Just an update to your refund status: The IRS is still not giving projected dates for refund deposits, as they have in years past. The problem is with the IRS, and NOT your tax professional. Some clients have received refunds in one week, and others are still waiting for theirs, even though the returns were electronically filed the same day. Clients of the big block storefronts, as well as CPAs, EAs (like me) and attorneys are experiencing the same delays in refunds.
With the late tax law updates and the new fraud detection software implemented this tax season by the IRS, refunds are delayed. They are $26 billion behind on refunds this year compared to last year.
Please keep checking the IRS and FTB websites for your refund status. If you receive the message display that your refund is being processed, it is just that - it is being processed and your refund will arrive soon.
If you have any questions, please contact me anytime.
Tuesday, February 19, 2013
Wednesday, February 6, 2013
Mortgage Foregiveness Debt Relief Extended!
Good News! For federal tax purposes, mortgage forgiveness debt relief on principal residences has been extended until December 31, 2013, under the federal American Taxpayer Relief Act of 2012, approved on January 2, 2013.
As of the date of this publication, California has not conformed.
Accordingly, taxpayers who had all or part of the loan balance on their principal residence forgiven by their lender after December 31, 2012, may continue to exclude the forgiven debt from their federal gross income only.
Presently, for California tax purposes, the debt forgiven after December 31, 2012, may still be excluded if:
1. Taxpayers were bankrupt when the discharge occurred (Title 11 discharge).
2. Taxpayers were insolvent (limited to level of insolvency). - Most of you qualify here...
3. Qualified farm indebtedness was canceled.
4. Debt was Qualified Real Property Business Indebtedness (QRPBI) and you make a federal election. The taxpayer cannot be a C corporation to use this exclusion.
If more than one of these exceptions applies, they are applied in the above order under Internal Revenue Code Section 108(a)(2).
As of the date of this publication, California has not conformed.
Accordingly, taxpayers who had all or part of the loan balance on their principal residence forgiven by their lender after December 31, 2012, may continue to exclude the forgiven debt from their federal gross income only.
Presently, for California tax purposes, the debt forgiven after December 31, 2012, may still be excluded if:
1. Taxpayers were bankrupt when the discharge occurred (Title 11 discharge).
2. Taxpayers were insolvent (limited to level of insolvency). - Most of you qualify here...
3. Qualified farm indebtedness was canceled.
4. Debt was Qualified Real Property Business Indebtedness (QRPBI) and you make a federal election. The taxpayer cannot be a C corporation to use this exclusion.
If more than one of these exceptions applies, they are applied in the above order under Internal Revenue Code Section 108(a)(2).
IRS and State Form Delays
Good morning! Well, tax season is in full swing and Electronic Filing just opened last week. There are still several form delays, so some client returns cannot be electronically filled yet. This list includes:
Form 4562 Depreciation (for those of you with rental properties)
Schedule D - Capital Gains (for those of you with investment accounts)
Form 8863 - Education Credits
Corporation Returns including 1120 and 1120S
Several CA State Forms including Schedule D, Depreciation, Non-Resident/Part Year Resident Returns
Please call soon for an appointment. I am pretty open the weekend of February 16 and after. You may call, text, or e-mail me!
Have a great week everyone!
Form 4562 Depreciation (for those of you with rental properties)
Schedule D - Capital Gains (for those of you with investment accounts)
Form 8863 - Education Credits
Corporation Returns including 1120 and 1120S
Several CA State Forms including Schedule D, Depreciation, Non-Resident/Part Year Resident Returns
Please call soon for an appointment. I am pretty open the weekend of February 16 and after. You may call, text, or e-mail me!
Have a great week everyone!
Subscribe to:
Comments (Atom)