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As tax season 2017 is already off to a very busy start, many tax filers are finding they have more questions than ever about many different filing issues. In the past, you got in the car and drove to your local IRS office to get help from the experts, but no more. The IRS is not accepting walk-ins any longer, you must call to get an appointment if you need help.
Part of the reason for the new change in policy is due in part to the new changes that the IRS has implemented this tax season. While many of the answers can be found at the IRS website, certain groups like the elderly are not completely computer literate, and prefer getting answers in face-to-face meetings. No longer can they show up at the IRS office for help without an appointment first.
The questions that have really garnered the most attention this 2017 filing season are new to the filing system, and even many seasoned filers have questions. To stamp out fraudulent filing and identification theft, the IRS is implementing changes to how you file this year. For one, there will be a unique identification number on your W-2 that must be entered and match or the return could be rejected, flagged, or audited. These numbers help to identify the person who is filing the return, assuring the right person gets their money.
Those who depend on their tax return the most are also in for a huge change. If you took advantage of the Child Tax Credit or the Earned Income credit, the IRS will be holding and reviewing those returns until February 15, 2017. The reason is to not only ensure the filer is who they say they are, but to make sure no one is trying to game the system and get those credits when they are not deserved. Putting eyes on these returns takes tome, and the delay will surely hit those ho need it the most the hardest.
For these reasons and more, the IRS offices around the country have been swamped with concerned tax payers looking for answers now. The IRS had to implement the appointment-only status to ensure everyone gets the time they need with a representative of the IRS.
If you have not been paying close attention to financial news over the past few months and you are expecting your tax return in January to pay off some of those Christmas bills, you are going to be in for a big surprise. The IRS is delaying tax returns this year in an effort to stop fraud that is on the rise.
The people who are going to be affected are those who either claimed the Child tax Credit or the Earned Income Credit. If any return was filed and took advantage of those credits, the returns are going to be held and reviewed for fraud. The reason being is that a growing number of filers last year fraudulently took these credits even though they did not quality.
The IRS says that there is another reason they are implementing the delay in returns, to combat identify theft. What happens is that these scammers have found a unique way to scam the system and make off with a bundle of cash. The scam goes like this; the person will steal a social security number, file the return on the earliest possible date in January, and then by the time the real person files, they see their return is rejected because a return was already filed.
By delaying the tax returns, IRS auditors can check to ensure the person receiving the money is who they say they are. This is being done with security measures filers must now utilize on their returns, from passwords and ID numbers, all in an effort to stop identity theft. This is the first year the delay is in place, and should cut into the growing fraud with tax returns.
The IRS begins to accept tax returns on January 23, 2017 this year, and if you did not take advantage of any of the credits, you should see your return as usual. If you did make use of one of the credits, the IRS will now hold the return until February 15, 2017, and refunds should be released soon after.
If you plan on taking advantage of these credits, the IRS wants to inform you before you think there is trouble with your return. The IRS website Where’s My Refund page will provide your daily updates on your tax return check status.
With hundreds of millions of tax returns expected to be filed this year, a large number of early filers are about to see a huge change that was implemented this year. According to the IRS, beginning with this 2017 tax season, early filers can expect tax refund delays if they took advantage of either the Earned Income or Child Tax Credit. These credits are usually utilized by low-income families, the ones who can least afford to have to wait a month or more for their money.
The reason for the delay in the 2017 tax returns has to do with stopping fraud on many levels. Scammers have been exploiting this credit for years, and auditors at the IRS have developed strategies to be able to thwart these efforts and ensure those who are entitles to their money get it in a timely manner. These scammers file returns on the earliest filing dates with stolen social security numbers. Once they cash the check, the person filing with that number receives notification a return was already processed.
The IRS decided this year that they needed to take a proactive approach to stopping fraud before it got out of control. Delaying the tax returns until February 15, 2017, gives the auditors at the IRS the ability to weed out those returns that have been fraudulently filed. many filers will notice that their W2 now has a unique identification number that must match before a check can be released for a refund. This is just another step in the process to remove fraud from the equation.
The IRS says that they needed to delay the returns so they can look carefully to see if the person who is claiming the credits is the person who is using that social security number. In the past there were little to no fail-safes in the tax return process. Today the IRS is using different checks and balances to make certain they have the right person on the receiving end of the tax return.
The process is designed to lessen identity theft and make sure those who need their money get it without having to fight to prove they were in fact victims of identity theft earlier in the year like years past.
For those who depend on their tax return to supplement their income, the IRS warns to expect delays with tax returns in 2017. In an ongoing effort to thwart identity theft and fraud, the IRS has implemented a new process this year for the first time, but it will have many people who received their returns in January feeling the pain.
Normally anyone could file their tax returns in January and see the cash in their bank by the end of the month. The IRS warns that if you took advantage of the Child Tax Credit or the Earned Income Credit, your return is going to be flagged for inspection and help to at the least February 15, 2017. The IRS also states that there will be no exceptions to this rule, so if you took either credit or both, don’t expect your return until the end of February at the earliest.
The IRS says that an increase in fraud last year has put the agency in the position of implementing new tight restrictions to catch the thieves in the act. In addition to flagging these returns for a closer inspection, the IRS has begun adding unique identification numbers to W2’s, all in an effort to make sure the person filing the return is the person who really owns that social security number.
In recent years, scammers who acquire the social security numbers, file a fraudulent tax return on the earliest possible date in January, and have the cash in a fake bank account even before the person who owned the social security number ever filed their taxes. Then when the unsuspecting filer does begin the process, they get a rejection notice saying a return was already filed for this number.
The delay in processing tax returns in 2017 will give the agency and an army of auditors the chance to spot fraud more easily and put a huge dent in this issue once and for all. While those who depend on the money the most will certainly feel the pinch, the ultimate goal here is making sure everyone entitled to their cash does receive it and doesn’t have to be subjected by a scammer who makes off with the money and their identity too.
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Creative investing, financial and tax dealings have been recently highlighted by Donald Trump whose company purportedly lost close to a $ 1 billion in just one fiscal year. This enormous loss has entitled him to write off profits for as many as 19 years enabling his company to pay no or minimal taxes to the U.S. Government (IRS). Read more: Cone Marshall Barristers Solicitors Limited
These types of financial occurrences are foreign to most of the taxpayers whose payments keep the United States of America functioning as a solvent and viable country. But those people with huge incomes and others who may have gained large amounts of money by theft are in a much different tax category than the average American.
They hire Certified Public Accountants to cook the books and take every deduction possible, while this is not always illegal it often leads to IRS investigations. These IRS audits place fear in the hearts of the average wage earner and taxpayer, but those who employ CPAs and attorneys to handle their financial affairs have no need to fear.
There is a term used to identify the two types of rich people in the world, nouveau riche (new money and those newly rich) and the old money. The old money faction tends to be conservative and cautious with their monies wanting to leave it as substantial inheritances for their offspring while the nouveau riche are extravagant, showy, ostentatious, but in the eyes of the old money group lacks style and good taste. Learn more about Cone Marshall: www.uianet.org/sites/default/…/CONE%20Geoffrey%20-%20CV.pdf
The law firm of Cone Marshall has achieved a sense of notoriety in New Zealand since the information gained by the release of the “Panama Papers” that have shown the numerous discretions of the nouveau riche and sometimes even the old money. Cone Marshall sets up trusts and offers investment alternatives to both the old and new money types. The services of Cone Marshall are in demand by other attorneys, hedge funds, and corporations. Cone Marshall does not deal directly with individuals.