Like businesses all over the country, IRS is facing work backlogs and staffing challenges that are causing delays in communication and processing—and frustration among taxpayers.
Recently, we received a brief update from IRS with the good news that more than 11,000 employees were called back to work on June 1st. The bad news is that they are reportedly returning to more than 10 million pieces of unopened mail, and a case load that dates back to mid-March, when the shutdown began in earnest. We also learned that some IRS offices that had reopened had to close again due to local spikes in cases of the virus. What this means for all of us is that getting answers from IRS about specific personal tax situations will continue to be a difficult task for the foreseeable future.
In the meantime, if you have more general questions, irs.gov provides many helpful tools and resources that don’t require endless hours on hold listening to muzak. We recommend starting there if you have questions.
You know that feeling you get when a deadline approaches and you are afraid you might miss it? If you are someone who breathed a sigh of relief when the IRS announced a three-month extension to the filing deadline back in March, we want to help you avoid that feeling. Right now, we are urging all clients whose returns have not yet been filed to take a moment and make sure we have everything we need to process your return. And if we don’t, please send us your information as soon as possible!
If we do have your information and you have not heard from us, we appreciate your continued patience.
Unlike any previous year, we expect June to be especially busy. And until all phases of the state’s reopening are complete, like so many other businesses we must continue to work with greatly reduced capacity. So, since we all need ways to reduce stress during this pandemic, think of getting your taxes out of the way as a wellness exercise—and one less thing to worry about.
This is a public service reminder that it pays to open your mail. You may have heard that the US Treasury has issued four million prepaid debit cards instead of paper checks for stimulus payments. You may even have received one and, like many people who were expecting a check from the IRS, been confused and/or skeptical. We just hope you didn’t mistake it for junkmail.
It has been reported to us from clients who have received the debit cards that they arrive in a #10 standard white business envelope with first-class postage (not bulk mail). The return address is from Money Network Cardholder Services in Omaha, NE. Inside is a blue Visa debit card with white stars on it.There is a small sheet of paper enclosed that includes the blue and gold Treasury seal with Department of Treasury (see below). The insert reads: “This prepaid debit card is being sent to you on behalf of the US Department of the Treasury in place of a paper check. This card contains the money you are receiving as result of the Corona Aid Relief and Economic Security Act (CARES Act). For additional information on Economic Impact Payments visit irs.gov/eip. This is safe, convenient, and secure.”
The envelope also comes with instructions on how to activate your card, which you can also find here: https://www.eipcard.com/ . You will need to register as a new user before you can access the funds. If you received the card and threw it away by mistake, you can request a replacement card by calling MetaBank Customer Service at 1-800-240-8100. this is the same number to check your balance.
IRS has also set up an FAQ page for taxpayers here.
Before you throw away that unexpected envelope from the Mass Department of Unemployment Assistance (DUA), you need to be aware of a new identity theft scam related to COVID-19 unemployment claims.
We recently became aware of letters from the DUA indicating eligibility and a monetary determination have been showing up in the mailboxes of people who have not filed for, nor are currently collecting unemployment. The scary part is that the letters are legitimately from DUA, but if you haven’t filed, it means that a scammer has filed using your information and is banking on you throwing away that envelope without opening it.
If this happens, the criminal can log on as “you” every week and request the funds be issued on debit cards. You would have no way of knowing until tax time, when you will have to prove that you never received unemployment benefits, and/or if later deemed ineligible, be required to pay the money back.
Like many scams, the perpetrators are hoping that you will ignore the unanticipated communication so that they can steal your identity and go undetected long enough to make some money and ruin your credit.
The lesson here is: Open your mail. Even if it looks like junk mail, the minute or so it takes to open the envelope and scan the contents is nothing compared to the time you might have to spend later on unraveling the damage and reinstating your good name and credit.
We are currently staffing the office with one or two people most days in an effort to expedite the processing of outstanding returns, but are not equipped to conduct in-person client visits at this time.
Please remember that our entire office building is locked on Sundays, so no documents can be dropped off or retrieved.
Just another reminder, if we still need to prepare your 2019 return and don’t have all of your information, please send as soon as you can, through the portal if possible, or to our mailing address:
Business Bookkeeping Services P. O. Box 249 South Weymouth, MA 02190
Our previous posts shared information about the stimulus timeline and how to calculate the amount you can expect to receive based on your Adjusted Gross Income (AGI). This has led to people wondering…Where can I find my AGI?
The answer is simple. Your AGI is on your tax return, and here is how to find it:
If you have filed for this year, the IRS will use the number found on Line 8b of your 2019 return, as shown below.
If you have not yet filed this year, IRS will use the AGI found on Line 7 of your 2018 return.
Once you know your AGI, you can visit the IRS site to check the status and calculate your expected payment.
Important Notes:
If you did not file taxes for 2018 and 2019, you can enter your information through the IRS online tool found at this link. Non-Filers: Enter Your Payment Info
If you receive Social Security or Veteran’s benefits, you should automatically receive your stimulus payment.
Earlier this month Congressman Richard Neal, the Chairman of the House Committee on Ways & Means, issued a release detailing the timeline for economic stimulus payments.
This is the best information we have seen regarding the plan for distribution of money to US citizens under the CARES Act, and we have listed some of the key takeaways below. You can click here to read the full letter.
Key Takeaways:
IRS began issuing payments the week of April 13th.
Individuals who have provided direct deposit information to the IRS, either on their 2018 or 2019 returns or through the “Get My Payment” link should see payments first.
Paper checks will be issued in reverse “adjusted gross income” order—starting with people with the lowest income first.
Paper checks for all others will be issued at a rate of about 5 million per week, which could take up to 20 weeks.
We have created the charts below to show you how the payments are being calculated, and to help figure out how much you should expect.
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Please note that payments are not being delayed if your 2019 taxes have yet to be filed. IRS will use information from 2018 returns when necessary for non-filers and regular taxpayers alike. We encourage you to access the Get My Payment tool on the IRS site to determine your actual payment amount, as well as to provide your most up-to-date bank and/or mailing information, if necessary.
