Thursday, March 18, 2021

Some still need to pay tax by April 15 despite new May 17 deadline

The IRS and Treasury Department have extended the tax filing season, pushing the deadline to May 17 from April 15.

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Some taxpayers must make quarterly estimated tax payments throughout the year to avoid penalties. Estimated tax is used to pay levies on income that is not subject to withholding, including earnings from self-employment, interest, dividends, rent and alimony, according to the IRS.

This mostly affects self-employed individuals, as well as those with small businesses such as sole proprietors, partners and S-corporation shareholders — generally, anyone who doesn't work for an employer that withholds taxes from their paycheck.

Publisher: CNBC
Date: 2021-03-18T18:05:21 0000
Author: https www facebook com CNBC
Twitter: @CNBC
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Not to change the topic here:

Federal aid could hobble new state tax cuts and credits - Journal of Accountancy

A condition attached to $350 billion in relief for state and local governments by the American Rescue Plan Act (ARPA), P.L. 117-2 — that states may not use the money to offset their own tax reductions — may prove problematic, and is perhaps unconstitutional, tax practitioners said.

The funds may not be deposited into any pension fund. But an even broader, tax-related restriction has some state and local government leaders concerned.

Implementing the provision leaves much to interpretation, but conflicts between states' own tax incentives and drawing upon the funds may be brewing, observers said.

Publisher: Journal of Accountancy
Date: 2021-03-17T17:27:14.000-04:00
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Illinois Income tax filing deadline delayed

(WSIL) -- Gov. Pritzker announced that his administration is extending the individual income tax filing and payment deadline from April 15 to May 17.

The Illinois Department of Revenue (IDOR) will continue to process tax refunds for those filing ahead of the deadline.

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The filing extension does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15 and can be based on either 100% of estimated or 90% of actual liability for 2021, or 100% of actual liabilities for 2019 or 2020.

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Publisher: WSIL
Date: 2021-03-18T20:51:29 00:00
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No taxation without innovation: The rise of tax startups – TechCrunch

In New York City, if you order a toasted bagel with cream cheese at a deli, you have to pay sales tax. Ask for that same bagel unprepared? You won't. In Illinois, candy is subject to sales tax, but candy with flour is considered a regular grocery item. Meaning: A Kit Kat is tax-free, but M&Ms will cost you extra. And in Colorado, your daily coffee cup is considered essential packaging, while the lid is not, making it subject to a nonessential packaging tax.

These examples may seem trivial, but they illustrate the idiosyncrasies of sales tax — a fee consumers pay on their purchases that must ultimately be reconciled with the appropriate jurisdictions. Though sales tax is arguably the most complex type of indirect tax, businesses must also contend with other indirect taxes such as use tax, property tax and value-added tax (VAT).

Publisher: TechCrunch
Date: 2021-03-18 10:30:43
Twitter: @techcrunch
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In case you are keeping track:

Biden tax plan: Here's how taxes could be raised on the wealthy and corporations - CNNPolitics

(CNN) Now that he's signed the Democrats' $1.9 trillion Covid relief package, President Joe Biden is turning to the next items on his legislative agenda -- and laying the groundwork for raising taxes on wealthier Americans to pay for them.

Publisher: CNN
Date: 2021-03-18T12:07:22Z
Author: Tami Luhby and Katie Lobosco CNN
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Another Court Rules That Special Taxes Proposed By A Citizen-Sponsored Initiative May Be Enacted

Another court of appeal has held that local special taxes adopted by a citizen-sponsored initiative do not require two-thirds voter approval. Howard Jarvis Taxpayers Association v. City and County of San Francisco , No. A157983 (1st Dist., Jan. 27, 2021, as modified Feb. 22, 2021).

In June 2018, 51 percent of San Francisco voters passed the “Universal Childcare for San Francisco Families Initiative.” This initiative proposed a tax on certain commercial rents to fund early childcare and education.

Publisher: JD Supra
Twitter: @jdsupra
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Walz scales back tax increases, boosts tax relief in revised budget - StarTribune.com

Gov. Tim Walz is dramatically scaling back proposed tax increases and boosting tax relief in his state spending proposal, responding to a state economy that is on the mend more than a year into the COVID-19 pandemic.

In a revised two-year budget plan released Thursday, Walz cut back nearly $1 billion in tax increases he'd previously proposed for cigarettes, large estates and corporations. But he's still calling for a new fifth-tier income tax increase on the state's highest earners .

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Publisher: Star Tribune
Twitter: @StarTribune
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Map shows which U.S. states procrastinate most on taxes

Filing your taxes with the Internal Revenue Service every year can be both complicated and time consuming. It's understandable to want to procrastinate.

Personal Finance Company Upgraded Points recently surveyed 2,500 people across the U.S. to determine when Americans file their taxes every year.

The survey looked into which states file their taxes on time — and which have the most procrastinators.

Publisher: CNBC
Date: 2021-03-18T15:25:33 0000
Author: https www facebook com CNBC
Twitter: @CNBC
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