January 31, 2019
Tax Filing Season Begins; Returns Due April 15
The Internal Revenue Service has begun accepting and processing returns for tax year 2018. The deadline will be on Monday, April 15, 2019 for most, however, taxpayers in Maine and Massachusetts can file until April 17, 2019 due to the holiday, Patriot’s Day on the 15th and Emancipation Day on the 16th.
Even with the recent Tax Cuts and Jobs Act, the IRS was able to open this year’s tax season a day earlier than the 2018 filing season. 90 percent of taxpayers will be expected to be electronically filed this year. Efiling and direct deposit are still the most secure and quickest way to file an accurate return and get refunds.
Refunds for the Earned Income Tax Credit and Additional Child tax credit can be expected by direct deposit by February 27, 2019.
Please check your Individual Taxpayer Identification Numbers (ITIN) if their middle numbers are any of the following:
- 70, 71, 72 or 80 have expired since December 31, 2017
- 73, 74, 75, 76, 77, 81 and 82 have expired since December 31, 2018
Also any ITIN that hasn’t been used at least once for the past three years are considered expired.
Please contact us if you need any help or inquiries regarding your tax returns.
October 19, 2018
IRS Revoking Passports of Delinquent Taxpayers
The United States Internal Revenue Service (IRS), in partnership with the State Department, have started the enforcement of the law that allows them deny passport applications or revoke pre-existing passports of taxpayers that have more than $51,000 worth of tax liability and any penalties included.
Since February, the State Department began denying passport applications or renewals for delinquent taxpayers with significant liabilities. Already the IRS has collected $11.5 million as of the end of June from 220 individuals and more have negotiated with payment agreements. As of October 2018, they have taken action against 260,000 individuals with tax debt and it is possible that the count will increase to 362,000 by the end of the calendar year.
However, taxpayers can defend themselves due to certain technicalities such as:
1) The IRS cannot threaten the taxpayer unless the individual already received either a Notice of Federal Tax Lien or a Notice of Intent to Levy. (note that taxpayers can still appeal to a Collection Due Process hearing to resolve their debts)
2) The IRS must notify the taxpayer of its intention and will allow 30 days for the individual to respond. Should the notification be ignored or inadequately answered, the State Department can then deny applications or renewals.
March 14, 2018
Ending of Offshore Voluntary Disclosure Program
On September 28, 2018 the IRS will discontinue their Offshore Voluntary Disclosure Program (OVDP). Taxpayers with foreign financial assets now have a limited time window to disclose said assets without criminal liability and restoring civil tax and penalty obligations. Since the program’s introduction, the IRS had collected $11.1 billion in back taxes, interest, and penalties from over 56,000 taxpayers. With the program ending, the IRS will continue to enforce tax laws by using tools such as taxpayer education, whistleblower leads, civil examinations, and criminal prosecution.
For other amnesty programs, taxpayers can still avail them; these include: a) Streamlined Filing Compliance Procedures, b) IRS-Criminal Investigation Voluntary Disclosure Program, c) Delinquent FBAR submission procedures, and d) Delinquent international information return submission procedures.
March 13, 2018
State Department Will Be Allowed to Disclose Return Information to Contractors
TThe IRS proposed regulations to authorize the State Department to disclose return information of seriously delinquent taxpayers. The IRS identifies these taxpayers to have unpaid taxes that are legally enforceable greater than $50,000 and “the IRS filed a lien or levy for which the taxpayer’s Collection Due Process rights have been exhausted or lapsed.” The State Department will now be part of the list of agencies allowed to disclose return information to contractors connected to the revocation or denial of passports.