WASHINGTON — Refunds totaling just over $917 million may be waiting for an estimated 984,400 taxpayers who did not file a federal income tax return for 2009, the Internal Revenue Service announced today. However, to collect the money, a return for 2009 must be filed with the IRS no later than Monday, April 15, 2013.
The IRS estimates that half the potential refunds for 2009 are more than $500.
Some people may not have filed because they had too little income to require filing a tax return even though they had taxes withheld from their wages or made quarterly estimated payments. In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim a refund within three years, the money becomes property of the U.S. Treasury.
For 2009 returns, the window closes on April 15, 2013. The law requires that the return be properly addressed, mailed and postmarked by that date. There is no penalty for filing a late return qualifying for a refund.
The IRS reminds taxpayers seeking a 2009 refund that their checks may be held if they have not filed tax returns for 2010 and 2011. In addition, the refund will be applied to any amounts still owed to the IRS or their state tax agency, and may be used to offset unpaid child support or past due federal debts such as student loans.
By failing to file a return, people stand to lose more than refund of taxes withheld or paid during 2009. In addition, many low-and-moderate income workers may not have claimed the Earned Income Tax Credit (EITC). For 2009, the credit is worth as much as $5,657. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2009 were:
$43,279 ($48,279 if married filing jointly) for those with three or more qualifying children,
$40,295 ($45,295 if married filing jointly) for people with two qualifying children,
$35,463 ($40,463 if married filing jointly) for those with one qualifying child, and
$13,440 ($18,440 if married filing jointly) for people without qualifying children.
Tax On Wheels, LLC can help you claim your back refunds, but hurry, time is running out on 2009 returns. Give us a call at 803 732-4288.
The IRS is taking several steps to improve taxpayers’ ability to understand their refund status in 2013. To begin with, taxpayers will get a personalized refund date when they use Where’s My Refund? and the tool will have a new look. Where’s My Refund? will include a tracker that displays progress through 3 stages: (1) Return Received, (2) Refund Approved and (3) Refund Sent along with narrative that provides more detail such as the approved refund amount and the date the refund will be sent. Taxpayers will also be able to check on the status of their return sooner – within 24 hours after we’ve received an e-filed return or 4 weeks after a paper return is mailed.
Where’s My Refund? will provide a refund date as soon as the IRS processes the tax return and approves the refund. This means taxpayers won’t get an estimated refund date right away. Instead Where’s My Refund? will give each taxpayer personalized refund information based on the processing of his or her own tax return.
The IRS issued more than 9 out of 10 refunds to taxpayers in less than 21 days last year. The same results are expected in 2013.
The Publication 2043, previously the Refund Cycle Chart, has been re-purposed as IRS Refund Information Guidelines for the Tax Preparation Community. The new “What to expect for refunds in 2013” page on IRS.gov includes official IRS 2013 refund communications, including
Publication 2043, to help you prepare for the filing season.
Please contact Tax On Wheels, LLC at 803 732-4288 if you have questions or concerns about your tax refunds.
The IRS has some advice for taxpayers who missed the tax filing deadline.
Don’t panic but file as soon as possible. If you owe money the quicker you file your return, the less penalties and interest you will have to pay. Even if you have to mail us your return, the sooner we receive it, the better.
E-file is still your best option. IRS e-file programs are available for most taxpayers through the extension deadline – October 15, 2012.
Free File is still available. Check out IRS Free File at irs.gov/freefile. Taxpayers whose income is $57,000 or less will qualify to file their return for free through IRS Free File. For people who make more than $57,000 and who are comfortable preparing their own tax return, the IRS offers Free File Fillable Forms. There is no software assistance with Free File Fillable Forms, but it does the basic math calculations for you.
Pay as much as you are able. Taxpayers who owe tax should pay as much as they can when they file their tax return, even if it isn’t the total amount due, and then apply for an installment agreement to pay the remaining balance.
Installment Agreements are available. Request a payment agreement with the IRS. File Form 9465, Installment Agreement Request or apply online using the IRS Online Payment Agreement Application available at irs.gov.
Penalties and interest may be due. Taxpayers who missed the filing deadline may be charged a penalty for filing after the due date. Filing as soon as possible will keep this penalty to a minimum. And, taxpayers who did not pay their entire tax bill by the due date may be charged a late payment penalty. The best way to keep this penalty to a minimum is to pay as much as possible, as soon as possible.
Although it cannot waive interest charges, the IRS will consider reductions in these penalties if you can establish a reasonable cause for the late filing and payment. Information about penalties and interest can be found at Avoiding Penalties and the Tax Gap.
Refunds may be waiting. Taxpayers should file as soon as possible to get their refunds. Even if your income is below the normal filing requirement, you may be entitled to a refund of taxes that were withheld from your wages, quarterly estimated payments or other special credits. You will not be charged any penalties or interest for filing after the due date, but if your return is not filed within three years you could forfeit your right to the refund.
Please call Tax On Wheels, LLC at 803 732-4288 if you need assistance with your tax filing obligations.
Past due financial obligations can affect your current federal tax refund. The Department of Treasury’s Financial Management Service, which issues IRS tax refunds, can use part or all of your federal tax refund to satisfy certain unpaid debts.
Here are eight important facts the IRS wants you to know about tax refund offsets:
1. If you owe federal or state income taxes, your refund will be offset to pay those taxes. If you had other debt such as child support or student loan debt that was submitted for offset, FMS will apply as much of your refund as is needed to pay off the debt and then issue any remaining refund to you.
2. You will receive a notice if an offset occurs. The notice will include the original refund amount, your offset amount, the agency receiving the payment and its contact information.
3. If you believe you do not owe the debt or you are disputing the amount taken from your refund, you should contact the agency shown on the notice, not the IRS.
4. If you filed a joint return and you’re not responsible for the debt, but you are entitled to a portion of the refund, you may request your portion of the refund by filing IRS Form 8379, Injured Spouse Allocation. Attach Form 8379 to your original Form 1040, Form 1040A, or Form 1040EZ or file it by itself after you are notified of an offset. Form 8379 can be downloaded from the IRS website at www.irs.gov.
5. You can file Form 8379 electronically. If you file a paper tax return you can include Form 8379 with your return, write “INJURED SPOUSE” at the top left of the Form 1040, 1040A or 1040EZ. IRS will process your allocation request before an offset occurs.
6. If you are filing Form 8379 by itself, it must show both spouses’ Social Security numbers in the same order as they appeared on your income tax return. You, the “injured” spouse, must sign the form. Do not attach the previously filed Form 1040 to the Form 8379. Send Form 8379 to the IRS Service Center where you filed your original return.
7. The IRS will compute the injured spouse’s share of the joint return. Contact the IRS only if your original refund amount shown on the FMS offset notice differs from the refund amount shown on your tax return.
8. Follow the instructions on Form 8379 carefully and be sure to attach the required forms to avoid delays. If you don’t receive a notice, contact the Financial Management Service at 800-304-3107, Monday through Friday from 7:30 a.m. to 5 p.m. (Central Time).
Please contact Tax On Wheels, LLC at 803 732-4288 if you need assistance with this or any other tax issue.
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WASHINGTON — Refunds totaling more than $1 billion may be waiting for one million people who did not file a federal income tax return for 2008, the Internal Revenue Service announced today. However, to collect the money, a return for 2008 must be filed with the IRS no later than Tuesday, April 17, 2012.
The IRS estimates that half of these potential 2008 refunds are $637 or more.
Some people may not have filed because they had too little income to require filing a tax return even though they had taxes withheld from their wages or made quarterly estimated payments. In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim a refund within three years, the money becomes property of the U.S. Treasury.
For 2008 returns, the window closes on April 17, 2012. The law requires that the return be properly addressed, mailed and postmarked by that date. There is no penalty for filing a late return qualifying for a refund.
The IRS reminds taxpayers seeking a 2008 refund that their checks may be held if they have not filed tax returns for 2009 and 2010. In addition, the refund will be applied to any amounts still owed to the IRS, and may be used to offset unpaid child support or past due federal debts such as student loans.
By failing to file a return, people stand to lose more than refunds of taxes withheld or paid during 2008. Some people, especially those who did not receive an economic stimulus payment in 2008, may qualify for the Recovery Rebate Credit. In addition, many low-and moderate-income workers may not have claimed the Earned Income Tax Credit (EITC). The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2008 were:
For more information, visit the EITC Home Page on IRS.gov.
Current and prior year tax forms and instructions are available on the Forms and Publications page of IRS.gov or by calling toll-free 800-TAX-FORM (800-829-3676). Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for 2008, 2009 or 2010 should request copies from their employer, bank or other payer. If these efforts are unsuccessful, taxpayers can get a free transcript showing information from these year-end documents by ordering it on IRS.gov, filing Form 4506-T, or by calling 800-908-9946.
Individuals Who Did Not File a 2008 Return with a Potential Refund
| State | Individuals | Median
Potential Refund |
Total
Potential Refunds ($000)* |
|
Alabama |
18,400 | $641 | $15,738 |
|
Alaska |
5,800 | $641 | $5,952 |
|
Arizona |
29,000 | $558 | $24,913 |
|
Arkansas |
9,600 | $620 | $8,152 |
|
California |
122,500 | $595 | $112,201 |
|
Colorado |
20,500 | $589 | $18,909 |
|
Connecticut |
12,500 | $697 | $13,893 |
|
Delaware |
4,200 | $644 | $3,784 |
|
District of Columbia |
4,000 | $642 | $3,791 |
|
Florida |
70,400 | $650 | $66,974 |
|
Georgia |
35,800 | $581 | $30,661 |
|
Hawaii |
7,600 | $714 | $8,307 |
|
Idaho |
4,700 | $541 | $3,878 |
|
Illinois |
40,800 | $692 | $40,712 |
|
Indiana |
21,800 | $664 | $19,590 |
|
Iowa |
10,600 | $658 | $9,295 |
|
Kansas |
11,500 | $631 | $10,084 |
|
Kentucky |
12,300 | $640 | $10,501 |
|
Louisiana |
20,500 | $662 | $18,859 |
|
Maine |
4,000 | $579 | $3,248 |
|
Maryland |
24,600 | $641 | $22,591 |
|
Massachusetts |
23,900 | $699 | $22,957 |
|
Michigan |
33,300 | $660 | $30,903 |
|
Minnesota |
15,200 | $584 | $12,772 |
|
Mississippi |
9,900 | $591 | $8,254 |
|
Missouri |
21,600 | $593 | $18,213 |
|
Montana |
3,600 | $599 | $3,192 |
|
Nebraska |
5,100 | $623 | $4,371 |
|
Nevada |
14,500 | $619 | $13,381 |
|
New Hampshire |
4,300 | $733 | $4,518 |
|
New Jersey |
31,300 | $716 | $31,185 |
|
New Mexico |
8,000 | $611 | $7,420 |
|
New York |
60,300 | $686 | $61,240 |
|
North Carolina |
30,800 | $558 | $24,997 |
|
North Dakota |
2,000 | $625 | $1,895 |
|
Ohio |
36,400 | $622 | $31,018 |
|
Oklahoma |
16,800 | $620 | $14,787 |
|
Oregon |
18,500 | $527 | $14,819 |
|
Pennsylvania |
38,700 | $695 | $35,565 |
|
Rhode Island |
3,400 | $674 | $3,040 |
|
South Carolina |
12,200 | $547 | $10,158 |
|
South Dakota |
2,300 | $669 | $2,234 |
|
Tennessee |
18,400 | $626 | $16,130 |
|
Texas |
96,200 | $689 | $97,057 |
|
Utah |
7,800 | $536 | $6,676 |
|
Vermont |
1,700 | $647 | $1,410 |
|
Virginia |
30,800 | $624 | $28,670 |
|
Washington |
29,900 | $705 | $32,138 |
|
West Virginia |
4,300 | $687 | $4,068 |
|
Wisconsin |
14,100 | $592 | $11,885 |
|
Wyoming |
2,600 | $773 | $2,919 |
| Grand Total | 1,089,000 | $637 | $1,009,905 |
*Excluding the Earned Income Tax Credit and other credits.
We have been notified that the Where’s My Refund tool on the IRS website is not providing accurate information. Refunds are apparently being issued appropriately but the information is simply not available on Where’s My Refund.
This issue also applies to the IRS2Go Smartphone application as well.
On Saturday February 11, 2012 we notified you that the new IRS MeF system was experiencing technical difficulties and was being take off line for maintenance.
We have been notified that MeF is once again fully operational.
Hopefully this means that taxpayers will be able to experience the benefits of the MeF system, which primarily means much faster refund times.
The IRS is having issues with the Modernized e-File (MeF) System. MeF is the new and improved e-filing system being implemented this year by the IRS. The IRS has asked that transmitters send as many tax returns through the MeF system as possible in order to stress test the system. The IRS, however, has also retained the ability to process tax returns through the legacy system that was the primary vehicle for processing returns prior to the the current tax season. The IRS has now asked transmitters to revert to sending returns through the legacy system until they work out the bugs in the new MeF system over the next week or so.
The MeF system was supposed to speed up your receipt of tax refunds to a matter of days instead of a matter of weeks. However, taxpayers who had their tax returns sent through the MeF system have experienced delays in receiving their refunds. Also, there have been problems with information not displaying properly in the Where’s My Refund Tool on the IRS website. We have been told that this issue will also be resolved shortly.
There is nothing that individual taxpayers need to do regarding this issue aside from simply being aware of the possible delay in refunds. Everything is being handled by the cog turners at the IRS. Hopefully, everything will be resolved shortly.
Please give us a call at 803 732-4288 if you have questions about the status of your refund.
Direct deposit is the fastest, safest way to receive your tax refund. When a taxpayer combines e-file and direct deposit, the IRS will likely issue your refund in as few as 10 days.
Here are four reasons more than 79 million taxpayers chose direct deposit in 2011:
1. Security Thousands of paper checks are returned to the IRS by the U.S. Post Office every year as undeliverable mail. Direct deposit eliminates the possibility of your refund check being lost, stolen or returned to the IRS as undeliverable.
2. Convenience The money goes directly into your bank account. You won’t have to make a special trip to the bank to deposit the money yourself.
3. Ease When you’re preparing your return; simply follow the instructions on your return or in the tax software. Make sure you enter the correct bank account and bank routing numbers.
4. Options You can deposit your refund into multiple accounts. With the split refund option, taxpayers can divide their refunds among as many as three checking or savings accounts and up to three different U.S. financial institutions. Use IRS Form 8888, Allocation of Refund (Including Savings Bond Purchases), to divide your refund. A word of caution: Some financial institutions do not allow a joint refund to be deposited into an individual account. Check with your bank or other financial institution to make sure your direct deposit will be accepted. Additionally, Form 8888 should NOT be used to designate part of your refund to pay your tax preparer.
For more information about direct deposit of your tax refund and the split refund option, check the instructions for your tax form. Tax On Wheels, LLC is here to assist you with getting access to your refund as quickly as possible. For many years we have recommended direct deposit of your tax refunds and it remains the wisest choice for most taxpayers. And with the ability to deposit your refund into multiple bank accounts, joint tax filers can split the refund into their own individual bank accounts. You no longer have to worry about your spouse spending all of the refund before you get a chance to see your portion of it.
The Earned Income Tax Credit is a financial boost for workers earning $49,078 or less in 2011. Four of five eligible taxpayers filed for and received their EITC last year. The IRS wants you to get what you earned also, if you are eligible.
Here are the top 10 things the IRS wants you to know about this valuable credit, which has been making the lives of working people a little easier since 1975.
1. As your financial, marital or parental situations change from year to year, you should review the EITC eligibility rules to determine whether you qualify. Just because you didn’t qualify last year doesn’t mean you won’t this year.
2. If you qualify, the credit could be worth up to $5,751. EITC not only reduces the federal tax you owe, but could result in a refund. The amount of your EITC is based on your earned income and whether or not there are qualifying children in your household. The average credit was around $2,240 last year.
3. If you are eligible for EITC, you must file a federal income tax return and specifically claim the credit – even if you are not otherwise required to file. Remember to include Schedule EIC, Earned Income Credit when you file your Form 1040 or, if you file Form 1040A, use and retain the EIC worksheet.
4. You do not qualify for EITC if your filing status is Married Filing Separately.
5. You must have a valid Social Security number for yourself, your spouse – if filing a joint return – and any qualifying child listed on Schedule EIC.
6. You must have earned income. You have earned income if you work for someone who pays you wages, you are self-employed, you have income from farming, or – in some cases – you receive disability income.
7. Married couples and single people without children may qualify. If you do not have qualifying children, you must also meet the age and residency requirements, as well as dependency rules.
8. Special rules apply to members of the U.S. Armed Forces in combat zones. Members of the military can elect to include their nontaxable combat pay in earned income for the EITC. If you make this election, the combat pay remains nontaxable.
9. It’s easy to determine whether you qualify. The EITC Assistant, an interactive tool available on the IRS website, removes the guesswork from eligibility rules. Just answer a few simple questions to find out if you qualify and estimate the amount of your EITC.
10. Free help is available at Volunteer Income Tax Assistance sites to help you prepare and claim your EITC. If you are preparing your taxes electronically, the software will figure the credit for you. To find a VITA site near you, visit the IRS.gov website.
You can find a link to the EITC assistant on our Helpful Links page. Please give us a call at 803 732-4288 if we can help you with this or any other tax issue.