Saturday, 10 December 2016

ITIN News Wire

IRS Tax Update
An ITIN renewal application filed now will be processed before one submitted at the height of tax season from mid-January to February. 

Currently, a complete and accurate renewal application can be processed in as little as seven weeks. But this time frame is expected to expand to as much as 11 weeks during tax season, which runs from mid-January through April.

Several common errors are currently slowing down or holding up ITIN renewal applications. 

The mistakes generally center on missing information, and/or insufficient supporting documentation. 

ITIN renewal applicants should be sure to use the latest version of Form W-7, revised September 2016. 

The most current version of the form, along with its instructions, are posted on

EMCOL Tax & Insurance - Ft Worth, TX
For further assistance with your ITIN, click here.

Stay TRUE to Yourself!

Stay TRUE to Yourself!

Some chase after their dreams so aimlessly,

Others realize theirs so effortlessly;

Ever wondered why?

Well, I believe life really gives YOU what you feed it.

If you dwell endlessly on regrets and self-pity, you'll keep your experience similar.

My take? Be glad if you ever failed at something,

Just reminisce on it, learn from it, AND move on. 

Never second guess. Never look back. Stay TRUE to Yourself!

And while at it, DON'T ever expect people with whom 

God never shared your vision to understand your grind. 

Believe. Expect. Receive. Give THANKS!

So Stay TRUE to Yourself!

For 2017, Tax Filing Season Begins on Jan. 23 for Taxpayers

2017 Tax Filing Season Begins Jan. 23 for Nation’s Taxpayers, Tax Returns Due April 18

December 9, 2016
WASHINGTON; The Internal Revenue Service announced today that the nation’s tax season will begin on Monday January 23, 2017, and reminded taxpayers claiming certain tax credits to expect a longer wait for refunds.
The IRS will begin accepting electronic tax returns that day, with more than 153 million individual tax returns expected to be filed in 2017. The IRS again expects more than four out of five tax returns will be prepared electronically using tax return preparation software.  Many software companies and tax professionals will be accepting tax returns before Jan. 23 and then will submit the returns when IRS systems open. The IRS will begin processing paper tax returns at the same time. There is no advantage to filing tax returns on paper in early January instead of waiting for the IRS to begin accepting e-filed returns.  

“For this tax season, it’s more important than ever for taxpayers to plan ahead,” IRS Commissioner John Koskinen said. “People should make sure they have their year-end tax statements in hand, and we encourage people to file as they normally would, including those claiming the credits affected by the refund delay. Even with these significant changes, IRS employees and the entire tax community will be working hard to make this a smooth filing season for taxpayers.”

The IRS also reminds taxpayers that they should keep copies of their prior-year tax returns for at least three years. Taxpayers who are changing tax software products this filing season will need their adjusted gross income from their 2015 tax return in order to file electronically. The Electronic Filing Pin is no longer an option. Taxpayers can visit IRS.Gov/GetReady for more tips on preparing to file their 2016 tax return.

April 18 Filing Deadline 

The IRS reminds taxpayers that a new law requires the IRS to hold refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until Feb 15. In addition, the IRS wants taxpayers to be aware it will take several days for these refunds to be released and processed through financial institutions. Factoring in weekends and the President’s Day holiday the IRS cautions that many affected taxpayers may not have actual access to their refunds until the week of Feb 17, 2017

The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017, rather than the traditional April 15 date. In 2017, April 15 falls on a Saturday, and this would usually move the filing deadline to the following Monday — April 17. However, Emancipation Day — a legal holiday in the District of Columbia — will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday, April 18, 2017. Under the tax law, legal holidays in the District of Columbia affect the filing deadline across the nation.

“The opening of filing season reflects months and months of work by IRS employees,” Koskinen said. “This year, we had a number of important legislative changes to program into our systems, including the EITC refund date, as well as dealing with resource limitations. Our systems require extensive programming and testing beforehand to ensure we’re ready to accept and process more than 150 million returns.”

The IRS also has been working with the tax industry and state revenue departments as part of the Security Summit  initiative to continue strengthening processing systems to protect taxpayers from identity theft and refund fraud. A number of new provisions are being added in 2017 to expand progress made during the past year.

Refunds in 2017; choosing e-file and direct deposit for refunds remains the fastest and safest way to file an accurate income tax return and receive a refund.

The IRS still anticipates issuing more than nine out of 10 refunds in less than 21 days, but there are some important factors to keep in mind for taxpayers.

Beginning in 2017, a new law requires the IRS to hold refunds on tax returns claiming the Earned Income Tax Credit or the Additional Child Tax Credit until mid-February. Under the change required by Congress in the Protecting Americans from Tax Hikes (PATH) Act, the IRS must hold the entire refund — even the portion not associated with the EITC and ACTC — until at least Feb. 15. This change helps ensure that taxpayers get the refund they are owed by giving the IRS more time to help detect and prevent fraud.

As in past years, the IRS will begin accepting and processing tax returns once the filing season begins. All taxpayers should file as usual, and tax return preparers should also submit returns as they normally do — including returns claiming EITC and ACTC.

The IRS will begin releasing EITC and ACTC refunds starting Feb. 15. However, the IRS cautions taxpayers that these refunds likely won’t arrive in bank accounts or on debit cards until the week of Feb. 27 (assuming there are no processing issues with the tax return and the taxpayer chose direct deposit). This additional period is due to several factors, including banking and financial systems needing time to process deposits.

After refunds leave the IRS, it takes additional time for them to be processed and for financial institutions to accept and deposit the refunds to bank accounts and products. The IRS reminds taxpayers many financial institutions do not process payments on weekends or holidays, which can affect when refunds reach taxpayers. For EITC and ACTC filers, the three-day holiday weekend involving President’s Day may affect their refund timing.

Where's My Refund?
The and the IRS2Go phone app will be updated with projected deposit dates for early EITC and ACTC refund filers a few days after Feb. 15. Taxpayers will not see a refund date on Where's My Refund? ...or through their software packages until then. The IRS, tax preparers and tax software will not have additional information on refund dates, so Where’s My Refund? remains the best way to check the status of a refund.

For more details, click here.

Tuesday, 6 December 2016

ITIN Renewal

Tax Preparedness Series

IRS Tax Wire Extract
Tax Preparedness Series: Tax Records – What to Keep
Note to Editor: This is the fifth in a series of reminders to help taxpayers prepare for the upcoming tax filing season.

WASHINGTON – As tax filing season approaches, the Internal Revenue Service has information for taxpayers who wonder how long to keep tax returns and other documents.

Generally, the IRS recommends keeping copies of tax returns and supporting documents at least three years. Some documents should be kept up to seven years in case a taxpayer needs to file an amended return or if questions arise. Keep records relating to real estate up to seven years after disposing of the property.

Health care information statements should be kept with other tax records. Taxpayers do not need to send these forms to IRS as proof of health coverage. The records taxpayers should keep include records of any employer-provided coverage, premiums paid, advance payments of the premium tax credit received and type of coverage. Taxpayers should keep these – as they do other tax records – generally for three years after they file their tax returns.

Whether stored on paper or kept electronically, the IRS urges taxpayers to keep tax records safe and secure, especially any documents bearing Social Security numbers. The IRS also suggests scanning paper tax and financial records into a format that can be encrypted and stored securely on a flash drive, CD or DVD with photos or videos of valuables. 

Now is a good time to set up a system to keep tax records safe and easy to find when filing next year, applying for a home loan or financial aid. Tax records must support the income, deductions and credits claimed on returns. Taxpayers need to keep these records if the IRS asks questions about a tax return or to file an amended return.
It is even more important for taxpayers to have a copy of last year’s tax return as the IRS makes changes to authenticate and protect taxpayer identity. Beginning in 2017, some taxpayers who e-file will need to enter either the prior-year Adjusted Gross Income or the prior-year self-select PIN and date of birth. If filing jointly, both taxpayers’ identities must be authenticated with this information. The AGI is clearly labeled on the tax return. Learn more at Validating Your Electronically Filed Tax Return.

Taxpayers who need tax information can request a free transcript for the past three tax years. The ‘Get Transcript’ tool on is the fastest way to get a transcript. 

If taxpayers are still keeping old tax returns and receipts stuffed in a shoebox in the back of the closet, they might want to rethink that approach. Keep tax, financial and health records safe and secure whether stored on paper or kept electronically. When records are no longer needed for tax purposes, ensure the data is properly destroyed to prevent the information from being used by identity thieves. 

If disposing of an old computer, tablet, mobile phone or back-up hard drive, keep in mind it includes files and personal data. Removing this information may require special disk utility software. More information is available on at How long should I keep records?

We make every effort to keep up with as many IRS TAXPAYER RELIEFS AND UPDATES. TO make sure you don't miss out on this type of updates or just to get more information on this subject, click here.

Individual Tax Identification Number (ITIN)


Individual Tax Identification Number (ITIN)

What You Need to Know

  • Processing delays are likely for filers with expired Individual Tax Identification Numbers.
  • There are two reasons an ITIN would expire December 31, 2016:
    • If you have not used your ITIN on a U.S. tax return at least once for tax years 2013, 2014 or 2015 or
    • If your ITIN has the middle digits 78 or 79 (9NN-78-NNNN or 9NN-79-NNNN)

What You Need to Do
  • You can renew your ITIN now if it expired and you plan to use it on a U.S. tax return.
  • No action is needed by expired ITIN holders who don’t need to file a tax return next year.
  • There are new documentation requirements when applying for or renewing an ITIN for certain dependents.
·         To avoid delays, ensure accurate W-7 and valid ID documents are submitted.

Número de identificación personal del contribuyente (ITIN, por sus siglas en inglés)

Lo que tiene que saber

  • Las demoras en el trámite son probables para las personas cuyos números de identificación personal del contribuyente (ITIN) han vencido
  • Hay dos razones por las cuales un ITIN vencería el 31 de diciembre de 2016:
o    Si no ha utilizado su ITIN en una declaración del impuesto estadounidense al menos una vez para los años tributarios 2013, 2014 o 2015, o
o    Si los dígitos del medio de su ITIN son 78 o 79 (9NN-78-NNNN o 9NN-79-NNNN)

Lo que tiene que hacer

  • Puede renovar su ITIN ahora si se venció y usted piensa utilizarlo en una declaración del impuesto estadounidense.
  • Ninguna acción se requiere a los poseedores de  ITINvencidos, que no tienen que presentar una declaración de impuestos el próximo año.
o    Hay nuevos requisitos de documentación al solicitar o renovar el ITIN de ciertos dependientes.  
  • Para evitar atrasos, asegúrese de someter un W-7 preciso y documentos válidos de identificación.
For more information, click here

IRS Launches New Online Tool to Assist Taxpayers with Basic Account Information

IR-2016-155, Dec. 1, 2016

WASHINGTON — The Internal Revenue Service announced today the launch of an online application that will assist taxpayers with straightforward balance inquiries in a safe, easy and convenient way.
This new and secure tool, available on allows taxpayers to view their IRS account balance, which will include the amount they owe for tax, penalties and interest. Taxpayers may also continue to take advantage of the various online payment options available by accessing any of the payment features including: direct pay, pay by card and Online Payment Agreement. As part of the IRS vision for the future taxpayer experience, the IRS anticipates that other capabilities will continue to be added to this platform as they are developed and tested.
“This new tool is part of the IRS’s commitment to improve and expand taxpayer services by providing additional online taxpayer options,” said IRS Commissioner John Koskinen. “The new ‘balance due’ feature, paired with the existing online payment options, will increase the availability of self-service interactions with the IRS. This will give taxpayers another way to take care of their tax obligations in a fast and secure manner.”
Before accessing the tool, taxpayers must authenticate their identities through the rigorous Secure Access process. This is a two-step authentication process, which means returning users must have their credentials (username and password) plus a security code sent as a text to their mobile phones.
Taxpayers who have registered using Secure Access for Get Transcript Online or Get an IP PIN may use their same username and password. To register for the first time, taxpayers must have an email address, a text-enabled mobile phone in the user's name and specific financial information, such as a credit card number or specific loan numbers. Taxpayers may review the Secure Access process prior to starting registration.
As part of the security process to authenticate taxpayers, the IRS will send verification, activation or security codes via email and text. The IRS warns taxpayers that it will not initiate contact via text or email asking for log-in information or personal data. The IRS texts and emails will only contain one-time codes.
In addition to this new functionality, the IRS continues to provide several self-service tools and helpful resources available on for individuals, businesses and tax professionals.
For further assistance with regards to this topic, please contact us today.
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