Author Archives: Tax Expert

About Tax Expert

An e-tax professional at http://www.taxexcise.com, a product of Think Trade Inc., A BBB accredited, IRS authorized E-file service provider for all kinds of Excise taxes like Form 2290, Form 720, Form 8849 etc, my articles will reflect friendly ideologies of my company just like how friendly our e-file tax application is to them. For any queries, reach us @ 866-245-3918 or email us on info@thinktradeinc.com

What Taxpayers Should do When They Need More Time to Pay

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From the IRS latest issue (Issue Number: Tax Tip Number 2018-58), IRS shares a most important  tax tip about getting more time to pay the tax liabilities.

All taxpayers should file their taxes on time, even if they can’t pay what they owe. This saves them from a potential failure-to-file penalty. While taxes are due by the original due date of the return, some taxpayers are unable to pay them by the deadline.

Here are some tips for those who can’t pay their taxes in full by the April 17 deadline:

  • File on Time and Pay as Much as Possible. Taxpayers can pay online, by phone, by check or money order, or with their mobile device using the IRS2Go app.
  • Get a Loan or Use a Credit Card to Pay the Tax. The interest and fees charged by a bank or credit card company may be less than IRS interest and penalties.
  • Use the Online Payment Agreement tool. Taxpayers should not wait for the IRS to send a bill before setting up a payment plan. The best way to do this is to use the Online Payment Agreement tool. Taxpayers can also file an Installment Agreement Request with their return and set up a direct debit agreement, eliminating the need to send a check each month.
  • Don’t Ignore a Tax Bill. The IRS may take collection action against taxpayers who don’t respond to notices. Taxpayers should contact the IRS right away by calling the phone number on their bills to talk about options. The IRS will work with taxpayers suffering financial hardship.

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Showing appreciation…

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“Those who have the ability to be grateful are the ones who have the ability to achieve greatness,” Steve Maraboli, Life, the Truth, and Being Free.

When was the last time you received a hand written thank you note, or a card just to let you know someone was thinking of you?  If you’re like most people, it’s probably been too long.  When was the last time you wrote a thank you note?

If you know me personally, you’ll know that I am a firm believer in writing thank you notes.  Apparently, I instilled that same conviction in my children, as the thank you notes from both my son and daughter are sure to follow a gift, party or act of kindness.  I keep them to remind myself of the good times we shared.

Most people use the excuse that they either don’t have the materials handy or they don’t have the time to write out and mail a thank you note.  Both excuses are just a reflection of your priorities.  Keep notes, pens and stamps in plain sight so you can take a moment to send your thoughts without much effort. Continue reading →

Tax deadline just days away; nearly 40 million to file by April 17

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In the recent IRS issue (IR-2018-92, April 13, 2018), highlighted the April 17 deadline for filing tax returns and if you’re not ready then file for extension, the automatic extension tax pushes your due date to October 15.

IRS YouTube Videos: Extension of Time to File – English | Spanish | ASL

As the April 17 tax filing deadline approaches, the Internal Revenue Service is reminding the nearly 40 million taxpayers who have yet to file their tax returns that there are a variety of options to help them in the final days of the tax filing season.

IRS tax help is available 24 hours a day, seven days a week on IRS.gov. Whether filing a tax return, requesting an extension or making a payment, the IRS website can help last-minute filers on just about everything related to filing taxes.

Information about free e-file options, such as FreeFile, how to request an automatic six-month filing extension or fast and easy ways to pay any tax due using IRS Direct Pay are available online at IRS.gov.

The busiest part of tax season begins this week, with millions of people planning to file. Through April 6, the IRS has processed more than 101 million tax returns and issued more than 79.1 million tax refunds totaling $226.6 billion. The average refund to date is $2,864.

Additional filing season numbers: Continue reading →

Tax Time Tips from the IRS

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Tax Time! IRS has issued a Tax Tip (Issue Number: Tax Tip 2018-56), here it is…

The tax filing deadline is Tuesday, April 17 this year. This is because April 15 falls on a weekend and the following Monday is a holiday in the District of Columbia. Even with an extra two days, the IRS urges taxpayers to avoid waiting until the last minute to file their taxes.

For those who have yet to file, the IRS has five quick ideas to help:

1. Gather Records. Good recordkeeping is important. It helps to ensure that nothing gets overlooked. Records such as receipts and cancelled checks also provide expense documentation.

2. Use IRS Online Tools. The IRS has many useful online tools, including the Interactive Tax Assistant, which provides answers to many tax questions. It gives the same answers that an IRS representative would give over the phone. Continue reading →

IRS direct deposit leads to faster refunds

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IRS Issue Number: IR-2018-90 – Inside This Issue

IRS refers direct deposit as an option for tax payment and this also leads to faster refunds when you owe back… here is more information from the IRS issue. 

WASHINGTON — With the tax deadline just around the corner, the Internal Revenue Service reminds taxpayers that making an electronic direct deposit of their refund into a bank or other account is the fastest way to get their money. A taxpayer can deposit their refund into one, two or even three accounts to help with retirement or savings.

Eight out of 10 taxpayers get their refunds by using direct deposit. It is simple, safe and secure. The IRS uses the same electronic transfer system to deposit tax refunds that is used by other federal agencies to deposit nearly 98 percent of all Social Security and Veterans Affairs benefits into millions of accounts. Direct deposit also avoids the possibility that a refund check could be lost or stolen or returned to the IRS as undeliverable.

Direct deposit is easy to use. A taxpayer simply selects it as the refund method when using tax software or working with a tax preparer, and then types in their account and routing number. It’s important to double check entries to avoid errors. Continue reading →

Common Errors to Avoid when Filing a Tax Return

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IRS in the recent Tax Tip issue (Issue Number: Tax Tip Number 2018-55) covered the common errors to avoid when filing a tax return. Electronic filing can very well eliminate the common errors and will collect all required data to be filled in a tax return. However here is the tax tip from IRS….

To ensure they meet their tax obligations, taxpayers should file accurate tax returns. If a taxpayer makes an error on their tax return, it will likely take longer to process and could delay a refund. Taxpayers can avoid many common errors by filing electronically, the most accurate way to file a tax return. All taxpayers can use IRS Free File.

Here are common errors to avoid when preparing a tax return: Continue reading →

Tips for Getting Unclaimed 2014 Tax Refunds

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IRS in its recent issue (Issue Number: IR-2018-83) has highlighted that refunds worth $1 billion is still unclaimed for tax year 2014… here is the complete message from them. Read it here 

Further to that IRS has also highlighted in its Tax Tips (Issue Number:    IRS Tax Tip 2018-53) for Getting Unclaimed 2014 Tax Refunds.

The IRS reminds taxpayers they may have money waiting for them. About 1 million taxpayers who did not file a 2014 federal income tax return have unclaimed tax refunds totaling about $1.1 billion. Here are some things taxpayers should know about these unclaimed refunds: Continue reading →

Members of the Military and their Families Can Get Free Tax Assistance 2018

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IRS in its recent tax tip issue (Issue Number: IRS Tax Tip 2018-51) highlighted how the Members of the Military and their Families can get free tax assistance. Here we go…

The IRS offers free tax help to members of the military and their families through the Volunteer Income Tax Assistance program. A VITA site is easy to find on or off base — even overseas.

The Armed Forces Tax Council directs the military tax programs worldwide. Military VITA-certified employees receive training on military tax issues, including tax benefits for service in a combat zone. They can help with special extensionsof time to file tax returns and pay taxes, or with special rules that apply to the Earned Income Tax Credit. Continue reading →

Time is running out to file 2014 tax returns worth $1 billion in refunds

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IRS in its recent issue (Issue Number: IR-2018-83) has highlighted that refunds worth $1 billion is still unclaimed for tax year 2014… here is the complete message from them.

WASHINGTON — The Internal Revenue Service is reminding an estimated 1 million taxpayers that time is running out to file a 2014 tax return and claim refunds totaling more than $1 billion. To claim any refund due, taxpayers must file their 2014 federal tax return by April 17, 2018.

There is no penalty for filing a late return for those receiving refunds. The law provides most taxpayers with a limited window of opportunity for claiming a tax refund. If they do not file a tax return within three years to claim a refund, the money becomes the property of the U.S. Treasury.

The IRS estimates the median potential refund for 2014 is $847. By failing to file a tax return, people stand to lose more than just their refund. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC). For 2014, the credit was worth as much as $6,143.  Continue reading →

More Time to File your Personal Tax Return by Filing Extension Tax Form 4868 & 7004

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Tax time and every one of us are getting our paper works ready, you know that April 17 is the last day to report it with the IRS. If you’re not ready don’t get panic you can claim additional time to file your tax returns by reporting Extension Tax Form 4868 for personal returns and Form 7004 for business returns.

Tax-filing extensions are available to taxpayers who need more time to finish their returns. Remember, this is an extension of time to file, not an extension of time to pay. However, taxpayers who are having trouble paying what they owe may qualify for payment plans and other relief. Either way, 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. Here are further details on the options available. Continue reading →