*Updated* Client Accounting Suite/Premier (CAS/P) 20.5 release delayed

CAS/P version 20.5 is scheduled for release on July 14, 2021.

*****

The IRS announced changes for the 2nd Qtr 941; however, the final version of these changes has not been released. The CAS 20.5 release has been delayed so that we can incorporate these changes once they are released. Please refer back to this blog post for updates.

IRS announces two new online tools to help families manage Child Tax Credit payments

  The Internal Revenue Service today launched two new online tools designed to help families manage and monitor the advance monthly payments of Child Tax Credits under the American Rescue Plan. These two new tools are in addition to the Non-filer Sign-up Tool, announced last week, which helps families not normally required to file an income tax return to quickly register for the Child Tax Credit.

The new Child Tax Credit Eligibility Assistant allows families to answer a series of questions to quickly determine whether they qualify for the advance credit.

The Child Tax Credit Update Portal allows families to verify their eligibility for the payments and if they choose to, unenroll, or opt out from receiving the monthly payments so they can receive a lump sum when they file their tax return next year. This secure, password-protected tool is available to any eligible family with internet access and a smart phone or computer. Future versions of the tool planned in the summer and fall will allow people to view their payment history, adjust bank account information or mailing addresses and other features. A Spanish version is also planned.

Click here to read the IRS news release in its entirety.

Update for taxpayers who paid taxes on 2020 unemployment compensation

 The IRS is sending more than 2.8 million refunds to those who already paid taxes on 2020 unemployment compensation.

Earned Income Tax Credit (EITC) adjustments

• Taxpayers who have qualifying children and who become eligible for EITC after the exclusion is calculated may have to file an amended return to claim any new benefits.
• The IRS can adjust tax returns for those who are single with no children and who become eligible for EITC.
• The IRS also can adjust tax returns where EITC was claimed and qualifying children identified.

The IRS plans to issue the next set of refunds in mid-June. The review of returns and processing corrections will continue during the summer as the IRS continues to review the simplest returns and then turns to more complex returns.

Taxpayers will receive letters from the IRS, generally within 30 days of the adjustment, informing them of what kind of adjustment was made (such as refund, payment of IRS debt payment or payment offset for other authorized debts) and the amount of the adjustment.