February 16, 2021
WASHINGTON – The IRS announced today that, as required by law, all legally permitted first and second round of Economic Impact Payments have been issued and the IRS now turns its full attention to the 2021 filing season.
Beginning in April 2020, the IRS and Treasury Department began delivering the first round of Economic Impact Payments within two weeks of the legislation. The IRS issued more than 160 million EIPs to taxpayers across the country totaling over $270 billion, while simultaneously managing an extended filing season. In addition, since Congress enacted the COVID-related Tax Relief Act of 2020, the IRS has delivered more than 147 million EIPs in the second-round totaling over $142 billion.
The legislation required that the second round of payments be issued by Jan. 15, 2021. While some second round Economic Impact Payments may still be in the mail, the IRS has issued all first and second Economic Impact Payments it is legally permitted to issue, based on information on file for eligible people.
Get My Payment was last updated on Jan. 29, 2021, to reflect the final payments and will not update again for first or second Economic Impact Payments.
Most people who are eligible for the Recovery Rebate Credit have already received it, in advance, in these two rounds of Economic Impact Payments. If individuals didn’t receive a payment – or if they didn’t receive the full amounts – they may be eligible to claim the Recovery Rebate Credit and must file a 2020 tax return. Eligibility for and the amount of the Recovery Rebate Credit are based on 2020 tax year information while the Economic Impact Payments were based on 2019 tax year information. For the first Economic Impact Payment, a 2018 return may have been used if the 2019 was not filed or processed.
Individuals will need to know the amounts of any Economic Impact Payments they received to claim the Recovery Rebate Credit. Those who don’t have their Economic Impact Payment notices can view the amounts of their first and second Economic Impact Payments through their individual online account. For married filing joint individuals, each spouse will need to log into their own account.
To avoid refund delays, the IRS urges people to file a complete and accurate tax return. Filing electronically allows tax software to figure credits and deductions, including the Recovery Rebate Credit. The Recovery Rebate Credit Worksheet on Form 1040 and Form 1040-SR instructions can also help.
The fastest way to get a tax refund is to file electronically and have it direct deposited – contactless and free – into the individual’s financial account. Bank accounts, many prepaid debit cards and several mobile apps can be used for direct deposit when you provide a routing and account number.
As always, please feel free to contact Tax On Wheels, LLC if you have questions or need assistance with your tax filing obligations. We can be reached at 803 732-4288.
November 18. 2016
Plan ahead for the coming tax filing season.
There are important changes you should know about before the 2017 filing season begins. If you are a client of Tax On Wheels, LLC we will take care of everything for you. If, on the other hand, you are the do it yourself type, there are a couple of things like refund delays and electronic filing procedures you should factor into your tax preparation regimen.
The IRS lays out all of the details on its website, IRS.gov/GetReady to help taxpayers understand the changes that may affect the processing of tax returns and release of refunds. We encourage you to review this page now before tax season so that you will be ready for what is in place now.
As always, please feel free to contact Tax On Wheels, LLC at 803 732-4288 if we can be of assistance to you.
September 28, 2015
WASHINGTON — The Internal Revenue Service today urged taxpayers whose tax-filing extension runs out on Oct. 15 to double check their returns for often-overlooked tax benefits and then file their returns electronically using IRS e-file.
About a quarter of the 13 million taxpayers who requested an automatic six-month extension this year have yet to file. Although Oct. 15 is the last day for most people, some still have more time, including members of the military and others serving in combat zone localities who typically have until at least 180 days after they leave the combat zone to both file returns and pay any taxes due.
“If you still need to file, don’t forget that you can still file electronically through October 15,” said IRS Commissioner John Koskinen. “Many people may not realize they may be eligible to use Free File available on IRS.gov/freefile. Free File is free tax software that takes the guesswork out of return preparation. Even if you’re filing in the final days, filing electronically remains easy, safe and the most accurate way to file your taxes.”
Check Out Tax Benefits
Before filing, the IRS encourages taxpayers to take a moment to see if they qualify for these and other often-overlooked credits and deductions:
Health Care Tax Reporting
While most taxpayers will simply need to check a box on their tax return to indicate they had health coverage for all of 2014, there are also new lines on Forms 1040, 1040A and 1040EZ related to the health care law. Visit IRS.gov/aca for details on how the Affordable Care Act affects the 2014 return. This includes:
The Interactive Tax Assistant tool can also help determine if a taxpayer qualifies for an exemption, needs to make a payment or is eligible for the premium tax credit.
Taxpayers who intend to claim the Health Coverage Tax Credit for 2014 must first file an original 2014 tax return without claiming the HCTC, even if they have no other filing requirement . They can then file an amended return when the IRS issues further HCTC guidance. Visit irs.gov/hctc for updates.
E-file Now: It’s Fast, Easy and Often Free
The IRS urges taxpayers to choose the speed and convenience of electronic filing. Fast, accurate and secure, filing electronically is an ideal option for those rushing to meet the Oct. 15 deadline. The IRS verifies receipt of an e-filed return, and people who file electronically make fewer mistakes too. Of the nearly 144 million returns received by the IRS so far this year, about 86 percent or over 124 million have been e-filed.
Taxpayers who purchase their own software can also choose to e-file, and most paid tax preparers are now required to file their clients’ returns electronically.
Everyone can use Free File, either the brand-name software, offered by the IRS’s commercial partners to individuals and families with incomes of $60,000 or less, or online fillable forms, the electronic version of IRS paper forms available to taxpayers at all income levels.
Join the eight in 10 taxpayers who get their refunds faster by using direct deposit and e-file. Taxpayers can choose to have their refunds deposited into as many as three accounts. See Form 8888 for details.
Quick and Easy Payment Options
The IRS Direct Pay system offers taxpayers the fastest and easiest way to pay what they owe. Available through the Pay Your Tax Bill icon on IRS.gov, this free online system allows individuals to securely pay their tax bills or make quarterly estimated tax payments directly from checking or savings accounts without any fees or pre-registration. So far this year, more than 4.1 million tax payments totaling over $15 billion have been received from individual taxpayers through Direct Pay.
Taxpayers can also pay by debit or credit card. While the IRS does not charge a fee for this service, the payment processer will. Other e-pay options include the Electronic Federal Tax Payment System (pre-registration is required) and Electronic Funds Withdrawal which is available when e-Filing. Taxpayers can even e-pay what they owe using, IRS2Go , the agency’s popular mobile phone app. All of the electronic payment options are quick, easy and secure and much faster than mailing in a check or money order. Those choosing to pay by check or money order should make the payment out to the “United States Treasury.”
Taxpayers with extensions should file their returns by Oct. 15, even if they can’t pay the full amount due. By doing so, taxpayers will avoid the late-filing penalty, normally five percent per month, that would otherwise apply to any unpaid balance after Oct. 15. However, interest, currently at the rate of 3 percent per year compounded daily, and late-payment penalties, normally 0.5 percent per month, will continue to accrue.
Fresh Start for Struggling Taxpayers
In many cases, those struggling to pay taxes qualify for one of several relief programs. Most people can set up a payment agreement with the IRS on line in a matter of minutes. Those who owe $50,000 or less in combined tax, penalties and interest can use the Online Payment Agreement to set up a monthly payment agreement for up to 72 months or request a short-term payment plan. Taxpayers can choose this option even if they have not yet received a bill or notice from the IRS.
Taxpayers can also request a payment agreement by filing Form 9465. This form can be downloaded from IRS.gov and mailed along with a tax return, bill or notice.
Alternatively, some struggling taxpayers qualify for an Offer-in-Compromise. This is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. Generally, an offer will not be accepted if the IRS believes the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay. To help determine eligibility, use the Offer in Compromise Pre-Qualifier, a free online tool available on IRS.gov.
IRS YouTube Videos:
Details on all filing and payment options are on IRS.gov but as always please contact Tax On Wheels, LLC at 803 732-4288 if you need assistance with your tax filing obligations.
IR-2014-119, Dec. 29, 2014
WASHINGTON — Following the passage of the extenders legislation, the Internal Revenue Service announced today it anticipates opening the 2015 filing season as scheduled in January.
The IRS will begin accepting tax returns electronically on Jan. 20. Paper tax returns will begin processing at the same time.
The decision follows Congress renewing a number of “extender” provisions of the tax law that expired at the end of 2013. These provisions were renewed by Congress through the end of 2014. The final legislation was signed into law Dec 19, 2014.
“We have reviewed the late tax law changes and determined there was nothing preventing us from continuing our updating and testing of our systems,” said IRS Commissioner John Koskinen. “Our employees will continue an aggressive schedule of testing and preparation of our systems during the next month to complete the final stages needed for the 2015 tax season.”
The IRS reminds taxpayers that filing electronically is the most accurate way to file a tax return and the fastest way to get a refund. There is no advantage to people filing tax returns on paper in early January instead of waiting for e-file to begin.
More information about IRS Free File and other information about the 2015 filing season will be available in January.
Tax On Wheels, LLC is actively preparing for the coming tax season. We anticipate being up and running in advance of opening day. Please call us at 803 732-4288 if we can be of assistance to you in any way.
February 11, 2014. In a Youtube message to taxpayers from the new IRS Commissioner, John Koskinen, the public is encouraged to use electronic filing and warned to expect challenges in receiving IRS services including extended wait times for telephone callers. It is not unusual for callers to be on hold for significantly more than an hour.
If you want to spend hours of your life on hold with the IRS may the force be with you. But there is an alternative.
Did you know that tax professionals such as Tax On Wheels, LLC have special access to contact the IRS on your behalf. Depending on your needs, tax professionals can access electronic tools that are designed just for tax professionals. We also have a telephone number to the IRS that is not available to the general public. This can help us speed right to the area of the IRS that can help us solve your problem. So while your taxes may not be excessively complicated, it still helps to have the right tools for the job.
Give us a call if we can help you solve your tax problem. Tax On Wheels, LLC can be reached at 803 732-4288.
Which form should you use to file your federal income taxes? These days, most people use a computer to prepare and e-file their tax forms. It’s easy, because tax software selects the right form for you. If you file on paper, you’ll need to pick the right form to use.
If you still prefer paper and pen, here are some tips on how to choose the best form for your situation.
You can generally use the 1040EZ if:
The 1040A may be best for you if:
However, reasons you must use the 1040 include:
Read more about which form to use in IRS Publication 17, Your Federal Income Tax. The quickest way to get tax forms and instructions is to visit IRS.gov and click on the ‘Forms & Pubs’ tab. New tax forms often appear online well before the printed forms are available.
You can also have forms mailed to you by calling the IRS at 800-TAX-FORM (800-829-3676), or you can pick them up at a local IRS office. Some libraries and post offices also have tax forms.
Tax On Wheels, LLC is here to assist you with all of your tax filing needs. You can download many of the most commonly used forms here on our website. You also can prepare and electronically file your tax return here as well. Just click on that flashing blue button at the very top of the page to get started. If are eligible to file 1040EZ your federal return is free. Not everybody wants to prepare their own tax return, that’s why we are here. We help you the way you want to be helped. So give us a call at 803 732-4288
Columbia, SC (January 28, 2014) — The SC Department of Revenue (SCDOR) is reminding taxpayers that the 2014 individual income tax filing season opens Friday, January 31, 2014.
In accordance with the Internal Revenue Service, SCDOR will begin to accept electronic or paper individual income tax returns this Friday.
SCDOR encourages taxpayers to file their income tax returns electronically as it is not only beneficial to the taxpayer, but to the state as well due to the efficiency in processing times. Electronic filers may receive a refund in as little as 10 days, as compared to those who file a paper return, which could take an average of three weeks to receive a refund.
Whether filing electronically, via paper, or fillable form, taxpayers have three options for receiving a tax refund: direct deposit, prepaid debit card, or paper check. Direct deposit is the preferred method by DOR.
To learn more about filing your taxes electronically, or to check on the status of your refund, visit www.sctax.org or call the individual income tax section of SCDOR at (803) 898-5000.
Also, please feel free to contact Tax On Wheels, LLC at 803 732-4288 if you need any assistance with state for federal tax issues.
WASHINGTON — The Internal Revenue Service announced plans to open the 2014 filing season on Jan. 31 and encouraged taxpayers to use e-file or Free File as the fastest way to receive refunds.
The new opening date for individuals to file their 2013 tax returns will allow the IRS adequate time to program and test its tax processing systems. The annual process for updating IRS systems saw significant delays in October following the 16-day federal government closure.
“Our teams have been working hard throughout the fall to prepare for the upcoming tax season,” IRS Acting Commissioner Danny Werfel said. “The late January opening gives us enough time to get things right with our programming, testing and systems validation. It’s a complex process, and our bottom-line goal is to provide a smooth filing and refund process for the nation’s taxpayers.”
The government closure meant the IRS had to change the original opening date from Jan. 21 to Jan. 31, 2014. The 2014 date is one day later than the 2013 filing season opening, which started on Jan. 30, 2013 following January tax law changes made by Congress on Jan. 1 under the American Taxpayer Relief Act (ATRA). The extensive set of ATRA tax changes affected many 2012 tax returns, which led to the late January opening.
The IRS noted that several options are available to help taxpayers prepare for the 2014 tax season and get their refunds as easily as possible. New year-end tax planning information has been added to IRS.gov this week.
In addition, many software companies are expected to begin accepting tax returns in January and hold those returns until the IRS systems open on Jan. 31. More details will be available in January.
The IRS cautioned that it will not process any tax returns before Jan. 31, so there is no advantage to filing on paper before the opening date. Taxpayers will receive their tax refunds much faster by using e-file or Free File with the direct deposit option.
The April 15 tax deadline is set by statute and will remain in place. However, the IRS reminds taxpayers that anyone can request an automatic six-month extension to file their tax return. The request is easily done with Form 4868, which can be filed electronically or on paper.
IRS systems, applications and databases must be updated annually to reflect tax law updates, business process changes and programming updates in time for the start of the filing season.
The October closure came during the peak period for preparing IRS systems for the 2014 filing season. Programming, testing and deployment of more than 50 IRS systems is needed to handle processing of nearly 150 million tax returns. Updating these core systems is a complex, year-round process with the majority of the work beginning in the fall of each year.
About 90 percent of IRS operations were closed during the shutdown, with some major work streams closed entirely during this period, putting the IRS nearly three weeks behind its tight timetable for being ready to start the 2014 filing season. There are additional training, programming and testing demands on IRS systems this year in order to provide additional refund fraud and identity theft detection and prevention.
Give Tax On Wheels, LLC a call at 803 732-4288, we’re here to help.
The IRS has notified the industry that most of the remaining tax forms delayed because of the late approval of legislation will be approved for electronic filing and processed beginning Sunday March 3, 2013. We expect the kinks to be worked out and the system to be rocking and rolling by Monday March 4, 2013.
Those of you who have already completed the tax preparation process and are simply waiting for the approval of some specific form to enable filing of your tax return, please be patient with us as we work through the backlog. We understand the importance of getting your refund as soon as possible and we will be diligent in getting all returns submitted to the IRS.
The Alternative Minimum Tax may apply to you if your income is above a certain amount. Here are five facts the IRS wants you to know about the AMT:
1. You may have to pay the tax if your taxable income plus certain adjustments is more than the AMT exemption amount for your filing status.
2. The 2012 AMT exemption amounts for each filing status are:
3. AMT attempts to ensure that some individuals and corporations who claim certain exclusions, tax deductions and tax credits pay a minimum amount of tax.
4. You should use IRS e-file to prepare and file your tax return. You figure AMT using different rules than those you use to figure your regular income tax. IRS e-file software will determine if you owe AMT, and if you do, it will figure the tax for you.
5. If you file a paper return, use the AMT Assistant tool on IRS.gov to find out if you may need to pay the tax.
AMT can be confusing. Contact Tax On Wheels, LLC at 803 732-4288 if you need assistance determining your AMT liability.