The IRS Employee Plans Division will host a free webinar on April 7 to provide information on which retirement plan is right for your small business.
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Monthly Archives: March 2011
First Time Homebuyer Credit and Tax Refunds – UPDATE
The IRS today released information on processing issues that are impacting a small percentage of tax returns involving repayment of the First Time Homebuyer Credit (FTHB), primarily involving 2008 home purchases. While most of these returns are processing normally, the IRS recognizes the hardship caused by delayed refunds and it has assigned additional staff and resources to address the issues promptly.
1. Married Filing Joint taxpayers who received the FTHB credit on a 2008 purchase
The IRS projects that some of these taxpayers will receive their refunds as soon as April 5 and others the following week.
2. Taxpayers who received the FTHB credit and are now reporting the sale or disposition of their home
The IRS projects that taxpayers in this situation should receive their refunds by the end of April.
3. Taxpayers who received the FTHB credit and are attempting to pay back more than the amount required (typically $500)
The IRS projects that taxpayers in this situation should receive their refunds by the end of April.
The time frames above assume there are no other issues impacting the taxpayer refund, including federally mandated offsets to refunds.
It is important to note that taxpayer returns claiming a home purchase in 2010 are not affected, and those returns are being processed as are the vast majority of other homebuyer returns. Additional information is available on IRS.gov.
Because the IRS is aware of the issue and working to resolve it, taxpayers do not need to contact the Service regarding this matter. The IRS apologizes for any inconvenience.
IRS Has $1.1 Billion for People Who Have Not Filed a 2007 Tax Return
WASHINGTON — Refunds totaling more than $1.1 billion may be waiting for nearly 1.1 million people who did not file a federal income tax return for 2007, the Internal Revenue Service announced today. However, to collect the money, a return for 2007 must be filed with the IRS no later than Monday, April 18, 2011.
The IRS estimates that half of these potential 2007 refunds are $640 or more.
For 2007 returns, the window closes on April 18, 2011. The law requires that the return be properly addressed, mailed and postmarked by that date. There is no penalty for filing a late return qualifying for a refund.If no return is filed to claim a refund within three years, the money becomes property of the U.S. Treasury.
The IRS reminds taxpayers seeking a 2007 refund that their checks will be held if they have not filed tax returns for 2008 and 2009. In addition, the refund will be applied to any amounts still owed to the IRS, and may be used to offset unpaid child support or past due federal debts such as student loans.
By failing to file a return, people stand to lose more than a refund of taxes withheld or paid during 2007. In addition, many low-and-moderate income workers may not have claimed the Earned Income Tax Credit (EITC). The EITC helps individuals and families whose incomes are below certain thresholds, which in 2007 were $39,783 for those with two or more children, $35,241 for people with one child, and $14,590 for those with no children. For more information, visit the EITC Home Page.
Current and prior year tax forms and instructions are available on the Forms and Publications page of IRS.gov or by calling toll-free 1-800-TAX-FORM (1-800-829-3676). Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for 2007, 2008 or 2009 should request copies from their employer, bank or other payer. If these efforts are unsuccessful, taxpayers can get a free transcript showing information from these year-end documents by ordering on-line, calling 1-800-908-9946, or by filing Form 4506-T, Request for Transcript of Tax Return, with the IRS.
