The tree's been thrown out, the ball has dropped, and the Christmas decorations have (hopefully) been taken down. That means that we here Polston Tax are back to work, and our first order of business is to prepare our clients for the New Year. Tax season is fast approaching, and the IRS has made a number of changes that taxpayers should keep in mind when they file. So we've created a small list to help our clients prepare and ensure that your filing goes as smooth as it possibly can.
January 23rd is the official start date to tax season, but most third parties (tax professionals, software companies) will accept tax returns beforehand, and submit returns when IRS systems open. It doesn't matter if you're using e-filing or paper returns, the IRS will begin processing both at the same time.
The filing deadline to submit 2016 tax returns is April 18. Normally, April 15 serves as the deadline, but that falls on a Saturday this year. And due to a holiday on the 17 (Emancipation day is observed as a holiday in D.C.), procrastinators have a few additional days to submit their taxes.
You can read more on renewing ITINS here.
If you have a valid and current Social Security Number, then this section doesn't apply to you.
But, if you've used an ITIN on your tax returns in the past, and intend to use one for your 2016 taxes, you may need to file a renewal application. If you have not used your ITIN on a tax return at least once in the past three years, the IRS now considers it expired. In addition, the IRS considered any ITIN that contains the middle digits of either 78 or 79 (9NN-78-NNNN or 9NN-79-NNNN) to be expired.
If any of this applies to you, you need to file a renewal ITIN application as soon as possible. Otherwise, the IRS may delay refunds, and even refuse some tax benefits. For more information on how to renew an ITIN, visit this page. (Be sure you're using the most current version of Form W-7.
Since the IRS is constantly looking for innovative ways to combat tax-related fraud, a new, 16-digit verification code will appear on a limited number of W2 forms provided to employees.
This code will not appear on all W2 forms. If the verification code box is blank on your form, you don't need to enter any information.
According to the IRS, "If this field is populated, enter this code when it is requested by your tax return preparation software." So if you've received a verification code on your W2, then enter it in when requested by tax preparation software.
It's important to know that this season is a test of the verification code; any omitted or incorrect codes will not delay the processing of a tax return.
A new law will require the IRS to hold refunds claiming either the Earned Income Tax Credit or the Additional Child Tax Credit until February 15. It's part of the Protecting Americans From Tax Hikes (PATH) Act, enacted last year.
The IRS is also cautioning taxpayers that, due to the President's Day rush, some taxpayers may see an additional delay in their return. The IRS estimates that refunds will arrive in bank accounts or debit cards on the week of February 27th.
If you want to check the status of your refund, IRS.gov and the IRS2Go phone app offer a service called "Where's My Refund?" which will be updated with projected deposit dates for early EITC and ACTC refund filers a few days after February 15.
If you're having trouble filing or preparing your tax returns, the IRS offers assistance in a variety of ways.
Many taxpayers are eligible for IRS Free File, a service where commercial partners of the IRS offer free brand-name software to families with incomes of $64,000 or less. Volunteer Income Tax Assistance and Tax Counseling for the Elderly offer free tax help as well, to people that qualify.
Or, you can reach out to the good people here at Polston Tax. Be sure to browse our services page and fill out the form for a free consultation. Or give us a call at 844-841-9857. We're open 8am-5pm Central!