September 28, 2016
If you filed form 4868 to extend the tax filing deadline for your form 1040, the extended deadline for getting your tax return filed is fast approaching. October 15, 2016 is the statutory deadline, but since that date falls on a Saturday, the date is moved to the next business day, in this case Monday October 17, 2016.
It amazes me that when the human brain is given a deadline, it somehow determines that the best possible date to begin trying to meet that deadline is the 24 hours immediately preceding the deadline. While that may have worked for your 3rd grade spelling test, it tends to be problematic with tax returns.
Bottom line, time’s up. If you work with a preparer he or she needs the remaining time between now and the deadline to make sure your return is correct. If you are a do it yourselfer, you need the remaining time to make sure your return is correct.
Either way, it’s time to Get her done!
February 5, 2015
WASHINGTON—The Internal Revenue Service today announced the launch of a new, online public directory of tax return preparers. This searchable directory on IRS.gov will help taxpayers find a tax professional with credentials and select qualifications to help them prepare their tax returns.
“This new directory will be a practical tool for the millions of Americans who rely on the services of a paid return preparer,” said IRS Commissioner John Koskinen. “Taxpayers can also look to these tax professionals for help if they have questions about the new health care provisions on this year’s tax forms.”
The directory is a searchable, sortable listing featuring: the name, city, state and zip code of attorneys, CPAs, enrolled agents and those who have completed the requirements for the voluntary IRS Annual Filing Season Program (AFSP). All preparers listed also have valid 2015 Preparer Tax Identification Numbers (PTIN).
Taxpayers may search the directory using the preferred credentials or qualifications they seek in a preparer, or by a preparer’s location, including professionals who practice abroad. Tax return preparers with PTINs who are not attorneys, CPAs, enrolled agents or AFSP participants are not included in the directory, nor are volunteer tax return preparers who offer free services.
The directory can also be a resource for taxpayers who may want to get help from tax professionals on the Affordable Care Act tax provisions that affect returns filed this year.
The vast majority of people will only have to check a box on their federal income tax returns to indicate they had health coverage. Others may have Marketplace coverage with tax credits, have exemptions or need them, or may have to make a payment because they could afford to buy health insurance but chose not to.
The IRS provides extensive information on IRS.gov/aca to help taxpayers better understand the details of the new health care law. Many tax professionals, including those listed on the new directory, will be able to help taxpayers understand these changes.
More than 140 million individual tax returns were filed last year, and more than half of them were prepared with the help of a paid return preparer. To help taxpayers navigate the different types of professional tax help available, last December, the IRS unveiled IRS.gov/chooseataxpro, a page that explains the different categories of professionals. Taxpayers can also use a new partner page available on IRS.gov that provides links to the web sites of national non-profit tax professional groups, which can help provide additional information for taxpayers seeking the right type of qualified help.
The IRS also offers free tax return preparation for eligible taxpayers. But whether using a paid tax professional, relying on the help of a volunteer or preparing their own returns, taxpayers should consider preparing and filing their returns electronically. Electronic filing is the easiest way to file a complete and accurate tax return. There are a variety of electronic filing options, including IRS Free File for qualified taxpayers, commercial software and professional assistance.
In 2010, the IRS launched the Tax Return Preparer Initiative that generally requires anyone who prepares federal tax returns for compensation to obtain a PTIN from the IRS. As of the start of the filing season, more than 666,000 tax return preparers have active PTINs for 2015. Currently, anyone with a valid PTIN can prepare federal tax returns for compensation. At a minimum, taxpayers should make sure their tax preparer has a valid PTIN and includes it on the tax return.
Yes, Tax On Wheels, LLC requires all preparers to be listed or eligible to be listed in the directory. Please give us a call at 803 732-4288 if you have any questions.
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
For most taxpayers, the tax deadline has passed. But planning for next year can start now. The IRS reminds taxpayers that being organized and planning ahead can save time and money in 2014. Here are six things you can do now to make next April 15 easier.
1. Adjust your withholding. Each year, millions of American workers have far more taxes withheld from their pay than is required. Now is a good time to review your withholding to make the taxes withheld from your pay closer to the taxes you’ll owe for this year. This is especially true if you normally get a large refund and you would like more money in your paycheck. If you owed tax when you filed, you may need to increase the federal income tax withheld from your wages. Use the IRS Withholding Calculator at IRS.gov to complete a new Form W-4, Employee’s Withholding Allowance Certificate.
2. Store your return in a safe place. Put your 2012 tax return and supporting documents somewhere safe. If you need to refer to your return in the future, you’ll know where to find it. For example, you may need a copy of your return when applying for a home loan or financial aid. You can also use it as a helpful guide for next year’s return.
3. Organize your records. Establish one location where everyone in your household can put tax-related records during the year. This will avoid a scramble for misplaced mileage logs or charity receipts come tax time.
4. Shop for a tax professional. If you use a tax professional to help you with tax planning, start your search now. You’ll have more time when you’re not up against a deadline or anxious to receive your tax refund. Choose a tax professional wisely. You’re ultimately responsible for the accuracy of your own return regardless of who prepares it. Find tips for choosing a preparer at IRS.gov.
5. Consider itemizing deductions. If you usually claim a standard deduction, you may be able to reduce your taxes if you itemize deductions instead. If your itemized deductions typically fall just below your standard deduction, you can ‘bundle’ your deductions. For example, an early or extra mortgage payment or property tax payment, or a planned donation to charity could equal some tax savings. See the Schedule A, Itemized Deductions, instructions for the list of items you can deduct. Planning an approach now that works best for you can pay off at tax time next year.
6. Keep up with changes. Find out about tax law changes, helpful tips and IRS announcements all year by subscribing to IRS Tax Tips through IRS.gov or IRS2Go, the mobile app from the IRS. The IRS issues tips regularly during the summer and tax filing season.
You can get additional information about filing your tax return by calling Tax On Wheels, LLC at 803 732-4288.
The IRS offers several different ways to get tax return information or a copy of your own tax return for prior years. Here are options to help you get the information you need.
Additional IRS Resources:
If you received income during 2012, you may need to file a tax return in 2013. The amount of your income, your filing status, your age and the type of income you received will determine whether you’re required to file. Even if you are not required to file a tax return, you may still want to file. You may get a refund if you’ve had too much federal income tax withheld from your pay or qualify for certain tax credits.
You can find income tax filing requirements on IRS.gov. The instructions for Forms 1040, 1040A or 1040EZ also list filing requirements. The Interactive Tax Assistant tool, also available on the IRS website, is another helpful resource. The ITA tool answers many of your tax law questions including whether you need to file a return.
Even if you’ve determined that you don’t need to file a tax return this year, you may still want to file. Here are five reasons why:
1. Federal Income Tax Withheld. If your employer withheld federal income tax from your pay, if you made estimated tax payments, or if you had a prior year overpayment applied to this year’s tax, you could be due a refund. File a return to claim any excess tax you paid during the year.
2. Earned Income Tax Credit. If you worked but earned less than $50,270 last year, you may qualify for EITC. EITC is a refundable tax credit; which means if you qualify you could receive EITC as a tax refund. Families with qualifying children may qualify to get up to $5,891 dollars. You can’t get the credit unless you file a return and claim it. Use the EITC Assistant to find out if you qualify.
3. Additional Child Tax Credit. If you have at least one qualifying child and you don’t get the full amount of the Child Tax Credit, you may qualify for this additional refundable credit. You must file and use new Schedule 8812, Child Tax Credit, to claim the credit.
4. American Opportunity Credit. If you or someone you support is a student, you might be eligible for this credit. Students in their first four years of postsecondary education may qualify for as much as $2,500 through this partially refundable credit. Even those who owe no tax can get up to $1,000 of the credit as cash back for each eligible student. You must file Form 8863, Education Credits, and submit it with your tax return to claim the credit.
5. Health Coverage Tax Credit. If you’re receiving Trade Adjustment Assistance, Reemployment Trade Adjustment Assistance, Alternative Trade Adjustment Assistance or pension benefit payments from the Pension Benefit Guaranty Corporation, you may be eligible for a 2012 Health Coverage Tax Credit. Spouses and dependents may also be eligible. If you’re eligible, you can receive a 72.5 percent tax credit on payments you made for qualified health insurance premiums.
Want more information about filing requirements and tax credits? Contact Tax On Wheels, LLC at 803 732-4288.
But the IRS is not ready!
As we previously alerted you the IRS delayed the start of the tax filing season until January 30 due to late breaking legislation that was recently signed into law. Filing for many of the more complicated tax returns may be delayed until early March.
But Tax On Wheels, LLC is open and ready for business. Go ahead, give us a call and schedule your appointment so you can clear your desk. We will file your tax return as soon as the IRS is ready to accept and process the forms needed for your tax return.
Call us as soon as possible at 803 732-4288 so that you can be sure to get your preferred appointment time.
If you have been paying attention the past few months you may have noticed that the state of South Carolina has been on a bit of a tear actually locking people up for various tax offenses. Just scroll back through the posts on this blog this summer and you will find multiple instances of average Janes & Joes suffering the indignity of having their names published in the local paper for being arrested for tax offenses and needing to come up with bail money to get released from the local hoosegow.
In the past the public was normally treated with an annual spectacle of some semi-prominent individual (frequently a lawyer) who got caught on the wrong side of the law and was dragged out into the public square and humiliated as a warning to the rest of us that this is what happens to tax cheats. A big deal was made of it for a day or two and then everything returned to normal until next year when another public flogging would occur.
This was the pattern until earlier this year. Suddenly the pace quickened. The number of announced arrests turned into a torrent. Rarely did a week go by this summer when at least one and frequently several individual arrests were announced. I posted many of them here in this blog, but the frequency was just too much to post them all. It used to be a big deal when one of these arrests were made. Suddenly, there were so many arrests announced that it was newsworthy only if somebody wasn’t arrested. Typically these arrests were your garden variety knuckleheads who faked a W-2, failed to file at all or claimed a ridiculously large deduction or some such nonsense.
That was the way it was until today when the South Carolina Department of Revenue announced an arrest for “Conspiracy” (see the immediately preceding post). This is new and it represents a major new approach to the state’s tax law enforcement efforts. As Barney Fife might say, “Andy, this is big.”
From my vantage point, the threat of “conspiracy to commit tax fraud” was something I oftentimes used to rebut tax clients who wanted me to help them cook their numbers so that a particular outcome would be guaranteed. The conversation would go something like this: “I need X amount of dollars in tax refunds this year, tell me what numbers I need to put on my return to make sure that happens.” I usually could get that kind of conversation shut down simply by explaining how that could constitute “conspiracy” and then asking why I should risk going to jail so you can have a bigger refund. But in all honesty I never really expected that I would ever see conspiracy cases made. A conspiracy case requires evidence that is usually quite difficult to produce. Well, apparently, the South Carolina Department of Revenue didn’t get the memo. I am not sure how the state plans to prove conspiracy in court but they apparently feel confident enough of their evidence to actually make an arrest.
Those of us who try to play this game by the rules welcome the stepped up enforcement by any taxing authority, whether it be state or federal. But as citizens we all have a stake in making sure the authorities provide fairness and due process to those charged with tax crimes. It will be interesting to see how this and any similar cases play out in court. In the mean time, as always, I recommend that you get those back taxes caught up quickly. If we can help don’t hesitate to give Tax On Wheels, LLC a call at 803 732-4288.
There are many reasons to keep household records, including keeping track of your expenses, maintaining records for insurance purposes or getting a loan. You should have the same approach to managing your tax records.
You should keep all documents that may have an impact on your federal tax return. Records you should keep include bills, credit card and other receipts; invoices; mileage logs; canceled, imaged or substitute checks; proof of payments; and any other records to support deductions or credits you claim on your return.
Normally, you should keep these tax records for three years. It is a good idea to keep some documents longer, such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property documentation. Keeping accurate records after you file your taxes will help you with documentation and substantiation if your tax return is selected for an audit.
You should also keep copies of your tax returns as part of your tax records. They can help you prepare future tax returns, and you will need them if you file an amended return. Copies of your returns and records can be helpful to your survivor or the executor or administrator of your estate. You may also need tax returns from previous years for loan applications, to estimate tax withholding or because records were destroyed in a natural disaster or fire. If your original tax returns were lost or destroyed, you can obtain copies or transcripts. There are three options for obtaining your federal tax return information – on the web, by phone or by mail.
Beginning this year, IRS Taxpayer Assistance Centers generally will not accept bulk returns for processing and mailing, particularly when it affects taxpayer services. The IRS hopes to eliminate the practice of taxpayer representatives dropping off completed returns for processing, especially during peak operating periods.
The intent of this policy change is not to limit assistance to taxpayers or their authorized representatives. Nor is it intended to limit taxpayer representatives’ visits to support their clients, particularly in situations where the taxpayer is facing financial harm or undue hardship, such as delinquent returns or to start or stop an installment agreement. It is designed, primarily, to stop the practice of dropping off returns solely for processing and mailing when the returns can be mailed directly to the IRS processing center. The TACs will accept returns with imminent statute implications, with remittances or other situations where it’s in the best interest of the taxpayer and the Service to accept them.
Local TAC managers have the authority to make exceptions to this policy and will accept drop off returns if, in their opinion, tax preparation and other customer account services are not impacted.
The IRS encourages all tax preparers to take advantage of available e-file options to file returns electronically to avoid the need to have returns accepted and mailed at the local Taxpayer Assistance Center.