The IRS has been busy. From a third round of stimulus payments, to a delayed tax filing date, to relief for taxpayers involved in disputes with the federal tax agency -- just to name a few of the things everyone needs to know about.

Stimulus: You may have already received your stimulus check. Ninety million payments have been sent out so far, according to the IRS. More than $242 billion arrived in individual bank accounts through direct deposit or as a check via mail recently, thanks to the American Rescue Plan -- with more stimulus payments arriving in the coming weeks.

If you provided direct deposit information on your 2019 or 2020 tax returns (or if you used the Non-Filers tool on IRS.gov last year), take a look at your checking account for the deposit.

The deposit could add up to a tidy sum. For couples who are eligible, it’s $2,800, plus $1,400 for each dependent.

If you haven’t received your payment yet, you can check the Get My Payment tool (tinyurl.com/um7wjjk9) on the IRS website to find out more details of when the stimulus money might arrive. According to the website, Get My Payment is updated once a day.

To use the tool, you enter your Social Security number, date of birth, street address and ZIP code. Once you hit the “Continue” button, you’ll be given details on your payment. The website explains the various status messages you might see: Payment Status, Payment Status Not Available or Need More Information. More detail on the status messages can be found in the Get My Payment FAQs (tinyurl.com/ncuvxv7d).

For more information about the stimulus payment, read the IRS’ “More details about the third round of Economic Impact Payments” at tinyurl.com/5ptc8pru.

New tax date: In case you missed it, the IRS and the Treasury Department announced on March 17 that the federal income tax filing due date for the 2020 tax year for individuals has been extended from April 15, 2021, to May 17, 2021 (tinyurl.com/4vkztt6t). This relief does not apply to estimated tax payments, which are still due on April 15, 2021. Also, the postponement does not apply to state taxes, with the IRS recommending that taxpayers check with their state tax agencies (tinyurl.com/59ap7v2p) for more details.

It is the second year in a row that the federal income tax due date has been extended, with last year’s being moved from April 15 to July 15 in response to the COVID-19 pandemic.

Tax Court: Virtual help is available from the IRS for taxpayers involved in Tax Court cases without having to go to trial. The mechanism is Virtual Settlement Day (VSD).

VSDs offer taxpayers a chance to resolve cases. Since last May, the IRS has settled 259 taxpayer cases through VSD. Taxpayers can receive free tax advice from Low Income Taxpayer Clinics, American Bar Association volunteer attorneys or pro bono organizations.

“I strongly encourage all taxpayers who have the ability to participate in a settlement day event to do so because they will understand their own case better while not giving up their day in court if they so choose,” IRS Commissioner Chuck Rettig said in a statement.

The timing is right. We are in the middle of “National Settlement Month,” and VSD events will be available for taxpayers in all 50 states and the District of Columbia. To find out more, go to tinyurl.com/ycd2tn9y.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

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Every now and then, people in the know share insights through this column. This week, Lauren Zajac, who is the chief legal officer at Workhuman (which provides human capital management software) and is an advocate for the empowerment of women, offered thoughts on how women make -- or don’t make -- financial decisions.

One of the topics we discussed was professional women who have very successful careers but often abdicate to their husbands on financial affairs. Why would they do that?

Zajac said she did this in her own life, adding that “I think there’s some level of indoctrination around who typically makes those decisions in the family. At least for me, there was some kind of mental block: He knows how to do that so I won’t get involved.”

Zajac related the story of buying a car. When the dealer pointed out that she was a tough negotiator, she said, “That’s kind of what I do for a living.” When he followed up by asking what her husband thought about it, she responded, “Did you really just say that?”

Allianz Life Insurance’s 2019 Women, Money and Power Study (tinyurl.com/yaz2jmkp) found that 57% of the women surveyed said they wished they were more confident in their financial decision-making. A single mother of three children, Zajac said that “being in control of my finances has brought a lot of security and confidence to my life. The first time I bought a car or when I closed on my house, I was elated, because I accomplished it myself.”

So at what point should women become involved in their family’s finances (if they aren’t already)? Zajac said it depends on the individual’s situation, adding that “I think it’s all part of a woman’s self-awareness and self-worth journey.”

“One of the things I’ve been working on over the last couple of years is recognizing ‘You can do this,’” Zajac said. “Whatever path you’re on, I think that you start to become aware of those places where you give away your power, and those are the places you have to take back first.”

A Fidelity study released last year (tinyurl.com/y9ta6dsl) found that after the onset of the COVID-19 pandemic, a majority of the women surveyed (67%) said they were more engaged in managing their money. Among the other survey results were that women were taking steps to “better educate themselves” (36%) and had become “more comfortable talking about money” (35%). Ideally, employers should see this trend and look to enhance it by offering financial literacy seminars and bringing in speakers to talk to women in business. How important is it that companies have a role? 

“I think it’s important, especially for bigger companies, and I do think there’s a focus now,” Zajac said. “In America, there are certainly lots of conversations happening about pay equity. And there are lots of conversations about different types of leadership and the course of women in corporate America.”

“It's one of these areas that women are sort of hesitant to get into,” she said. “Like what do I need to know to financially plan for my future? What do I need to know to refinance my mortgage? Certainly, this is one of the places where I think corporations can help, as they are sort of the last bastion of true continuing education.”

If you want to share your expertise on a favorite topic, contact me at readers@juliejason.com.

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Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

Last week, we talked about “Ivan” and the challenges he faced 20 years after his grandparents gifted him stocks. If you recall, Ivan was thinking about selling the stocks, but first he had some hurdles to overcome. He had to find out his grandparents' cost bases (the original prices) for the various stocks he received as gifts decades ago. He also needed to find the cost bases of the additional shares he himself purchased through dividend reinvestments.

Depending on the records Ivan already had on hand, there potentially was a lot of work ahead for him. He would need to consult with a tax adviser or accountant to form a game plan for gathering the missing information.

Last week’s column focused on gifts. What about inheritances? E.B., a longtime reader of this column, wanted to know: “I had always understood that -- upon my death -- the stocks which my children will inherit will have the date of my demise as a cost basis. Am I wrong, or is the tax law different for gifted stock vs. inherited stock?”

E.B., thank you for asking. Here is a quick answer: Yes, the tax laws differentiate between stocks your children inherit from you and stocks that you gift to them during your lifetime.

First, before diving into the differences, let me remind you to be sure to talk with your tax adviser before taking any action. Each taxpayer’s situation is unique, and the tax laws can be complicated.

Now, let’s review some basics. First, what does the IRS say about inheritances? The resource is IRS Publication 551, “Basis of Assets” (tinyurl.com/ydy2pqmr). Under the section titled “Inherited Property,” you’ll see the paragraph:

“The basis of property inherited from a decedent is generally one of the following,” with the first situation enumerated being: “The FMV [fair market value] of the property at the date of the individual’s death.” There it is.

But, notice the word “generally.” Again, this is why you need your tax adviser at your side before taking any action.

You should be aware that the estate may choose to use an “alternative valuation date” other than the date of death. For more information, read the Instructions for Form 706 (tinyurl.com/ycn7q6xa); Section 2032 of the Internal Revenue Code applies (tinyurl.com/y974sp29).

The remaining situations address other assets, such as farmland, not stocks.

In most situations like E.B.’s, the cost bases of the stocks will be determined on the date of death (or an alternative valuation date), unlike a situation involving a gift.

As to whether an alternative date needs to be considered, your tax adviser will step in, since the decision depends on an individual’s particular tax situation.

The rules for inheriting a tax-deferred account, such as an IRA, are more complex, and that’s something I’ll discuss in a future column.

On another matter, if you are interested in the basics of retirement investing, join me for a virtual presentation, “You’re retired -- it’s time to revisit your financial plan.” It will be held on Wednesday, March 17, at 1 p.m. EDT, and is sponsored by the Greenwich (Connecticut) Library. To register, go to tinyurl.com/3paf657y or contact Yang Wang, 203-622-7924, ywang@greenwichlibrary.org.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

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