E-file schedule on Sunday

The Internal Revenue Service has announced that the modernized e-file (MeF) system will be temporarily unavailable for a time this Sunday due to scheduled maintenance. As a result, federal and Rhode Island e-filing will be unavailable during the period.

The MeF system shutdown begins at 12:01 a.m. Eastern time on Sunday, September 20, 2020, and ends at 9:30 a.m. Eastern time the same day.

The IRS will not be accepting electronically filed federal tax returns during the period. Also, the joint fed-state e-file program will be unavailable during the period. Therefore, Rhode Island returns transmitted via e-file during the period will not be transmitted to the state. Tax preparers and taxpayers should plan accordingly.

• The joint fed-state e-file program is a cooperative tax-filing effort between the IRS and most states, including Rhode Island. In general, it allows for federal and state returns to be e-filed simultaneously to the IRS. Once the returns are filed, the IRS keeps the federal portion; the state portion is passed along electronically to the applicable state.

Letters involving federal economic impact payments

Later this month, the Internal Revenue Service will start mailing letters to roughly nine million Americans who typically don't file federal income tax returns, but who may be eligible for -- and have not registered to claim -- a federal economic impact payment.

The letters are being sent to people who haven't filed a return for either 2018 or 2019. Based on an internal IRS analysis, these are people who don't typically have a tax return filing requirement because they appear to have very low incomes, based on Forms W-2, 1099s and other third-party statements available to the IRS. But many in this group are still eligible to receive an economic impact payment (also known as an "economic stimulus payment", "COVID-19 payment", or "recovery rebate").

The letters will urge recipients to register at IRS.gov by October 15, 2020, in order to receive their payment by the end of this calendar year. Individuals can receive up to $1,200, and married couples can receive up to $2,400. People with qualifying children under age 17 at the end of 2019 can get up to an additional $500 for each qualifying child.

For more information, click here. To get an idea of what the letter will look like (so you can avoid scams), click here.

(Note: The Rhode Island Division of Taxation is providing the information above on behalf of its partner in the Security Summit, the Internal Revenue Service. The Division of Taxation does not have a role in issuing the new federal economic impact payments.)

Reminder: Deadline tomorrow

Tomorrow -- September 15 -- is the deadline for certain payments of estimated tax. There are several convenient options available to make payments, including online. To learn more, click here.

Withholding-tax guidance - emergency regulation extended

The Rhode Island Division of Taxation has extended, by 60 days, an emergency regulation that provides withholding-tax guidance for employers that have employees who are temporarily working remotely due to the coronavirus (COVID-19) pandemic.

To view the emergency regulation, which has been extended to November 18, 2020, click here. To view a related Advisory, click here.

E-signatures

 As a convenience for taxpayers and their representatives amid the pandemic, the Rhode Island Division of Taxation announced today that it will allow electronic signatures in place of handwritten signatures for certain types of forms.

“We realize the challenges that many taxpayers and their representatives face amid the coronavirus (COVID-19) pandemic, and we want to be as accommodating as possible given the circumstances,” said Rhode Island Tax Administrator Neena Savage.

The Division will accept electronic signatures for two forms, both of which involve the sale of Rhode Island real estate by nonresident individuals or entities. For more information, click here.

Summary of entity tax obligations, including LLCs

The Rhode Island Division of Taxation has updated two of its Notices, mainly to reflect the 2019 law under which pass-through entities can elect to pay an entity-level tax.

• Notice 2020-03 summarizes the State tax obligations of limited liability companies (LLCs), including single-member LLCs.
• Notice 2020-04 summarizes the State tax obligations of entities overall, including C corporations, S corporations, LLCs, and partnerships.

Due date is September 15 for estimated taxes

The Rhode Island Division of Taxation reminds tax professionals and taxpayers that September 15, 2020, is the deadline for certain payments of estimated tax. There are several convenient options available to make payments, including online. To learn more, click here.

E-filing schedule this weekend

The Internal Revenue Service has announced that the modernized e-file (MeF) system will be temporarily unavailable for a length of time this coming Labor Day weekend due to scheduled maintenance. As a result, federal and Rhode Island e-filing will be unavailable during the period.

The MeF system shutdown begins at 7:00 p.m. Eastern time on Saturday, September 5, 2020, and ends at 7:00 a.m. Eastern time on Tuesday, September 8, 2020.

The IRS will not be accepting electronically filed federal tax returns during the period. Also, the joint fed-state e-file program will be unavailable during the period. Therefore, Rhode Island returns transmitted via e-file during the period will not be transmitted to the state. Tax preparers and taxpayers should plan accordingly.

• The joint fed-state e-file program is a cooperative tax-filing effort between the IRS and most states, including Rhode Island. In general, it allows for federal and state returns to be e-filed simultaneously to the IRS. Once the returns are filed, the IRS keeps the federal portion; the state portion is passed along electronically to the applicable state.