by Renee Lawson | Jan 8, 2015 | Tax Preparation
This year there will be some changes to the number of direct deposits one account can accept from the IRS.
Source IRS – Direct Deposit Limits
“In an effort to combat fraud and identity theft, new IRS procedures effective January 2015 will limit the number of refunds electronically deposited into a single financial account or pre-paid debit card to three.”
This is an effort from the Internal Revenue Service to combat fraud from criminals from receiving mulitple refunds into one bank account or pre-paid debt card.
The second feature is to combat taxpreparers from spliting the taxpayers refund for fees using Form 8888.
“The new limitation also will protect taxpayers from preparers who obtain payment for their tax preparation services by depositing part or all of their clients’ refunds into the preparers’ own bank accounts. The new
direct deposit limits will help eliminate this type of abuse.”
Tax preparer fees cannot be deducted from a taxpayer in this manner.
Nor can the tax preparer open a joint account with the taxpayer to receive payment for tax preparation.
Any tax preparer who is trying to collect tax preparation fees using Form 8888 is subject to penalty.
You should avoid a taxpreparer who is trying to split your refund using Form8888.
We look forward to helping you file your taxes.
Your Tax and Financial Coach,
Paulette Marshall
by Renee Lawson | Jan 4, 2015 | Tax Preparation
The 2015 tax season date will be January 20, 2015.
“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.”
Source IRS – Tax Season Opens As Planned Following Extenders Legislation
The fastest way to receive your refund is through e-file.
The IRS also reminds taxpayers that electronic filing is the most accurate way to file your return. There is no
advantage in filing a paper return early. All returns will start being processed on the 2015 tax season date of
January 20. 2015.
With the 2015 tax season date announced we look forward to preparing your taxes in this new filing season.
Your Tax and Accounting Coach,
Paulette Marshall
by Paulette Marshall | Feb 13, 2014 | Tax Preparation
Currently the IRS is having a glitch with the Where Is My Refund site.
A few taxpayers are receiving a message with a Reference 1121.
Source IRS :IRS Statement on 1121
If you receive the message with Reference 1121 continue to check back with Where Is My Refund.
There are rumors on social media that say the IRS is auditing you if you receive the Referece 1121.
This is not true.
When you are being audited by the IRS you will receive notice by mail.
Most refunds are being processed with in 21 days.
To receive your refund faster use direct deposit.
Your Tax and Accounting Coach,
Paulette Marshall
by Paulette Marshall | Jan 23, 2014 | Tax Preparation
2014 tax season date is January 31, 2014.
Tax season will start later this year due to the 16 day government shut down.
The fastest way to receive your refund is through e-file.
Source IRS – 2014 Tax Season to Open Jan. 31; e-file and Free File Can Speed Refunds
“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.”
With the new 2014 tax season date you can still come into our office now to get your income return
prepared before January 31st.
Having a later 2014 tax season date our software will hold the returns until January 31st.
“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.”
Don’t let anyone fool you the IRS will not process returns before that date.
You will need all of your tax documents to file your income taxes this includes your W’2.
The April 15th deadline to file your income taxes on time is still in place.
You may still request a 6 month extension to file your taxes by filing form 4868.
Always remember that delays are possible with the new 2014 tax season date.
Many people will have sent in their returns to be processed on January 31st.
Make sure when you get ready to file your income taxes in 2014 that you received all your tax
documents.
Be patient with your preparer and the IRS there may be a system overload.
Your Tax and Accounting Coach,
Paulette Marshall
by Paulette Marshall | Oct 28, 2013 | Tax Preparation
Signs of a Lousy Tax Preparer
It’s almost that time of year again.
The 2014 tax filing season will be here before you know it.
I wanted to share some tips with you regarding finding a tax preparer.
I came across an article that I wanted to share about signs of a lousy tax preparer.
Source MSN – 5 signs of a lousy tax preparer
“Taxes are hard enough without having to deal with a lousy — or worse, unethical — tax preparer who could set you up for an unpleasant audit down the line.”
First sign of a lousy tax preparer is your preparer promises a big refund.
There is no way to know if your going to get a refund until the preparer looks at the documentation.
Second sign of a lousy tax preparer is the preparer doesn’t have the proper credentials.
Your preparer should have an IRS issued Preparer Tax Identication Number (PTIN).
Each year a preparer must renew this PTIN with the IRS.
Third sign of a lousy tax preparer is your refund is not deposited into your bank account.
There is no reason that your refund is sent to someone elses bank account.
Much fraud takes place with this kind of actions.
You may only receive part or none of your refund if this happens.
Fourth sign of a lousy tax preparer fee is based on a percentage of your refund.
We have had potential new clients ask us if the fees are based on their refund.
The answer here at Liberty Accounting Plus is no!
“Reputable tax-prep firms charge a flat fee for their services, based on the size and scope of your tax return.”
We agree! You don’t want someone to play with the numbers so that you get a refund and they profit your return.
Most likely when the IRS finds the mistake the lousy preparer will be long gone.
Fifth sign of a lousy tax preparer is they are on the list at the Better Business Bureau with complaints.
The is a sure sign to run.
Becareful when choosing a tax preparer.
You want someone that you can find if you get a notice from the IRS, State and local goverment.
by Renee Lawson | Oct 23, 2013 | Tax Preparation
2014 Tax Season
With the governement shut the IRS was 90% closed for the entire 16 days.
Source IRS – 2014 Tax Season to Start Later Following Government Closure; IRS Sees Heavy Demand As Operations Resume
The orginal start date for tax season for 2014 tax season was January 21st.
With the goverment shut down the delay could be a week or two.
The latest possible start date is February 4, for the 2014 tax season.
However, the last day of filing for 2014 tax season is April 15th.
“Readying our systems to handle the tax season is an intricate, detailed process, and we must take the time to get it right,” Werfel said. “The adjustment to the start of the filing season provides us the necessary time to program, test and validate our systems so that we can provide a smooth filing and refund process for the nation’s taxpayers. We want the public and tax professionals to know about the delay well in advance so they can prepare for a later start of the filing season.”
We wanted our clients to know about the possibility 2014 tax filing season delay.
We will update you again in December when the IRS plans to announce the actual start date.
As always refunds are issued you faster when you e-file with direct deposit.
You should still be preparing your documents and keeping receipts with 2014 tax season.
