Two tax credits may apply to your tax situation if you have children, and one of those will potentially increase if pending tax legislation passes…
Paycheck Protection Program
Well, it’s been more than 6 weeks since the CARES Act was signed, issuing in a new set of acronyms we’re now all familiar with. If you hear “PPP” now, you automatically know it’s the Paycheck Protection Program, right? And attempting to comply with the PPP is probably top of mind for most small business owners right now.
The Small Business Administration continues to update their FAQs regarding the Paycheck Protection Program, most recently as of May 6, 2020, which can be accessed here. We continue to wait for more specific guidance on loan forgiveness provisions, but in the meantime, follow the steps outlined in our blog post here.
Economic Impact Payments (EIPs)
The IRS has a robust section of their website dedicated to explaining economic impact payments, most recently a news release issued May 11, 2020 explaining “Why the Economic Impact Payment Could Be Different Than Anticipated.” You can read it by clicking here.
Another hot topic about EIPs is that many deceased individuals are receiving payments, so the IRS wants to make it clear that these payments should be returned. The entire payment should be returned unless it was made to a joint filer and one spouse is still alive, in which case only the portion made on account of the decedent needs to be returned. Here are the IRS instructions on returning a payment:
- If the payment was a paper check:
- Write “Void” in the endorsement section on the back of the check.
- Mail the voided Treasury check immediately to the appropriate IRS location listed below.
- Don’t staple, bend, or paper clip the check.
- Include a note stating the reason for returning the check.
- If the payment was a paper check and you have cashed it, or if the payment was a direct deposit:
- Submit a personal check, money order, etc., immediately to the appropriate IRS location listed below
- Write on the check/money order made payable to “U.S. Treasury” and write 2020EIP, and the taxpayer identification number (social security number, or individual taxpayer identification number) of the recipient of the check.
- Include a brief explanation of the reason for returning the EIP.
Kansas payments should be returned to the IRS at the following address:
Atlanta Internal Revenue Service
4800 Buford Hwy
Chamblee, GA 30341
The address for returning payments for taxpayers in other states can be found by navigating to IRS FAQ question #41 by clicking here.
We’ll continue to keep you updated as new information emerges.