“IRS estimates that over
half of the potential refunds are for $637 or more,” and there is no penalty
for filing a late return qualifying for a refund. Those who did not file a
return in 2008 and are planning to file now in hope of seeing the refund need
to keep in mind that IRS requires them to have filed in 2009 or 2010, or else
the check may be held.
Non-filers are not
necessarily breaking the law; they may have had so little income that year that
they were not required to file a return. If taxes were withheld from a
paycheck, or quarterly estimated payments were made, a refund could be waiting
at IRS. However, if the taxpayer owes back child support or is behind on
federal loans, such as student loans, IRS may use the funds to offset those
debts.
Not filing taxes can
also cause taxpayers to miss out on other government funds. Those who didn’t
file in 2008 may now be eligible for some or all of the Recovery Rebate Credit,
a one-time payment for taxpayers who didn't receive the full economic stimulus
payment in 2008 and whose circumstances have changed. Low-to-middle income taxpayers could also be
missing out on the Earned Income Tax Credit (EITC), which helps individuals and
families whose incomes are below certain thresholds.
If you didn’t file in
2008, you can start this process by heading to the IRS website (IRS.gov), where
you’ll find past year’s tax forms and instructions. Those who no longer have
2008 tax documents can request a free transcript from IRS, or hire a licensed
tax practitioner to take this on. An enrolled agent, a tax specialist licensed
by the US Department of Treasury, can go to the IRS on your behalf – as your
“agent” – prepare your return, and represent you before IRS if there is
trouble, such as an audit or collection action.
About Enrolled Agents
Enrolled agents (EAs)
are America’s tax experts. They are the only federally-licensed tax
practitioners who specialize in taxation and also have unlimited rights to
represent taxpayers before the IRS. While attorneys and certified public
accountants are also licensed, only enrolled agents specialize exclusively in
taxes. Enrolled agents are required to complete many hours of continuing
education each year to ensure they are up-to-date on the constantly changing tax
code and must abide by a code of ethics. As always we are available to help.
Contact us today.
ABA Tax Accounting
Amare Berhie, Enrolled
Agent
amare@abataxaccounting.com
Direct 612-282-3200
Toll free 866-936-0430
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