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Postponing Tax Deadlines

Helicopter leaving the ground

There are two situations where a taxpayer can postpone the deadline for filing their taxes, these two situations include being in a federally declared combat zone or being a victim of a federal declare disaster zone or terroristic attack. In both situations, the IRS allows the taxpayer to request that there tax filing deadline be postponed until a later date. This is not automatic and the IRS will not do it for you, you must be the one to request … Read more

Overpayment Resulting from a NOL Carryback

loss

In some cases a taxpayer may make an overpayment of tax in a year they have a net operating loss carryback. In this situation, interest on the overpayment will not begin to accrue with the IRS until the due date for filing the return for the tax year in which the loss or credit carryback arises. This rule does not include extensions and therefore, if you file an extension, the IRS will not take it into consideration when accruing interest. … Read more

IRS Refund Processing Delays

Pile of cash

If your tax refund is experiencing processing delays, it is essential that you understand the process the IRS uses to determine which refund are ready to be distributed and which need further examination. The IRS checks all claims for refund for completeness, validity and whether the claim was filed in a timely manner. The Service Processing Center will classify your claim for refund as acceptable as is or in need of further investigation by the office for examination. Remember that … Read more

Application of IRS Mailbox Rule

Stack of mail

The IRS mailbox rule is a very broad rule that simply states that a document that is timely mail is considered timely filed. Each case is different and therefore this rule is generally administered on a case by case basis. In some cases, the court has determined that documents that did not have a postmark were still timely filed because the taxpayer was able to provide a dated certified postal receipt. Since this rule is very broad, the IRS will … Read more

Pay Taxes with Credit Card

A black credit card

If you have ever wondered whether you could pay your tax liability with the use of a credit card, you are in luck. The IRS has authorized three companies to accept credit card payments for them when a taxpayer wishes to use their credit card to pay a tax liability. The one drawback to using a credit card when paying your tax liability is that you will be required to pay a convenience fee that is dependent on the actually … Read more

How do I Mail My Tax Return to the IRS

Shooting mail in the air

It is not a very common question but you may have wondered which mail carriers that IRS accepts mail from. The IRS has designated three Private Delivery Services that it will accept mail and packages from. This means that if you try and send a tax return or payment for a tax return to the IRS by a carrier that is not designated, they will not accept it. It becomes even more specific with the actual services that the IRS … Read more

Claiming Refunds on Delinquent Returns

Big red tax refund button

It is estimated by the IRS that more than $1 billion of tax refunds have yet to be released to taxpayers who did not file their 2008 tax return. If you forget to file a tax return in a certain year and you have the right to claim a refund, the IRS gives you a window of three years to claim the money owed to you. Once you file a tax return and claim your tax refund you will not … Read more

Erroneous Refunds or Credits

Tax form and refund check

In the past, the IRS has given out refunds to taxpayers in error; this error can be corrected by the IRS through filing civil action or by making a deficiency assessment and following normal collection procedures. If the IRS chooses to file a civil action against the taxpayer, it must show that it is within the statute of limitations. As of now, the IRS has two years from the time the refund is given to file a civil suit demanding … Read more

Health Insurance Cost Credit

Doctor in white coat

The health insurance cost credit was designed to help those who have lost their jobs or have had their hours of work drastically reduced, afford healthcare. If you have been laid off or your employer has cut your hours due to outsourcing your work overseas, you may be eligible for the health insurance cost credit. In the case that you qualify for the health insurance cost credit, the credit will actually pay 72.5% of qualified health insurance premiums for eligible … Read more

Tax Returns Due on Saturday, Sunday, or Legal Holiday

Calendar

If it ever occurs that your tax return is due on a Saturday, Sunday or legal holiday, the IRS will consider your return to be filed on time if you have mailed it by the next day that is not a Saturday, Sunday or legal holiday. This is a very straight forward concept but there is one important aspect to keep in mind. The IRS does not consider state mandated holidays as excuses for filing your return late. Only legal … Read more