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First Time Home Buyer Credit Tool

The First Time Home Buyer Credit (FTHBC) Account Look-up tool is now up and running on the IRS website. This tool provides information that helps taxpayers accurately report their FTHBC repayment obligations on their federal tax return. To access this tool, go to:
http://www.irs.gov/individuals/article/0,,id=252351,00.html

Taxpayers need to enter their Social Security Number, date of birth, and complete address. Taxpayers will be able to check on the original amount of the credit, annual repayment amount, total amount paid (with the most recent account update) and the total balance left to be paid.*

* THIS IS ONLY FOR TAXPAYERS WHO HAVE TO REPAY THE FIRST TIME HOMEBUYERS CREDIT. YOUR TAX PROFESSIONAL SHOULD HAVE INFORMED YOU IF THIS APPLIES TO YOU!!

Jennifer H Stokes, Licensed CPA
http://www.TaxDeductionsByOccupation.com

Subject: Refund Status
From: IRS

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The IRS has opened its filing season successfully this month, and refunds have started going out to many taxpayers. As with the start of any tax season, there are system validations that occur requiring some fine-tuning of our systems. As part of this, some taxpayers will receive refunds approximately one week later than initial projections they may have received, but these are still in line with historical refund delivery times.

The IRS reminds taxpayers that refund time frames provided by “Where’s My Refund” and tax providers are projected time frames and are subject to revision. Many different factors can affect the timing of the refund after the IRS receives the return for processing. The IRS apologizes for any inconvenience caused by the revised refund dates.

When the IRS announced the opening of the 2012 filing season, it advised taxpayers who electronically file and select direct deposit that they could see their refunds in as few as 10 days and 90 percent of refunds are provided within 21 days. Some taxpayers are getting refunds much faster, but at this time taxpayers should expect refunds to be issued as indicated in the original IRS guidelines.

The one-week delay for some refunds relates to fine-tuning IRS systems to adjust for new safeguards put in place this tax season to provide stronger protection against refund fraud. The IRS is providing additional screening for fraud this year before issuing refunds, but the vast majority of taxpayers can still continue to expect to receive their refunds in a timely fashion.

Job Hunting Deductions

When you search for a new job in your current line of work, your search costs are deductible as an employee business expense. This is true whether or not you are currently employed, and whether or not your job search is successful. Deductible items include……

1) Employment & placement agency fees incurred to find a new job.

2) Resume costs, including expenditures for paper, ink, typing, printing, mailing and distributing copies of your resume.

3) Travel expenses including mileage, parking, taxi cabs, buses, hotel, air fare and etc.

4) Meal & Entertainment expenses incurred as part of a job search.

5) The cost of your Internet Service Provider if applying online for jobs.

6) Telephone expenses related directly to job hunting. Use your phone records to calculate telephone expenses.

January 17, 2012 – The IRS officially begins receiving 1040 returns nationwide.

January 23, 2012 – The IRS begins receiving 1041 returns.

March 1, 2012 – The IRS begins receiving 990 returns.

Jennifer H Stokes, Licensed CPA

http://www.TaxDeductionsByOccupation.com

Subj: IR-2011-16: IRS Begins Processing Tax Forms Affected by Late Tax Changes; Taxpayers can e-File Immediately
Date: 2/15/2011 1:30:56 PM Central Standard Time
From: irs@service.govdelivery.com

IRS Newswire February 15, 2011
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Issue Number: IR-2011-16
Inside This Issue

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IRS Begins Processing Tax Forms Affected by Late Tax Changes; Taxpayers can e-File Immediately

WASHINGTON — The Internal Revenue Service announced today it has started processing individual tax returns affected by legislation enacted in December and reminded taxpayers that they can begin filing electronically immediately.

On Monday, IRS systems began to accept and process both e-file and paper tax returns claiming itemized deductions on Form 1040, Schedule A, as well as deductions for state and local sales tax, higher education tuition and fees and educator expenses.

“The IRS is now accepting all the 1040 forms,” IRS Commissioner Doug Shulman said. “We worked hard to update our systems and get the changes in place as quickly as possible. We appreciate the patience of those impacted by the delay. We urge taxpayers to use e-file with direct deposit, and they can get their refunds within days.”

In late December 2010, the IRS announced it would delay processing of some tax returns in order to update processing systems to accommodate the late tax law changes. These tax law provisions were extended by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which became law on Dec. 17.

For the vast majority of taxpayers, the filing season this year began on time in January. Most taxpayers claiming itemized deductions and the other delayed forms file later in the year.

The IRS urged taxpayers who haven’t filed yet to use e-file instead of paper tax forms to ensure accuracy and to get refunds fast.

The IRS worked closely with the tax software industry and the tax professional community during the reprogramming process to minimize disruptions for taxpayers and ensure a smooth tax season.

As a result of these efforts, many major software providers and paid tax preparers started accepting impacted returns before the Feb. 14 start date, which they held and started submitting after the IRS systems opened.

Due to the expected increase in tax return volumes being transmitted this week, the IRS cautioned a small number of taxpayers may experience a brief delay in receiving their e-file acknowledgement, which is normally provided within 24-48 hours. The IRS continues working with the software industry to minimize any impact to taxpayers.

Business taxpayers who use the 1040 series can file now as well. However, the Feb. 14 start date does not apply to non-1040 business tax forms affected by the recent tax law changes. The IRS will announce a specific date in the near future when it can begin processing those impacted business tax forms.

Updated information has been posted on IRS.gov, including Schedule A and updated state and local sales tax tables. For a complete list of affected individual tax forms and business tax forms visit www.IRS.gov.

Jennifer H Stokes, Licensed CPA

IRS to Start Processing Delayed Returns on Feb. 14; People Unaffected and Can File Now

WASHINGTON — The Internal Revenue Service plans a Feb. 14 start date for processing tax returns delayed by last month’s tax law changes. The IRS reminded taxpayers affected by the delay they can begin allowing their tax preparers to prepare their tax returns immediately.

Beginning Feb. 14, the IRS will start processing both paper and e-filed returns claiming itemized deductions on Schedule A, the higher education tuition and fees deduction on Form 8917 and the educator expenses deduction.

People using e-file for these delayed forms can get a head start because many tax preparers have announced they will accept these impacted returns immediately. The tax preparers will hold onto the returns and then electronically submit them after the IRS systems open on Feb. 14 for the delayed forms.

Those who use a paid tax preparer should check with their preparer, who will be holding returns until the updates are complete.

Most other returns, including those claiming the Earned Income Tax Credit (EITC), education tax credits, child tax credit and other popular tax breaks, can be filed as normal, immediately.

The IRS needed the extra time to update its systems to accommodate the tax law changes without disrupting other operations tied to the filing season. The delay followed the Dec. 17 enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which extended a number of expiring provisions including the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction.

Jennifer H Stokes, Licensed CPA

The Internal Revenue Service announced that small tax-exempt organizations may be able to shift to the simpler Form 990-N (E-Postcard) for their 2010 annual information reporting. The IRS today issued guidance (Revenue Procedure 2011-15) that will allow more tax-exempt organizations to file the e-Postcard rather than the Form 990-EZ or the standard Form 990.

For tax years beginning on or after January 1, 2010, most tax-exempt organizations whose gross annual receipts are normally $50,000 or less can file the e-Postcard. The threshold was previously set at $25,000 or less.

It is so simple there is no need to pay us to file the E-Postcard for you! Go to http://epostcard.form990.org

IRS Reminds Small Charities to Review Their Filing Requirements; More Organizations May File Form 990-N
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The Internal Revenue Service today announced that small tax-exempt organizations may be able to shift to the simpler Form 990-N (e-Postcard) for their 2010 annual information reporting. The IRS today issued guidance (Revenue Procedure 2011-15) that will allow more tax-exempt organizations to file the e-Postcard rather than the Form 990-EZ or the standard Form 990.

For tax years beginning on or after January 1, 2010, most tax-exempt organizations whose gross annual receipts are normally $50,000 or less can file the e-Postcard. The threshold was previously set at $25,000 or less. (However, supporting organizations of any size must file the standard Form 990 or, if eligible, Form 990-EZ).

A tax-exempt organization’s annual gross receipts or total assets are used to determine which of the three versions of Form 990 it is required to file. Go to IRS.gov for more information about which form to file.

Jennifer H. Stokes, Licensed CPA

IRS e-file Launches Today; Most Taxpayers Can File Immediately

WASHINGTON — The Internal Revenue Service opened its 21st season of electronic filing today with a reminder to taxpayers that e-file remains the best way to get fast refunds and ensure accurate tax returns, particularly following several tax law changes in December.

The IRS also announced today it anticipates starting to process tax returns impacted by December’s tax law changes by mid-February. The IRS continues working to reprogram its computers to reflect new tax law changes enacted by Congress and signed by the President in December.

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act extended a number of tax deductions and credits for 2011 and 2012 such as the American Opportunity Tax Credit and the modified Child Tax Credit, which help families pay for college and other child-related expenses. The Act also provides various job creation and investment incentives including 100 percent expensing and a two-percent payroll tax reduction for 2011. Those changes have no effect on the 2011 filing season.

Generally, taxpayers who itemize their deductions by using Schedule A, who claim the higher education tuition and fees deduction or who claim the educator expense deduction must wait a few more weeks to file their returns. Based on historical filing patterns, the IRS anticipates the delay impacts about 9 million taxpayers; in 2010, the IRS received more than 141 million tax returns. While the delay impacts both paper and electronic tax returns, most taxpayers can file immediately.

Even with the delay, IRS e-file remains the fastest option for taxpayers, and e-file returns will be processed and refunds issued much faster than paper returns. It will take less than two weeks to process an e-filed return, but as many as four to six weeks to process a paper return.

In general, for people concerned about security, e-file has proven itself year in and year out as a safe and secure method of filing a tax return. E-file has a proven track record. Software vendors and preparers use the latest encryption technology. Plus, within 48 hours, taxpayers receive an electronic acknowledgement that their return has been received by the IRS and either accepted or rejected.

With most people receiving a refund, the fastest way to get a refund is by e-filing and using direct deposit. Taxpayers can get their money automatically in as few as 10 days. For people who owe taxes, e-file offers payment alternatives such as filing now and paying prior to the April tax deadline. Taxpayers who still want to pay by check can do so by e-filing and then mailing a payment voucher.

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Jennifer H Stokes, Licensed CPA

January 12, 2011 - IRS begins accepting 1120, 1120S, 1065 and 990 returns

January 14, 2011 - IRS begins accepting tax returns for most taxpayers**

January 17, 2011 – Expect first IRS 1040 acknowledgements

January 24, 2011 - IRS accepts 1041 returns

January 28, 2011 - Expect first IRS E-Filed Direct Deposit Tax Refund

February 4, 2011 - Expect first IRS E-Filed Tax Refund Check Mailed

**The IRS has announced a delay in the start of tax season for individual taxpayers affected by the Tax Relief Act of 2010.

Some forms cannot be e-filed until the IRS has made the necessary programming changes ( Mid-to-Late February ).

We will notify you as soon as we receive the start date for filing these returns. Subcribe to Tax Updates & stay informed instantly! Click this link to Subscribe to Tax Updates

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