Toni's Tax Service

A little IRS Update:
As of May 2021, the IRS has a backlog of 35 million returns
Of the 35 million returns, only 16 million are paper returns (ask yourself why there is a backlog of 19 million ELECTRONIC returns because it’s a sweetheart of an answer)
There is a backlog of 19 million electronic returns because the IRS’s servers are short on space and cannot download anymore. The returns are “marked” in a special way to indicate their status and will presumably be downloaded as server space becomes available.
The representative visited the Kansas City location of the IRS where there are 19 semi-trucks full of returns waiting to be processed. This is just ONE location.
The IRS is manually adjusting all returns that reported unemployment income before the form change to exclude a portion of UC received
Last, but not least, he reported that the IRS is MANUALLY checking all returns for the stimulus reporting. He reported that there are no automated or electronic means by which the IRS can perform this function.
P.S. The IRS is hiring.

Tax Day for individuals extended to May 17: Treasury, IRS extend filing and payment deadline

WASHINGTON — The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days.

“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” said IRS Commissioner Chuck Rettig. “Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”

Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17.

Individual taxpayers do not need to file any forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the May 17 deadline can request a filing extension until Oct. 15 by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Filing Form 4868 gives taxpayers until Oct. 15 to file their 2020 tax return but does not grant an extension of time to pay taxes due. Taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties.

The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds associated with e-filed returns are issued within 21 days.

This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. In general, estimated tax payments are made quarterly to the IRS by people whose income isn't subject to income tax withholding, including self-employment income, interest, dividends, alimony or rental income. Most taxpayers automatically have their taxes withheld from their paychecks and submitted to the IRS by their employer.

New payments differ from earlier Economic Impact Payments

The third round of stimulus payments, those authorized by the 2021 American Rescue Plan Act, differs from the earlier payments in several respects:

The third stimulus payment will be larger for most people. Most families will get $1,400 per person, including all dependents claimed on their tax return. Typically, this means a single person with no dependents will get $1,400, while a family of four (married couple with two dependents) will get $5,600.
Unlike the first two payments, the third stimulus payment is not restricted to children under 17. Eligible families will get a payment based on all of their qualifying dependents claimed on their return, including older relatives like college students, adults with disabilities, parents and grandparents.

2. IRS Statement - American Rescue Plan Act of 2021
The IRS is reviewing implementation plans for the newly enacted American Rescue Plan Act of 2021. Additional information about a new round of Economic Impact Payments, the expanded Child Tax Credit, including advance payments of the Child Tax Credit, and other tax provisions will be made available as soon as possible on IRS.gov. The IRS strongly urges taxpayers to not file amended returns related to the new legislative provisions or take other unnecessary steps at this time.

The IRS will provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return, including the retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable. For those who haven't filed yet, the IRS will provide a worksheet for paper filers and work with software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return. For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance.

The Department of Taxation (ODT) is warning Ohioans who may be victims of unemployment fraud to report the suspected fraud or potentially face higher taxes.

The Ohio Department of Job and Family Services (ODJFS) has identified more than 80,000 cases of unemployment fraud by criminals using stolen identities.

Victims of that identity theft who have received Form 1099-G from ODJFS showing that they received unemployment benefits – but never applied for benefits – could potentially pay federal and state tax on that unreceived benefit if they don’t act to correct the record.

Unemployment benefits are taxable and the IRS is notified when someone receives benefits. Victims of unemployment fraud who’ve received an unwarranted 1099-G are being advised to contact ODJFS, report the fraud, and ask for a corrected 1099-G.

ODJFS will then contact the IRS and correct the record so the victim of fraud will not incur a tax liability.

The Internal Revenue Service (IRS) has issued guidance to taxpayers regarding identity theft and ODT is advising fraud victims that they do not need to have a determination from ODJFS on their ID theft claim or a corrected 1099-G to file your federal and state income tax returns.

Taxation officials say fraud victims generally don’t need to report the unreceived unemployment benefit on their tax return but need to pursue a corrected 1099-G from ODJFS after returns are filed to avoid a future tax bill from the IRS or ODT.

For additional information or guidance, contact ODJFS at (833) 658-0394 or:

https://unemploymenthelp.ohio.gov/, and click on the red ‘Report Identity Theft’ button
The IRS at:
https://www.irs.gov/newsroom/irs-offers-guidance-to-taxpayers-on-identity-theft-involving-unemployment-benefits
Or ODT at:
https://tax.ohio.gov/wps/portal/gov/tax/help-center/resources/1099g

Did you receive a 1099-G from the Ohio Department of Taxation or the Ohio Department of Job and Family Services? Did you receive a 1099-G from the Ohio Department of Taxation or the Ohio Department of Job and Family Services? January 13, 2021 | Agency I received a 1099-G from the Ohio Department of Taxation (ODT): If you received a 1099-G from ODT, please click here for additional information and frequently a...

Remember unemployment compensation is taxable
Millions of Americans received unemployment compensation in 2020, many of them for the first time. This compensation is taxable and must be included as gross income on their tax return.

Taxpayers can expect to receive a Form 1099-G showing their unemployment income. Taxpayers can elect to have federal taxes withheld from their unemployment benefits or make estimated tax payments, but many do not take these options. In that case, taxes on those benefits will be paid when the 2020 tax return is filed. Therefore, taxpayers who did not have tax withheld from their payments may see a smaller refund than expected or even have a tax bill.

Individuals who receive a Form 1099-G for unemployment compensation they did not receive should contact their state tax agency and request a corrected Form 1099-G.

2021 tax filing season begins Feb. 12

WASHINGTON ― The Internal Revenue Service announced that the nation's tax season will start on Friday, Feb. 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns.

The Feb. 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the Dec. 27 tax law changes that provided a second round of Economic Impact Payments and other benefits.

This programming work is critical to ensuring IRS systems run smoothly. If filing season were opened without the correct programming in place, then there could be a delay in issuing refunds to taxpayers. These changes ensure that eligible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return.

IRS: Don’t be victim to ‘ghost’ tax return preparers

WASHINGTON – With the start of the 2020 tax filing season near, the Internal Revenue Service is reminding taxpayers to avoid unethical “ghost” tax return preparers.

According to the IRS, a ghost preparer does not sign a tax return they prepare. Unscrupulous ghost preparers will print the return and tell the taxpayer to sign and mail it to the IRS. For e-filed returns, the ghost will prepare but refuse to digitally sign as the paid preparer.

By law, anyone who is paid to prepare or assists in preparing federal tax returns must have a valid Preparer Tax Identification Number, or PTIN. Paid preparers must sign and include their PTIN on the return. Not signing a return is a red flag that the paid preparer may be looking to make a fast buck by promising a big refund or charging fees based on the size of the refund.

Ghost tax return preparers may also:
•Require payment in cash only and not provide a receipt.
•Invent income to qualify their clients for tax credits.
•Claim fake deductions to boost the size of the refund.
•Direct refunds into their bank account, not the taxpayer’s account.

The IRS urges taxpayers to choose a tax return preparer wisely. The Choosing a Tax Professional page on IRS.gov has information about tax preparer credentials and qualifications. The IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help identify many preparers by type of credential or qualification.

IRS opens 2019 tax filing season for individual filers on Jan. 27



WASHINGTON ― The Internal Revenue Service confirmed that the nation’s tax season will start for individual tax return filers on Monday, Jan. 27, 2020, when the tax agency will begin accepting and processing 2019 tax year returns.

The deadline to file 2019 tax returns and pay any tax owed is Wednesday, April 15, 2020

The IRS set the Jan. 27 opening date to ensure the security and readiness of key tax processing systems and to address the potential impact of recent tax legislation on 2019 tax returns.

While taxpayers may prepare returns through the IRS’ Free File program as well as many tax software companies and tax professionals before the start date, processing of those returns will begin after IRS systems open later this month.

To all my wonderful friends and their families. May this Holiday Season bring you joy. 💜

media1.tenor.co

It is that time of year again

WASHINGTON ― Despite the government shutdown, the Internal Revenue Service today confirmed that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled.

Due to a processing problem at the IRS the filing deadline has been moved to tomorrow.

media1.tenor.co

The IRS reminds taxpayers that, by law, the IRS cannot issue refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) before mid-February. While the IRS will process those returns when received, it cannot issue related refunds before mid-February. The IRS expects the earliest EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards starting on Feb. 27, 2018, if they chose direct deposit and there are no other issues with the tax return. "

The IRS has announced the 2018 Filing Season will begin on January 29, 2018. This date was pushed back a week to allow for provisions in the New Tax Act that are retroactive to 2017. I will be available to get the information entered and ready to file. Call me 614-893-8817. I look forward to working with you.⚜

Toni's Tax Service updated their address.

The IRS is issuing refunds. Call me to file your return

If you are receiving the Earned Income Credit and / or Additional Child Tax Credit please be aware you will not receive your refund until February 15 at the earliest.

"Beginning in 2017, a new law approved by Congress requires the IRS to hold refunds on tax returns claiming the EITC or the ACTC until mid-February. 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 agency more time to help detect and prevent fraud."

Good Morning today is October 6 ! If you filed an extension on your 2016 Income Taxes you have until October 17 to get them in. Contact me to get your taxes completed.

From the State of Ohio Website

“Clothing” is defined as all human wearing apparel suitable for general use. “Clothing” includes, but is not limited to, shirts; blouses; sweaters; pants; shorts; skirts; dresses; uniforms (athletic and nonathletic); shoes and shoe laces; insoles for shoes; sneakers; sandals; boots; overshoes; slippers; steel-toed shoes; underwear; socks and stockings; hosiery; pantyhose; footlets; coats and jackets; rainwear; gloves and mittens for general use; hats and caps; ear muffs; belts and suspenders; neckties; scarves; aprons (household and shop); lab coats; athletic supporters; bathing suits and caps; beach capes and coats; costumes; baby receiving blankets; diapers, children and adult, including disposable diapers; rubber pants; garters and garter belts; girdles; formal wear; and wedding apparel.

S.B. 264 enacted a sales tax holiday to occur only in 2016. The holiday starts on Friday, August 5, 2016 at 12:00 a.m. and ends on Sunday, August 7, 2016 at 11:59 p.m.

During the holiday, the following items are exempt from sales and use tax:

Clothing priced at $75 per item or less;
School supplies priced at $20 per item or less; and

School instructional material priced at $20 per item or less.

Items used in a trade or business are not exempt under the sales tax holiday.

Today through Sunday is Ohio Sales Tax Free weekend on school supplies and clothing. Did you know that diapers are included in this promotion?

Haven't done this year's taxes or last year's, or many years before? Please call me!

We are still preparing returns

IRS experiencing computer failure: CNBC citing Dow Jones The U.S. Internal Revenue Service is experiencing computer failure across "several" systems, and said it temporarily cannot accept many taxpayer returns, CNBC said in a tweet on Wednesday, citing Dow Jones.

Refunds are starting to hit bank accounts! Let me prepare your taxes today! Call or message me!

W2's are arriving and the IRS is open for business. Call me to get your 2015 Income tax return filed!

The IRS opens for electronic filing next Tuesday January 19, 2016. Call or message me to get your return in early