The IRS has reversed itself again last night and put out the following statement:
WASHINGTON – The U.S. Department of the Treasury and the Internal Revenue Service today announced that Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return to receive an Economic Impact Payment. Instead, payments will be automatically deposited into their bank accounts.
“We want to ensure that our senior citizens, individuals with disabilities, and low-income Americans receive Economic Impact Payments quickly and without undue burden,” said Secretary Steven T. Mnuchin. “Social Security recipients who are not typically required to file a tax return need to take no action, and will receive their payment directly to their bank account.”
The IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate $1,200 Economic Impact Payments to Social Security recipients who did not file tax returns in 2018 or 2019. Recipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits.
Business Owners –
I’m still trying to get details on the economic stimulus for small businesses. There are 2 programs available from the SBA. One is an Economic Injury Disaster Loan with a $10,000 grant. The other is called the Paycheck Protection Program (PPM). Both are available to small businesses including most s-corps, partnerships, LLC’s, and Sole-Proprietors. Both come with strings attached but are intended to help almost all small businesses affected by the COVID-19 shut-downs.
As always, we’re here if you have questions.