by Renee Lawson | Jan 8, 2015 | Tax Preparation
The Affordable Care Act (ACA) and its Possible Effects on You and Your Tax Return
We know you have a choice when choosing a tax professional, and we want to thank you for your business! We wanted inform you how the Affordable Care Act (ACA), sometimes also referred to as Obamacare, may impact all of us this tax season.
The ACA created the new Premium Tax Credit and the Individual Responsibility Payment that may affect your tax return this season.
More Complex Tax Returns
The entire filing process will be more complicated this year, with every tax return to now include new provisions related to health insurance. This year, many taxpayer returns will contain additional forms related to health care coverage. Tax returns will be more complicated and will take more time and expertise to complete.
Possible Reduced Refunds
The new Individual Responsibility Payment will be assessed by the IRS against taxpayers who do not indicate on their return that they either had health care coverage throughout 2014, and do not qualify for an exemption from the health care coverage requirement Learn More. This new payment amount is collected by the IRS as part of the new ACA law starting with 2014 returns. As a result, if the IRS subjects you to this payment amount, your refund may be less than you expected, or less than you received in past years.
Additionally, the IRS may adjust your refund (either up or down) if you currently receive health insurance through the Marketplace (sometimes also referred to as Obamacare) but the IRS determines that the information on file at the Marketplace is incorrect.
Who is Affected?
All taxpayers across the country are subject to the requirements of new ACA law. The federal government urges all consumers receiving coverage through the their federal or state Marketplace to report “life changes” that can affect their coverage as soon as the changes take place (such as changes in marital status, income, number of dependents, where you live, or disability status). The government urges you to report these changes so that insurance adjustments can be made immediately and tax refunds not affected as much.
Your Tax Professional’s Assistance
Now, more than ever, it benefits you to have the assistance of a tax professional familiar with the changes, laws, and tax forms associated with ACA. Your Tax Professional is here at Liberty Accounting Plus to assist you with the proper tax forms and with questions and problems that may arise.
You can find additional information on ACA online at IRS.gov.
If you didn’t get health coverage last year open enrollment is available until February 15, 2015. Check out www.healthcare.gov to enroll today. You can avoid penalties next filing season.
Please give us a call if you have any questions regarding the Affordable Care Act at 937-268-9004.
Your Tax and Accounting Coach,
Paulette Marshall
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.
