Category: Taxation-Individuals

Please note the following upcoming dates and descriptions for sales tax-free holidays in Virginia and Maryland: Virginia: Friday, August 7 to Sunday, August 9 Maryland: Sunday, August 9 to Sunday, August 15. These holidays offer periods of time when certain items can be purchased without sales tax in each state. Please see our overview of items eligible for the sales tax-free holiday. Washington, DC has no such sales tax holiday. Virginia Sales Tax-Free Holiday (August 7-9) In Virginia, individuals may… Read more ›

The CARES Act was enacted in an attempt to mitigate the economic effects of the COVID-19 pandemic. Among other things, it extends favorable tax treatment to qualified individuals who take so-called “coronavirus-related distributions” (CRDs) from IRAs, 401(k) plans and certain other retirement plans. RMD Relief Specifically, the CARES Act waives the 10% early distribution penalty for CRDs taken between January 1, 2020, and December 31, 2020. Under the law, the waiver applies to CRDs made to an individual: • Who’s… Read more ›

The IRS and the U.S. Department of Treasury have announced new relief for federal taxpayers affected by the coronavirus (COVID-19) pandemic. The IRS had already extended certain deadlines to file and pay federal income taxes and estimated tax payments due April 15, 2020, without incurring late filing penalties, late payment penalties or interest. The additional relief, outlined in Notice 2020-23, applies to a wider variety of tax filers. The IRS also has announced new tools for taxpayers expecting Economic Impact… Read more ›

On Friday, March 27, President Trump signed into legislation the Coronavirus Aid, Relief and Economic Security (CARES) Act. The $2.2 trillion legislation represents the largest stimulus package in U.S. history—dwarfing the $800 billion package signed during the 2008 financial crisis—and provides a variety of economic relief measures to mitigate the impact of the coronavirus pandemic on American society. The Act provides for six options for businesses in search of relief, which are listed below for consideration: • Paycheck Protection Program… Read more ›

Maryland will stop processing paper income tax returns beginning on Friday, April 15, based on a statement by Maryland Comptroller Peter Franchot. The move has been motivated by a desire to keep employees safe in the era of COVID-19. Taxpayers anticipating a refund from their taxes and who plan to paper file are encouraged to file by April 10 to ensure their return will be processed in a timely manner. Marylanders are encouraged to file electronically, since it takes just… Read more ›

On Friday, March 27, President Trump signed into legislation the Coronavirus Aid, Relief and Economic Security Act (CARES) Act. The $2.2 trillion legislation represents the largest stimulus package in U.S. history—dwarfing the $800 billion package signed during the 2008 financial crisis—and provides a variety of economic relief measures to mitigate the impact of the coronavirus pandemic on American society. In addition to direct cash payments and extended lending and emergency financing options, the CARES Act includes tax payment deferrals and… Read more ›

On Friday, March 27, President Trump signed into legislation the Coronavirus Aid, Relief and Economic Security Act (CARES) Act. The $2.2 trillion legislation represents the largest stimulus package in U.S. history—dwarfing the $800 billion package signed during the 2008 financial crisis—and provides a variety of economic relief measures to mitigate the impact of the coronavirus pandemic on American society. This top-level overview represents the first of several upcoming alerts by CBM on various components of the CARES Act. Among the… Read more ›

Despite the extension of the Tax Day deadline from April 15 to July 15, Councilor, Buchanan & Mitchell (CBM) still encourages clients to submit their completed tax organizers and documents as soon as possible so the firm’s professionals can continue preparing their taxes.  Clients should consider transmitting them through CBM’s online portal, by email or via courier or the U.S. postal service. Clients who choose to email information should not include sensitive information. CBM would like to thank its clients… Read more ›

The IRS and the U.S. Treasury Department have been making a series of announcements to provide tax relief in the wake of the coronavirus (COVID-19) pandemic. After previously announcing that taxpayers could defer making federal income tax payments up to certain limits for three months, the IRS has now announced that taxpayers can postpone payments without penalties or interest “regardless of the amount.” Filing and payment extension According to new Notice 2020-18, any person with a federal income tax return… Read more ›

Tax Day has been extended from April 15 to July 15, 2020 said U.S. Treasury Secretary Steve Mnuchin. In a tweet published this morning, Mnuchin explained that all taxpayers and businesses will have an additional three months to not only pay their tax liabilities (as CBM reported on Wednesday), but also to file their taxes. No interest or penalties will be charged against individuals and businesses taking advantage of this extended time period. This story is developing and CBM will… Read more ›