 | |||
| |||
Tax Resources for Small BusinessSmall Business and Self-Employed One-Stop Resource Small Business Forms & Instructions e-File for Businesses and Self-Employed Other ResourcesTax Information for Charities
| e-News for Small Business Issue 13Inside This Issue
1. Temporary suspension of limits on charitable contributions The CARES act suspended limits on charitable contributions for individuals and corporations. Individuals may deduct qualified charitable contributions up to 100 percent of their adjusted gross income. A corporation may deduct qualified charitable contributions up to 25 percent of its taxable income. Both individuals and corporations can carry over to the next year contributions that exceed the AGI limitation. To qualify, the contribution must be:
Additional information about tax relief for those affected by the COVID-19 pandemic is on IRS.gov. 2. Temporary increase in limits on contributions of food inventory The CARES act created a special rule allowing greater deductions by businesses for contributions of food inventory for the care of the ill, needy or infants. Businesses that contribute food inventory in 2020 may deduct up to 25 percent of their net income or taxable income. Additional information is available on IRS.gov. 3. IRS tax help available for those who filed an extension The deadline for taxpayers who requested an extension to file their 2019 federal tax returns is October 15, 2020. Those who have not yet filed can find many helpful resources on IRS.gov:
4. IRS advice for those who didn't file an extension The IRS cautions taxpayers who missed the July 15 tax deadline and didn't request an extension, to file as soon as possible to reduce potential penalties. e-Filing returns can help expedite the process. An extension to file is not an extension to pay; penalties and interest will apply to taxes owed after July 15. A taxpayer will usually qualify for relief if they have filed and paid timely for the past three years and meet other requirements. More information is on the first-time penalty abatement page on IRS.gov. 5. Businesses filing cash transaction reports have e-file option The IRS reminds businesses required to file reports of large cash transactions that e-filing is a fast, easy and secure option for filing their reports. Now, businesses can batch-file their reports, which is helpful when required to file many forms. Although businesses have the option of filing Form 8300, Report of Cash Payments Over $10,000, on paper, many have found the free and secure e-filing system is a more convenient and cost-effective way to meet the reporting deadline. The form is due 15 days after a transaction and there's no charge for the e-file option. For more information, see the fact sheet on reporting cash transactions. Employers use Form 7200 to request an advance payment of the tax credits for qualified sick and qualified family leave wages and the employee retention credit. The employer tax credits for qualified sick leave wages and qualified family leave wages apply to those wages paid from April 1, 2020, to December 31, 2020. Businesses should fax the completed form to 855-248-0552. Due to scheduled maintenance, the 7200 fax line will be unavailable from August 7 at 10 p.m. to August 8 at 7 a.m. ET. 7. IRS Freedom of Information Library The IRS Freedom of Information Act (FOIA) Library, provides a comprehensive list of documents and other information available electronically on IRS.gov. The library has links to many records that may be of interest to small business tax professionals and managers, such as:
Thank you for subscribing to this IRS email service. This message was distributed automatically from the mailing list e-News For Small Business. Please Do Not Reply To This Message. | ||
| | | ||
| This email was sent to business.solutions.ve@gmail.com by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington DC 20535 |  |
No comments:
Post a Comment