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

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

 

 

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.

Before choosing a tax preparer write down questions and interview them before making a

choice.

Your Tax and Accounting Coach,

Paulette Marshall

 

 

 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.

Your Tax and Accounting Coach,

Paulette Marshall

 

 

 

Filed under Tax Preparation by #

Unclaimed Tax Refunds

There are many reasons that millions of Americans don’t file their tax returns.

Unclaimed Tax Refunds

Unclaimed Tax Refunds

The main reason is fear of owing.

I was talking to some tax clients who stated that they had a friend who had not filed her tax

returns since the early 1980′s.

I explained that she is probably leaving money on the table by not filing.

So I wanted to share this article regarding  unclaimed tax refunds.

You only have 3 years to claim your tax refund from the year tax year that was due.

Right now the expiration is on for unclaimed tax refunds of 2009.

Source Yahoo News – $917M in unclaimed tax refunds to expire April 15

According to the IRS 917 million dollars in unclaimed tax refunds are set to expire.

This got me to thinking about the people who fail to file because they free that they owe.

You never know if you owe unless you prepare your return.

Having unclaimed tax refunds is losing money that you could use to pay bills or a prior debt

to the IRS.

Avoiding the IRS is not a good idea.

If you do owe taxes you can make payment arrangements.

Our tax firm is able to prepare your 2009 to present tax returns.

We can also make recommendations for changes to your W-4 so that you have enough

with-holdings from your pay check.

Your Tax and Accounting Coach,

Paulette Marshall

 

Starting this Sunday, February 10, 2013 the IRS will start accepting returns with

Form 4562 Depreciation and Amortization.

Source IRS –  IRS To Accept Tax Returns with Education Credits , Depreciation Next 

Week

“The IRS will be able to accept the education credits and depreciation forms

following the completion of reprogramming and testing of its systems. Work

continues on preparing IRS systems to accept the remaining tax forms affected

by the American Taxpayer Relief Act (ATRA) enacted by Congress on Jan. 2.”

If you have been waiting to get your return prepared due to this form you don’t

have to wait any longer.

The IRS is still working to release some other forms that have been delayed by

the American Taxpayer Relief Act.  These will be released in March.

I will keep you up to date as these forms are released.

Below is a full list of the remaining forms:

List of IRS forms that 1040 filers can begin filing in late February or into March 2013

The following tax forms will be accepted by the IRS in late February or into March

after updating forms and completing programming and testing of its processing

systems. A specific date will be announced in the near future.

  • Form 3800 General Business Credit
  • Form 4136 Credit for Federal Tax Paid on Fuels
  • Form 5074 Allocation of Individual Income Tax to Guam or the                       Commonwealth of the Northern Mariana Islands
  • Form 5471 Information Return of U.S. Persons With Respect to Certain                        Foreign Corporations
  • Form 5695 Residential Energy Credits
  • Form 5735 American Samoa Economic Development Credit
  • Form 5884 Work Opportunity Credit
  • Form 6478 Credit for Alcohol Used as Fuel
  • Form 6765 Credit for Increasing Research Activities
  • Form 8396 Mortgage Interest Credit
  • Form 8582 Passive Activity Loss Limitations
  • Form 8820 Orphan Drug Credit
  • Form 8834 Qualified Plug-in Electric and Electric Vehicle Credit
  • Form 8839 Qualified Adoption Expenses
  • Form 8844 Empowerment Zone and Renewal Community Employment Credit
  • Form 8845 Indian Employment Credit
  • Form 8859 District of Columbia First-Time Homebuyer Credit
  • Form 8864 Biodiesel and Renewable Diesel Fuels Credit
  • Form 8874 New Markets Credits
  • Form 8900 Qualified Railroad Track Maintenance Credit
  • Form 8903 Domestic Production Activities Deduction
  • Form 8908 Energy Efficient Home Credit
  • Form 8909 Energy Efficient Appliance Credit
  • Form 8910 Alternative Motor Vehicle Credit
  • Form 8911 Alternative Fuel Vehicle Refueling Property Credit
  • Form 8912 Credit to Holders of Tax Credit Bonds
  • Form 8923 Mine Rescue Team Training Credit
  • Form 8932 Credit for Employer Differential Wage Payments
  • Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit

Your Tax and Accounting Coach,

Paulette Marshall

IRS will start accepting Form 8863 February 14, 2013

Source IRS – IRS To Accept Tax Returns with Education Credits  

Now many Americans can file for the tuition and education credits that were not

available at the beginning of the filing season on January 30th.

“The IRS will be able to accept the education credits and depreciation forms

following the completion of reprogramming and testing of its systems.

Work continues on preparing IRS systems to accept the remaining tax forms

affected by the American Taxpayer Relief Act (ATRA) enacted by Congress on

Jan. 2.”

Make sure that you bring in your tuition statement to see if you qualify for the

credit.

Your Tax and Accounting Coach,

Paulette Marshall

Tax Season 2013

 

You can still bring your tax information into your preparer; however, the IRS will not start process the information until Jan. 30.

For many people who like to get their taxes done early must beware of companies promising to get refunds back on or before this date.

Source IRS – IRS Plans Jan.30 Tax Season Opening For 1040 Filers

“Following the January tax law changes made by Congress under the American Taxpayer Relief Act (ATRA), the Internal Revenue Service announced today it plans to open the 2013 filing season and begin processing individual income tax returns on Jan. 30.”

This article also offers a look at when most filers can plan on filing their returns.

The IRS will not process paper tax returns before the anticipated Jan. 30 opening date. There is no advantage to filing on paper before the opening date, and taxpayers will receive their tax refunds much faster by using e-file with direct deposit.

“The best option for taxpayers is to file electronically,” Miller said.

There are three forms that will have delays during this tax season:

1. Form 5695 Residential Energy Credit

2. Form 4562 Depreciation and Amortization

3. Form 3800 General Business Credit

Additional forms that may be delayed will be listed on IRS.gov.

We believe in keeping our clients updated with the most current tax information.

It’s time to file your tax returns.

Your Tax and Accounting Coach,

Paulette Marshall

Ghost Tax Return

In my 30 years of tax preparation many filers avoid submitting a return when they owe the IRS or the refund is not what they expect.

Ghost Tax Return

I recently came across an article about the Ghost Tax Return IRS will file for you if you don’t file your tax return.

“When the I.R.S. detects that a person had reportable income but did not file a return — even after much cajoling — it steps in and does the job itself.

It lists income, calculates the tax due, adds interest and a penalty for failing to file, and sends the recalcitrant taxpayer a bill based on its efforts.”

Source Yahoo Finance – If You Don’t File, Beware the Ghost Return

 

The article brings up many points to avoid the IRS filing a ghost tax return for you.

Now that many w-2 and self employment income is sent to the IRS electronically.

The IRS can see who has not filed a tax return.

“The substitute return is its move of last resort, said Anthony Burke, an I.R.S. spokesman, and is prepared only after sending the taxpayer several letters saying it has no record of a return for a given year.”

The IRS when filing your ghost tax return only goes by the standard deductions available and considers you as single.

The IRS does not consider any deductions that you may be eligible to deduct when you normally file a return.

When the IRS files your ghost tax return they charge you with penalty and interest.

Ignoring letters from the IRS doesn’t make the problem go away.

The IRS will file a ghost tax return if you ignore them.

It’s best to file your own tax return.

Have you received a ghost tax return???

It’s time to file your tax returns.

Your Tax and Accounting Coach,

Paulette Marshall