Brillant Law Weekly Tax Digest

The IRS remains hard at work, assisting taxpayers during this unprecedented time. This is an excellent development given the IRS can, at times, be a bit heavy-handed. I say this acknowledging that the IRS is, at its foundation, a law enforcement agency with a narrow focus on the administration and collection of tax. Several tax developments are worth noting.

The IRS has updated its “Get My Payment” FAQ page. It has answered several new questions, including the following we believe, are helpful:

• Taxpayers can only use the Get My Payment tool if you filed a 2018 or 2019 tax return.

• If you are eligible to use the Get My Payment tool, then the status of your economic impact payment (“EIP”) is either: (a) that it has been processed; (b) a payment date is available; (c) payment is to be sent either by direct deposit or mail; or (d) you are eligible for an EIP, but payment has not been processed, and the payment date is not available.

• If spouses filed jointly, either spouse can use the Get My Payment tool.

• The IRS will use your bank account information on your last income tax return for direct deposit. You may be able to change direct deposit information before your EIP is scheduled, but afterward, taxpayers cannot update direct deposit bank account information.

• The IRS will not split your EIP between several accounts.

• If your bank rejects the IRS’ direct deposit, the IRS will mail your EIP payment to the address it has on file.

IRS.gov/coronavirus

The Treasury and IRS are warning taxpayers and tax professionals that online thieves are active in trying to obtain EIP payments. The increase in online criminal activity not only pertains to criminals accessing the Get My Payment tool but for all online financial information. Now would be an excellent time to update your passwords and possibly use an online password manager and digital wallet. Treasury.gov

On March 25, 2020, the IRS announced the People First Initiative, and part of the program included relaxing installment agreements for taxpayers between April 15 and July 15, 2020. Under Notice 2020-59, taxpayers may suspend payments under their installment agreements, including direct deposit agreements. Notice 2020-59 also includes information on modifications to the Offer In Compromise program. The Taxpayer Advocate Service has a webpage on its site to take taxpayers step-by-step through the process. irs.gov/newsroom; taxpayeradvocate.irs.gov

The Joint Committee on Taxation published a 111 page report summarizing the modifications to US tax law under the CARES Act. Taxpayers and tax professionals will find Title II of the report most helpful. Title II is divided into parts A and B. Part A concerns tax provisions related to individuals and is further subdivided into six subparts. Part B concerns tax provisions pertaining to businesses and contains a summary of the modification to eight tax laws related to business. JointCommitteeonTaxation.gov