* Tax pros – what
do you have to say about “The Mortgage Interest Dilemma”?
* One of the
unanswered questions from last week’s BOB’S BABBLINGS is answered in this week’s post. While you are there, can you answer
the question in my Trivia Challenge
* Kelly Phillips
Erb’s latest “Fix The Tax Code Friday” question was “What Should We Do About The Earned Income Tax Credit (EITC)?”
Kelly points out -
“Critics call the credit confusing and an
opportunity for fraud; that’s also statistically true since most billions of
dollars are paid out for EITC in error every year.”
The answer to her
question is that the EITC should be removed from the Tax Code. There should be no refundable credits – they
are a magnet for fraud.
Check out the
answer I gave Kelly in the comments section of the post.
* And, in honor of
Mother’s Day, Kelly lists “11 Things I've Learned About Tax From My Mom”.
* Speaking of
Mother’s Day, Kay Bell gives us “A Mother's Day Tax Gift: 10 Child Care TaxCredit Tips” at DON’T MESS WITH TAXES.
* Over at ABOUT.COM
Jean Murray provides a wealth of information for those who use their car for
business in “7 Useful Tax Tips for Business Driving”. Each tip links to a more detailed post.
* KHON in Hawaii
brings some good news to frustrated taxpayers waiting for a refund check -
“State Tax Refund Will Earn Interest as Delay Lengthens”
This deplorable
situation is not because of state budget problems – but because of taxpayer
fraud.
“More bad news for those looking forward to
their state tax refunds. The state now tells us it will take even longer, up to
four months now, to get that check.
When we first reported this to you, the state said the
refunds will take eight weeks. That’s because the state tax office is giving
refunds more scrutiny to prevent fraud.
Two weeks after that, the state said refunds will take
10-14 weeks. Now, it will take 16 weeks, all for the same reason.”
How much will they
earn?
“Returns will earn four percent annually, or
one-third of a percent per month.”
Hey – that’s
certainly better than what banks are paying on savings.
* Hawaii is not the
only state that is taking longer to process tax returns. The NJ Division of Taxation has posted the
following message regarding 2014 refunds –
“We know you want your refund as quickly as
possible, but there is something you should know.
The Division of Taxation has made a commitment to
protect your personal and tax information.
The filing of fraudulent tax returns is growing.
Because of the increase in these tax filings, we are using more security
measures when processing returns.
All electronically submitted returns are reviewed to
make sure the information provided on the return belongs to the filer so your
refund is not sent to an imposter.
This means your return may take longer to process than
your tax preparation software may suggest, and it could take us more time to
send your refund than it has in previous years because we are making every
effort to protect your identity.
You will be notified in writing if we need additional
information in order to process your return.
Thank you for your patience as we work to make sure
that you get your refund – not someone else.”
While I have heard
from clients about delayed federal refunds, I have not been contacted about any
delayed NJ refunds.
* Will the IRS make
it easier to determine one’s “shared responsibility payment” next tax season? ACCOUNTING TODAY’s Michael Cohn tells us “IRS Prodded to Ease Compliance with Obamacare Individual Mandate”.
“The report, from the Treasury Inspector
General for Tax Administration, recommends the IRS instead offer an online tool
that would make it easier for taxpayers to find out if they owe a “shared
responsibility payment” because they lack “minimum essential coverage” under
the health care law, and how much they would owe. Such a tool is already
available to IRS examiners and appears to work well at estimating the payment.
The TIGTA report suggests the same tool be provided on IRS.gov to taxpayers.
The IRS agreed with TIGTA’s recommendation and plans to look into providing an
online tool for estimating the shared responsibility payment.”
Will this online
tool also provide assistance in determining if the “unaffordable” or any other
exception to the payment applies?
* Jason Dinesen
will take two posts to answer the question “Why Make Estimated Tax Payments”. Click here for “Part 1”.
Jason tells us that
“contrary to the H & R Block
commercials, tax refunds are not a magical creation”.
TTFN
No comments:
Post a Comment