Many ITINs Expire Jan. 1; Renew Now to Avoid Refund Delays

Time is running out for many ITIN holders who need to file a federal income tax return in 2017 and want to avoid a long wait for a refund, according to the Internal Revenue Service.
An Individual Taxpayer Identification Number (ITIN) is used by anyone who has tax-filing or payment obligations under U.S. law but is not eligible for a Social Security number. Under a recent law change by Congress, any ITIN not used on a tax return at least once in the past three years will expire on Jan. 1, 2017. In addition, any ITIN with middle digits of either 78 or 79 (9NN-78-NNNN or 9NN-79-NNNN) will also expire on that date.
This means that anyone with an expiring ITIN should act now to make sure they have a renewed ITIN in time to file a return during the upcoming tax season. Failure to do so will result in refund delays and possible loss of eligibility for some tax benefits until the ITIN is renewed.
The IRS said that an ITIN renewal application filed now is expected to lengthen to 11 weeks during tax season.


Source: Internal Revenue Service

contact@officetaxservices.com

(858)247-1680

Try electronic payment options if you owe taxes

If you find that you owe taxes when you’re filing your return, you’ll need to pay what you owe by April 18, 2017, to avoid interest and penalties. For a safe and easy way to pay, use an IRS electronic payment option and pay online, by phone or with your mobile device using the IRS2Go app.

Electronic Funds Withdrawal allows you to e-file and pay when you’re using tax preparation software or a tax professional. With EFW, you can set up a direct debit payment from your bank account for the taxes you owe and up to four estimated payments.

Another option is IRS Direct Pay; it’s free and lets you pay from your checking or savings account. With Direct Pay, you can change or cancel your payment using the Look Up a Payment feature up to two business days before the payment date. To access Direct Pay go to IRS.gov/payments or use the IRS2Go app.

If you prefer to pay by debit or credit card, you can pay online, by phone or with IRS2Go through authorized debit and credit card processors. Though the IRS does not charge a fee for this service, there is a fee from the card processors. Visit IRS.gov/payments for authorized card processors and their phone numbers.

If you need to pay with cash, PayNearMe may be the answer for you. You can make a payment without the need of a bank account or credit card at more than 7,000 7-Eleven stores nationwide. To pay with cash, first visit IRS.gov/paywithcash and follow the instructions.

Source: Internal Revenue Service

contact@officetaxservices.com

(858)247-1680

The Health Care Law & Your Taxes: Not Too Early to Determine if You Qualify for Exemption

With the 2017 tax filing season approaching, it’s not too early to think about how the health care law affects your taxes. The Affordable Care Act requires you and each member of your family to do at least one of the following:

• Have qualifying health coverage called minimum essential coverage
• Qualify for a health coverage exemption
• Make a shared responsibility payment with your federal income tax return for the months that you did not have coverage or an exemption

If you meet certain criteria for the tax year, you may be exempt from the requirement to have minimum essential coverage. You will not have to make a shared responsibility payment for any month that you are exempt. Instead, you'll file Form 8965, Health Coverage Exemptions, with your federal income tax return. For any month that you do not qualify for a coverage exemption, you will need to have minimum essential coverage or make a shared responsibility payment.   You may be exempt if you meet one of the following:

• The lowest-cost coverage available to you is considered unaffordable
• You have a gap in coverage that is less than 3 consecutive months
• You qualify for an exemption for one of several other reasons, including having a hardship that prevents you from obtaining coverage, or belonging to a group specifically exempt from the coverage requirement

The Federally-facilitated Marketplace is no longer granting exemptions for members of a health care sharing ministry, members of Indian Tribes, and incarceration. Eligible individuals can still claim these exemptions on a tax return. For a full list of exemptions and how to claim them, see our Individual Shared Responsibility Provision – Exemptions: Claiming or Reporting page on IRS.gov/aca.
Federal tax returns that do not reflect at least one of these options – reporting health care coverage, claiming a coverage exemption or reporting a shared responsibility payment -  will be rejected if the return is filed electronically. If filed on paper, tax returns that do not reflect at least one of these options will take longer to process and any refunds will be delayed.

Source: Internal Revenue Service

contact@officetaxservices.com

(858)247-1680

 

Claiming the Earned Income Tax Credit or the Additional Child Tax Credit

If a taxpayer is claiming the EITC or the ACTC, they can file their return any time after the filing season begins. However, because the PATH Act of 2015, approved by Congress, requires the IRS to hold the refund for tax returns that include the EITC or ACTC until Feb. 15, so IRS cannot issue their refund before Feb. 15. Keep in mind that only a small percentage of total filers will fall into this situation. The IRS will begin to release EITC/ACTC refunds starting Feb. 15. However, the IRS cautions taxpayers that these refunds likely won’t arrive in bank accounts or debit cards until the week of February 27 -- if there are no processing issues and the taxpayer chose direct deposit.

Source: Internal Revenue Service

contact@officetaxservices.com

(858)247-1680

2017 Tax Season

The nation’s 2017 individual income tax filing season opens Jan. 23.

The deadline to file 2016 tax return and pay any tax due is extended because the Emancipation Day, a holiday in Washington, D.C., will be observed on Monday, April 17, pushing the nation’s filing deadline to April 18.


Taxpayers that are e-filing can still submit returns to their software provider before Jan. 23. They will hold the return and transmit it to the IRS when the systems open. The IRS also reminds taxpayers that they don’t have to wait until Jan. 23 to contact their tax professional.

In 2016, the IRS issued 111 million individual tax refunds and expects more than 70 percent of taxpayers to receive a refund in 2017. Also, the IRS reminds taxpayers that a new law requires the IRS to hold refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until Feb. 15. 

Source: Internal Revenue Service

contact@officetaxservices.com

(858)247-1680