This IRS continues its efforts to reach taxpayers who aren’t required to file a tax return but may be eligible for an Economic Impact Payment of $1,200 or more. These individuals need to use a special Non-Filers tool on IRS.gov before the Oct. 15, 2020 deadline. Possible non-filer groups include:

Lower-income households without a filing requirement
Individuals with income below $12,200
Married couples with income below $24,400
Part-time workers
Self-employed individuals
People who work in the gig economy
Students who can’t be claimed as dependents on someone else’s tax return

2. Treasury, IRS issue guidance on reporting qualified sick and family leave wages paid

The Treasury Department and the IRS recently provided guidance in Notice 2020-54 (PDF) to employers requiring them to report the amount of qualified sick and family leave wages paid to employees under the Families First Coronavirus Response Act (FFCRA) on Form W-2.

Employers will be required to report these amounts either on Form W-2, Box 14, or in a statement provided with the Form W-2. The guidance provides employers with optional language to use in the Form W-2 instructions for employees.

Additional information about tax relief for those affected by the COVID-19 pandemic can be found on IRS.gov.

3. Don’t use Form 7200 to notify IRS regarding change in business mailing address

Business are advised to not use Form 7200 to notify the IRS about changes regarding business mailing address or business location. If your Form 7200 specifies an address that is different from the last known address per IRS records, the IRS will contact you by letter to confirm your address and whether the advance refund should be mailed to the address listed on the Form 7200. The IRS will not process Form 7200 or change the business taxpayer’s last known address on file until the business replies to confirm or clarify.

4. IRS is sending letters to those experiencing a delay with advance payment of employer credits

The IRS has started sending letters to taxpayers who have experienced a delay in the processing of their Form 7200, Advance Payment of Employer Credits Due To COVID-19 (PDF).

A taxpayer will receive letter 6312 if the IRS either rejected Form 7200 or made a change to the requested amount of advance payment due to a computation error.
The letter will explain the reason for the rejection or, if the amount is adjusted, the new payment amount will be listed on the letter.

A taxpayer will receive letter 6313 if the IRS needs written verification from a taxpayer that the address listed on their Form 7200 is the current mailing address for their business. The IRS will not process Form 7200 or change the last known address until the taxpayer provides it.

For more information on the employer credits, see Employer Tax Credits.

5. Several Cincinnati and Hartford business payment P.O. Box addresses closed July 1

IRS closed several business payment P.O. Box addresses in the Cincinnati and Hartford areas on July 1. Payments sent to those locations are now being returned to sender. These closures do not impact individual tax payments mailed to those locations. To avoid delays, businesses need to use the current address located on the Where to File page on IRS.gov.

IRS encourages the use of electronic payment options available on IRS.gov.

See Publication 3891, Lockbox Addresses for 2020, for more information.

6. IRS says a Paycheck Checkup helps avoid tax surprises

The IRS reminds business, self-employed and individual taxpayers that using the IRS Tax Withholding Estimator to do a Paycheck Checkup can help them have the right amount of tax withheld and avoid surprises when filing next year.

Because income taxes are pay-as-you-go, taxpayers are required by law to pay most of their tax as income is received. There are two ways to do this:

Through withholding from paychecks, pension payments, Social Security benefits or certain other government payments.
Making quarterly estimated tax payments throughout the year for income not subject to withholding.

For more information, go to the Tax Withholding Estimator FAQs on IRS.gov.

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