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Tax

Miami Income Tax Preparers Warn of Further Tax Refund Delay Problems

Miami Income Tax Preparers Warn of Further Tax Refund Delay Problems

Income Tax Preparers are having more problems with delayed 1040 tax preparation tax refunds.

Early in tax-filing season, Income Tax Preparers warned that taxpayers who had filed prior to January 26 might see delays of a week beyond the projected date shown in the online “Where’s My Refund” tool (see Miami Income Tax CPA Warns of Tax Refund Delays).

However, since February 15, the “Where’s My Refund” tool has displayed a message indicating further 1040 tax preparation delays. Income Tax Preparers Gustavo A Viera CPA is aware that some taxpayers who have filed electronically and received an acknowledgement from the IRS are concerned when they visit ‘Where’s My Refund’ and are told that we have no information regarding their return,” said Income Tax Preparers CPA Gustavo Viera. “This is a temporary situation, and we expect to resolve the matter in a few days. At that time, taxpayers will be able to get an expected refund date when they visit ‘Where’s My Refund.’”

Part of the problem appears to be with the new 1040 tax preparation filters that the IRS installed this tax season to combat identity theft fraud, and which were blamed for causing the delays last month (see IRS Steps up Efforts to Combat Identity Theft Fraud).

Income Tax Preparers not to repeatedly call the agency to inquire about their refunds, but apparently many taxpayers are concerned about the delays, especially when they are getting mixed signals from the 1040 tax preparation “Where’s My Refund” tool.

“If a taxpayer received an acknowledgment message that their e-filed tax return has been received, they can be assured that the IRS has the tax return even though ‘Where’s My Refund’ does not reflect that,” said the Tax Services Miami. “Miami Income Tax payers should not call the IRS unless specifically directed by ‘Where’s My Refund,’ as there is no new information to give them.”

The IRS apologized to 1040 tax preparation taxpayers for the situation and said most of the refunds would be issued within 21 days. “We expect the vast majority of tax refunds to continue to be issued within the historical range of 10 to 21 days,” said the Income Tax Preparers. “The IRS is taking steps to update information so that Where’s My Refund has current information. The IRS apologizes for any inconvenience and will provide updated information as soon as possible.”

Income Tax Preparers Firms said that most of the delayed refunds were filed between February 2 and February 7, according to a local ABC News affiliate in Charleston, S.C. Other taxpayers were reporting delays of nearly a month, according to eCreditDaily.com.

When the IRS blocked tax refunds last year, the Taxpayer Advocate Service found that 75 percent of the taxpayers who complained to the service ultimately were found to be eligible for the blocked refunds, but taxpayers had to wait an average of nearly six months to receive them (see IRS Fraud Detection System Leads to Refund Delays). The average amount of the blocked refunds was upwards of $5,600.

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Tax

Sweep Nets Hundreds of Tax Services Miami Violating Laws

Sweep Nets Hundreds of Tax Services Miami Violating Laws

Miami Department of Consumer Affairs conducted a two-week-long enforcement sweep of Tax services Miami, specifically corporate tax preparation, across the city and issued violations to one out of every three Tax Services Miami it inspected, mainly for violating laws governing refund anticipation loans and disclosure of their true qualifications and fees.

The department conducted close to 850 inspections citywide and issued over 1,000 violations to Tax services Miami, specifically corporate tax preparation, who misrepresented their qualifications, violated consumer rights, or illegally advertised refund anticipation loans as “instant” or “rapid” refunds. Total fines from the enforcement sweep could reach close to $1 million. The agency is encouraging taxpayers to instead take advantage of Tax Services Miami professional CPA Firms for preparing their taxes and claiming the Earned Income Tax Credit.

Tax Services Miami

“There are substantial tax refund dollars waiting, who have, since 2002, claimed almost $10 billion in Earned Income Tax Credits alone,” said Tax Services Miami Gustavo Viera CPA. “That’s why we’re making it as easy as possible for people to file their taxes and claim those refunds.  And since the IRS issues these refunds in such a short amount of time, there’s no reason for such expensive, often deceptively sold loans getting in between you and every dollar of your refund.” Similar issues also apply to corporate tax preparation.

Tax Services Miami have been charged with previous violations in 2011 and 2010, along with other Tax services Miami who are located in neighborhoods with large populations of immigrants and high usage of refund anticipation loans.

Tax Services Miami Firms found that 65 percent of businesses that received a violation last year and were inspected this year, were complying with the law. In Miami, Tax services Miami must post their qualifications, fees and charges, and whether or not they will represent consumers at a government audit. Tax Services Miami must sign every tax return, and provide their customers with a copy of their tax return and a receipt for their services.

Taxpayers with children who earn less than $50,000 or $18,000 for those who do not have children can visit a Volunteer Income Tax Assistance sites in the Tri-County where a certified volunteer will prepare their taxes for free, the agency noted. Those earning less than $57,000 can also file their taxes online for free at irs.gov/taxprep. The city is also partnering with Intuit and One Economy Corporation to offer access to free online tax preparation software. Miami tax payers can also have their tax returns prepared at a participating H&R Block office for free for very simple tax returns. To qualify for the H&R Block discount, residents must earn less than $41,000 with children or $31,000 if they have no children.

 

 

 

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Tax

Tax Services Miami Threatened over Tax Refund Delays

Tax Services Threatened over Tax Refund Delays

Anxious taxpayers awaiting their delayed tax refunds are in some isolated cases taking out their frustrations on their Tax Services.

“Severe taxpayer frustration is generated due to the impact of their 1040 tax preparation delayed refunds and a lack of information on status,” said Bernie McKay, chairman of the Council for Electronic Revenue Communication Enhancement, in testimony on February 28 at a hearing of the IRS Oversight Board. His organization, CERCA, serves as a liaison between the Internal Revenue Service and the electronic filing industry.

“Such intense early season taxpayer frustration at Tax Services is directly related to the fact that significant numbers of early season return filers have the most urgent financial need for receipt of their tax refund to meet pressing household, personal or family bills,” McKay added. “For many of these taxpayers, the receipt of their annual tax refund is a major financial event which they and their families depend upon. Tax Services knows when refunds are delayed and status information is not available or reliable, private sector Tax Services Miami staff suffer widespread verbal abuse from deeply frustrated taxpayers after 1040 tax preparation, while Tax Services have been physically threatened or even sustained personal property damage (e.g., rocks through car windshield).”

“We did not go into detail about specific incidents, but if you talk to any Tax Services Miami, they will say that there were challenges that they had during and after 1040 tax preparation,” said CERCA spokesman Mike Cavanagh.

The IRS informed Tax Services early this tax season that it was experiencing tax refund delays as a result of new anti-fraud filtering software it had put in place to protect taxpayers against identity theft. The “Where’s My Refund” tool Tax Services Miami refer taxpayers to on the IRS Web site was also producing error messages and telling taxpayers different dates for when they could expect their refunds.

In the most recent update on the status of the tax refund delays, the IRS indicated that it was catching up, although it was still about 2 million tax returns behind where it was last tax season.

“The Where’s My Refund online tool needs to be continuously functioning, timely and accurate,” said McKay. “A lack of information, or the repeated unavailability or non-functionality of the tool itself after 1040 tax preparation, adds to the growing frustration of the taxpayer and directly drives growing call volumes for both the public and private sectors alike.”

At one point, when the Where’s My Refund tool was malfunctioning, the IRS asked taxpayers not to keep calling and Tax Services got the calls.

But that put more pressure on Tax Services Miami to answer the question about taxpayer’s 1040 tax preparation for clients, CERCA noted. “The IRS posting of notices asking taxpayers to stop calling because it has no information does not help the problem, and does not produce the desired behavior within the impatient taxpayer population,” said McKay in his testimony. “If the taxpayer does indeed stop calling the IRS, they just start calling, emailing, texting, blogging or tweeting Tax Services. A lack of information or customer service does not result in the taxpayer patiently going away and waiting. It is not a behavior that a dissatisfied consumer of services is accustomed to in the modern 24×7 world of instantaneous communications and constant access to desired information and services. A fundamental customer service paradigm shift has taken place in the commercial world, and the government sector is not immune from its impact.”

Besides the anti-fraud identity theft filters, some of the problems may have also been due to the IRS’s new Modernized eFile system. The IRS told taxpayers that the refunds would be delivered within a 10-21-day window, but many tax refunds continue to be delayed, Tax Services Miami noted Friday.

CERCA had seen this coming. “Despite years of public predictions of significant acceleration in refund cycle times due to major public investments in IRS systems, this year the IRS official guidance, and actual experience, was of a significantly longer refund cycle time than in the past,” said McKay. “Going forward, strategy must either align performance and management objectives back to the long-time predictions and commitments made to the public, or begin a major public re-education program to change public expectations about the timeliness of 1040 tax preparation refund availability from the U.S. income tax system. The IRS Refund Cycle Chart has been out of synch this tax season with actual refund turnaround time, and out of synch as well with the IRS’s own projection posted in January that lengthened the predicted amount of time it might take refunds to be processed to be 10-21 days. The disconnects in these types of critical datapoints add to taxpayer confusion and anxiety, and an objective for future seasons must be a standard of simplicity and consistency and timeliness in information and messaging.”

Even after the system indicated that the refund had been issued, the money oftentimes has not been forthcoming. “Once the IRS does issue the refund, the agency can today provide no further support to the taxpayer when researching where the refund actually is, and what happened, for example, with regard to offsets,” said McKay. “Tax Preparation Miami and electronic service providers need access to [Financial Management Service] information to verify where disbursement is in the process, so that if there’s been a problem with the funds they can be traced. Lack of timely, accurate, accessible information drives negative taxpayer experiences, particularly with early return filers who have the most urgent need to receive their refunds.”

Tax Services Miami wants to work with the IRS to improve the situation for next tax season.

“What we simply wanted to do was suggest solutions,” said Cavanagh. “Next year let’s work harder. The issues this season have happened, but let’s work with the IRS to do better.” He acknowledged that the problems from earlier this tax season are now abating. An IRS spokesman confirmed that the problems are mostly resolved at this point.

Tax Services Miami want to make sure that the situation improves in future tax seasons or else it could upset the delicate balance involved with voluntary tax compliance.

“The role of tax refunds as an incentive for taxpayer voluntary compliance in the United States is foundational to the very high tax compliance rate the U.S. government has come to expect and enjoy over many decades,” said McKay in his testimony. “The role of tax credits as a lever of national economic policy has likewise become central to the role of the U.S. tax system in the American economy. If the timeliness of tax refunds is going to fundamentally change as the ‘new normal’ of American taxation, the taxpaying public must be informed and educated. Changing citizen expectations and behaviors took 10 years to produce a conversion from paper returns to electronic filing and achieving an 80 percent e-file rate. Changing citizen expectations about the timeliness of their access to their tax refund money would likely be a more difficult challenge that would encounter a more a challenging range of taxpayer behaviors and emotions, if this tax season is any indication.”

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Tax

1040 Tax Preparation How To Calculate and Make Estimated Tax Payments

1040 Tax Preparation How To Calculate and Make Estimated Tax Payments

As a 1040 Tax Preparation Tax Return Preparation CPA Firms will tell new business owners, understanding your tax obligations is critical and one of the first requirements you’ll need to understand are estimated tax payments prior to your 1040 tax preparation.

1040 tax preparation

What are estimated taxes? Who must pay them and how? Below are some facts from Tax Services Miami Guide to help new small business owners understand their estimated tax obligations.

What Are Estimated Taxes?

1040 Tax Preparation CPA Firms remind you that the IRS and your state’s treasury department require that individuals and businesses pay taxes almost as quickly as they earn income. If taxes aren’t withheld from wages or other payments, then you will likely need to pay estimated tax payments each quarter prior to your 1040 tax preparation.

Tax Services Miami would like you to think of estimated taxes as a “pay-as-you-go” tax. Four times a year (quarterly), you are required to send Uncle Sam enough of your revenues to cover your income tax and your self-employment tax (Social Security and Medicare) obligations prior to Tax Return Preparation time.

If you don’t pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax when you get to your 1040 tax preparation. However, Tax Services Miami knows that calculating earnings isn’t easy, so it offers a safe harbor rule – if you pay at least as much as your previous year’s liability or pay within 90 percent of your actual liability, there’s no penalty for underpayment.

1040 Tax Preparation Tax Return Preparation Who Pays Estimated Taxes?

If you are self-employed and expect to owe $1,000 or more when you do your 1040 Tax Preparation, then you must pay estimated taxes on income.  If it’s not through withholding, then it has to be done by quarterly estimated taxes. If your business is structured as a corporation, you’ll need to pay estimated taxes if you expect to owe $500 when you file.

How Much Should You Pay in Estimated Taxes?

1040 tax preparation and calculating what you owe each quarter requires figuring out your expected adjusted gross income, taxable income, taxes, deductions, and credits for the year. Each business situation is different, especially if you are a new business owner, so it’s worth spending some time with a Tax Services Miami tax advisor to understand the best calculation method for your situation.

You have a number of options when it comes to calculating what you owe each quarter:

•Use Form 1040-ES – You can calculate your quarterly estimated tax payment using Form 1040-ES (the same form used to pay estimated taxes), which includes a worksheet that helps you estimate how much you owe for the current year. Corporations should use Form 1120-W to calculate estimated taxes.

•Refer to Last Year’s Return – If you have been in business for a while, you can refer to your previous year’s federal tax return. Include all the income and deductions you expect to take on your current year’s tax return and refer to the total tax you paid so that your estimated tax payments are in the same range as last year’s taxes (100-110 percent is the range to shoot for to avoid underpayment problems).

•Make a Quarterly Calculation – If you are a freelancer or independent contractor and face fluctuating or cyclical income, you might prefer to calculate your estimated taxes on a quarterly basis.

Tax Return Preparation CPA Firms offers more advice in its Estimated Taxes Guide on how to calculate your payment and adjust estimates if you think you are paying too much – or too little – as the year progresses.

When Are Payments Due?

For estimated tax purposes, the year is divided into four payment periods. Payments for each year are due on the 15th day of April, June, September and the following January. You should try to pay at least the minimum owed by the due date (with the remainder paid on April 15), or risk incurring penalties from the IRS or your state.

How To Pay Estimated Taxes

Paying your estimated taxes is an easy process. If you are filing as a self-employed individual, use Form 1040-ES, which includes quarterly payment vouchers to submit with your payment. Corporations can deposit the payments by using the Electronic Federal Tax Payment System for deposit coupons (Forms 8109). Once you are in the system, the IRS will send you payment vouchers at the end of each tax year so you won’t have to worry about downloading the latest forms.

Paying Estimate Taxes to Your State?

You need to pay your estimated state income taxes at the same time you pay your federal taxes. Find links to your state’s tax office for the appropriate forms here.

Talk to a 1040 Tax Preparation Specialist

Spend an hour with a Tax Return Preparation CPA Firms to help you understand what the best calculation methods are, how to appropriately track and deduct expenses, and how to maintain good records. Many will provide this initial consultation for free simply because they hope you will return and use them come filing season.

 

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Tax

Tax Services TaxMasters Bankruptcy Shows Why Not To Get Help From TV Pitchmen if You Owe The IRS

Tax Services TaxMasters Bankruptcy Shows Why Not To Get Help From TV Pitchmen if You Owe The IRS

Tax Services Miami CPA Firm Gustavo A Viera says if you’ve got problems paying the Internal Revenue Service, don’t look for help from the ads on late night cable television from TV Pitchmen promising to reduce tax liabilityReducing tax liability, that’s one of the lessons from an SEC filing Friday by TaxMasters Inc., disclosing the publicly-traded company will file for voluntary bankruptcy.  As ABC reported last April, even after Tax Services Houston-based TaxMasters had been accused of deceptive business practices by the attorneys general of Texas and Minnesota, it continued to buy millions of advertising on CNN, FoxNews and other cable channels Pitchmen promising to reduce tax liability for pennies on the dollar. The ads featured Patrick Cox, the red-bearded TaxMasters CEO, assuring potential clients that his staff of tax pros, including former IRS agents, had helped “many good people just like you.”

According to TaxMaster’s three page filing in the Southern Texas bankruptcy court, it has less than $5,000 in assets and up to 5,000 creditors.

Tax Services Miami VieraCPA notes this is just the latest bankruptcy by a “tax resolution” Tax Services that advertised heavily—and made allegedly exaggerated claims–on cable TV.  JK Harris & Co., a South Carolina-based firm which once operated hundreds of locations in dozens of states, filed for bankruptcy last October after being sued by both states and unhappy customers. Last December, it ceased operations and went into liquidation, leaving 5,400 active clients in the lurch.   Harris’ former clients, including those who won legal judgments against it, aren’t likely to see any money from the liquidation. (Another firm, Resolute Tax Services, has purchased access to JK Harris’ customer list; according to the privacy terms set by the bankruptcy court, customers must contact Resolute and agree to the transfer of their files, at which point Resolute says it will offer them a “credit of up to 50%” of the fees they paid JK Harris.)

In 2010, California Attorney General (now Governor) Jerry Brown  sued “Tax Lady” Roni Deutch, who also had a big presence on TV, claiming she “engaged in a scheme to swindle taxpayers” by overstating the ability of her tax services firm to gain concessions from the IRS. Deutch called the charges politically motivated. But last year, she  filed for bankruptcy and  surrendered her law license.

If you’ve got problems with the IRS, here are a few pointers—that you won’t get from a Tax Services cable pitchman.

• Tax Services CPA Firm Gustavo A Viera says some people do win “offer in compromise” deals from the IRS allowing them to settle what they owe for “pennies on the dollar”—but only those who genuinely can’t pay, when all their assets and future earnings are taken into account. In fiscal 2010, the IRS received 57,000 applications for OICs and granted only 14,000 of them, according to its annual data book.

• CPA VieraCPA notes that if you can pay what you owe the IRS over time, you may be able to work out a deal without paying big bucks to a tax pro. Earlier this month, as part of a bid to help strapped taxpayers, the IRS announced that taxpayers owing up to $50,000 in back taxes, interest and penalties (up from $25,000) can enter into a streamlined installment agreement to pay over up to 72 months–without supplying the IRS with a detailed financial statement. Be careful, however, not to sign an installment agreement unless you’re reasonably certain you can live up to.

•If you believe you are being treated unfairly by the IRS and can’t get anyone to listen to you, there is an independent office within the IRS —known as the Taxpayer Advocate Service—that may be able to intervene or call Tax Services CPA Firm Gustavo A Viera

•If you need professional help, choose carefully.  If you’re in deep trouble with the IRS, you’ll generally want to hire a lawyer, a CPA or an enrolled agent, who is licensed to practice before the IRS.

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Business Trends

Tax Services Miami

When it comes to income Tax Services Miami taxpayers often feel a lot of anxiety

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Tax

Tax Accountant in Miami Unhappy About PTIN Info Disclosure

Tax Accountant in Miami Unhappy About PTIN Info Disclosure

Tax Accountant in Miami reactions range from annoyance over spam to concern over online privacy as they’ve learned that the IRS is publicly releasing some of the information it collects as part of its Tax Accountant in Miami Preparer Tax Identification Number registration.

Some PTIN information is subject to release under the Freedom of Information Act, and the IRS makes a database of all approximately 700,000 registered Tax Accountant in Miami available to anyone who requests it and pays a fee of $35.

Concern among Tax Accountant in Miami preparers surfaced last summer as commercial interests began using PTIN information to set up their own databases that some preparers say have been designed to resemble the old IRS site or that try to get Tax Accountant in Miami to pay a fee to “upgrade” their posted information.

According to reports, the American Institute of CPAs has expressed concerns to the IRS about the information release. Many or most Tax Accountant in Miami were unaware of the possibility when they applied for a PTIN that their data would be publicly released, although the IRS has said from the beginning of the PTIN requirement that it plans eventually to publish such an online database of its own.

Angry Tax Accountant in Miami

Tax Accountant in Miami on several LinkedIn discussion boards, including the board for the National Association of Tax Professionals with the thread name “IRS Responds to Angry Tax Preparer Miami,” are also reporting floods of e-mailed continuing education-related spam. Other Tax Return Preparation preparers question why the IRS has not proceeded with a promised public-awareness campaign to educate the public about checking Tax Return Preparation preparers’ credentials with an IRS database — a delay that one Tax Accountant in Miami said allowed private enterprise databases “a big head start in reaching the public” with preparer verification information.

Some Tax Accountant in Miami said that they didn’t mind their information being released, but Tax Accountant in Miami also reported wide variation in the information available and released, from simple names and addresses to names, addresses (both business and home), phone numbers and e-mail addresses.

Among the IRS responses reported was permitting PTIN registrants to list either a physical address or a Post Office box, and to use any valid e-mail address as long as the Tax Return Preparation Miami preparer regularly checks it for PTIN communications. (One preparer also suggested listing a separate and otherwise unused e-mail address to receive the spam.)

What can  a Tax Accountant in Miami do

According to the IRS page entitled “FOIA Awareness for PTIN Holders,” information subject to release includes name; business name, Web site and mailing address, and phone number; e-mail address; and professional credentials. The IRS has also changed the “Permanent Mailing Address” box on the PTIN application to “Personal Mailing Address” — which clarifies that the information is personal and exempt from public disclosure under FOIA rules.

“If you used your Personal Mailing Address as your Business Mailing Address or used a street address when you would have preferred to provide a P.O Box as your Business Mailing Address, you may want to update your contact information,” the page reads. “This information is not exempt from disclosure under FOIA rules and it will be released even if it is the same as your Personal Mailing Address.”

Instructions follow on the page for updating PTIN account information either online or on paper. Regarding spam and other unwanted solicitations, however, the service only offers a link to the FTC’s Bureau of Consumer Protection.