other 2020 tax records such as W-2s, 1099s, and any virtual currency transactions. This Notice 1444 provides important information about the amount of your payment, how the payment was made, and how to report any payment that was not received.


It’s Time to Prepare and File your 2019 Tax returns

The Honeymoon is Over: Part Deux

If you have not filed your 2019 individual income or business tax returns yet or paid the tax liability, you have until July 15 to file those returns and pay the tax due without incurring penalties for late filing and for late paying.

As I discussed in a prior blog, there are 2 penalties that attach to the failure to file on time and the failure to pay the tax due. You want to file even though you cannot pay or fully pay the tax liability. Further, you can request a filing extension if submitted before July 15, but you cannot extend the time to pay the tax. The gov wants its money and there is no extension for paying the tax. If you cannot pay in full, you should pay as much of the tax as you can so you reduce the amount of the penalty and interest. You should arrange for a payment plan to pay off the tax liability as quickly as possible.


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