Monthly Archives: September 2016

Tax Relief to Louisiana Storm Victims

Louisiana storm victims will have until Jan. 17, 2017, to file certain individual and business tax returns and make certain tax payments, the Internal Revenue Service announced today. All workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization also qualify for relief.

Following this week’s disaster declaration for individual assistance issued by the Federal Emergency Management Agency (FEMA), the IRS said that affected taxpayers in East Baton Rouge, Livingston, St. Helena and Tangipahoa parishes will receive this and other special tax relief. Other locations in Louisiana and other states may be added in coming days, based on damage assessments by FEMA.

IRS Warns of Back-to-School Scams

The IRS is warning against telephone scammers targeting students and parents during the back-to-school season and demanding payments for non-existent taxes, such as the “Federal Student Tax.”

People should be on the lookout for IRS impersonators calling students and demanding that they wire money immediately to pay a fake “federal student tax.” If the person does not comply, the scammer becomes aggressive and threatens to report the student to the police to be arrested. As schools around the nation prepare to re-open, it is important for taxpayers to be particularly aware of this scheme going after students and parents.

New Factors Increase Importance of Withholding Check-Up

There are several new factors that could affect refunds in 2017. A new tax law change requires the IRS to hold refunds a few weeks for some early filers in 2017 claiming the Earned Income Tax Credit and the Additional Child Tax Credit. In addition, the IRS and state tax administrators continue to strengthen identity theft and refund fraud protections, which means some tax returns could again face additional review time next year to protect against fraud. Taking a closer look at the taxes being withheld can help ensure the right amount is withheld, either for tax refund purposes or to avoid an unexpected tax bill next year.

By adjusting the Form W-4 (the form employers use to figure the amount of federal income tax to be withheld from pay), you can ensure that the right amount is taken out of your pay throughout the year so that you don’t pay too much tax and have to wait until you file their tax return to get a refund (if applicable).

Tax Effects of Divorce or Separation

If you are divorcing or recently divorced, taxes may be the last thing on your mind. However, these events can have a big impact on your wallet. Alimony and a name or address change are just a few items you may need to consider. Here are some key tax tips to keep in mind:

Upcoming Tax Deadlines

September

Th 15 Pay the third installment of your 2016 estimated tax – Use Form 1040-ES.

Th 15 Partnerships: File Form 1065 if you timely requested a 5-month extension.

Th 15 Corporations: File calendar year Form 1120 or 1120S if you timely requested a 6-month extension.

Th 15 Corporations: Deposit the third installment of your 2016 estimated tax.

Fr 30 File Form 730 and pay tax on wagers accepted during August.

Fr 30 File Form 2290 and pay the tax for vehicles first used during August.