HobNob Nashville TN | Displaying items by tag: IRS

IRS Seeks Applications for Volunteer Tax Assistance Program Grants

NASHVILLE –– The Internal Revenue Service is accepting applications for the Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grant programs, which will allow some organizations to apply for annual funding for up to three years.

In 2012, the IRS has awarded $193,000 in grants to three Tennessee organizations.

Applications will be accepted only through Grants.gov May 1 through May 31, 2012. Previous grant recipients will have the option to apply for up to three years of annual funding which would reduce the amount of paperwork they must complete over the three-year period. This annual funding will also help recipients with budget planning.

Interested organizations may obtain an electronic copy of the grant application package instructions, Publication 1101 for TCE and Publication 4671 for VITA on the IRS.gov website. More information about the TCE and VITA grants is available in Publication 4680, TCE & VITA Grant Programs.

In 2012 the IRS awarded 30 TCE grantees $5.6 million and 213 VITA grantees $12 million. Through April 9, 2012, the two grant programs filed more than 2 million returns at over 9,800 sites nationwide.

The TCE program was established in 1978 to provide tax counseling and return preparation to persons age 60 or older and to give training and technical assistance to the volunteers who provide free federal income tax assistance to seniors across the nation.

The VITA Grant program was established in 2007 to supplement the VITA program, which was created in 1969. VITA provides underserved communities with free federal income tax filing assistance. The grant program enables VITA to extend services to underserved populations in hard-to-reach urban and non-urban areas, to increase taxpayers’ ability to file returns electronically, to enhance training of volunteers and to improve the accuracy rate of returns prepared at VITA sites.

Published in Community Cares

IRS Offers Tips for After Tax Day

NASHVILLE - Tax day has come and gone for most people, but dealing with taxes may not be done for some.

Internal Revenue Service spokesman Dan Boone offers these tips for handling some typical after-tax-day issues:

Didn’t file by April 17?

It’s too late to request an extension of time to file, so the important thing is to file your return as soon as possible. If you owe taxes with your return, you may be charged interest and penalties on anything not paid by April 17, along with a late-filing penalty. To reduce the penalties and interest, pay as much as you can with the return.

Is there still a penalty for filing late if you've got a refund coming?

If you’re due a refund and are filing late, you probably won’t be penalized, but you could lose the refund if you don’t claim it within three years. Also, if you're legally required to file and don't, the IRS may prepare a return for you based on the information they have (W-2 & 1099 forms) and send you a bill for taxes due.

Want to check the status of your refund?

Visit www.IRSgov and click on "Where’s My Refund?". You’ll need to input the primary Social Security Number on your 2011 return, your filing status (Single, Married Filing Jointly, etc.) and the amount of refund you expect. If you don’t have Internet access, call 1-800-829-1954 for 24/7 automated refund information. Or use the IRS' free phone app, IRS2Go, if you have an iPhone or Android.

Not happy with the amount of your tax refund?

Fix it now for next year by adjusting the amount you pay in. If you’re an employee, use the IRS’s online Withholding Calculator to figure the correct status and number of allowances. Then adjust your withholding by filling out a new Form W-4 with your personnel office. If you’re self-employed, adjust your estimated tax payments. And if you’re not making estimated tax payments, you can start June 15, the next due date, by using Form 1040-ES. Visit IRS.gov for details.

Need a payment plan?

If you owe the IRS $50,000 or less and can’t pay it all, visit IRS.gov to apply for an online payment agreement. The $105 set-up fee drops to $52 if you pay by automatic debit. Lower-income applicants may qualify for a reduced fee of $43. If you don’t have Web access, call 1-800-829-1040 to set up an IRS payment plan.

Want to e-file your tax return now?

E-file and Free File are still available through Oct. 15, the filing deadline for those who requested an extension by April 17. But even if you didn’t file an extension, you can still e-file your return. Use the tax software you bought, or if your 2011 adjusted gross income was not over $57,000, use the IRS Free File program. CAUTION: To avoid tax scams or unnecessary fees, access Free File only through IRS.gov.

Realized you need to fix an error on your return?

The IRS will usually correct math errors and may even accept returns with certain forms or schedules left off. But if, for example, you forgot to include reportable income or a deduction or credit, you can file a Form 1040X to amend your return. The form is available at IRS.gov or by calling 1-800-TAX-FORM. Be sure to wait until your original return has processed before trying to amend it. Generally, you have up to three years to amend a tax return.

Got an e-mail from the IRS?

The IRS now uses Twitter, Facebook and YouTube for tax tips and updates but will never initiate contact with you about your taxes by e-mail or any social media. If you get an unsolicited e-mail that appears to be from the IRS, it’s probably an attempt by scammers to steal your private information. Don’t click on any links in the message – forward the fake e-mail to This e-mail address is being protected from spambots. You need JavaScript enabled to view it using the instructions at IRS.gov.

Need help with a tax problem?

If you encounter a federal tax problem, contact the IRS immediately. Waiting can cost you time and money. If you get a notice from the IRS, call the phone number on the notice for help. Or call the IRS help line toll-free at 1-800-829-1040. For business questions, call 1-800-829-4933. If you’ve tried the normal IRS channels and the problem still isn’t resolved, contact the Taxpayer Advocate Service toll-free at 1-877-777-4778 for free assistance.

Published in Money

IRS offers relief for unemployed, options for others on taxes due

E-Pay Options Available to People Facing April 17 Deadline; Penalty Relief for Unemployed Taxpayers; Expanded Payment Plans for Those Who Can’t Pay

IRS YouTube Videos:
IRS Tax Payment Options

" target="_blank" title="This external link will open in a new window">ASL

Podcasts:
IRS Tax Payment Options English | Spanish
Fresh Start English | Spanish
April 17th Tax Deadline English | Spanish

WASHINGTON — The Internal Revenue Service today reminded taxpayers that 2011 federal income tax returns, extension requests and tax payments are due by April 17, 2012. For people unable to pay their taxes in full by that date, payment agreements and other relief are usually available and can even be requested online.

Taxpayers will avoid late filing penalties if they file either their income tax return or a request for a tax-filing extension by midnight on Tuesday. The late-filing penalty, normally five percent per month based on the unpaid balance, applies to returns filed after the deadline. Taxpayers should file, even if they can’t pay the full amount due.

Any payment made by April 17 will reduce or eliminate interest and late-payment penalties that apply to payments made after that date. The current interest rate is three percent per year, compounded daily, and the late-payment penalty is normally 0.5 percent per month.

Whether paying tax in full or in part, the fastest and easiest way to do so is by using one of the electronic payment options. E-pay options include:

Electronic Federal Tax Payment System (EFTPS). This free service gives taxpayers a safe and convenient way to pay individual and business taxes by phone or online. To enroll or for more information, call 800-316-6541 or visit www.eftps.gov.

Electronic funds withdrawal. E-file and e-pay in a single step.

Credit or debit card. Both paper and electronic filers can pay their taxes by phone or online through any of several authorized credit and debit card processors. Though the IRS does not charge a fee for this service, the card processors do. For taxpayers who itemize their deductions, these convenience fees can be claimed on Schedule A Line 23.

Taxpayers who choose to pay by check or money order should make the payment out to the “United States Treasury.” Write “2011 Form 1040,” name, address, daytime phone number and Social Security number on the front of the check or money order. To help insure that the payment is credited promptly, also enclose a Form 1040-V payment voucher.

In many cases, those struggling with unpaid taxes qualify for one of several relief programs, including those recently expanded under the IRS "Fresh Start" initiative. These include the following:

Most people can set up a payment agreement with the IRS on line in a matter of minutes. Those who owe $50,000 or less in combined tax, penalties and interest can use the Online Payment Agreement to set up a monthly payment agreement for up to six years. Taxpayers can choose this option even if they have not yet received a bill or notice from the IRS. Alternatively, taxpayers can request a payment agreement by filing Form 9465-FS. This form can be downloaded from IRS.gov and mailed along with a tax return, bill or notice.

Most unemployed filers and self-employed individuals whose business income dropped substantially can apply for a six-month extension of time to pay. Eligible taxpayers will not be charged a late-payment penalty if they pay any tax, penalty and interest due by Oct. 15, 2012. Taxpayers qualify if they were unemployed for any 30-day period between Jan. 1, 2011 and April 17, 2012. Self-employed people qualify if their business income declined 25 percent or more in 2011, due to the economy. Income limits and other special rules apply. Apply using Form 1127-A.

Some struggling taxpayers may qualify for an offer-in-compromise. This is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. Generally, an offer will not be accepted if the IRS believes the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.

Details on all filing and payment options are on IRS.gov.

Published in Money

IRS reminder: Don't overlook college tax benefits

Last-Minute Reminder to Parents and Students: Don’t Overlook College Tax Benefits

IRS YouTube Videos:
Education Tax Credits and Deductions:

" target="_blank" title="This external link will open in a new window">ASL

Podcast: Education Tax Credits and Deductions

NASHVILLE — The Internal Revenue Service today reminded parents and students rushing to meet this year’s April 17 deadline to be sure and check out several college-related tax benefits before filing their 2011 returns.

"Two tax credits and a tax deduction are available to those who paid tuition and other expenses for an eligible student during 2011," said IRS spokesman Dan Boone.

Education tax credits were claimed on 329,335 tax returns out of 2,794,712 total returns filed by Tennesseans in 2010. The tuition and fees deduction was claimed on 36,365 tax returns.

Because an eligible student can be the taxpayer, spouse or dependent, these benefits can, for example, help workers taking continuing education courses and people returning to school, as well as parents paying for their children’s college education.

Given the number of different higher education credits and deductions, the IRS reminds taxpayers to carefully review eligibility requirements so they don’t overlook these important college benefits. Tax benefits include the following:

The American Opportunity Tax Credit helps pay for the first four years of post-secondary education. Tuition, required enrollment fees, books and other required course materials generally qualify, and eligible students must be enrolled at least half time. Qualifying expenses of $4,000 or more in 2011 can earn a taxpayer the maximum credit of $2,500 per student per year. Even taxpayers who owe no tax can get a payment of the credit of up to $1,000 for each eligible student. The credit is claimed on Form 8863. But the IRS warns taxpayers to avoid an often-costly tax scam, currently being promoted widely to senior citizens, low-income families and church members falsely claiming that refunds based on the credit are available, even if they’re not currently enrolled in college and even if they went to school decades ago. In addition, some international students, normally considered nonresident aliens for tax purposes, have been improperly advised that they qualify for the credit.

The Lifetime Learning Credit, limited to $2,000 per taxpayer per year, can be claimed based on tuition and required enrollment fees paid for any level of post-secondary education. Because of differences between the two credits and the fact that the American Opportunity Tax Credit usually yields greater tax savings at the undergraduate level, the Lifetime Learning Credit may be particularly helpful to graduate students, students taking only one course and those who are not pursuing a degree. The Lifetime Learning Credit is also claimed on Form 8863.

The tuition and fees deduction is available for both full-time and part-time students at all levels of post-secondary education. The deduction of up to $4,000 is claimed on Form 8917.

Each year, a student normally receives a Form 1098-T from their college showing tuition payments and other information.

Though a taxpayer often qualifies for more than one of these benefits, he or she can only claim one of them for a particular student in 2011. Income limits and other special rules apply to each of these benefits. The general comparison table in Publication 970 can be a useful guide to taxpayers in determining eligibility for each of these benefits.

Often, tax credits are more valuable, because they reduce the amount of tax owed, whereas deductions reduce the income on which tax is figured. Tax software can often help parents and students determine which benefit yields the greatest tax savings.

Besides these tax benefits, parents, students and former students who made student loan payments during 2011 can deduct up to $2,500 of student loan interest. Normally, borrowers receive from their financial institution Form 1098-E showing student loan interest paid for the year. This deduction is claimed on Form 1040 Line 33 or Form 1040A Line 18. Income limits and other special rules apply. For example, the student must have been enrolled at least half time in a degree or certificate program. A worksheet in the tax form instructions can help taxpayers figure the deduction correctly.

The student loan interest deduction, the tuition and fees deduction and both tax credits can be claimed by eligible taxpayers, regardless of whether they itemize deductions on Schedule A. These benefits are available to both Form 1040 and 1040A filers. Details on these and other education-related deductions and credits can be found in the Tax Benefits for Education Information Center on IRS.gov.

Published in Money

Need More Time to File? Use Free File or Form 4868 to Get Extension

IRS YouTube Videos:
Need More Time to File Your Tax Return?

" target="_blank" title="This external link will open in a new window">ASL

Podcasts:
IRS Tax Payment Options English | Spanish
Need More Time to File Your Tax Return English | Spanish

WASHINGTON —The Internal Revenue Service today reminded anyone unable to meet next week’s tax deadline that they can easily get an automatic six-month tax-filing extension. And, the easiest and quickest way to get an extension is online through the Free File link on IRS.gov.

In a matter of minutes, anyone, regardless of income, can use this free service to electronically request an automatic extension on Form 4868. Filing this form gives taxpayers until Oct. 15 to file a return. This is an extension of time to file; not an extension of time to pay.

To get the extra time, taxpayers must estimate their tax liability on this form and should also pay any amount due. Taxpayers can e-pay what they owe using the Electronic Federal Tax Payment System (EFTPS), by electronic funds withdrawal or with a credit or debit card. Those who choose to pay by check or money order should make the payment out to the “United States Treasury.”

By properly filing Form 4868, a taxpayer will avoid the late-filing penalty, normally five percent per month based on the unpaid balance, that applies to returns filed after the deadline. In addition, any payment made with an extension request will reduce or eliminate interest and late-payment penalties that apply to payments made after April 17. The current interest rate is three percent per year, compounded daily, and the late-payment penalty is normally 0.5 percent per month.

Besides Free File, taxpayers can choose to request an extension through a paid tax preparer, using tax-preparation software or by filing a paper Form 4868, available on IRS.gov. Of the 10.5 million extension forms received by the IRS last year, about 4 million were filed electronically.

Some taxpayers get more time to file without having to ask for it:

Members of the military on duty outside the U.S., as well as U.S. citizens and resident aliens living and working abroad have until June 15 to file and pay, though interest still applies to payments made after April 17.

Members of the military and others serving in Iraq, Afghanistan or other combat zone localities can typically wait until at least 180 days after they leave the combat zone to both file returns and pay any taxes due.

People in parts of Indiana, Kentucky, Tennessee and West Virginia, affected by tornadoes, severe storms, floods and other recent natural disasters, have until May 31 to file and pay.

Details on all filing and payment options are on IRS.gov.

Published in Money

IRS YouTube Videos Offer Last-Minute Help for Taxpayers

WASHINGTON — The Internal Revenue Service reminds taxpayers that IRS YouTube videos can help them with their taxes before the April 17, 2012, deadline. The IRS channels offer information on a variety of the most frequently asked taxpayer questions at this time of year.

Videos are available in English, Spanish and American Sign Language. Among the hot topics for last-minute filers:

Need More Time to File Your Tax Return?

" target="_blank" title="This external link will open in a new window">ASL

The three IRS YouTube channels are home to hundreds of videos on subjects ranging from how to

" target="_blank" title="This external link will open in a new window">efile your taxes for free.

The IRS YouTube channel in English is the fourth most viewed U.S. government YouTube channel. Since its debut in August 2009, there have been more than 3.1 million views.

Taxpayers can subscribe to the channels to receive notice of new video offerings year-round. The videos are also available on the IRS’s phone app,

" target="_blank" title="This external link will open in a new window">IRS2Go.

Published in Money

Can't File by April 17? Use Free File to Get Filing Extension

E-pay, Payment Agreement Options Available

IRS YouTube Videos:
Need More Time to File Your Tax Return?

" target="_blank" title="This external link will open in a new window">Spanish | ASL

AL/TN-2012-18TN, April 3, 2012

NASHVILLE — With the tax filing deadline just 11 days away, the Internal Revenue Service reminded taxpayers that quick and easy solutions are available if they can’t file their returns or pay their taxes on time, and they can even request relief online.

The IRS expects more than 600,000 Tennesseans to file tax returns in the next two weeks and about 170,000 to request filing extensions.

"Don’t panic, but be sure to act by the April 17 deadline" said IRS spokesman Dan Boone. "The IRS offers tax-filing extensions and payment options for those who need more time to file or to pay."

The fastest and easiest way to get the extra time to file is through the Free File link on IRS.gov. In a matter of minutes, anyone, regardless of income, can use this free service to electronically request an automatic six-month filing extension on Form 4868. The filing extension does not offer more time to pay.

Taxpayers who are having trouble paying what they owe usually qualify for payment plans and other relief. Last month, for example, the IRS, as part of its Fresh Start initiative announced penalty relief for unemployed taxpayers and self-employed individuals whose income has dropped.

Either way, Boone said, taxpayers will avoid stiff penalties if they file either a regular income tax return or a request for a tax-filing extension by this year’s April 17 deadline. Taxpayers should file, even if they can’t pay the full amount due.

Details on all filing and payment options are on IRS.gov.

Published in Money

IRS: Clock is ticking, here's some options

IRS Tax Tip for April 2, 2012: Free File Still Available for Last Minute Filers http://go.usa.gov/mc1

VIDEO: IRS Offers Tips for Last-Minute Filers http://www.multivu.com/mnr/55243-irs-free-file

WHAT YOU NEED TO KNOW IF YOU STILL HAVEN'T FILED:

Thanks to a holiday in the District of Columbia, all taxpayers have until April 17 to get Form 1040 into the IRS. Even with some extra time, the tax deadline is fast approaching.

For people who find taxes a little too taxing, the Internal Revenue Service (IRS) has a program that can help. It’s called Free File. You can use free software to do your taxes and e-file for free. Get started at IRS.gov/freefile.

There is a free option for everyone. People who make $57,000 or less, which includes most Americans, can use the Free File software. People who make more can use the Free File Fillable Form, an electronic version of the IRS paper form..

The IRS recognizes many people find this time of year stressful. Here are some tips that may help:

Don’t wait until the last minute, you’re prone to make mistakes;

Use IRS.gov for answers to your questions or to track your refund;

Use Free File, there’s a free option for everyone;

Don’t panic if you can’t pay; you can arrange for a payment agreement at IRS.gov;

If you can’t make the April 17 deadline, use Free File to request an extension and make a payment if needed.

Published in Money

Tax Filers Can Benefit by E-filing Now, Paying Later

NASHVILLE - The Internal Revenue Service today reminded tax filers who owe taxes and are purposely waiting until the last-minute to file and pay that they can easily postpone paying but are less likely to make mistakes if they file now, before the April rush.

The IRS estimates that nearly 690,000 Tennesseans waited until April to file last year, many of them wanting to hold on to their money until the very last minute.

"Taxpayers can e-file right now and authorize a direct-debit payment for the April 17 deadline," said IRS spokesman Dan Boone. "That way they avoid the April rush, keep their money until the last minute, and get the benefits of e-filing."

E-filing benefits include a lower error rate and faster processing than with paper returns, along with confirmation of receipt by the IRS. Last-minute filers often make the most mistakes, Boone said, but e-filing helps eliminate common errors.

Boone also reminded filers that e-filing is secure and that anyone can e-file free at the IRS website, www.IRS.gov, using the Free File program. Filers with income of $57,000 or less can use brand-name tax software free, but all filers are eligible to use the Fillable Forms option.

Filers who need help with their taxes can visit one of about 170 free tax help sites in 53 Tennessee counties. The sites are staffed by trained volunteers who will prepare and e-file returns for filers whose household income was less than $50,000 or who are age 60 or older. Taxpayers can call the IRS at 1-800-906-9887 to find the closest help site.

Published in Money

Beware of Phony Refund Scheme Abusing Popular College Tax Credit

Senior Citizens, Working Families and Church Members Are Targets

IRS YouTube Video: Tax Refund Scams:

" target="_blank" title="This external link will open in a new window">ASL

WASHINGTON – The Internal Revenue Service warned senior citizens and other taxpayers to beware of an emerging scheme tempting them to file tax returns claiming fraudulent refunds.

The scheme carries a common theme of promising refunds to people who have little or no income and normally don’t have a tax filing requirement. Under the scheme, promoters claim they can obtain for their victims, often senior citizens, a tax refund or nonexistent stimulus payment based on the American Opportunity Tax Credit, even if the victim was not enrolled in or paying for college.

In recent weeks, the IRS has identified and stopped an upsurge of these bogus refund claims coming in from across the United States. The IRS is actively investigating the sources of the scheme, and its promoters may be subject to criminal prosecution.

“This is a disgraceful effort by scam artists to take advantage of people by giving them false hopes of a nonexistent refund,” said IRS Commissioner Doug Shulman. “We want to warn innocent taxpayers about this new scheme before more people get trapped.”

Typically, con artists falsely claim that refunds are available even if the victim went to school decades ago. In many cases, scammers are targeting seniors, people with very low incomes and members of church congregations with bogus promises of free money.

The IRS has also seen a variation of this scheme that incorrectly claims the college credit is available to compensate people for paying taxes on groceries.

The IRS has already detected and stopped thousands of these fraudulent claims. Nevertheless, the scheme can still be quite costly for victims. Promoters may charge exorbitant upfront fees to file these claims and are often long gone when victims discover they’ve been scammed.

The IRS is reminding people to be careful because all taxpayers, including those who use paid tax preparers, are legally responsible for the accuracy of their returns, and must repay any refunds received in error.

To get the facts on tax benefits related to education, go to the Tax Benefits for Education Information Center on IRS.gov.

To avoid becoming ensnared in this scheme, the IRS says taxpayers should beware of any of the following:

Fictitious claims for refunds or rebates based on false statements of entitlement to tax credits.

Unfamiliar for-profit tax services selling refund and credit schemes to the membership of local churches.

Internet solicitations that direct individuals to toll-free numbers and then solicit social security numbers.

Homemade flyers and brochures implying credits or refunds are available without proof of eligibility.

Offers of free money with no documentation required.

Promises of refunds for “Low Income – No Documents Tax Returns.”

Claims for the expired Economic Recovery Credit Program or for economic stimulus payments.

Unsolicited offers to prepare a return and split the refund.

Unfamiliar return preparation firms soliciting business from cities outside of the normal business or commuting area.

This refund scheme features many of the warning signs IRS cautions taxpayers to watch for when choosing a tax preparer. For advice on choosing a competent tax professional, see Tips for Choosing a Tax Return Preparer on IRS.gov.

For additional information on tax scams, see the 2012 Dirty Dozen list.

Published in Money

IRS Seeks Applications for Volunteer Tax Assistance Program Grants

IRS Offers Tips for After Tax Day

IRS offers relief for unemployed, options for others on taxes due

IRS reminder: Don't overlook college tax benefits

Need More Time to File? Use Free File or Form 4868 to Get Extension

IRS YouTube Videos Offer Last-Minute Help for Taxpayers

Can't File by April 17? Use Free File to Get Filing Extension

IRS: Clock is ticking, here's some options

Tax Filers Can Benefit by E-filing Now, Paying Later

Beware of Phony Refund Scheme Abusing Popular College Tax Credit

HobNob Membership

HobNob Supports

Local Favorites

Vote for your favorite HobNob Feature:

Local Site Sponsors