Retroactive tax relief enacted by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, 3/17/2020) means taking a second look at returns that were filed earlier in 2020.
Now that the July 15 individual tax filing deadline is behind us, tax practitioners should take another look at their clients' returns to ensure tax benefits weren't missed.
Retroactive tax relief brought about by the CARES Act means some taxpayers have significant tax benefits that require a second look at returns that were filed before April 1, 2020. And, the longer-than-usual tax filing deadline of July 15, 2020, for 2019 1040 returns, means some early-filers may have made tax-deductible retirement contributions after filing their 1040s.
Taking advantage of this tax relief will involve amending federal income tax returns, which, for cash strapped individuals and businesses impacted by the COVID-19 crisis, is definitely worth the while.
The longer-than-usual filing deadline of July 15, 2020, coupled with retroactive tax law changes from the CARES Act, create opportunities to amend tax returns and get clients much needed tax refunds. Keep in mind, amending a federal income tax return will likely have a state income tax impact. Practitioners should also determine whether a state income tax return will need to be amended. Happy amending!Discover trusted RIA guidance
Share This Article
Trending topics & tools for the CPA community
Entigrity is the number 1 offshore staffing firm for CPA & accounting firms. Supporting 500+ clients nationwide. Hire experienced professionals starting at $10/hour. Start planning your staffing requirements for the coming tax season.
It’s easy to define the biggest difference between a sole proprietor and a traditional business entity. A sole proprietor is not a legal entity. What......
Content originally appeared on the CPACharge blog.If there’s one universally agreed-upon sentiment about accepting credit cards in your business, it’s this: credit card processing rates......