The online
account allows individual taxpayers to access the latest information
available about their federal tax account through a secure and convenient tool
on IRS.gov. When it first launched in December
2016, the tool assisted taxpayers with basic account inquiries such as
information about their balance due and access to the various IRS payment
options. Since then, the IRS has added new features allowing taxpayers to:
- View up to 18 months of
tax payment history
- View payoff amounts and
tax balance due for each tax year
- Obtain online
transcripts of various Form 1040-series through Get Transcript
- Give feedback on their
experience with their online account and make suggestions for improvements
Before accessing the tool, taxpayers must authenticate their identities
through the rigorous Secure Access process. This is a two-step authentication
process, which means returning users must have their credentials (username and
password) plus a security code sent as a text to their mobile phones.
Taxpayers who have registered using Secure Access for Get Transcript Online
or Get an IP PIN may use their same username and password. To register for the
first time, taxpayers must have their personal and financial information
including: Social Security number, specific financial information, such as a
credit card number or loan numbers, email address and a text-enabled mobile
phone in the user's name. Taxpayers may review the Secure
Access process prior to starting registration.
As part of the security process to authenticate taxpayers, the IRS will send
verification, activation or security codes via email and text. The IRS warns
taxpayers that it will not initiate contact via text or email asking for log-in
information or personal data. The IRS texts and emails will only contain
one-time codes.
Source: Internal Revenue Service
contact@officetaxservices.com
(858)247-1680
Starting
this year, the deadline for filing the annual Report of Foreign Bank and
Financial Accounts (FBAR) is now the same as
for a federal income tax return. This means that the 2016 FBAR, Form 114, was
normally required to be filed electronically with the Financial Crimes
Enforcement Network (FinCEN) by April 18, 2017. But FinCEN is granting filers
missing the original deadline an automatic extension until Oct. 16, 2017
to file the FBAR. Specific extension requests are not required. In the past,
the FBAR deadline was June 30 and no extensions were available. In general, the
FBAR filing requirement applies to anyone who had an interest in, or signature
or other authority, over foreign financial accounts whose aggregate value
exceeded $10,000 at any time during 2016. Because of this threshold, the IRS
encourages taxpayers with foreign assets, even relatively small ones, to check
if this filing requirement applies to them. The form is only available through
the BSA E-filing System
website. Report in
U.S. Dollars Any income received or deductible expenses paid in
foreign currency must be reported on a U.S. tax return in U.S. dollars.
Likewise, any tax payments must be made in U.S. dollars.
Both Forms
114 and 8938 require the use of a Dec. 31 exchange rate for all transactions,
regardless of the actual exchange rate on the date of the transaction.
Generally, the IRS accepts any posted exchange rate that is used consistently.
For more information on exchange rates, see Foreign Currency
and Currency Exchange Rates.
Source: Internal Revenue Service
contact@officetaxservices.com
(858)247-1680
April 18 was this year’s deadline for most people to file their federal tax
return and pay any tax they owe. If taxpayers are due a refund, there is no
penalty if they file a late tax return.
Taxpayers who owe tax, and failed to file and pay on time, will most likely
owe interest and penalties on the tax they pay late. To keep interest and
penalties to a minimum, taxpayers should file their tax return and pay any tax
owed as soon as possible.
Here are some facts that taxpayers should know:
- Two penalties may apply. One penalty is for
filing late and one is for paying late. They can add up fast. Interest
accrues on top of penalties
- Penalty for late filing. If taxpayers file their
2016 tax return more than 60 days after the due date or extended due date,
the minimum penalty is $205 or, if they owe less than $205, 100 percent of
the unpaid tax. Otherwise, the penalty can be as much as 5 percent of
their unpaid taxes each month up to a maximum of 25 percent.
- Penalty for late
payment.
The penalty is generally 0.5 percent of taxpayers’ unpaid taxes per month.
It can build up to as much as 25 percent of their unpaid taxes.
- Combined penalty per
month.
If both the late filing and late payment penalties apply, the maximum
amount charged for the two penalties is 5 percent per month.
- Taxpayers should file
even if they can’t pay. Filing and paying as soon as possible will keep
interest and penalties to a minimum. If a taxpayer
can’t pay in full, getting a loan or paying by debit or credit card may be
less expensive than owing the IRS.
- Payment options. Taxpayers should
explore their payment options at IRS.gov/payments.
For individuals, IRS
Direct Pay is a fast and free way to pay directly from a checking or
savings account. The IRS will work with taxpayers to help them resolve
their tax debt. Most people can set up a payment plan using the Online
Payment Agreement tool on IRS.gov.
- Late payment penalty may
not apply.
If taxpayers requested an extension of time to file their income tax
return by the tax due date and paid at least 90 percent of the taxes they
owe, they may not face a failure-to-pay penalty. However, they must pay
the remaining balance by the extended due date. Taxpayers will owe
interest on any taxes they pay after the April 18 due date.
- No penalty if reasonable
cause.
Taxpayers will not have to pay a failure-to-file or failure-to-pay penalty
if they can show reasonable cause for not filing or paying on time.
Taxpayers should keep a copy of their tax return. Beginning in 2017,
taxpayers using a software product for the first time may need their Adjusted
Gross Income (AGI) amount from their prior-year tax return to verify their
identity.
Source: Internal Revenue Service
contact@officetaxservices.com
(858)247-1680
