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IRS News Releases

1/7/19

 

IRS Confirms Tax Filing Season to Begin January 28


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.

 


Page Last Reviewed or Updated: 07-Jan-2019

IRS News Releases

8/23/17

Divorce or Separation May Affect Taxes

Taxpayers who are divorcing or recently divorced need to consider the impact divorce or separation may have on their taxes. Alimony payments paid under a divorce or separation instrument are deductible by the payer, and the recipient must include it in income. Name or address changes and individual retirement account deductions are other items to consider.

IRS.gov has resources that can help along with these key tax tips:

  • Child Support Payments are not Alimony.  Child support payments are neither deductible nor taxable income for either parent.
  • Deduct Alimony Paid. Taxpayers can deduct alimony paid under a divorce or separation decree, whether or not they itemize deductions on their return. Taxpayers must file Form 1040; enter the amount of alimony paid and their former spouse's Social Security number or Individual Taxpayer Identification Number.
  • Report Alimony Received. Taxpayers should report alimony received as income on Form 1040 in the year received. Alimony is not subject to tax withholding so it may be necessary to increase the tax paid during the year to avoid a penalty. To do this, it is possible to make estimated tax payments or increase the amount of tax withheld from wages.
  • IRA Considerations. A final decree of divorce or separate maintenance agreement by the end of the tax year means taxpayers can’t deduct contributions made to a former spouse's traditional IRA. They can only deduct contributions made to their own traditional IRA. For more information about IRAs, see Publications 590-A and 590-B.
  • Report Name Changes.  Notify the Social Security Administration (SSA) of any name changes after a divorce. Go to SSA.gov for more information. The name on a tax return must match SSA records. A name mismatch can cause problems in the processing of a return and may delay a refund.

News - 2018 Tax Cuts and Updates

Hello everyone.  We recently went to school to learn all about the New Tax Laws from 2017 Tax Legislation. It is called Tax Cuts and Jobs Act. Needless to say, they have dramatically changed the way we will be doing your taxes and what is allowed until 2025.

So here is the BIG changes for 2018 Tax Returns:
1. NO MORE ITEMIZING FOR EVERYONE EXCEPT FOR THE MILITARY. THIS IS DRAMATIC FOR ALL THE PEOPLE THAT WORK FOR EMPLOYERS AND HAVE “EMPLOYEE BUSINESS EXPENSES”. The credit was given on the Itemized Deductions. NO CREDIT FOR “PER DIEM” FOR OUR EMPLOYED OTR TRUCK DRIVERS.

2. All Owner-Operators OTR Truck drivers will still get their “Per Diem” because you are a small business and the credit is given on the Schedule C or your Partnership or Corporate returns.

3. Winner for all small businesses. There is a new program to promote hiring and starting small businesses. The program is called “Small Business Tax Credit”.

4. Net Operating Losses (NOLs) have changed to only applying to future years and now you cannot go back and recapture taxes paid.

5. Moving expense has now been repealed except for the Active Military.

6. Child Tax Credit is now 2000.00 per child.

7. Employers now get a credit for offering “Paid Family and Medical Leave” to their employees.

These are just some of the new laws and I want all our clients to be prepared for the end of year. If you have any questions please drop me a line and I will try to answer your questions as soon as possible.

Patty Armstrong, Accountant

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618-997-9447 or  e-mail us at aaacs@aaaaccounting.net  with any questions or to schedule an appointment.

 

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AAA Tax & Accounting Services

709 N Carbon St

Marion, IL   62959

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