A Tax Consultant for All Seasons

Your tax returns are filed and now you are not so patiently waiting for you refund.  Here is everything you need to know from the IRS about how to check on the status of your refund.  There estimation is that you should receive it in 6 to 8 weeks after  your return is received..a lot less if you put direct deposit information on your return. Follow the instructions below to keep track of the status.

You can check on the status of your refund 72 hours after you e-filed your return or four weeks after mailing your return. There are several ways to check the status of your refund. You will need your Social Security number, filing status and the exact whole dollar amount of your refund to use these applications.

• Where’s My Refund: The fastest, easiest way to find out about your current year refund is to go to the IRS.gov Web site and click on the “Where’s My Refund” link available from the home page.
• Refund Hotline:  Call the IRS Refund Hotline at 800-829–1954.
• TeleTax:  Call the IRS TeleTax System at 800-829-4477.
  If you do not get a date for your refund, wait until the next week before calling back.

In some circumstances, you may not receive your refund as quickly as you expected. Refund delays can be caused by a variety of reasons. For example, a name and Social Security number listed on the tax return may not match the IRS records. You may have failed to sign the return or include a necessary attachment, such as Form W-2, Wage and Tax Statement. Or you may have made math errors that require extra time for the IRS to correct.

• Where’s My Refund?

If you are in a panic and can’t get your return done by the April 15th deadline you do have an option. See below for important information from the IRS about filing an Extension of Time to File.Here are some things to remember about filing extensions:

• File Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, with the IRS by the April deadline, or make an extension-related electronic credit card payment.
• The extension will give you extra time to get your paperwork to the IRS, but it does not extend the time you have to pay any tax due.
• You will owe interest on any amounts not paid by the April deadline, plus a late payment penalty if you have paid less than 90 percent of your total tax by that date.
• You can e-file an extension request using tax preparation software on your own computer or by going to a tax preparer that has the software. The IRS will acknowledge receipt of the extension request if you file by computer.
• You can use Free File to file for an extension.  Many private-sector companies in the IRS Free File Alliance offer extensions for no charge. You can access Free File via the IRS Web site at IRS.gov.  Taxpayers with adjusted gross incomes of $54,000 or less may file their 2007 Federal Income Tax Returns electronically through Free File.

If you ask for an extension via computer, you can also choose to pay any expected balance due by authorizing an electronic funds withdrawal from a checking or savings account. You will need the appropriate bank routing and account numbers and must also have available the adjusted gross income from your 2006 federal income tax return to verify your identity.  For information on these and other methods of payment, visit the IRS.gov Web site or call 800-TAX-1040 (800-829-1040).

If your return is completed but you are unable to pay the full amount of tax due, do not request an extension. File your return on time and pay as much as you can. The IRS will send you a bill or notice for the balance due.

Form 4868, Application for Extension of Time to File U.S. Individual Income Tax Return (PDF 50K)

If you don’t have the money to pay your taxes, you do have options. Here are alternative payment options the IRS offers.

Pay by Credit Card You can charge your taxes on your American Express, MasterCard, Visa or Discover cards. To pay by credit card, contact one of the service providers at its telephone number or Web site listed below and follow the instructions. The service providers charge a convenience fee based on the amount you are paying. Do not add the convenience fee to your tax payment.

• • Link2Gov Corporation: 888-PAY-1040 (888-729-1040), www.pay1040.com
  • Official Payments Corporation: 800-2PAY-TAX (800-272-9829), www.officialpayments.com
• Extension of Time to Pay Based on the circumstances, a taxpayer could qualify for an extension of time to pay. The IRS is willing to allow extensions of time to pay in order to assist in tax debt repayment. A short term extension of time to pay can be requested through the Online Payment Agreement application at IRS.gov or by calling 800-829-1040. Taxpayers qualifying for an extension of time to pay of 30 -120 days generally will pay less in penalties and interest than if the debt were repaid through an installment agreement.
• Installment Agreement The IRS may allow you to pay any remaining balance in monthly installments through an installment agreement. You can apply for an IRS installment agreement using our Web-based Online Payment Agreement application on IRS.gov. Another alternative is to attach a Form 9465, Installment Agreement Request, to the front of your tax return. The IRS charges a $105 fee for setting up an installment agreement. The fee is only $52 if you pay via direct debit. If your income is below a certain level (see Form 13844), you may qualify for a $43 fee. You will also be required to pay interest plus a late payment penalty on the unpaid taxes for each month or part of a month, after the due date that the tax is not paid. If you do not file your return by the due date — including extensions — you may have to pay a failure-to-file penalty.

In most circumstances, the Online Payment Agreement application provides immediate notification regarding the approval of your request. There may be times when you will need to mail paperwork or speak with us before we can determine your eligibility for an installment agreement or short term extension to pay. If that is the case, the online application will provide an address and telephone number that can be used to reach the appropriate IRS office.

For more information about filing and paying your taxes, visit the IRS Web site at IRS.gov and choose “1040 Central” or refer to the Form 1040 Instructions or IRS Publication 17, Your Federal Income Tax. You can download forms and publications at IRS.gov or request a free copy by calling toll free 800-TAX-FORM (800-829-3676).

Remember that for the genuine IRS Web site be sure to use .gov. Don’t be confused by internet sites that end in .com, .net, .org or other designations instead of .gov. The address of the official IRS governmental Web site is www.irs.gov.

Electronic Payment Options

Here are some important tips from the IRS to make sure the payment you include with your tax return is applied correctly. Especially if you owe taxes from more than year, it is important that you have the payment applied to the correct year. You don’t want them to apply that payment for your 2007 taxes to a prior year and incur additional penalties and interest for having failed to pay your 2007 taxes by the deadline. Yes, this does happen, so be sure you follow these tips so your payment is applied correctly.

If you have a balance due when filing your 2007 income tax return, remember to make sure your tax payment check or money order is payable to the “United States Treasury.”  Complete and include Form 1040-V, Payment Voucher, when sending your payment and tax return to the IRS. This will help the IRS process your payment more accurately and efficiently.

Whether you are filing your current year’s return (2007), a prior year’s return or an amended return, always provide your correct name, address, the Social Security number that is listed first on the tax form, daytime telephone number, tax year and form number on the front of your check or money order. Enclose your payment with your return, but do not staple it to the form. Do not mail cash with your tax return.

If you are e-filing you have the option of paying by electronic debit of your bank account using Electronic Funds Withdrawal. You will need to know your account number and your financial institution’s routing number. You can check with your financial institution to make sure that an electronic withdrawal is allowed and to get the correct routing and account numbers.

If you are paying by credit card, call or visit the Web site of either service provider listed below and follow the instructions:

• Link2Gov Corporation: 888-PAY-1040 (888-729-1040), pay1040.com.
• Official Payments Corporation: 800-2PAY-TAX (800-272-9829), officialpayments.com.

The service providers charge a convenience fee which may vary between the providers. You will be told what the fee is during the transaction and you will have the option to either continue or cancel the transaction. You can also find out what the fee will be by calling the provider’s automated customer service number or visiting the provider’s website. You will be given a confirmation number for your payment at the end of the call.

The address of the official IRS governmental Web site is www.irs.gov.

Links:

• Electronic Payment Options
• www.pay1040.com
• www.officialpayments.com
• Form 1040-V, Payment Voucher (PDF 47K)
• Form 1040-ES, Estimated Tax for Individuals (PDF 294.9K)
• Publication 17, Your Federal Income

As the Big Day draws near, you may be panicking. What if I can’t pay all the taxes I owe. You wonder if you should file. The answer to that question is a big YES. Even if you can’t pay some or all of the taxes due, you should still file. If you don’t file, you will receive a failure to file penalty. Don’t think that the IRS might not realize you haven’t filed. Remember, they have every W2, 1099-Misc, 1099-INT, 1099-DIV, 1099-R that you received and it is easy for them to see that you had a filing requirement.

Every day, in my job as an Enrolled Agent, I work with client’s who have neither IRS Website or contact an Enrolled Agent to represent you before the IRS.

Ok, so now you have filed your return.  You checked and double checked, signed and mailed your return. Now if you are one of the lucky ones and are getting a refund, here are some tips from the IRS about how to track that refund.  Follow these tips if you have any questions about where your refund is.

You have several options for checking on the status of your refund.

One way is to use “Where’s My Refund?” an interactive tool on the IRS Web site at IRS.gov. Simple online instructions guide taxpayers through a process that checks the status of their refund after they provide identifying information shown on their tax return. Once the information is processed, you could get several responses, including:

• Acknowledgement that your return was received and is in processing.
• The mailing date or direct deposit date of your refund.
• Notice that the IRS could not deliver your refund due to an incorrect address. In this instance, you can change or correct your address online.

Where’s My Refund? is a very flexible tool. Whether you split your refund among several accounts, opt for direct deposit into one account, or ask IRS to mail you a check, Where’s My Refund? gives you online access to your refund information.

Where’s My Refund? also include links to customized information based on the taxpayer’s specific situation. The links guide taxpayers through the steps they need to take to resolve any issues that may be affecting their refund. For example, if you do not get the refund within 28 days from the original IRS mailing date shown on Where’s My Refund?, you can start a refund trace online.

The “Where’s My Refund?” service meets stringent IRS security and privacy certifications. Taxpayers enter identifying information that includes their Social Security number, filing status and the exact amount of the refund shown on the return. This specific information verifies that the person is authorized to access that account.

“Where’s My Refund?” is accessible to visually impaired taxpayers who use the Job Access with Speech screen reader used with a Braille display and is compatible with different JAWS modes.

Another option for checking the status of your refund is by calling the IRS TeleTax System at 800-829-4477 or the IRS Refund Hotline at 800-829-1954. When calling, you must provide the first Social Security number shown on the return, your filing status and the amount of the refund. If the IRS processed your return, the system will tell you the date your refund will be sent. The TeleTax refund information is updated each weekend. If you do not get a date for your refund, please wait until the next week before calling back

The address of the official IRS governmental Web site is www.irs.gov.

• Where’s My Refund?

If you don’t want a delay in processing your return and especially in getting that refund, here are some suggestions from the IRS to help you be sure your return in ready to mail and is completely processable.

• Sign your return Your federal tax return is not considered a valid return unless it is signed. If you are filing a joint return, your spouse also must sign.
• Provide a daytime phone number. This may help speed the processing of your return if the IRS has questions about items on your return.
• Assemble any schedules and forms behind your Form 1040/1040A in the order of the “Attachment Sequence No.” shown in the upper right hand corner of the schedule or form. Arrange any supporting statements in the same order as the schedules or forms they support and attach them last.
• Attach all copies of Forms W-2, W-2G and 2439 to the front of Form 1040. Also attach Form 1099-R if federal tax was withheld.
• Use the coded envelope included with your tax package to mail your return. If you did not receive an envelope, check the section called “Where Do You File?” in the tax instruction booklet.  Don’t forget the stamp!
• If you are due a refund, consider direct deposit to receive your refund in the quickest and safest manner. Then make sure that the financial institution routing and account numbers you have entered are accurate. Incorrect numbers can cause the refund to be delayed or misdirected.
• Do you owe tax? If so, enclose a check or money order made payable to the “United States Treasury” and Form 1040-V, Payment Voucher, if used. Make sure you include your correct name, address, the Social Security number that is listed first on the tax form, daytime telephone number, tax year and form number (i.e. Form 1040).  Or, you may choose to pay by credit card by contacting one of the credit card service providers.

For more information, refer to your tax instruction booklet or visit the IRS Web site at IRS.gov.

• Where Do You File?
• Form 1040-V, Payment Voucher (PDF 47K)

Here are the IRS’ recommendations for things you can do to ensure you return is accurate. Follow these instructions and save yourself the hassle of having the IRS have to send you notices about errors on your return. Trust me, getting those notices no matter how simple the mistake and how simple to fix, can stop your heart, when you get them in the mail!

• File electronically. If you choose to e-file, many common errors are avoided or corrected by the computer software. If your income is under $54,000 you may be able to e-file for free using IRS Free File.
• Use the peel-off label if you choose to mail a paper return. You may line through and make necessary corrections right on the label. Be sure to fill in your Social Security number in the box provided on the return. If you do not have a peel-off label, fill in all requested information clearly, including the Social Security numbers.
• Check only one filing status on the tax return and check the appropriate exemption boxes. Enter the correct Social Security numbers for each of those exemptions.
• Use the correct Tax Table column for your filing status.
• Double check all figures on the return. Math errors are common mistakes.
• Make sure that the financial institution routing and account numbers you have entered on the return for a direct deposit of your refund are accurate. Incorrect numbers can cause the refund to be delayed or misdirected.
• Sign and date the return. If filing a joint return, both spouses must sign and date the return.
• Attach all Forms W-2, Wage and Tax Statement, and other forms that reflect tax withheld to the front of the return. Attach all other necessary forms and schedules.
• Do you owe tax? If so, enclose a check or money order made payable to the “United States Treasury” and Form 1040-V, Payment Voucher, if used. Or, you may choose to pay by credit card by contacting one of the credit card service providers.

For a complete checklist and a listing of some of the most common errors, see Tax Topic 303 — Checklist of Common Errors When Preparing Your Tax Return. If you still have questions, contact an Enrolled Agent or tax consultant.

The IRS has published a list of tips for all those procrastinators out there. Take a look at all these tips and tips in the next few blogs to help you get  your return finished and filed on time.

• Consider filing electronically instead of using paper tax forms
• Put all required Social Security numbers on the return
• Double-check your figures
• Sign your form
• Attach all required schedules
• Send your return or request an extension by the April filing deadline

Taxpayers filing paper returns should also double-check that they have correctly figured the refund or balance due and have used the right figure from the tax table.

Taxpayers must sign and date their returns. Both spouses must sign a joint return, even if only one had income. Anyone paid to prepare a return must also sign it.

People sending a payment should make the check out to “United States Treasury” and should enclose it with, but not attach it to the tax return or the Form 1040-V, Payment Voucher, if used. The check should include the taxpayer’s Social Security number, daytime phone number, the tax year and the type of form filed.

By the April due date, taxpayers should either file a return or request an extension of time to file. Remember, the extension of time to file is not an extension of time to pay.

Forms and publications and helpful information on a variety of tax subjects are available around the clock on the IRS Web site at IRS.gov.

Remember that for the genuine IRS Web site be sure to use .gov.  Don’t be confused by internet sites that end in .com, .net, .org or other designations instead of .gov. The address of the official IRS governmental Web site is www.irs.gov.

• Form 1040-V, Payment Voucher (PDF 47K)
• Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return (PDF 50K)
• Official Payments Corporation
• Link2Gov

The IRS has just published new information about military pay and the new Economic Stimulus Package recently passed by congress. At the end of the information is a link to the IRS website for more information.

WASHINGTON — Military personnel serving in combat zones have the option of including their nontaxable combat pay on their 2007 or 2008 income tax returns if it helps their eligibility for the 2008 economic stimulus payments.

To receive the stimulus payment this year, combat zone personnel or their spouses must file a 2007 income tax return by Oct. 15. Otherwise, they can claim the economic stimulus payment on next year’s income tax return.

“The last thing we want our troops in Iraq or other war zones to worry about are their tax returns. But we do want the troops, and their families stateside, to know they may qualify for the economic stimulus payment,” said Linda E. Stiff, Acting Commissioner of the Internal Revenue Service.

Starting in May, the IRS will issue economic stimulus payments of up to $600 ($1,200 for married couples) plus a $300 payment for each qualifying child younger than 17. The payments are based on 2007 income tax returns. The payments for individuals will begin to phase out starting at $75,000 in adjusted gross income ($150,000 for married couples).

Even individuals and families who normally do not file a tax return because they have no filing requirement may qualify for an economic stimulus payment. They may be eligible for the minimum payment of $300 ($600 for married couples) plus the $300 for each qualifying child younger than 17.

People must have at least $3,000 in qualifying income to get a payment. Qualifying income is defined as any combination of earned income (such as wages or taxable income from self-employment), nontaxable combat pay and certain benefits from Social Security, Veterans Affairs and Railroad Retirement.

Military personnel who normally would not file an income tax return because their 2007 income is not taxable can file a simple Form 1040A with the IRS if they want to receive the economic stimulus payment. They should report their nontaxable combat pay on Line 40b of the Form 1040A to show at least $3,000 in qualifying income. The Department of Defense lists the amount of excluded combat pay, along with the designation, “Code Q,” in Box 12 of Forms W-2.

If a military person is serving in a combat zone, his or her normal tax filing requirement is extended until at least 180 days after leaving a combat zone. However, spouses or others with a power of attorney can prepare and file a 2007 income tax return on their behalf so that the stimulus payment is received this year.

The IRS has developed Package 1040A-3, an 8-page publication containing tax tips, a sample Form 1040A and a blank Form 1040A. The package, available at www.irs.gov, contains everything needed to file the return immediately.

To ensure that a stimulus payment will be received in 2008, the return must be filed by Oct. 15 to allow sufficient time for processing.

There are a number of special tax code provisions that apply to members of the military serving in combat zones. They include:

• All military pay earned by enlisted personnel or warrant officers is excluded from gross income;
• Monthly pay of up to $6,867.60 earned by commissioned officers is excluded from 2007 gross income.
• All military pay earned by enlisted personnel hospitalized because of injuries sustained in a combat zone is excluded from gross income during the period of hospitalization. The exclusion is limited to two years after the date of the termination of combatant activities in the combat zone.
• Commissioned officers hospitalized because of injuries sustained in a combat zone have a monthly maximum exclusion of $6,867.60 for 2007 and have the same two-year limitation.
• Military personnel who miss a tax filing deadline because they are in a combat zone have 180 days after they leave that combat zone to file a tax return, if they have taxable income.

All the provisions also apply to members of the Reserves and the National Guard.

The IRS reminds filers that they can get their stimulus payments faster by using direct deposit when they file their tax return.

In addition, the IRS urges people to file electronically. For people who normally are not required to file a tax return, the IRS and the Free File Alliance have a special program set up to allow for free electronic filing.  For those with computer access, IRS Free File –Economic Stimulus Payment is available at IRS.gov.

Related Items:

Economic Stimulus Payment Information Center