Income Tax Refunds Delayed and Smaller

2012 Tax Refunds are coming in later and are much lower than in prior year for many individuals.

For many, IRS Income Tax refunds have been coming in much later this year compared to prior years. Also, the amounts have been so much lower in comparison leaving many families let-down. While the IRS isn't putting out numbers on how many refunds have been issued so far this tax season, refunds got off to a bit of a bumpy start this year.

Blame it on a perfect storm of events: A late launch to the filing season, which started Jan. 30 – eight days later than usual – due to last-minute, "fiscal cliff" tax changes enacted by Congress; the inability of taxpayers to file for some credits until early March; and more diligent – but time-consuming – scrutiny of tax returns, part of the IRS' beefed-up efforts to thwart identity theft and tax refund fraud.

 Even Wal-Mart said it's felt the impact of later-than-usual refunds. By this time last year, the giant retailer had cashed about $3 billion worth of checks related to tax refunds. This year, that amount is just $1.7 billion, the company said Thursday.

 We at, Hot Springs Tax Services, have noticed that things are looking up. Many individuals are getting their returns back much faster. The only individuals that still are dealing with slower processing are the people using education credits such as hope and american opportunity credit. In 2012, the IRS said, nine out of 10 refunds were issued in less than 21 days. "The same results are expected in 2013," said IRS spokesman Richard Panick in an email. Refunds have especially been slower for many lower-income taxpayers who qualify for the Earned Income Tax Credit. For single head of household filers with two young children, that refundable credit could mean $7,039 in their pocket. It's the most significant financial event for them for the year. And now it's all up in the air. They don't know when they'll get their refund.

Where's my refund?

  In recent weeks, so many taxpayers were using the IRS online tool, "Where's My Refund," the IRS actually had to issue a plea: Don't check it more than once a day.

 Once you've filed a federal tax return, the popular IRS.gov tool lets you track your refund's progress: when the return was received, when a refund was approved and sent out. But in mid-February, so many people were clicking "Where's My Refund?" the system jammed up. The online tool is only updated every 24 hours, the IRS noted, so repeated attempts to check online or from a smartphone won't yield any new information.

"A taxpayer's account isn't likely to change that often, so there's no need to check more than once a day," said Panick. And nights or weekends, when the IRS site's traffic slows down, are the best times to check your refund's status, he added. With an e-filed return, you can check within the first 24 hours after it's filed. With a paper return, check four weeks after you mailed it.

Avoid refund delays

  One of the best ways to avoid refund delays: submit an "error-free" tax return. And we're not necessarily talking about math mistakes. 

To avoid processing delays, the IRS reminds taxpayers to:
 • Verify the Social Security numbers for yourself, spouse and dependents.
 • Be sure your mailing address is correct. (Every year, thousands of refunds get returned as "undeliverable" by the U.S. Post Office because taxpayers either moved or provided an incorrect address.)
 • Double-check your bank routing numbers if requesting direct deposit.

Speeding up refunds

 The quickest way to collect your tax refund is by requesting "direct deposit" when filing. It goes straight into your checking or savings account.

On other tax fronts

  The IRS said most taxpayers should have received their W2s and 1099s by mid-February. If you're still waiting, contact your employer or issuer; or call the IRS at (800) 829-1040 if you can't get a replacement. 

The IRS is predicting that the number of tax returns filed this year will go up about 1.6 percent. In 2012, the average tax refund was $2,803.


  HANDY IRS INFORMATION

 • For basic tax questions: call (800) 829-1040 or use the IRS website: www.irs.gov.
 • Free tax-filing help: Seniors and moderate-income taxpayers can use Volunteer Income Tax Assistance sites. Search for a VITA site by ZIP code: http://irs.treasury.gov/freetaxprep/, or call (800) 906-9887.
 • To check your refund: Use the IRS website's "Where's My Refund?" tool or download the "IRS2Go" mobile app. Or call (800) 829-1040. You'll need your Social Security number, filing status and refund amount from the return.
• Fastest way to a refund: Use direct deposit when filing and submit an error-free return.
 • A reminder: Some IRS forms cannot be filed until early March, including mortgage interest, electric vehicles and residential energy tax credits.


  SMALL BUSINESS FINANCIAL HELP Hire a professional accountant to help with your small business needs. Contact us today.

IRS Refund Cycle Schedule 2013

2012 IRS e-file cycle chart and payment information.

Direct Deposit and Check date's below. Please see disclaimer.

IRS accepts your return (by 11:00 am) between…*					Projected Direct Deposit Sent*	Projected Paper Check Mailed*
				January 30, 2013	2/6/2013	2/8/2013
January 31		and		February 6, 2013	2/13/2013	2/15/2013
February 9		and		February 13, 2013	2/20/2013	2/22/2013
February 16		and		February 20, 2013	2/27/2013	3/1/2013

IRS To Accept Tax Returns with Education Credits, Depreciation Next Week

IRS will finally start accepting education credits such as American Opportunity and Hope. Here is the full story:

WASHINGTON — The Internal Revenue Service announced today that taxpayers will be able to start filing two major tax forms next week covering education credits and depreciation. Starting Sunday, Feb. 10, the IRS will start processing tax returns that contain Form 4562, Depreciation and Amortization. And on Thursday, Feb. 14, the IRS plans to start processing Form 8863, Education Credits. This step clears the way for almost all taxpayers to start filing their tax returns for 2012. These forms affected the largest groups of taxpayers who weren’t able to file following the Jan. 30 opening of the 2013 tax season. The IRS will be able to accept the education credits and depreciation forms following the completion of reprogramming and testing of its systems.  Work continues on preparing IRS systems to accept the remaining tax forms affected by the American Taxpayer Relief Act (ATRA) enacted by Congress on Jan. 2. The IRS also announced today it will start accepting the remaining forms affected by the January legislation the first week of March.  A specific date will be announced later. Most of those in this group file more complex tax returns and typically file closer to the deadline or obtain an extension. A full list of the forms that will be accepted the first week of March is available on IRS.gov. Next week’s opening covers two groups of taxpayers using:

• Form 8863, Education Credits. Form 8863 is used to claim two higher education credits -- the American Opportunity Tax Credit and the Lifetime Learning Credit.

• Form 4562, Depreciation and Amortization. Most of the people using the depreciation form tend to file later in the tax season or obtain a six-month extension. Non-1040 business filers using Form 4562 can also file starting Sunday.

For taxpayers using e-file, most software companies are now accepting tax returns with these two forms and will submit them after the IRS begins accepting them next week. More information is available on this website.

File your 2012 Income Tax today!

E-File your 2012 Income Tax today to get your refund back early!

The I.R.S will begin processing returns this Wednesday. File now to get your return back by as early as February 7th!

We offer low-cost tax preparation and e-file services to you. File your taxes with us and get the guaranteed maximum federal and state return today.

Have a real accountant look over your taxes and help you make important financial decisions.

Contact us today to setup an appointment.

Turbo Tax Premier 2012

Late Start for I.R.S. 2012 Income Tax Processing

Bad news coming out of the IRS today. The IRS will not start processing 2012 Income Tax Returns until January 30th, 2013.

Here is the article from the IRS:

IRS Plans Jan. 30 Tax Season Opening For 1040 Filers

IR-2013-2, Jan. 8, 2013
WASHINGTON — Following the January tax law changes made by Congress under the American Taxpayer Relief Act (ATRA), the Internal Revenue Service announced today it plans to open the 2013 filing season and begin processing individual income tax returns on Jan. 30.
The IRS will begin accepting tax returns on that date after updating forms and completing programming and testing of its processing systems. This will reflect the bulk of the late tax law changes enacted Jan. 2. The announcement means that the vast majority of tax filers — more than 120 million households — should be able to start filing tax returns starting Jan 30.
The IRS estimates that remaining households will be able to start filing in late February or into March because of the need for more extensive form and processing systems changes. This group includes people claiming residential energy credits, depreciation of property or general business credits. Most of those in this group file more complex tax returns and typically file closer to the April 15 deadline or obtain an extension.
“We have worked hard to open tax season as soon as possible,” IRS Acting Commissioner Steven T. Miller said. “This date ensures we have the time we need to update and test our processing systems.”
The IRS will not process paper tax returns before the anticipated Jan. 30 opening date. There is no advantage to filing on paper before the opening date, and taxpayers will receive their tax refunds much faster by using e-file with direct deposit.
“The best option for taxpayers is to file electronically,” Miller said.
The opening of the filing season follows passage by Congress of an extensive set of tax changes in ATRA on Jan. 1, 2013, with many affecting tax returns for 2012. While the IRS worked to anticipate the late tax law changes as much as possible, the final law required that the IRS update forms and instructions as well as make critical processing system adjustments before it can begin accepting tax returns.
The IRS originally planned to open electronic filing this year on Jan. 22; more than 80 percent of taxpayers filed electronically last year.
Who Can File Starting Jan. 30?
The IRS anticipates that the vast majority of all taxpayers can file starting Jan. 30, regardless of whether they file electronically or on paper. The IRS will be able to accept tax returns affected by the late Alternative Minimum Tax (AMT) patch as well as the three major “extender” provisions for people claiming the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction.
Who Can’t File Until Later?
There are several forms affected by the late legislation that require more extensive programming and testing of IRS systems. The IRS hopes to begin accepting tax returns including these tax forms between late February and into March; a specific date will be announced in the near future.
The key forms that require more extensive programming changes include Form 5695 (Residential Energy Credits), Form 4562 (Depreciation and Amortization) and Form 3800 (General Business Credit). A full listing of the forms that won’t be accepted until later is available on IRS.gov.
As part of this effort, the IRS will be working closely with the tax software industry and tax professional community to minimize delays and ensure as smooth a tax season as possible under the circumstances.
Updated information will be posted on IRS.gov.

More information here.

2013 Income Tax Filing Question and Answers

Hello,

I am posting to answer some questions that have been asked of my small business as of late.

Frequently Asked Income Tax Questions

Question: How much do you charge for individual income tax preparation?

Our fees are based on the number of individuals in the plan. The charge is $0 per individual. Yes, this does include dependents. So a family of four would pay $200.

Question: Can the tax preparation fee be taken out of my return or do I need to pay for the service upfront?

Both. We can either accept payment when filing or can have the payment deducted from your return.

Question: When is the first day that we can file an income tax return in 2013?

It really depends on the forms you will need. The I.R.S. has given dates for some forms and other forms are expected to be out around the same time.

Federal Forms  
Form 1040A  Individual Tax Return01/10/2013
Form 2441  Child & Dependent Care Expenses01/10/2013  
Schedule 8812  Child Tax Credit01/10/2013  
Schedule EIC  Earned Income Credit01/03/2013

So from reading this, it can be said that the 10th of January will be the first day that we will be able to efile your income tax forms.

Question: When will my return be direct deposited or a check mailed to me if I efile?

The I.R.S. hasn't given out much detail about their schedule but we have used prior years I.R.S. Tax Calendar and modified it using the information that we have received from the I.R.S. so far. To view the I.R.S. 2013 Income Tax Payment Schedule, click here.

Question: How much will I get back from my return?

That is entirely dependent on your personal factors including your income and tax payments for 2012. You're personal situation can also affect this great. HR Block created a great tool for getting an estimate of your tax refund. It is simple, so if you have more advanced taxes, it is most likely incorrect. You can calculate your 2012 Income Tax Return by clicking here.

Question: How do I signup or become a client of Hot Springs Tax Services?

We consider your privacy to be our #1 priority, so we only accept new clients via phone call and in person. This way we can very the individual and avoid any chance of fraud. Feel free to contact us via email to set up consultation or give us a call.

If we missed your question, feel free to comment and we will get it posted up!

Thanks for your time.

Have a great day!

-Hot Springs Tax Services Staff

IRS Update for 2013

Good day,
      I received an email update last night from the Internal Revenue Service. They have changed the first day that they will process returns to the 22nd of January. I updated the IRS payment schedule. It also stated:

Form		Available to File
Federal Forms
Child Tax Cr		01/10/2013
Form 1040A
Individual Tax Return		01/10/2013
Form 2441
Child & Dependent Care Expenses		01/10/2013
Schedule 8812
Child Tax Credit		01/10/2013
Schedule EIC
Earned Income Credit		01/03/2013

You are probably asking yourself right now, what do this mean to me? It means that if you need any of these forms filed, it will actually be on these days before your return can be e-filed. The electronic version of these forms will not be available until the dates listed.
We can still prepare your return and just will have to process it on these dates. It is still possible to recieve your return by the end of January 2013.
Contact us today to schedule an appointment. All you need is your last pay stub from 2012 and your 2011 tax forms.
Taxes@HotSpringsTaxServices.com
(501) 216-0587

Individual 1040(ez) Tax Preparation

Also, a small note, If you have a copy of your prior year .tax return and your final pay stub from work. We can file starting January 3rd for you at no initial charge. Your payment will be paid out of your tax refund. Not have a bank account? No problem. We can have a check mailed or get the same card for you that you would get through a tax company. Contact us today for an appointment.

 

Taxes@HotSpringsTaxServices.com

(501) 216-0587

Get Your Income Tax Refund by January 28th 2013!

Get Your Income Tax Refund by January 28th 2013!

We finally have information about the Refund Calendar from the I.R.S. To see the dates that checks will be refunded, click here. We will actually be able to start filing on January 3rd 2013. This is the date that all of the tax forms needed will be available from the I.R.S. If you are interested in filing on this date, we will need your final 2012 pay check and a copy of your 2011 Tax Return that you filed in 2012.

If you are a returning client, we will just need your last pay stub from 2012 and any other information such as deductible expenses. We will still go over and make sure that we are not missing any 2012 information that could result in deductions or credits.

Contact us today to schedule an appointment via email or in office for January 2013! Appointments are limited, so please contact us as soon as possible!

2013 IRS e-file Refund Cycle Chart for Tax Year 2012

Income Tax Refund Schedule 2012 Tax Payments

Our main page is where the 2013 IRS Income Tax Refund Payment Calendar can be found. Click here.

Be one of the first to file in 2013! Contact us today.
Taxes@HotSpringsTaxServices.com