NEWS & ANNOUNCEMENTS
IRS Letter CP12 & What it Means?
"The Internal Revenue Service is sending out warning “math error” notices to millions of Americans in what’s called a CP12 Notice. The notices mean the IRS either has questions or changes are being made to your tax return." ~ King 5 article.
If you receive a letter with this code it's not the end of the world. Likely the IRS computers believe you might have missed reporting income, &/or the 2020 stimulus reporting amounts were reported in error. The best way to respond to this letter is by supplying info supporting your original numbers. Plus, make sure you document for your records that you mailed a response, in the event the IRS believes they did not receive it. This has been a big issue this year and we forecast the 2021 tax year will be even worse due to early child tax credits and stimulus distributions.
Monthly Payments of the 2021 Child Tax Credit Will Begin July 15
"The IRS says it's on schedule to start sending monthly child tax credit payments this summer." Find out if and when you qualify. Link via the Read More.
IRS employees say ‘out of ink’ printers are delaying tax returns
Many client this year are frustrated their tax refund has not been processed for over 2 months by the IRS. This behind the scenes story might give some insight on why?
2021 Advance Child Tax Credit
IRS is setting up to start distributing the advance child tax credit for 2021 starting in July. Q&A article from Kiplingers explains all the proposed details and the ins & outs. click the link.
IRS is holding over 29 Millions Returns & Delaying 2020 Refunds
"The Internal Revenue Service is holding 29 million returns for manual processing — delaying refunds for many — because of pandemic-related law changes, processing errors, and fraud detection.
“As one would expect, IRS employees are stretched thin working through the manual processing of these returns,” National Taxpayer Advocate Erin Collins wrote in her blog. “So if a taxpayer’s return is pulled for manual processing, there will be delays.” ~ Yahoo Finance
2020 Tax Season Extended to May 15th I IRS to Delay Tax Deadline to Mid-May After Chaotic Year.
"The IRS is still figuring out what the final deadline will be. The agency is considering setting the filing deadline either on May 15 or May 17, according to two of the people, who were not authorized to speak publicly because the decision had not been finalized. May 15 is a Saturday and the IRS typically delays filing deadlines that fall on a weekend or holiday to the next business day."
Stimulus Check Calculator I How Much Will My Family Receive?
"President Biden signed the American Rescue Plan Act on March 11. Provisions in the bill authorize another round of $1,400 stimulus checks for each eligible person ($2,800 for couples), plus an additional $1,400 for each dependent. However, as with the first- and second-round payments, the third-round stimulus checks will be reduced – or eliminated – for people with an income above a certain amount."
2020 Tax Season Extended? | Momentum Builds for Delaying Tax Deadline.
"March 8th 2020, Leaders of the House Ways and Means Committee and accounting groups are calling for extending the tax deadline to give the IRS, taxpayers and tax professionals an extra three months."
Announcement | Pacific Tax West Seattle Client Reviews.
"Kurt has been doing our taxes for four years and is knowledgeable, responsive, quick and always gets us the best tax refund! He just moved his office from Ballard to West Seattle to work in his own neighborhood, and we're happy to have him here! With a small business, a home, investments and kids, having Kurt do our taxes is a huge weight lifted. He's quick to answer questions and is always up to date on the latest tax code. We highly recommend Pacific Tax West Seattle. Don't hesitate to hire Kurt!"
- Sarah L. of West Seattle
"Kurt is AWESOME! I have been working with him for many years and he always provides first class service! He is super thorough and is great with answering all of my questions every single year. Kurt takes the time to really explain and review your taxes with you in a way that makes sense to us non-tax people that is also fun and easy to understand!
Kurt will always look for ways to help you in the upcoming year as well when it comes to pre-tax contributions to help maximize future returns. I honestly accredit him for my higher 401k contributions which I was severely slacking on. Kurt is the best!"
- Rachel H. of Kirkland WA
"Kurt has been doing my taxes as long as I can remember. Being in tech my income tends to be spikey with lot's of moving parts like RSUs and bonuses and he does a great job keeping me straight. I would recommend going to Pacific Tax West Seattle to anyone looking for an accountant who understands the way we work."
- Aaron Q. of Lacey WA
IRS News | When to Expect Your Refund if You Claimed the Earned Income Tax Credit or Additional Child Tax Credit.
If you claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), you can expect to get your refund by the first week of March if:
You e-file your return
You choose to get your refund by direct deposit
We found no issues with your return
How to Track Your Refund
Check the status of your refund:
IRS News | First and Second Economic Impact Payments Issued; Eligible people Can Claim Recovery Rebate Credit.
"If individuals didn't receive a payment – or if they didn't receive the full amounts – they may be eligible to claim the Recovery Rebate Credit and must file a 2020 tax return. Eligibility for and the amount of the Recovery Rebate Credit are based on 2020 tax year information while the Economic Impact Payments were based on 2019 tax year information. For the first Economic Impact Payment, a 2018 return may have been used if the 2019 was not filed or processed."
IRS News | Tax Filing Season Begins February 12, 2021.
"The Internal Revenue Service announced that the nation's tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns. The February 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the December 27 tax law changes that provided a second round of Economic Impact Payments and other benefits."