The IRS has posted a few news updates this week (August 17, 2020):
- Pending Check Payments and Payment Notices – COVID Related
If a taxpayer mailed a check with or without a tax return, it may be unopened in the backlog of mail the IRS is processing due to COVID-19. Any payments will be posted as the date the IRS received them rather than the date the agency processed them. To avoid penalties and interest, taxpayers should not cancel their checks and should ensure funds continue to be available so the IRS can process them.To provide fair and equitable treatment, the IRS is providing relief from bad check penalties for dishonored checks the agency received between March 1 and July 15 due to delays in this IRS processing. However, interest and penalties may still apply. See www.irs.gov/payments for options to make payments other than by mail.
- Reminder: Work Opportunity Tax Credit Extended
With many businesses reopening, there is a general business credit that may help. The Work Opportunity Tax Credit is a valuable tax credit available to employers who hire long-term unemployment recipients and others certified by their state workforce agency if the individual began or begins work for the employer after Dec. 31, 2014 and before Jan. 1, 2021. Businesses can find out more on IRS.gov/wotc