I have had several people email me asking how to check the status of their tax refund. In case you are wondering, here is information from the IRS website. Take note, "the IRS has an ap for that."
Larry Kopsa CPA
Checking the Status of Your Refund
If you already filed your federal tax return and are due a refund, you have several options to check on your refund. Here are eight things the IRS wants you to know about checking the status of your refund:
1. Online Access to Refund Information Where’s My Refund? are interactive tools on http://www.irs.gov and are the fastest, easiest way to get information about your federal income tax refund. Where’s My Refund? give you online access to your refund information, 24 hours a day, 7 days a week. It’s quick, easy and secure.
2. When to Check Refund Status. If you e-file, you can get refund information 72 hours after the IRS acknowledges receipt of your return. If you file a paper return, refund information will generally be available three to four weeks after mailing your return.
3. What You Need to Check Refund Status. When checking the status of your refund, have your federal tax return handy. To get your personalized refund information you must enter:
• Your Social Security Number or Individual Taxpayer Identification Number
• Your filing status which will be Single, Married Filing Joint Return, Married.
• Filing Separate Return, Head of Household, or Qualifying Widow(er).
• Exact whole dollar refund amount shown on your tax return.
4. What the Online Tool Will Tell You. Once you enter your personal information, you could get several responses, including:
• Acknowledgement that your return was received and is in processing.
• The mailing date or direct deposit date of your refund.
• Notice that the IRS could not deliver your refund due to an incorrect address. In this instance, you may be able to change or correct your address online using Where’s My Refund?
5. Customized Information Where’s My Refund? also includes links to customized information based on your specific situation. The links guide you through the steps to resolve any issues affecting your refund. For example, if you do not get the refund within 28 days from the original IRS mailing date shown on Where’s My Refund?, you may be able to start a refund trace.
6. Toll-free Number. If you do not have internet access, you can check the status of your refund in English or Spanish by calling the IRS Refund Hotline at 800-829-1954 or the IRS TeleTax System at 800-829-4477. When calling, you must provide your or your spouse’s Social Security number, filing status and the exact whole dollar refund amount shown on your return.
7. IRS2Go. This is the IRS’ first smartphone application that lets taxpayers check on the status of their tax refund. Apple users can download the free IRS2Go application by visiting the Apple App Store. Android users can visit the Android Marketplace to download the free IRS2Go app.
Thursday, March 24, 2011
Wednesday, March 23, 2011
ENERGY CREDIT ON NEW HOME
Q. My wife and I built a new home in 2010. We moved in on March 24 so we lived in the house for over a year, if that makes any difference. Can we take the residential energy credit for insulation, windows, & doors on our 2010 tax return?
A. I am afraid that we do not have good news. The nonbusiness energy credit is normally claimed on form 5695 however, the type of costs described are restricted to existing homes only. The credit is designed to help offset the cost of retrofitting an existing home with energy saving devices.
However, you put in any of the following devices these devices qualify for a credit for both new and existing houses:
• Qualified solar electric
• Qualified solar water heating
• Qualified small wind power
• Qualified geothermal heat pump
• Qualified fuel cells
Enjoy your new home.
Larry Kopsa CPA
A. I am afraid that we do not have good news. The nonbusiness energy credit is normally claimed on form 5695 however, the type of costs described are restricted to existing homes only. The credit is designed to help offset the cost of retrofitting an existing home with energy saving devices.
However, you put in any of the following devices these devices qualify for a credit for both new and existing houses:
• Qualified solar electric
• Qualified solar water heating
• Qualified small wind power
• Qualified geothermal heat pump
• Qualified fuel cells
Enjoy your new home.
Larry Kopsa CPA
HERE ARE SOME TIPS IF YOU RENT PROPERTY
Do you rent property to others? If so, you’ll want to read the following tips about rental income and expenses.
You generally must include in your gross income all amounts you receive as rent. Rental income is any payment you receive for the use of or occupation of property. Expenses of renting property can be deducted from your gross rental income. You generally deduct your rental expenses in the year you pay them. The IRS Publication 527, Residential Rental Property, includes information on the expenses you can deduct if you rent property.
1. When to report income. You generally must report rental income on your tax return in the year that you actually receive it.
2. Advance rent. Advance rent is any amount you receive before the period that it covers. Include advance rent in your rental income in the year you receive it, regardless of the period covered.
3. Security deposits. Do not include a security deposit in your income when you receive it if you plan to return it to your tenant at the end of the lease. But if you keep part or all of the security deposit during any year because your tenant does not live up to the terms of the lease, include the amount you keep in your income in that year.
4. Property or services in lieu of rent. If you receive property or services, instead of money, as rent, include the fair market value of the property or services in your rental income. If the services are provided at an agreed upon or specified price, that price is the fair market value unless there is evidence to the contrary.
5. Expenses paid by tenant. If your tenant pays any of your expenses, the payments are rental income. You must include them in your income. You can deduct the expenses if they are deductible rental expenses.
6. Rental expenses. Generally, the expenses of renting your property, such as maintenance, insurance, taxes, and interest, can be deducted from your rental income. Don't forget your mileage and supplies.
You generally must include in your gross income all amounts you receive as rent. Rental income is any payment you receive for the use of or occupation of property. Expenses of renting property can be deducted from your gross rental income. You generally deduct your rental expenses in the year you pay them. The IRS Publication 527, Residential Rental Property, includes information on the expenses you can deduct if you rent property.
1. When to report income. You generally must report rental income on your tax return in the year that you actually receive it.
2. Advance rent. Advance rent is any amount you receive before the period that it covers. Include advance rent in your rental income in the year you receive it, regardless of the period covered.
3. Security deposits. Do not include a security deposit in your income when you receive it if you plan to return it to your tenant at the end of the lease. But if you keep part or all of the security deposit during any year because your tenant does not live up to the terms of the lease, include the amount you keep in your income in that year.
4. Property or services in lieu of rent. If you receive property or services, instead of money, as rent, include the fair market value of the property or services in your rental income. If the services are provided at an agreed upon or specified price, that price is the fair market value unless there is evidence to the contrary.
5. Expenses paid by tenant. If your tenant pays any of your expenses, the payments are rental income. You must include them in your income. You can deduct the expenses if they are deductible rental expenses.
6. Rental expenses. Generally, the expenses of renting your property, such as maintenance, insurance, taxes, and interest, can be deducted from your rental income. Don't forget your mileage and supplies.
Tuesday, March 22, 2011
WATCH OUT FOR FAKE IRS NOTICES
These fake scams are out there. I have even received a supposed communication from the IRS. These crooks are good. The communication looks real. Be careful, don't let this happen to you.
The IRS receives thousands of reports each year from taxpayers who receive suspicious emails, phone calls, faxes or notices claiming to be from the Internal Revenue Service. Many of these scams fraudulently use the Internal Revenue Service name or logo as a lure to make the communication more authentic and enticing. The goal of these scams – known as phishing – is to trick you into revealing personal and financial information. The scammers can then use that information – like your Social Security number, bank account or credit card numbers – to commit identity theft or steal your money.
Here are five things you need to know about phishing scams:
1. The IRS doesn’t ask for detailed personal and financial information like PIN numbers, passwords or similar secret access information for credit card, bank or other financial accounts.
2. The IRS does not initiate taxpayer communications through e-mail and won’t send a message about your tax account. If you receive an e-mail from someone claiming to be the IRS or directing you to an IRS site:
• Do not reply to the message.
• Do not open any attachments. Attachments may contain malicious code that will infect your computer.
• Do not click on any links. If you clicked on links in a suspicious e-mail or phishing website and entered confidential information, visit the IRS website and enter the search term 'identity theft' for more information and resources to help.
3. The address of the official IRS website is http://www.irs.gov. Do not be confused or misled by sites claiming to be the IRS but ending in .com, .net, .org or other designations instead of .gov. If you discover a website that claims to be the IRS but you suspect it is bogus, do not provide any personal information on the suspicious site and report it to the IRS.
4. If you receive a phone call, fax or letter in the mail from an individual claiming to be from the IRS but you suspect they are not an IRS employee, contact the IRS at 1-800-829-1040 to determine if the IRS has a legitimate need to contact you. Report any bogus correspondence.
5. You can help shut down these schemes and prevent others from being victimized. Details on how to report specific types of scams and what to do if you’ve been victimized are available at http://www.irs.gov, keyword “phishing.”
The IRS receives thousands of reports each year from taxpayers who receive suspicious emails, phone calls, faxes or notices claiming to be from the Internal Revenue Service. Many of these scams fraudulently use the Internal Revenue Service name or logo as a lure to make the communication more authentic and enticing. The goal of these scams – known as phishing – is to trick you into revealing personal and financial information. The scammers can then use that information – like your Social Security number, bank account or credit card numbers – to commit identity theft or steal your money.
Here are five things you need to know about phishing scams:
1. The IRS doesn’t ask for detailed personal and financial information like PIN numbers, passwords or similar secret access information for credit card, bank or other financial accounts.
2. The IRS does not initiate taxpayer communications through e-mail and won’t send a message about your tax account. If you receive an e-mail from someone claiming to be the IRS or directing you to an IRS site:
• Do not reply to the message.
• Do not open any attachments. Attachments may contain malicious code that will infect your computer.
• Do not click on any links. If you clicked on links in a suspicious e-mail or phishing website and entered confidential information, visit the IRS website and enter the search term 'identity theft' for more information and resources to help.
3. The address of the official IRS website is http://www.irs.gov. Do not be confused or misled by sites claiming to be the IRS but ending in .com, .net, .org or other designations instead of .gov. If you discover a website that claims to be the IRS but you suspect it is bogus, do not provide any personal information on the suspicious site and report it to the IRS.
4. If you receive a phone call, fax or letter in the mail from an individual claiming to be from the IRS but you suspect they are not an IRS employee, contact the IRS at 1-800-829-1040 to determine if the IRS has a legitimate need to contact you. Report any bogus correspondence.
5. You can help shut down these schemes and prevent others from being victimized. Details on how to report specific types of scams and what to do if you’ve been victimized are available at http://www.irs.gov, keyword “phishing.”
Friday, March 18, 2011
IRS TO HOST FREE WEBINAR FOR SMALL BUSINESS
I thought that you might be interested that the IRS is going to host a Webinar on March 29 at 2 p.m. (E.T.) entitled “Business Taxes for the Self-Employed: The Basics.” It will be presented by three senior analysts from the agency. According to IRS, participants will learn about reporting profit or loss from a business or profession, self-employment tax and estimated tax payments, Schedule C and C-EZ, deducting business expenses, husband and wife businesses, and recordkeeping.
Registration can be completed at http://www.visualwebcaster.com/IRS/77024/reg.asp?id=77024 .
Registration can be completed at http://www.visualwebcaster.com/IRS/77024/reg.asp?id=77024 .
Thursday, March 17, 2011
HOW LONG DO I NEED TO KEEP THESE RECORDS
One of the questions I get asked a lot this time of year is "how long do I need to keep these records?" Below is a link to our Record Retention Guide. I hope that this is helpful.
I can guarantee that if the IRS comes around you will be glad that you kept good records. We have an audit going on right now where the IRS is asking for some information back to 1993. If the client had used our guide we would have the records. As it is we are having to depend on the mercy of the auditor. That is a scary thought.
Using our record retention guide will help "audit proof" your return.
http://www.kopsaotte.com/tax/files/file/Record%20Retention.pdf
I can guarantee that if the IRS comes around you will be glad that you kept good records. We have an audit going on right now where the IRS is asking for some information back to 1993. If the client had used our guide we would have the records. As it is we are having to depend on the mercy of the auditor. That is a scary thought.
Using our record retention guide will help "audit proof" your return.
http://www.kopsaotte.com/tax/files/file/Record%20Retention.pdf
Monday, March 14, 2011
TODAY IN HISTORY: PRESIDENT PAYS TAX FOR FIRST TIME
Today marks the anniversary of the first U.S. President filing an income tax return. On March 14, 1923, President Warren G. Harding filed his income tax return for the 1922 year, paying about $17,000 in tax on his presidential salary of $75,000, although further details were not released.
The income tax had been enacted in 1913, but then-President Woodrow Wilson was protected by Article II, Section 1 of the Constitution, which states that the President's salary "shall neither be increased nor diminished during the Period for which he shall have been elected." From the 1860s until 1939, it was held that a new tax or tax increase diminished salary, and thus could not go into effect for presidents and federal judges (judges have a similar provision protecting them).
The New York Times of February 15, 1921 reports that then-President-elect Harding spoke against a proposed bill that would make the President permanently immune from the income tax, effectively killing it. (Interestingly, many European and international organizations have such an exemption.)
The income tax had been enacted in 1913, but then-President Woodrow Wilson was protected by Article II, Section 1 of the Constitution, which states that the President's salary "shall neither be increased nor diminished during the Period for which he shall have been elected." From the 1860s until 1939, it was held that a new tax or tax increase diminished salary, and thus could not go into effect for presidents and federal judges (judges have a similar provision protecting them).
The New York Times of February 15, 1921 reports that then-President-elect Harding spoke against a proposed bill that would make the President permanently immune from the income tax, effectively killing it. (Interestingly, many European and international organizations have such an exemption.)
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