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IRS Extends Deadline to Register for Stimulus Payments – Did You Know?

The IRS has extended the deadline for some Americans to register to receive their 2020 coronavirus Economic Impact Payments (EIPs, also called stimulus payments). The new deadline of midnight on November 21, 2020 primarily applies to those who are not required to file federal income tax returns, and also have not yet registered for or received their EIPs.

Those who meet these criteria are urged to use the IRS online non-filers registration tool (link below) to submit their information and receive their EIPs as soon as possible. Choosing the direct deposit option will speed up the payment process. Generally, those who do not provide banking information for direct deposit will receive their stimulus payments by check.

Note that for most people who are required to file a 2019 tax return but requested an extension, the deadline to file remains October 15. Federal return filers who qualify for EIPs generally receive their payments automatically; no separate registration is required.

Beginning two weeks after they register to receive a payment, those who qualify for EIPs can track the status of their payments by using the online Get My Payment tool (link below).

IRS EIP Registration Tool for Non-Filers: https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here

IRS Get My Payment EIP Tracking Tool: https://www.irs.gov/coronavirus/get-my-payment

2019 Refund Interest Payments - Did You Know?

Over 13 million taxpayers who have received or will receive federal income tax refunds for 2019 will also receive an interest payment from the IRS. The 2019 filing and payment deadline change from April 15 to July 15, 2020 due to COVID-19 (coronavirus) was classified as a disaster-related postponement. Therefore, the federal tax code requires the IRS to pay interest starting from April 15 on refunds issued to taxpayers who filed their 2019 returns by July 15.

These interest payments will average about $18, and will usually be issued separately from tax refunds. If you provided the IRS with banking information and received your refund by direct deposit, any interest payment you are owed will most likely be automatically deposited to the same account. However, some taxpayers will receive a check in the mail, which can be identified as a refund interest payment by the notation "INT Amount" on the official U.S. Treasury check.

Unlike IRS tax refunds themselves, these interest payments are generally taxable and must be reported on the recipient's 2020 federal tax return. Anyone who receives an interest payment of $10 or more will receive Form 1099-INT from the IRS in January. Only individual taxpayers and joint filers are eligible to receive these interest payments, not businesses. Note also that the IRS is not required to pay interest on refunds that were issued before the original April 15 filing deadline.

RMD Repayment or Rollover Deadline - Did You Know?

The deadline to return or rollover a Required Minimum Distribution (RMD) for IRA owners, beneficiaries or workplace retirement plan participants is coming up on Monday, August 31.

The CARES Act allows most taxpayers with an eligible retirement account, such as a 401(k), 403(b) or traditional IRA, to skip their required minimum distributions (RMDs) for 2020 without penalty. Individuals who received the RMD, including those who turned 70½ in 2019, have the option to return the distribution to their account or other qualified plan. They may also have the option of rolling over to another IRA or qualified retirement plan by August 31, 2020 to avoid taxes on the RMD. Please note that the suspension of the RMD does not apply to qualified defined benefit plans.

A tax and financial professional can help you determine the best strategy for handling your 2020 retirement account RMDs.