IRS Confirms Tax Filing Season to Begin January 28, 2019

IR-2019-01, January 7, 2019

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.

“We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown. I appreciate the hard work of the employees and their commitment to the taxpayers during this period,” said IRS Commissioner Chuck Rettig.

Congress directed the payment of all tax refunds through a permanent, indefinite appropriation (31 U.S.C. 1324), and the IRS has consistently been of the view that it has authority to pay refunds despite a lapse in annual appropriations. Although in 2011 the Office of Management and Budget (OMB) directed the IRS not to pay refunds during a lapse, OMB has reviewed the relevant law at Treasury’s request and concluded that IRS may pay tax refunds during a lapse.

The IRS will be recalling a significant portion of its workforce, currently furloughed as part of the government shutdown, to work. Additional details for the IRS filing season will be included in an updated FY2019 Lapsed Appropriations Contingency Plan to be released publicly in the coming days.

“IRS employees have been hard at work over the past year to implement the biggest tax law changes the nation has seen in more than 30 years,” said Rettig.

As in past years, the IRS will begin accepting and processing individual tax returns once the filing season begins. For taxpayers who usually file early in the year and have all of the needed documentation, there is no need to wait to file. They should file when they are ready to submit a complete and accurate tax return.

The filing deadline to submit 2018 tax returns is Monday, April 15, 2019 for most taxpayers. Because of the Patriots’ Day holiday on April 15 in Maine and Massachusetts and the Emancipation Day holiday on April 16 in the District of Columbia, taxpayers who live in Maine or Massachusetts have until April 17, 2019 to file their returns.

Software companies and tax professionals will be accepting and preparing tax returns before Jan. 28 and then will submit the returns when the IRS systems open later this month. The IRS strongly encourages people to file their tax returns electronically to minimize errors and for faster refunds.

IRS Confirms Tax Filing Season to Begin January 28, 2019

The New QBI Deduction = Huge Tax Savings

The New QBI Deduction = Huge Tax Savings

by: Mike Ward, EA

The Qualified Business Income (QBI) Deduction is a game changer for small business! In its basic terms the deduction is 20% of business income.  “Wow” is what we should be thinking on this deduction.  It will include most individuals who have income from the following:

• K1 income from 1120S SCorps & 1065 Partnerships
• Schedule C Sole Proprietors
• Schedule E Rental Properties
• Schedule E Other Rental Activities
• Statutory Employees
• Schedule F Farm income

There are details to this deduction and each situation is different. See a tax professional this year so you can take advantage of this once in a generation Tax Deduction.

More than a tax service!

Loans offered in amounts of $500, $800, $1,200.

Contact one of our Tax Professionals today for details 410-973-2750

Availability is subject to satisfaction of identity verification, eligibility criteria, and underwriting standards. IRS delays may affect the delivery timing of loan proceeds.

The Refund Advance is an optional tax-refund related loan provided by Bank (it is not the actual tax refund) at participating locations. The amount of the advance will be deducted from tax refunds and reduce the amount that is paid directly to the taxpayer. Tax returns may be filed electronically without applying for this loan. Loans offered in amounts of $500, $800, or $1,200. Availability is subject to satisfaction of identity verification, eligibility criteria, and underwriting standards. IRS delays may affect the delivery timing of loan proceeds.

A Refund Deposit Account is not a loan – it is an account established by EPS at the Bank in order to facilitate the funding of the two different disbursement methods.

• The EPS fee charged to the taxpayer ranges from $0-35, depending on which disbursement method is selected
• Tax preparation fees are deducted from the refund when it is deposited to the Refund Deposit Account
• The taxpayer can have a State tax refund(s) disbursed the same way as an IRS tax refund through an EPS Bank Product
• Advise the taxpayer that there are no guarantees that the Department of the Treasury deposits refunds within a specified time or in their entirety. For example, it may delay a refund due to processing problems or, it may offset some or all of the refund. The Department of the Treasury is not liable for any loss suffered by taxpayers, Providers, or financial institutions resulting from reduced refunds or not honored Direct Deposits, causing it to issue refunds by check.
• Advise taxpayers of all fees and other known deductions to be paid from their refund and the remaining amount the taxpayers will actually receive
• Tax preparation fees will be deducted from the first tax refund (IRS or State) deposited into the Refund Deposit Account, whether from the IRS or the state
• It is important that the customer understand that, if for any reason the refund is not received, the customer remains responsible for paying the tax preparation fees by another method
• A Refund Deposit Account is not to be used for collection of unpaid tax preparation fees for a prior year(s)

Get Your Taxes Done Here and Pay Nothing Today

Nine Tips on Deducting Charitable Contributions

Giving to charity may make you feel good and help you lower your tax bill. The IRS offers these nine tips to help ensure your contributions pay off on your tax return.

1. If you want a tax deduction, you must donate to a qualified charitable organization. You cannot deduct contributions you make to either an individual, a political organization or a political candidate

2. You must file Form 1040 and itemize your deductions on Schedule A. If your total deduction for all noncash contributions for the year is more than $500, you must also file Form 8283, Noncash Charitable Contributions, with your tax return.

3. If you receive a benefit of some kind in return for your contribution, you can only deduct the amount that exceeds the fair market value of the benefit you received. Examples of benefits you may receive in return for your contribution include merchandise, tickets to an event or other goods and services.

4. Donations of stock or other non-cash property are usually valued at fair market value. Used clothing and household items generally must be in good condition to be deductible. Special rules apply to vehicle donations.

5. Fair market value is generally the price at which someone can sell the property.

6. You must have a written record about your donation in order to deduct any cash gift, regardless of the amount. Cash contributions include those made by check or other monetary methods. That written record can be a written statement from the organization, a bank record or a payroll deduction record that substantiates your donation. That documentation should include the name of the organization, the date and amount of the contribution. A telephone bill meets this requirement for text donations if it shows this same information.

7. To claim a deduction for gifts of cash or property worth $250 or more, you must have a written statement from the qualified organization. The statement must show the amount of the cash or a description of any property given. It must also state whether the organization provided any goods or services in exchange for the gift.

8. You may use the same document to meet the requirement for a written statement for cash gifts and the requirement for a written acknowledgement for contributions of $250 or more.

9. If you donate one item or a group of similar items that are valued at more than $5,000, you must also complete Section B of Form 8283. This section generally requires an appraisal by a qualified appraiser.