Connecticut Pass-Through Entity Tax 2020 Estimated Installments Have NOT Been Extended!
Although many tax payments are not required to be made until July 15, 2020, the 2020 estimated installments for the Connecticut Pass-Through Entity Tax are still due on their normal due dates. The first installment is due April 15th and the second one is due June 15th.
These installments must be paid electronically through the Connecticut Taxpayer Service Center (TSC).
Public Act 18-49 requires partnerships and S-Corporations doing business in Connecticut to pay a PE Tax at the entity level, for which the partners or shareholders receive a credit on their individual Connecticut income tax returns.
Economic Impact Payments
The IRS has begun sending Economic Impact Payments to taxpayers. The maximum payment is $1,200 for individuals and $2,400 for couples filing a joint return. Taxpayers are also eligible to receive an additional $500 per qualifying child. The payment is reduced when adjusted gross income reaches $75,000 for individuals, $112,500 for those filing as head of household, and $150,000 for joint filers. Single filers with income exceeding $99,000, $136,500 for head of household filers and $198,000 for joint filers with no children are not eligible and will not receive payments.
Taxpayers do not need to take any action to receive the EI payment. The payment will be based on the taxpayer's 2019 tax return, or if 2019 has not been filed, it will be based on their 2018 tax return.
Individuals who normally are not required to file Federal income tax returns may still be eligible to receive EI payments. Social Security and Railroad Retirement recipients who are not typically required to file a tax return need to take no action. The IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate Economic Impact Payments of $1,200 to these individuals even if they did not file tax returns in 2018 or 2019. Other individuals may use an online tool provided by the IRS to register to receive their payment. The IRS website is HERE
For security reasons, the IRS plans to mail a letter about the economic impact payment to the taxpayer's last known address within 15 days after the payment is paid. The letter will provide information on how the payment was made and how to report any failure to receive the payment. If a taxpayer is unsure they're receiving a legitimate letter, the IRS urges taxpayers to visit IRS.gov first to protect against scam artists.
Expect Delays in Processing of Paper Returns
The IRS has made the following statement:
All taxpayers should file electronically through their tax preparer, tax software provider or IRS Free File if possible. The IRS is not currently able to process individual paper tax returns. If you already have filed via paper but it has not yet been processed, do not file a second tax return or write to the IRS to inquire about the status of your return or your economic impact payment. Paper returns will be processed once processing centers are able to reopen.
We are encouraging all taxpayers to not unnecessarily delay in gathering their tax return information so that their tax returns can be prepared in a reasonable time period. The government is still processing returns and issuing refunds. Even if you owe taxes, it is best to know what to expect so that you can plan accordingly.
A word of caution: this is a very brief summary and does not include all of the details that may impact your individual situation. Please contact us if you would like more information.
About Lewitz, Balosie, Wollack,
Rayner & Giroux, LLC
We provide accounting, tax, and financial services to individuals, businesses, nonprofit organizations, estates, and trusts. Our services include tax return preparation, software consulting, and compilations, reviews, and audits of financial statements. We have been located in the shoreline community of Old Saybrook, Connecticut for over 60 years. Feel free to contact us if we can be of service. We can be reached at 860-388-4451. Our website is www.saybrookcpas.com
IRS Circular 230 Disclosure
Tax advice contained in this communication, unless expressly stated otherwise, was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.