Refunds Now Tax Tips

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NEW YORK (CNNMoney.com) — Good news homebuyers: You can file for your $8,000 first-time buyer tax credit again.

Bad news: You still can’t e-file your taxes if you want the cash. And there are long delays.

On Thursday, CNNMoney revealed that buyers who purchased their properties after Nov. 6 were unable to claim the refund because the Internal Revenue Service had yet to release a new form and instructions. But on Friday, the IRS finally posted the new form 5405.

The two-month delay was frustrating to Florida resident Charles Teschke. “We are not broke or anything, but nevertheless we were still counting on getting the tax refund to help pay for the appliances and stuff we needed for our new home,” he said. “The IRS told me they estimate it will take four months for me to get my refund!”

First-time buyers were able to immediately file for the tax credit after Congress approved it last February as part of the stimulus program. All they had to do was file an amendment to their 2008 tax returns (the ones they filed last April) and claim the promised refund of 10% of the purchase price, up to $8,000.

They were able to e-file, and they received their refunds promptly. One reader filed a claim the first week of August, and had the check by the third week in September.

But on Nov. 6 the rules changed. That’s when Congress extended — and expanded — the tax credit, which was originally scheduled to expire on Nov. 30.

Now, the deadline is April 30, by when all contracts must be signed. (Closings must happen by June 30.) Plus, existing homeowners looking to trade up (or down) can qualify for a $6,500 refund.

And these new buyers can no longer file electronically. They have to mail in paper forms, including the new 5405, whether they are amending their 2008 taxes or claiming it on the 2009 taxes that are being filed this spring.

That is going to dramatically slow refunds, but taxpayers can’t blame the IRS. Instead, it’s people scamming the system who are at fault.

For example, in October tax preparer James Otto Price III was the first person convicted of this crime. He falsely claimed the credit for 15 clients.

So buyers must now file documentation with their taxes — including proof of residency, a signed mortgage statement and drivers license — which the e-file system is not equipped to handle.

“Because of the scams, the IRS started sending back the amended returns and asking for proof,” said Mary Mellem of David & Mary Mellem, EAs & Ashwaubenon Tax Professionals. “The system has no way of sending along the documents they’re requiring. Taxpayers must file a paper return instead.”

The IRS points out that taxpayers can still use the electronic forms available on its Web site or consumer sites such as TurboTax; they just have to print them out, attach the proof and mail everything in. And that can take quite a while.

“Taxpayers are looking at another three months before they get their returns,” said Mellem.

Reports containing information for the purpose of calculating income tax are called individual tax returns. Such reports are filed with government agencies responsible for tax collection. In the US, the reports are filed with the Internal Revenue Service (IRS) or local tax collection agencies.

It is mandatory for an individual to file tax returns annually for the income received over the course of the year. In the US, individual tax returns are filed in a form called Form 1040, which is prescribed by the IRS.

Points to Consider when Filing Individual Tax Returns
Filing for individual tax returns is a complex exercise. It is good to be acquainted with the intricacies involved in the process. In order to ensure that tax returns are clear, current, comprehensive and correct, the following points should be considered while filing individual tax returns:

• Write Legibly: In case of manual filing, it is important that your forms are written legibly and arranged in the correct order. This would prevent mistakes in the processing of your tax returns.
• Use a computer: For the systematic filing of individual tax returns, it is advisable to use computers. It is often less time consuming than manual filing and reduces the chances of errors and omissions. It also allows you to file your returns electronically and get fast refunds.
• Check Calculations: The IRS scrutinizes the figures provided by you and could get back to you (send you a notice) in case something is not clear. Avoid rounding off numbers, since it indicates that you are using estimates instead of the actual figures. This makes your tax returns prone to an audit.
• Tax Category and Exemptions: It is important to file your tax returns in the correct filing status. Filing in an incorrect tax category may cause significant loss of deductions and credits. Also take due care to claim your exemptions.
• Other Cares: For getting additional income tax deductions, married people can file joint returns. It is also important to ensure that you file your tax returns without delay and keep copies of tax returns of previous years.

For the hassle free filing of tax returns, you can hire a professional. Refunds Now can help simplify the process and secure the maximum benefits. If you have any queries regarding your tax returns, all you need to do is to log on to www.iwantarefund.com.

Completing the process of tax returns filing is not easy at all. Tax returns contain information about income tax. The documents have to be in order, the forms have to be filled in correctly and all of it needs to be filed with the relevant government agency or taxing authority promptly.

For tax returns filing in the US, it is essential to fill up the forms issued by the Internal Revenue Service (IRS). The IRS has the authority and the information required to compute the income tax that one is liable to pay.  If the tax payer pays more than he/she is required to, the surplus amount is usually refunded.

What is the Procedure for Tax Returns Filing?

The steps for tax returns filing are as follows:

• Choose the correct form.
• Do the tax returns filing at the IRS service centre where the previous claim was filed.
• Once the refund claim is filed, the IRS agents will analyze if it is genuine.
• Following this, they will verify if the tax claim was filed on time.
• If the claim is pertaining to a closed tax year, it will not be considered.
• The agents will assess other grounds for immediate refutation of the claim.
• If the authenticity of the claim remains unestablished, there will either be an immediate rejection or a ‘no consideration’ letter that is issued to the claimant.

Why is Tax Returns Filing Important?
Tax return filing is important even if your employer has deducted and paid the tax that you owe to the government from your salary. In case you paid more, you need not worry as you can claim a refund.

If the tax return form (involving a refund claim) is not received kindly by the IRS center, it can still be processed. It will be considered by a revenue agent of the Examination Division. The agent will contact the claimant and ask for relevant or additional information. The final status is that either the refund claim will be accepted or a grace period of 30 days will be provided to get further information. An agent can also deny the claim, following which the tax payer may file a complaint.

If a taxpayer wishes to make an amendment in the return that has been filed already, the next step is to file an amended return.

Finding professional guidance works best when you plan to file tax returns. It saves considerable time, effort, energy and frees you of unnecessary tensions. Visit www.iwantarefund.com and talk to a professional tax consultant right away.

Quick tax return primarily depends on the method that you choose to file your return claim. Further, the mode of receiving refund depends on how quickly you receive the refund.  When you file your tax returns with the Internal Revenue Services (IRS), the tax return is a declaration of an individual’s or a company’s tax liability towards the state.

Quick tax return: Comparative Time Periods
Opting for paper filing and refund through check takes around four to six weeks to take the whole process to completion. Filing return claim early is also recommended as it helps to be well prepared way ahead. Those who do not wait till the last moment to file their return claims definitely stand a better chance of receiving refunds in four weeks rather than the usual time frame spanning six weeks or more.

If you opt for paper filing but you expect your refund in your bank account through direct deposit, it is a process that will take around 3-4 weeks. This minimizes the time spent in waiting for the check.

Electronic filing speeds up the process considerably. You will receive a check within three weeks if you have filed tax returns electronically. To receive a direct deposit in the bank account, it usually takes ten to fourteen days but this is the best way to avoid last minute confusion. Best of all, it guarantees quick tax returns.

Quick Tax Return: A Few Simple Steps
To get quick tax returns, here are certain steps to take:

• Filing early: The sooner you file your tax return, the quicker you will get your refunds.
• Filing an income tax return is very time consuming but it is necessary. The earlier you start, the better.
• Filing online: The IRS offers the provision to file your return claim through e-filing. This accelerates the dispensation of your refund claims. Softwares such as Tax Act and Turbo Tax can process your forms quicker than manual modes.
• Use direct deposit to get your refunds: The IRS takes lesser time to send your refund to your bank account than it does in sending a check. Request the IRS to send you a direct deposit to receive quick tax returns. By doing this, you will receive your refunds two weeks earlier than if you opted to receive it as a check through mail.

To benefit from quick tax returns, the best step to take is to call in the professionals. So, visit us at http://www.iwantarefund.com and let the professionals handle your tax returns.

A tax refund is a reimbursement given by the Internal Revenue Service (IRS) to taxpayers in case the taxes paid by them are higher than their tax liability. Don’t ignore your tax refunds, as this can save you a lot of money. There are a number of things one can do to ensure quick tax refunds.

How to Get Quick Tax Refunds
Here are a few things you should keep in mind to ensure quick tax refunds:

File electronically: Filing taxes electronically ensures that you receive refunds quickly. While filing your taxes manually could get your refund in about six to eight weeks from the date the IRS receives your tax return, filing electronically could ensure that you receive your refund in as few as ten days.

Apart from quick tax refunds, e-filing offers the following benefits:

• If you file taxes online, you will receive a confirmation from the IRS stating that the return was accepted. So you won’t be left wondering whether or not the IRS has received your return filing.
• Online forms are more comprehensive. This ensures that the IRS spends less time on analyzing your returns.
• Paper filing is more prone to errors. These errors may take several months to identify and correct.
• Online filing is more economical.

Complete and correct: Ensure that your tax filing is comprehensive and accurate. For this you can seek the help of professionals. Complete and correct tax filings translate into quick tax refunds for you.

Choose direct deposit: The IRS can directly deposit the refund in your bank account. Choosing direct deposit cuts down check processing and printing time at the IRS. This also cuts out the mailing time, speeding things up even more.

For professional assistance and ensuring quick tax refunds log on to www.iwantarefund.com. With offers like guaranteed accuracy in filing and “No Money Paid Up Front,” Refunds Now is well established in Rhode Island, Massachusetts and Connecticut.

There are several tax return preparation alternatives available to US citizens. Your job, income, deductions and knowledge of tax laws will help immensely in achieving the best tax return preparation.

Tax Return Preparation Tips
Tax return preparation can be hectic and a little complicated. Here are some tips that you can use to make the task a little more organized:

Good record keeping always helps: Keep a diary of all your expenses and record them as they occur. Maintain a file of bills. If you are self employed, maintain a record of mileage. Record the reading at the beginning and end of your ride, especially if you are traveling to office or going for a business related meeting. Keep a file of receipts. Maintain a folder of your bank statements. These statements would reflect your credit / debit card transactions.

Reconcile your bank statement regularly: Don’t forget to reconcile your bank statements at the end of each month. This helps you notice any discrepancy and take immediate action.

Get informed: It helps to know about all the changes in the US tax code. This can be the most cumbersome task in tax return preparation. The best alternative is to hire the services of a professional.

Check out all the deductions you are eligible for: There are a number of deductions, such as pension contributions, moving expenses, student loan interest, medical deductions and alimony. Knowledge of these permitted deductions would help you lower your tax.

Check if you are eligible for tax credits: A tax credit lowers your tax much more than deductions. If you have children, find out if you qualify for child tax credit. If you are taking care of your parents, you may be eligible for dependent care credits. In case you have adopted a child, you may qualify for adoption credit. There are several other tax credits, such as education credits and foreign tax credit.

Tax return preparation is a complex job for most individuals. If the task seems overwhelming or if you’d like to get the best benefits, log on to www.iwantarefund.com to save time and money.

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