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Archive for Tax Refund

Tax Cuts And Jobs Act – Professor Annette Nellen Highlights Changes In Tax Legislation On Existing Tax Code

Tax Reform – A Few Provisions In Track Changes

I often find it helpful to see how tax legislation changes existing Internal Revenue Code sections. So, I took a few and made the modifications called for in P.L. 115-97 (12/22/17) (the Tax Cuts and Jobs Act), and show how they change the relevant Code section using track changes.  I also include the effective date information.  For the changes to 448, I also include a caution about how the favorable methods changes don’t apply to “tax shelters” which could include some limited partnerships and LLCs even though they don’t act like a typical tax shelter.

Here are the ones I modified:

Section 1 – tax rates including kiddie tax change

Section 62 – changes to AGI

Section 163 – changes to mortgage interest and the new interest limitation for non-small entities (and tax shelters – see comment above)

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Should You Use A Credit Card To Pay Your Taxes?

With tax filing season out of the way, paying off those tax bills that weren’t paid by April 18th is the next major concern for people. While there are a few options for payment agreements if you can’t afford to write a check for the full amount immediately, there’s also the option of paying your tax bill with a credit card. It can be less confusing than navigating IRS payment plans, and if your credit card has a nice rewards program, then it’s something to think about.

Depending on how much you owe in taxes and what terms your credit card offers, it may or may not be worth putting your tax bill on your credit card. Here are some of the pros and cons of using a credit card to pay your taxes and why you would or wouldn’t want to pursue this option.

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Get An Early Tax “Refund” By Adjusting Your Withholding And Foreign Accounts Reporting Requirements

Michael Davis, Tax Advisor, Tax Blog, Jamison, Pennsylvania, USA, TaxConnections

Get An Early Tax “Refund” By Adjusting Your Withholding

Each year, millions of taxpayers claim an income tax refund. To be sure, receiving a payment from the IRS for a few thousand dollars can be a pleasant influx of cash. But it means you were essentially giving the government an interest-free loan for close to a year, which isn’t the best use of your money.

Fortunately, there’s a way to begin collecting your 2018 refund now: You can review the amounts you’re having withheld and/or what estimated tax payments you’re making, and adjust them to keep more money in your pocket during the year. Read more

Non-Active Canadian Corporations Are Not Required To File A Corporate Tax Return…Or Are They?

Grant Gilmour, Tax Advisor, Tax Blog, Vancouver, Canada, TaxConnections

Non-resident corporations that have no activity in Canada during its fiscal year are not required to file a Canadian corporate tax return. However, without filing a Canadian corporate tax return, the Canada Revenue Agency (CRA) will not know that you did not have activity in Canada. Therefore, CRA may send you a letter requesting that a return is required to be filed.

If CRA requests that a return be filed, even though your company had no activity in Canada, you may be tempted to file a return in order to be in compliance. Read more

IRS Owes $1.1 Billion To Taxpayers In Unclaimed Tax Refunds For 2014 – Is This You?

Lance Morris, Tax Advisor, Bangkok, Thailand, Tax Blog, TaxConnections

US Expats – Have you filed your 2014 US Tax Return?

IRS Refunds worth $1.1 billion waiting to be claimed by those who have not filed 2014 federal income tax returns

Claim yours now before you are unable to do so – June 15 is the deadline for US Citizens Living Abroad

WASHINGTON ―Unclaimed federal income tax refunds totaling about $1.1 billion may be waiting for an estimated 1 million taxpayers who did not file a 2014 federal income tax return, according to the Internal Revenue Service.

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An Unexpected Refund From The IRS Spells S-C-A-M

Barry Fowler, Tax Advisor, Tax Blog, Houston, Texas, USA, TaxConnections

If you happen to notice an automatic deposit made in your bank account from the IRS or you get a refund check in the mail that you weren’t expecting, you are likely the victim of the latest tax scam.

On February 13th, the IRS released a warning to alert taxpayers to a fast growing new scam that uses stolen taxpayer’s information to fraudulently file taxes then deposit refunds into real bank accounts.

Once Deposit Is Made, The Criminals Make Contact

The IRS makes it clear that the criminals use a variety of tactics to get the fraudulent refund from the taxpayers. And, as the IRS points out the tactics are probably evolving, so you’ll want to stay alert.

In one version of the scam, criminals posing as debt collection agency officials acting on behalf of the IRS contacted the taxpayers to say a refund was deposited in error, and they asked the taxpayers to forward the money to their collection agency. Read more

IRS Alerts Taxpayers About Refund Scam

Thomas Kerester, Tax Ambassador, Tax Blog, Washington D.C., USA, TaxConnections

The IRS warns taxpayers of a new twist on an old scam. Criminals are depositing fraudulent tax refunds into individuals’ actual bank accounts, then attempting to reclaim the refund from the taxpayers.

Here are the basic steps criminals follow to carry out this scam. The thief:

  • Hacks tax preparers’ computers to steal taxpayer data.
  • Uses the stolen information to file tax returns as the taxpayers.
  • Has refunds deposited into taxpayers’ bank accounts.
  • Contacts their victims, telling them the money was mistakenly deposited into their accounts and asking them to return it.

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I Didn’t Receive My IRS Refund Check And My Address Has Changed

Daniel Gray, Tax Advisor, Tax Blog, Toronto, Canada, TaxConnections

Note that IRS will mail you notices and/or a check to the most recent address that it has on file for you. Of note:

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The Clawback: Receiving A Proper Refund

Very often there may be a Ponzi Scheme financial theft, in which certain taxpayers have profited since they made early investments and were paid unusual profits that did not exist. Often taxpayers in Ponzi Schemes that have benefited from the financial loss of others are called upon by a trustee to forfeit the profits made in the Ponzi Scheme. Read more

Where’s My Refund? – IRS Changes

John Stancil, Tax Connections

So you get all your tax information together early and go to your preparer so you can file your tax return early and get the refund quickly. Not so fast. Certain refunds will be delayed and will not be released by the IRS until February 15. This is due to a provision in the PATH Act, enacted by Congress in 2015, prohibiting the IRS from releasing certain refunds prior to February 15. This provision takes effect this year. Note that the 15th is the release date, so it will take a few more days for you to receive the refund. Read more

Is Your Refund Part Of The $1B Unclaimed?

Barry Fowler

If you haven’t filed your 2013 taxes you could have a refund among the more than $1 billion that the IRS has stated is unclaimed.

That’s right. Just recently the IRS stated that it has more than $1 billion worth of unclaimed tax refunds for people who have not filed their 2013 taxes. They indicate that there are roughly 1 million people who have not filed and have not claimed their refunds.

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IRS: Tax Refunds Could Be Delayed In 2017

MileIQ

The IRS has announced some people may have their tax refunds delayed next year. These tax refund delays are due to fraud prevention measures. Your refund is particularly likely to be delayed if you receive the earned income tax credit or additional child tax credit.

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