2020 & Tax Reporting

01.21.2020
Mega Refund

The year begins for 2020 reporting!

   The IRS is getting ready for this season starting January 27th, but alongside that preparation, there are grave warnings to the public on a heightened amount of scams during this month. Please be aware that the IRS is NOT making phone calls to the public and they will always send out notices via standard mail with an explanation of the reason for their notice. Here is an article published by the IRS in October of last year. 

IRS:

Taxpayers should be on the lookout for new variations of tax-related scams. In the latest twist on a scam related to Social Security numbers, scammers claim to be able to suspend or cancel the victim’s SSN. It’s yet another attempt by con artists to frighten people into returning ‘robocall’ voicemails.

Scammers may mention overdue taxes in addition to threatening to cancel the person’s SSN. If taxpayers receive a call threatening to suspend their SSN for an unpaid tax bill, they should just hang up.

Make no mistake…it’s a scam.

Taxpayers should not give out sensitive information over the phone unless they are positive they know the caller is legitimate. When in doubt –hang up. Here are some telltale signs of this scam. The IRS and its authorized private collection agencies will never:
Call to demand immediate payment using a specific payment method such as a prepaid debit card, iTunes gift card or wire transfer. The IRS does not use these methods for tax payments.
Ask a taxpayer to make a payment to a person or organization other than the U.S. Treasury.
Threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying.
Demand taxes be paid without giving the taxpayer the opportunity to question or appeal the amount owed.

Taxpayers who don’t owe taxes and have no reason to think they do should:
Report the call to the Treasury Inspector General for Tax Administration.
Report the caller ID and callback number to the IRS by sending it to phishing@irs.gov. The taxpayer should write “IRS Phone Scam” in the subject line.
Report the call to the Federal Trade Commission. When reporting it, they should add “IRS Phone Scam” in the notes.

Taxpayers who owe tax or think they do should:
View tax account information online at IRS.gov to see the actual amount owed and review their payment options.
Call the number on the billing notice
Call the IRS at 800-829-1040.

----------------------------------------------

Follow us on: Twitter/Instagram/Facebook at MegaRefundIncomeTax

-Mega Refund Staff

Avoid the rush!

Mega Refund

02.12.2019

The following is a short segment of the latest news from the IRS. Please read through and find out how this might impact your refund. 

Avoid the rush: Fastest way to check tax refund is ‘Where’s My Refund?’ tool at IRS.gov

IR-2019-12, February 12, 2019

WASHINGTON — Offering time-saving alternatives to a telephone call, the Internal Revenue Service reminds taxpayers they can get fast answers to their refund questions by using the “Where’s My Refund?” tool available on IRS.gov and through the IRS2Go app.

The IRS issues nine out of 10 refunds in less than 21 days, and the fastest way to get a refund is to use IRS e-file and direct deposit. Taxpayers claiming the Earned Income Tax Credit or the Additional ChildTax Credit will see their refunds, which by law must be held until mid-February, after Feb. 27.

The time around Presidents Day is a peak period for telephone calls to the IRS, resulting in longer than normal hold times for callers. Questions about tax refunds are the most frequent reason people call the IRS. People are encouraged to first check “Where’s My Refund?” or review the IRS Services Guide which links to many IRS online services.

Please note: Ordering a tax transcript will not speed delivery of tax refunds nor does the posting of a tax transcript to a taxpayer’s account determine the timing of a refund delivery. Calls to request transcripts for this purpose are unnecessary. Transcripts are available online and by mail at Get Transcript.

IRS telephone assistors can only research a refund’s status if it has been 21 days or more since the taxpayer filed electronically, six weeks since they mailed a paper return or if “Where’s My Refund?” directs a taxpayer to call.

Taxpayers can avoid the Presidents Day rush by using the "Where’s My Refund?" tool. All that is needed is the taxpayer’s Social Security number, tax filing status (single, married, head of household) and exact amount of the tax refund claimed on the return. Alternatively, taxpayers may call 800-829-1954 for the same information.

----------------------------------

For the full article please visit IRS.gov 

Follow us at our social media or our website at MegaRefundIncomeTax.com

-Mega Refund Staff 

Shutdown Impact on Tax Court Cases

Mega Refund
01.25.2019



The following is a short introduction to the blog(s) over the development between the Tax Court cases that will continue to delay those who are subject to pending decisions. 





IRS Update on Shutdown Impact on Tax Court Cases; Important Information for Taxpayers, Tax Professionals with Pending Cases


The United States Tax Court’s website announced that the Tax Court shut down operations on Friday, December 28, 2018, at 11:59 p.m. and will remain closed until further notice. The IRS reminds taxpayers and tax professionals the Tax Court website is the best place to get information about a pending case.

There are some important points for taxpayers and tax professionals to keep in mind. These are some questions and answers to help during the current appropriations lapse.
What should I do if a document I mailed or sent to the Tax Court was returned to me?

The Tax Court website indicates that mail sent to the court through the U.S. Postal Service or through designated private delivery services may have been returned undelivered. If a document you sent to the Tax Court was returned to you, as the Tax Court website indicates, re-mail or re-send the document to the Court with a copy of the envelope or container (with the postmark or proof of mailing date) in which it was first mailed or sent. In addition, please retain the original.

----------------------------------------------

Source can be found at IRS.GOV

Follow us for more on important tax law news.

-Mega Refund

A new tax year - 2019

Mega Refund
01.17.2019

INCOME TAX NEWS

This year has presented itself with a plentiful bounty of changes. Some changes that might be beneficial to you and others that might require you to review your future expenses as the current administration continues to iron out publication laws. The following below is a sample article from the IRS. 

-----------------------------------------


IR-2019-01, January 7, 2019

WASHINGTON ― Despite the government shutdown, the Internal Revenue Service today confirmed that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled.

“We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown. I appreciate the hard work of the employees and their commitment to the taxpayers during this period,” said IRS Commissioner Chuck Rettig.

Congress directed the payment of all tax refunds through a permanent, indefinite appropriation (31 U.S.C. 1324), and the IRS has consistently been of the view that it has authority to pay refunds despite a lapse in annual appropriations. Although in 2011 the Office of Management and Budget (OMB) directed the IRS not to pay refunds during a lapse, OMB has reviewed the relevant law at Treasury’s request and concluded that IRS may pay tax refunds during a lapse.

The IRS will be recalling a significant portion of its workforce, currently furloughed as part of the government shutdown, to work. Additional details for the IRS filing season will be included in an updated FY2019 Lapsed Appropriations Contingency Plan to be released publicly in the coming days. "

---------------------------------------------------

Full article at IRS.GOV

For more on the latest, subscribe and follow our social media's on Facebook and Twitter

-Mega Refund Staff

Data Book

Mega Refund
03.29.2018

Please read through the following article brought to you by the IRS! 

'IRS Releases Data Book for 2017'

IR-2018-77, March 29, 2018

WASHINGTON — The Internal Revenue Service today released the 2017 IRS Data Book, a snapshot of agency activities for the fiscal year.

The 2017 IRS Data Book describes activities conducted by the IRS from Oct. 1, 2016, to Sept. 30, 2017, and includes information about tax returns, refunds, examinations and appeals, illustrated with charts showing changes in IRS enforcement activities, taxpayer assistance levels, tax-exempt activities, legal support workload, and IRS budget and workforce levels when compared to fiscal year 2016. New to this edition is a section on taxpayer attitudes from a long-running opinion survey.

Revenue Collection, Returns Processing, Taxpayer Service, and Enforcement Actions
During fiscal year 2017, the IRS collected more than $3.4 trillion, processed more than 245 million tax returns and other forms and issued more than 121 million individual income tax refunds totaling almost $437 billion.

The IRS provided taxpayer assistance through almost a half billion visits to IRS.gov and helped more than 53 million taxpayers through different service channels, such as correspondence, toll-free telephone helplines or at walk-in sites. There were also more than 278 million inquiries to the “Where’s My Refund?” application.

Compared to the prior year, there were fewer audits and collection actions during fiscal year 2017. The IRS audited almost 934,000 individual income tax returns during the fiscal year, the lowest number of audits since 2003. The chance of being audited fell to 0.6 percent, the lowest coverage rate since 2002.

In fiscal year 2017, the IRS also continued a years-long effort to fight tax-related identity theft. The IRS Criminal Investigation Division completed 524 criminal investiga­tions of tax-related identity thefts.

Several collection actions fell during the fiscal year. IRS levies were down 32 percent compared to the prior year, and the agency filed about 5 percent fewer liens than in fiscal year 2016.

The IRS Data Book’s online format makes navigating data on taxpayer assistance, enforcement and IRS operations easier. The publication contains depictions of key areas and quick links to the underlying data.

-----------------------------------------

Full article can be found on IRS.gov

For more on the latest in tax news and updates, follow us on social media and our website at MegaRefundIncomeTax.com! 

-Mega Refund

The after presidents day rush!

02.20.2018
Mega Refund





The following is an brief summary article over the best methods on getting your answers over tax questions concerning the IRS! Enjoy!






IR-2018-31, Feb. 20, 2018

WASHINGTON — The Internal Revenue Service alerted taxpayers the day after Presidents Day marks the busiest day of the year for calls to the toll-free help line. The IRS reminded taxpayers that most answers to their tax questions can be quickly found on IRS.gov.

Taxpayers who call the IRS the day after Presidents Day can expect longer than usual wait times. Those who need to call can avoid the rush by waiting a day or two or by using online options to get their tax questions answered immediately.

To help taxpayers, the IRS has redesigned its website to make it easier to use, whether with a computer, smart phone or tablet. A good first stop is the IRS Services Guide, which provides an overview of the many IRS.gov tools available to taxpayers and tax professionals. For fast answers to general tax questions, taxpayers can search the Interactive Tax Assistant, Tax Topics, Frequently Asked Questions, Tax Trails and IRS Tax Map.

Those who have already filed can use the "Where’s My Refund?" tool to track their refund. Alternatively, they can call 800-829-1954 for automated refund information.

“Where’s My Refund?” is the best way to check the status of a refund. The application displays progress through three stages: (1) Return Received, (2) Refund Approved, and (3) Refund Sent. Taxpayers get personalized information based on the processing of their tax return. The tool provides an actual refund date after the IRS has approved a refund.

The IRS reminded taxpayers about a common misconception that requesting a tax transcript will help a taxpayer determine the status of their refund. The information included on a transcript does not necessarily reflect the amount or timing of a refund. Transcripts are best used to validate past income and tax filing status for loan applications and to help with tax preparation.

Taxpayers visiting IRS.gov will also find answers to tax questions about filing requirements and credits and deductions that may be available to them and can download forms and instructions. Taxpayers who owe additional tax can learn about payment options or what steps they can take online to create a payment agreement if they can’t pay what they owe all at once.

Employees who did not receive a Form W-2 from their employer should first contact their employer. If they receive no response by the end of February, they can call the IRS and the agency will contact the employer by mail. Taxpayers may have to use Form 4852, Substitute for Form W-2, and estimate wages and withholding by using their pay statements and other records.

Taxpayers must file their 2017 tax returns by April 17, 2018, or request a six-month extension. Extensions can be requested using Free File, by filing Form 4868 or by paying all or part of the estimated income tax due and indicating that the payment is for an extension using Direct Pay, the Electronic Federal Tax Payment System (EFTPS) or a credit or debit card. Taxpayers don’t have to file a separate extension form and they receive a confirmation number for their records.

---------------------------------------

The full article can be found on IRS.gov

For more on the latest tax news and updates, please follow us online on our social medias! Face Book Twitter and more on our website:  MegaRefundIncomeTax.com 

-Mega Refund Staff

Filing Scheme Emerges! Scam Alert!

02.03.2018
Mega Refund

As tax scams are on the rise, we encourage everyone to be on the look out of suspicious actives, both online and when you are on the phone. Thieves are always out to get your information and money!  The following article provides updated information on the IRS's attempt to stop fraud. 

"Tax Scams / Consumer Alerts"

Thousands of people have lost millions of dollars and their personal information to tax scams. Scammers use the regular mail, telephone, or email to set up individuals, businesses, payroll and tax professionals.

The IRS doesn't initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. Recognize the telltale signs of a scam. See also: How to know it’s really the IRS calling or knocking on your door

Scams Targeting Taxpayers
IRS-Impersonation Telephone Scams

A sophisticated phone scam targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be IRS employees, using fake names and bogus IRS identification badge numbers. They may know a lot about their targets, and they usually alter the caller ID to make it look like the IRS is calling.

Victims are told they owe money to the IRS and it must be paid promptly through a gift card or wire transfer. Victims may be threatened with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting. Victims may be told they have a refund due to try to trick them into sharing private information. If the phone isn't answered, the scammers often leave an “urgent” callback request.

Please See: Consumer Alert: Scammers Change Tactics, Once Again  (Article)

Some thieves have used video relay services (VRS) to try to scam deaf and hard of hearing individuals. Taxpayers are urged not trust calls just because they are made through VRS, as interpreters don’t screen calls for validity. For details see the IRS video: Tax Scams via Video Relay Service.  (YouTube)

Limited English Proficiency victims are often approached in their native language, threatened with deportation, police arrest and license revocation, among other things. IRS urges all taxpayers caution before paying unexpected tax bills. Please see: IRS Alerts Taxpayers with Limited English Proficiency of Ongoing Phone Scams.  (Article)

Note that the IRS doesn't:

Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail you a bill if you owe any taxes.
Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.
Demand payment without giving you the opportunity to question or appeal the amount they say you owe.
Ask for credit or debit card numbers over the phone.

-----------------------------------

Full article can be found on IRS.gov

For more on the latest information, facts and news on Income Tax laws please follow us online at MegaRefundIncomeTax.com

-Mega Refund Staff

2018 Tax Filing Season Begins!

Mega Refund
01.10.2018

2018 Tax Filing Season Begins Jan. 29, 

Tax Returns Due April 17; Help Available for Taxpayers

 The following information provided by the Internal Revenue Service, regarding the 2017-18 income tax year. 

WASHINGTON ― The Internal Revenue Service announced today that the nation’s tax season will begin Monday, Jan. 29, 2018 and reminded taxpayers claiming certain tax credits that refunds won’t be available before late February.

The IRS will begin accepting tax returns on Jan. 29, with nearly 155 million individual tax returns expected to be filed in 2018. The nation’s tax deadline will be April 17 this year – so taxpayers will have two additional days to file beyond April 15.

Many software companies and tax professionals will be accepting tax returns before Jan. 29 and then will submit the returns when IRS systems open. Although the IRS will begin accepting both electronic and paper tax returns Jan. 29, paper returns will begin processing later in mid-February as system updates continue. The IRS strongly encourages people to file their tax returns electronically for faster refunds.

The IRS set the Jan. 29 opening date to ensure the security and readiness of key tax processing systems in advance of the opening and to assess the potential impact of tax legislation on 2017 tax returns.

The IRS reminds taxpayers that, by law, the IRS cannot issue refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) before mid-February. While the IRS will process those returns when received, it cannot issue related refunds before mid-February. The IRS expects the earliest EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards starting on Feb. 27, 2018, if they chose direct deposit and there are no other issues with the tax return.

The IRS also reminds taxpayers that they should keep copies of their prior-year tax returns for at least three years. Taxpayers who are using a tax software product for the first time will need their adjusted gross income from their 2016 tax return to file electronically. Taxpayers who are using the same tax software they used last year will not need to enter prior-year information to electronically sign their 2017 tax return. Using an electronic filing PIN is no longer an option. Taxpayers can visit IRS.gov/GetReady for more tips on preparing to file their 2017 tax return.
April 17 Filing Deadline

The filing deadline to submit 2017 tax returns is Tuesday, April 17, 2018, rather than the traditional April 15 date. In 2018, April 15 falls on a Sunday, and this would usually move the filing deadline to the following Monday – April 16. However, Emancipation Day – a legal holiday in the District of Columbia – will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday, April 17, 2018. Under the tax law, legal holidays in the District of Columbia affect the filing deadline across the nation.

The IRS also has been working with the tax industry and state revenue departments as part of the Security Summit initiative to continue strengthening processing systems to protect taxpayers from identity theft and refund fraud. The IRS and Summit partners continued to improve these safeguards to further protect taxpayers filing in 2018.

----------------------------------------------------------

Full article, please visit IRS.GOV 

For more on the latest in tax news and information, follow us on Facebook & Twitter. 

-Mega Refund

IRS Offers to Help Students!

04.03.2017
Mega Refund

If you're a student, please read through this article from the IRS!

IRS Offers Help to Students, Families to Get Tax Information for Student Financial Aid Applications

Update March 30, 2017: Internal Revenue Service (IRS) and U.S. Department of Education Office of Federal Student Aid (FSA) Statement‎ about the IRS Data Retrieval Tool (DRT)

You must have information from your tax return in order to file a Free Application for Federal Student Aid (FAFSA®) or apply for an income-driven repayment plan.

The IRS Data Retrieval Tool (DRT) used to access your tax information for the FAFSA and income-driven repayment (IDR) plan applications is currently unavailable.

This does not limit an individual’s ability to apply for aid or an IDR plan. Applicants can manually provide their tax return information. The online FAFSA and IDR applications remain operational, and applicants can continue filing the FAFSA or applying for an IDR plan as they normally would.

Getting Your 2015 Tax Return Information For the 2016–17 and 2017–18 FAFSA

Applicants filing a 2016–17 or 2017–18 FAFSA must use data from their 2015 tax returns.

You should always retain a copy of your tax return, either electronically or on paper, and keep it in a secure place.

If you did not keep a copy of your tax return, here are some options:

Access the tax software product you used to prepare and file your 2015 return. You may be able to access your account to download/print a copy.
Contact the tax preparer/provider who filed your 2015 return if you used a tax professional.
Download your tax transcript (a summary) at Get Transcript Online. Review the rigorous identity authentication requirements for Secure Access before attempting to register.
Use Get Transcript by Mail and a transcript will be mailed to the address on your return within five to 10 days.
Call our automated line at 800-908-9946 to order a transcript by mail.

If you filed an amended tax return, Form 1040X, you should use the adjusted gross income and earned income listed on your revised tax return.

----------------------------------------------------------------------------

Source information found at IRS.gov

For more on the latest tax news and updates, follow us here at Blogger or our website at MegaRefundIncomeTax.com !

-Mega Refund Staff

Get your Transcript

03.14.2017
Mega Refund

Getting a hold of your information for the filing season!

  For most during the tax season, it becomes a struggle to gather up all of your personal income tax forms and information. For some, the process may become a horrific case of LOST or MISSING forms (often, not easily replaced). In an effort to help reduce filing time and help tax payers retrieve missing information for their current (or past) filing year(s), the IRS has implemented:

GET TRANSCRIPT BY MAIL

&

GET TRANSCRIPT ONLINE

  As quoted on the IRS.gov site: "You can get various Form 1040-series transcript types online or by mail. If you need your prior year Adjusted Gross Income (AGI) to e-file, choose the tax return transcript type when making your request. If you only need to find out how much you owe or verify payments you made within the last 18 months, you can view your tax account. "



  The service is available through out the season and off-season for the convenience of the tax payer. When using the service, please calculate for wait times and information needed for requesting information from the 'Get Transcript' application. For more information on the 'Get Transcript' application or any other IRS services, please follow the link below!



https://www.irs.gov/individuals/get-transcript





--------------------------------------------------------------------------------------------------------------------------

Source information found at IRS.gov

For more on the latest tax laws and IRS news, follow our Blogger, Facebook or Twitter! MegaRefundIncomeTax.com

-Mega Refund Staff

990 EZ for Exempt Organizations!

02.23.2017
Mega Refund


Please read the brief summary on the latest changes for Tax Exempt Organizations by the IRS!


IRS Releases Updated Form 990-EZ; New Options to Help Exempt Organizations Avoid Errors, File a More Accurate Return


WASHINGTON — The IRS announced today the release of an updated Form 990-EZ, Short Form Return of Organization Exempt From Income Tax, that will help tax-exempt organizations avoid common mistakes when filing their annual return.

The updated Form 990-EZ includes 29 “help” icons describing key information needed to complete many of the fields within the form. The icons also provide links to additional helpful information available on IRS.gov. These “pop-up” boxes share information to help small and mid-size exempt organizations avoid common mistakes when filling out the form and filing their return.

“We’ve been reviewing the areas of the form where exempt organizations encounter the most trouble,” said IRS Commissioner John Koskinen. “One out of three paper filers has an error on their form. After reviewing these trouble spots, we developed this new option to help groups navigate the form. This common-sense approach is designed to make it easier for exempt organizations to avoid problems up front – and avoid getting a follow-up contact from the IRS.”

On the new form, the help icons are marked in boxes with a blue question mark. The icons and underlying links work on any device with Adobe Acrobat Reader and Internet access. Once completed, filers can print Form 990-EZ and mail it to the IRS.

Although many large exempt organizations are required to file Form 990-series information returns electronically, the IRS encourages all exempt organizations to consider filing electronically.

In 2016, the error rate for electronically-filed 990-EZ returns was only 1 percent, compared to the 33 percent error rate in paper-filed returns. In 2016, the IRS processed over 263,000 Forms 990-EZ, with the majority of the filings – 139,000 -- on paper.

A list of providers assisting with electronic filing is available on IRS.gov.

Exempt organizations should keep in mind that the new help icons do not replace the Form 990-EZ instructions. Filers should review the Form’s instructions when completing a return and use the help icons as an additional tool.

The IRS also reminds exempt organizations that Form 990-series returns are due on the 15th day of the fifth month after an organization’s tax year ends. Many organizations use the calendar year as their tax year, making May 15, 2017, the deadline to file for tax year 2016.

------------------------------------------------

Source information found at IRS.GOV

For more on the latest tax news and updates, please follow us on Facebook,Twitter,Blogger and MegaRefundIncomeTax.com !

-Mega Refund Staff

Avoid the RUSH!

02.17.2017
Mega Refund


Please read the following article by the IRS to avoid the sudden rush towards filing during the later part of February!

Avoid the Rush: EITC and ACTC Refunds Expected to Arrive the Week of Feb. 27

WASHINGTON — As the IRS begins releasing refunds for taxpayers who claimed the Earned Income Tax Credit and the Additional Child Tax Credit, the tax agency reminded taxpayers that they should not expect refunds to be available in bank accounts or on debit cards until the week of Feb. 27. The additional time is due to several factors, including weekends, the Presidents Day holiday and the time banks often need to process direct deposits.

Many of these refunds had been held since the filing season started in late January due to new requirements the 2015 Protecting Americans from Tax Hikes (PATH) Act.

The IRS reminds taxpayers that the most common question taxpayers have about the status of their refund can easily be answered on IRS.gov by visiting the “Where’s My Refund?” tool. “Where’s My Refund?” will be updated Feb. 18 for the vast majority of early filers who claimed the Earned Income Tax Credit or the Additional Child Tax Credit. Before Feb. 18, some taxpayers may see a projected date or a message that the IRS is processing their return. The IRS added that “Where’s My Refund?” is only updated once daily, usually overnight, so there’s no need to check it multiple times per day.

Here are a few important things to know about tax refunds:

Nine out of 10 refunds are issued in less than 21 days.

IRS customer service representatives cannot provide individual refund information before the 21 days has elapsed.

The filing season started later this year, on Jan. 23. Although taxpayers could submit returns with a software provider or tax preparer in early January, the return was not filed with the IRS until the filing season opened.

“Where’s my Refund?” can also be accessed through the mobile app, IRS2Go. 

“Where’s My Refund?” is updated once daily. Checking the tool multiple times each day will not produce new information or different results.

The Get Transcript tool will not reveal a tax refund status, despite the social media myth to the contrary.

------------------------------------------------------------

Source article found at IRS.gov. 

For more on the latest in Tax law news and updates, follow us on Facebook/Twitter/Blooger or at MegaRefundIncomeTax.com

-Mega Refund Staff

Dirty Dozen: Series of Tax Scams Report!

02.06.2017

Mega Refund

Please take a moment to read this article about the heightened scams for the 2017 tax season.

Article Published by IRS.gov


IRS “Dirty Dozen” Series of Tax Scams for 2017 Includes Return Preparer Fraud; Choose Reputable Return Preparers




IR-2017-23, Feb. 6, 2017

WASHINGTON — The Internal Revenue Service today warned taxpayers to be on the lookout for unscrupulous return preparers, one of the most common “Dirty Dozen” tax scams seen during tax season.

The vast majority of tax professionals provide honest, high-quality service. But there are some dishonest preparers who set up shop each filing season to perpetrate refund fraud, identity theft and other scams that hurt taxpayers. That's why unscrupulous preparers who prey on unsuspecting taxpayers with outlandish promises of overly large refunds make the Dirty Dozen list every year.

"Choose your tax return preparer carefully because you entrust them with your private financial information that needs to be protected," said IRS Commissioner John Koskinen. "Most preparers provide high-quality service but we run across cases each year where unscrupulous preparers steal from their clients and misfile their taxes."

Return preparers are a vital part of the U.S. tax system. About 60 percent of taxpayers use tax professionals to prepare their returns.

Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice (DOJ) to shutdown scams and prosecute the criminals behind them.

Choosing Return Preparers Carefully

It is important to choose carefully when hiring an individual or firm to prepare a tax return. Well-intentioned taxpayers can be misled by preparers who don’t understand taxes or who mislead people into taking credits or deductions they aren’t entitled to in order to increase their fee. Every year, these types of tax preparers face everything from penalties to jail time for defrauding their clients.

Here are a few tips when choosing a tax preparer:
Ask if the preparer has an IRS Preparer Tax Identification Number (PTIN). Paid tax return preparers are required to register with the IRS, have a PTIN and include it on tax returns.

Inquire whether the tax return preparer has a professional credential (enrolled agent, certified public accountant, or attorney), belongs to a professional organization or attends continuing education classes. A number of tax law changes can be complex. A competent tax professional needs to be up-to-date in these matters. Tax return preparers aren’t required to have a professional credential. The IRS website has more information regarding the national tax professional organizations.

Check the preparer’s qualifications. Use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This tool can help locate a tax return preparer with the preferred qualifications

The Directory is a searchable and sortable listing of certain preparers registered with the IRS. It includes the name, city, state and zip code of:
Attorneys
CPAs
Enrolled Agents
Enrolled Retirement Plan Agents
Enrolled Actuaries
Annual Filing Season Program participants

Check the preparer’s history. Ask the Better Business Bureau about the preparer. Check for disciplinary actions and the license status for credentialed preparers. For CPAs, check with the State Board of Accountancy. For attorneys, check with the State Bar Association. For Enrolled Agents, go to IRS.gov and search for “verify enrolled agent status” or check the Directory.

Ask about service fees. Avoid preparers who base fees on a percentage of their client’s refund or boast bigger refunds than their competition. Don’t give your tax documents, SSNs, and other information to a preparer when only inquiring about their services and fees. Unfortunately, some preparers have improperly filed returns without the taxpayer’s permission once the records were obtained.

Ask to e-file your return. Make sure your preparer offers IRS e-file. Paid preparers who do taxes for more than 10 clients generally must file electronically. The IRS has processed more than 1.5 billion e-filed tax returns. It’s the safest and most accurate way to file a return.

Provide records and receipts. Good preparers will ask to see your records and receipts. They’ll ask questions to determine your total income, deductions, tax credits and other items. Do not rely on a preparer who is willing to e-file your return using your last pay stub instead of your Form W-2. This is against IRS e-file rules.

Make sure the preparer is available. In the event questions come up about your tax return, you may need to contact your preparer after the return is filed. Avoid fly-by-night preparers.

Understand who can represent you. Attorneys, CPAs, and enrolled agents can represent any client before the IRS in any situation. Annual Filing Season Program participants may represent you in limited situations if they prepared and signed your return. However, non-credentialed preparers who do not participate in the Annual Filing Season Program may only represent clients before the IRS on returns they prepared and signed on or before Dec. 31, 2015.

Never sign a blank return. Don’t use a tax preparer that asks you to sign an incomplete or blank tax form.

Review your return before signing. Before you sign your tax return, review it and ask questions if something is not clear. Make sure you’re comfortable with the accuracy of the return before you sign it and that your refund goes directly to you – not into the preparer’s bank account. Reviewing the routing and bank account number on the completed return is always a good idea.

Report abusive tax preparers to the IRS. You can report abusive tax return preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer. If you suspect a return preparer filed or changed the return without your consent, you should also file Form 14157-A, Return

Preparer Fraud or Misconduct Affidavit. You can get these forms on IRS.gov. 

---------------------------------------

Full article on IRS.gov

For more on the latest in tax news and updates, follow us online at Facebook/Twitter/Blogger or MegaRefundIncomeTax.com

-Mega Refund Staff

Working Grandparents

Mega Refund
01.25.2017

This is an article from the IRS that some of you may find useful for qualifying EITC credits! 

Working Grandparents May Be Eligible for EITC

IR-2017-09, Jan. 25, 2017

WASHINGTON — The Internal Revenue Service wants working grandparents raising grandchildren to be aware of the Earned Income Tax Credit (EITC) and correctly claim it if they qualify.

The EITC is a federal income tax credit for workers who don't earn a high income ($53,505 or less for 2016) and meet certain eligibility requirements. Because it’s a refundable credit, those who qualify and claim the credit could pay less federal tax, pay no tax or even get a tax refund. The EITC could put an extra $2 or up to $6,269 into a taxpayer’s pocket.

Grandparents and other relatives care for millions of children, but are often not aware that they could claim the children under their care for the EITC. A grandparent who is working and has a grandchild who is a qualifying child living with him or her may qualify for the EITC, even if the grandparent is 65 years of age or older. Generally, to be a qualified child for EITC purposes, the grandchild must meet the dependency requirements.

Special rules and restrictions apply if the child’s parents or other family members also qualify for the EITC. Details including numerous helpful examples can be found in Publication 596, available on IRS.gov. There are also special rules, described in the publication, for individuals receiving disability benefits and members of the military.

Working grandparents are encouraged to find out, not guess, if they qualify for this very important credit. To qualify for EITC, the taxpayer must have earned income either from a job or from self-employment and meet basic rules. Also, certain disability payments may qualify as earned income for EITC purposes. EITC eligibility also depends on family size. The IRS recommends using the EITC Assistant, on IRS.gov, to determine eligibility, estimate the amount of credit and more.

Eligible taxpayers must file a tax return, even if they do not owe any tax or are not required to file. Qualified taxpayers should consider claiming the EITC by filing electronically: through a qualified tax professional; using free community tax help sites; or doing it themselves with IRS Free File.

Many EITC filers will get their refunds later this year than in past years. That’s because a new law requires the IRS to hold refunds claiming the EITC and the Additional Child Tax Credit (ACTC) until mid-February. The IRS cautions taxpayers that these refunds likely will not start arriving in bank accounts or on debit cards until the week of Feb. 27. Taxpayers claiming the EITC or ACTC should file as soon as they have all of the necessary documentation together to prepare an accurate return. In other words, file as they normally would.



--------------------------------------------------------------------

You can find the full article on IRS.gov

For more on the latest tax law news and updates, follow us on facebook,twitter or blogger!

---------------------------------------------------------------------

-MEGA REFUND

2017 Income Tax Filing!

01.12.2017
Mega Refund

The Opening Month

Hello everyone!

  With the 'kick off' to the season coming around the corner (23rd of January) we have been busy in preparation with detailing and outlining the needs our customers will have for the 2017 income tax filing season. In our attempt to provide the best service available we ask that our customers continue to bring in ALL tax forms to their appointments in order to avoid a frustrating rescheduling process. We also want to ask that our customers bring in standard forms of ID for themselves and any dependents claimed for 2016. 

  Important forms that most will need for this year will be the following: 

*W-2

*1099

*1098-T (Student Tuition Form)

*1095-A, B or C (Medical Insurance Coverage)

These are the core of most returns, but if you get any other income tax filing forms, please be sure to bring those in along with any misc. form that you have questions or concerns. 

As always, feel free to contact us, email us or visit us during our normal business hours! 

-MEGA REFUND STAFF