Half over or half left, it depends on your point of view. Tax season is at the half way mark. I’m still working away on returns so this post is a collection of little notices and news items.
It looks like the remainder of IRS forms will be released to be filed next week. The IRS is doing live testing of the forms and my software company (Drake) will now allow returns with those forms to be uploaded to them and they will send them in when the IRS allows.
The IRS is reporting problems returns with Earned Income Tax Credit. They now require Form 8867 to be included with returns completed by paid preparers but they were receiving incomplete forms. When that happened, the IRS would hold the return and send the taxpayer a notice requesting the missing information. The Service has stopped holding the returns and are catching up the back returns. But if you receive the letter, you should still respond and get the IRS the info they are requesting.
The IRS is expanding the Voluntary Classification Settlement Program. This program allows employers to move employees they have treated as independent contractors to employee status. For all the details, please see Announcement 2012-45 and 2012-46. Employers have until June 30, 2013 to apply.
The IRS did not send out reminder letters to taxpayers who took advantage of the first version of the First Time HomeBuyer’s Credit and are now repaying the advance they received. It has put a FTHBC look up tool on their website so that taxpayers can check the status of their payback.
“Where’s My Refund” is a problem again this year. This year the IRS took a more conservative approach and did not give target dates. As a result, the online tool was swamped with taxpayers checking on their refund. The Service asked that taxpayers limit their checking to once a day (it’s only updated once a day) to cut down on the traffic. But now it seems that there are issues of the amounts being deposited not matching what the IRS say will be deposited. If this happens to you, give the IRS a little time to get a letter to you explaining why they changed the refund. If that doesn’t answer your questions, than you’ll have to call the IRS at the number on the “Where’s my Refund” response page.
The IRS is saying that the mandatory furlough caused by Congress’s failure to deal with the sequestration will not affect the tax season. They will hold off until after the filing season is over on April 15th.
Back to returns.