Does the IRS Owe You Money?

The Internal Revenue Service may have money for you. Was your income below the limit that requires you to file a tax return? If so, you may still be due a refund.

If you have not filed a prior year tax return and are due a refund, you should consider filing the return to claim that refund. If you are missing a refund for a previously filed tax return, you should contact the IRS to check the status of your refund and confirm your current address.

Unclaimed Refunds

Some people may have had taxes withheld from their wages but were not required to file a tax return because they had too little income. Others may not have had any tax withheld but would be eligible for the refundable Earned Income Tax Credit.

• To collect this money a return must be filed with the IRS no later than three years from the due date of the return.
• If no return is filed to claim the refund within three years, the money becomes the property of the U.S. Treasury.
• There is no penalty assessed by the IRS for filing a late return qualifying for a refund.
• Current and prior year tax forms and instructions are available on the Forms and Publications page of IRS.gov or by calling 800-TAX-FORM (800-829-3676).
• Information about the Earned Income Tax Credit and how to claim it is also available on IRS.gov.

Undeliverable Refunds

Were you expecting a refund check but didn’t get it?

• Refund checks are mailed to your last known address. Checks are returned to the IRS if you move without notifying the IRS or the U.S. Postal Service.
• You may be able to update your address with the IRS on the “Where’s My Refund?” feature available on IRS.gov. You will be prompted to provide an updated address if there is an undeliverable check outstanding within the last 12 months.
• You can also ensure the IRS has your correct address by filing Form 8822, Change of Address, which is available on IRS.gov or can be ordered by calling 800-TAX-FORM (800-829-3676).
• If you do not have access to the Internet and think you may be missing a refund, you should first check your records or contact your tax preparer. If your refund information appears correct, call the IRS toll-free assistance line at 800-829-1040 to check the status of your refund and confirm your address.

IRS Summertime Tax Tip

Four Tips on Preparing for a Disaster

Planning what to do in case of a disaster is an important part of being prepared. The Internal Revenue Service encourages taxpayers to safeguard their records. Some simple steps can help taxpayers protect financial and tax records in case of disasters.

Listed below are tips for individuals on preparing for a disaster.

1. Recordkeeping Take advantage of paperless recordkeeping for financial and tax records. Many people receive bank statements and documents by e-mail. This method is an outstanding way to secure financial records. Important tax records such as W-2s, tax returns and other paper documents can be scanned onto an electronic format. You can copy them onto a ‘key’ or ‘jump drive’ periodically and then keep the electronic records in a safe place.
2. Document Valuables The IRS has disaster loss workbooks for individuals that can help you compile a room-by-room list of your belongings. One option is to photograph or videotape the contents of your home, especially items of greater value. You should store the photos in a safe place away from the geographic area at risk. This will help you recall and prove the market value of items for insurance and casualty loss claims.
3. Update Emergency Plans Emergency plans should be reviewed annually. Individual taxpayers should make sure they are saving documents everybody should keep including such things as W-2s, home closing statements and insurance records. Make sure you have a means of receiving severe weather information; if you have a NOAA Weather Radio, put fresh batteries in it. Make sure you know what you should do if threatening weather approaches.
4. Count on the IRS In the event of a disaster, the IRS stands ready to help. The IRS has valuable information you can request if your records are destroyed. If you have been impacted by a federally declared disaster, you may receive copies or transcripts of previously filed tax returns free of charge by submitting Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, clearly identified as a disaster related request.

For more information type “Preparing for a Disaster” in the search box on the IRS.gov homepage.

Report finds IRS Lien Determinations Were Untimely or Inappropriate for Some $1.4 Billion in Taxes Due

WASHINGTON – The Internal Revenue Service made untimely or inappropriate lien determinations for more than $1.4 billion in delinquent taxes, according to a new report publicly released today by the Treasury Inspector General for Tax Administration (TIGTA).

The IRS protects its claims against taxpayers who owe delinquent taxes by filing Federal tax liens. These liens establish the IRS’s priority among secured creditors for the taxpayers’ equity. Liens are generally filed on balance-due cases in which the taxpayer has received a notice demanding payment and has neglected or refused to pay.

The IRS can decide not to file liens when a taxpayer is in bankruptcy, has died without assets, when a corporation is defunct and miscellaneous other categories. Revenue officers are required to document a decision on whether a lien should be filed and include an explanation when they are not filed.

Revenue officers are supposed to attempt initial contact with a taxpayer or taxpayer’s representative within 45 days after they are assigned the taxpayer’s modules. A module refers to one specific tax return filed by the taxpayer for one specific tax period (year or quarter) and type of tax (i.e., individual, corporate, employment, excise, etc).

According to the report, the IRS did not make lien determinations for 210 open modules at two collection field offices representing a balance due of $6.4 million. In addition, IRS revenue officers did not document valid reasons for not filing liens when closing as “currently not collectible” an estimated 2,297 modules, with $72 million in delinquent taxes.

The report also found that liens were not filed on shelved modules within a certain dollar threshold, even though an IRS study has shown a benefit in doing so. TIGTA’s analysis found that between 2002 and 2008, the IRS shelved, without filing liens, modules representing approximately $1.4 billion in delinquent taxes. Shelved modules are placed in a currently not collectible status and no collection work is conducted.

“The IRS must ensure the appropriate handling of lien determinations,” said J. Russell George, the Treasury Inspector General for Tax Administration. “Failure to protect the Government’s interest on taxes that are owed creates an unfair burden on taxpayers who properly pay their taxes in full and on time,” he said, adding: “I am pleased that the IRS has agreed with our recommendations to address the identified shortcomings.”

TIGTA made eight recommendations that the IRS ensure that revenue officers document their reasons for not filing liens against delinquent taxpayers and ensure that timely lien determinations are made. The IRS agreed with TIGTA’s recommendations.

Source : www.treas.gov

IRS Tax Help: Successful Offer in Compromise Allows Client to Get His Life Back

A woman who was a tax protestor came to Omni Financial for help with an Offer in Compromise after accruing almost a quarter of a million dollars in IRS tax debt. Omni submitted an Offer in Compromise for $14,500, and spent a full year negotiating before finally reaching an agreement with the IRS to settle the matter for $15,000, saving this client almost $235,000.

You can read the entire story: Offer in Compromise Lifts Heavy Burden off Retiring Woman or take a look at the rest of our Tax Relief Success Stories.

For more information about our tax debt relief services, fill out a contact form or call 1-800-540-0433.

Top Ten Things You Need to Know About Making Federal Tax Payments

Will you be making a payment with your federal tax return this year? If so, here are 10 important things the IRS wants you to know about making tax payments correctly.

1. Never send cash!
2. If you file electronically, you can file and pay in a single step by authorizing an electronic funds withdrawal via tax preparation software or a tax professional.
3. Whether you file a paper return or electronically, you can pay by phone or online using a credit or debit card.
4. Electronic payment options provide an alternative to paying taxes or user fees by check or money order. You can make payments 24 hours a day, seven days a week. Visit IRS.gov and search e-pay, or refer to Publication 3611, e-File Electronic Payments for more details.
5. If you itemize, you may be able to deduct the convenience fee charged for paying individual income taxes with a credit or debit card as a miscellaneous itemized deduction on Form 1040, Schedule A, Itemized Deductions. The deduction is subject to the 2 percent limit.
6. Enclose your payment with your return but do not staple it to the form.
7. If you pay by check or money order, make sure it is payable to the “United States Treasury.”
8. Always provide your correct name, address, Social Security number listed first on the tax form, daytime telephone number, tax year and form number on the front of your check or money order.
9. Complete and include Form 1040-V, Payment Voucher, when sending your payment to the IRS. This will help the IRS process your payment accurately and efficiently.
10. For more information, call 800-829-4477 for TeleTax Topic 158, Ensuring Proper Credit of Payments. You can also find out more in Publication 17, Your Federal Income Tax and Form 1040-V, both available at IRS.gov.

Tax Debt Relief: Successful Offer in Compromise Allows Client to Get His Life Back

A client owing almost $135,000 came to Omni Financial for help his federal and state Offers in Compromise. Unfortunately, the state had rejected the Offer in Compromise, saying it was too low. Omni negotiated with the state, getting them to agree to place the client in uncollectable status.

The IRS took a little bit longer to review the Offer because they found several vehicles in the client’s DMV records that Omni was unaware of. However, with Omni Financial’s help, the client was able to finally see his Offer in Compromise accepted, saving him over $117,000.

You can read the entire story: Successful Offer in Compromise Allows Client to Get His Life Back or take a look at the rest of our Tax Relief Success Stories.

For more information about our tax debt relief services, fill out a contact form or call 1-800-540-0433.

Tax Debt Relief: Client Finds Debt Relief through Offer in Compromise

A man who had lost his job contacted Omni to help him file an Offer in Compromise with the IRS. The client was living off his 401(k) account, and the IRS wanted to count this as an asset. Omni was able to convince the IRS that the client needed the 401(k) account to provide for himself. As a result, the Offer in Compromise only accounted for the equity in his vehicle and bank account, saving the client thousands of dollars.

You can read the entire story: Unemployed Client Finds Debt Relief through Offer in Compromise or take a look at the rest of our Tax Relief Success Stories.

For more information about our tax debt relief services, fill out a contact form or call 1-800-540-0433.

IRS Tax Help: Top Ten Tips for Last Minute Filers

With the tax filing deadline close at hand, here are the top 10 tips the IRS wants you to know if you are still working on your federal tax return.

1. E-file your return Don’t miss out on the benefits of e-file. Your tax return will get processed quickly if you use e-file.  If there is an error on your return, it will typically be identified and can be corrected right away.  E-file is available 24 hours a day, seven days a week, from the convenience of your own home. If you file electronically and choose to have your tax refund deposited directly into your bank account, you will have your money in as few as 10 days. Two out of three taxpayers, 95 million, already get the benefits of e-file.
2. Review tax ID numbers Remember to carefully check all identification numbers on your return. Incorrect or illegible Social Security Numbers can delay or reduce a tax refund.
3. Double-check your figures Whether you are filing electronically or by paper, review all the amounts you transferred over from your Forms W-2 or 1099.
4. Review your math Taxpayers filing paper returns should also double-check that they have correctly figured the refund or balance due and have used the right figure from the tax table.
5. Sign and date your return Both spouses must sign a joint return, even if only one had income. Anyone paid to prepare a return must also sign it.
6. Choose Direct Deposit To receive your refund quicker, select Direct Deposit and the IRS will deposit your refund directly into your bank account.
7. How to make a payment People sending a payment should make the check out to “United States Treasury” and should enclose it with, but not attach it to, the tax return or the Form 1040-V, Payment Voucher, if used. Write your name, address, SSN, telephone number, tax year and form number on the check or money order. If you file electronically, you can file and pay in a single step by authorizing an electronic funds withdrawal. Whether you file a paper return or file electronically, you can pay by phone or online using a credit or debit card. Visit IRS.gov for more information on payment options.
8. File an extension Taxpayers who will not be able to file a return by the April 15 deadline should request an extension of time to file. Remember, the extension of time to file is not an extension of time to pay.
9. Visit the IRS Web site anytime of the day or night IRS.gov has forms, publications and helpful information on a variety of tax subjects.
10. Review your return…one more time Before you seal the envelope or hit send, go over all the information on your return again. Errors may delay the processing of your return, so it’s best for you to make sure everything on your return is correct.

Tax Debt Relief: Client Sees 14-Year Wage Garnishment Released

A couple living in the small fishing village of Port Graham, Alaska had fallen on hard times ever since the Exxon Valdez oil spill in 1989. The couple quickly began accruing tax liabilities with the IRS, which began garnishing the wife’s paycheck and levying funds the couple was receiving from the Alaska Permanent Fund Dividend as well as the Exxon Valdez Oil Spill settlement.

When Omni took over the account in 2009, they were also able to show the wife that she actually owed the IRS only about $17,000 while she was convinced she owed them $80,000. After 14 years of ongoing collections, Omni was able to get the wife’s wage garnishment as well as the Alaska Permanent Fund Dividend and Exxon Valdez Qualifying Fund Dividend released. The couple is expecting several more IRS refunds and anticipates no additional tax liabilities.

You can read the entire story: Client Sees 14-Year Wage Garnishment Released or take a look at the rest of our Tax Relief Success Stories.

For more information about our tax debt relief services, fill out a contact form or call 1-800-540-0433.

Ten Things the IRS Wants You to Know About Identity Theft

Criminals use many methods to steal personal information from taxpayers. They can use your information to steal your identity and file a tax return in order to receive a refund. Here are 10 things the IRS wants you to know about identity theft so you can avoid becoming the victim of a scam artist.

1. Identity thieves get your personal information by many different means, including stealing a wallet or purse or accessing information you provide to an unsecured Internet site. They even look for personal information in your trash. They also pose as someone who needs information through a phone call or e-mail.
2. The IRS does not initiate contact with a taxpayer by e-mail.
3. If you receive an e-mail scam, forward it to the IRS at phishing@irs.gov.
4. If you receive a letter from the IRS leading you to believe your identity has been stolen, respond immediately to the name, address or phone number on the IRS notice.
5. Your identity may be stolen if a letter from the IRS indicates more than one tax return was filed for you or the letter states you received wages from an employer you don’t know.
6. If your Social Security number is stolen, it may be used by another individual to get a job. That person’s employer would report income earned to the IRS using your Social Security number, making it appear that you did not report all of your income on your tax return.
7. If your tax records are not currently affected by identity theft, but you believe you may be at risk due to a lost wallet, questionable credit card activity, or credit report, you need to provide the IRS with proof of your identity. You should submit a copy of your valid government-issued identification – such as a Social Security card, driver’s license, or passport – along with a copy of a police report and/or a completed Form 14039, IRS Identity Theft Affidavit.
8. Show your Social Security card to your employer when you start a job or to your financial institution for tax reporting purposes. Do not routinely carry your card or other documents that display your SSN.
9. If you have previously been in contact with the IRS and have not achieved a resolution, please contact the IRS Identity Protection Specialized Unit, toll-free at 1-800-908-4490.

Source:  IRS.gov