Monday, the Internal Revenue Service started accepting electronically filed tax returns. We have until April 18 for filing returns, but many file earlier in the season if they’re expecting large refunds.
The tax-filing deadline this year is a few days later than the normal April 15 as a result of some quirks of the calendar. April 15 is actually a Saturday. However the deadline will not be shifted to Monday, April 17, because that is Emancipation Day, which is celebrated in Washington, D.C.
Suggestions for filing income taxes ahead of time
1. Get an appointment if you want to to talk to someone at IRS offices
Don’t expect to drop into an IRS office to receive any help this tax season. All offices are appointment-only now.
If you need to visit an IRS Taxpayer Assistance Center in person, you will need to schedule a time by calling 844-545-5630 for the appointment hotline.
Taxpayers are asked to check IRS.gov for the days and hours of service, as well as the services offered at the location they intend to visit.
2. Beware of a brand new hurdle if you have used a special Individual Taxpayer Identification Number
Some tax filers will be unable to file their federal tax returns if they don’t update Individual Taxpayer Identification Numbers (ITIN).
Warning: Any ITIN that has not been used in the past three years will not work for filing that return.
On top of that, individual tax identification numbers that contain middle digits of 78 or 79 also expired this current year.
Tax filers in these situations must renew an Individual Taxpayer Identification Number as early as possible because they cannot file a tax return without one.
The super-sized headache? The IRS notes that it may take up to 11 weeks in the peak of the tax season to get that number from the time you send in a renewal application, known as Form W-7, for the IRS to process the application and notify you about your status.
Why the change?
A new federal law to combat fraud included the necessity that certain Individual Taxpayer Identification Numbers expired Jan. 1.
“Anyone filing a tax return with an expired ITIN could experience return processing and refund delay, as well as denial of some tax benefits until the ITIN is renewed,” the IRS said online in a statement.
These identification numbers often are being used by individuals who have tax-filing or payment obligations under U.S. law but are not qualified to receive a Social Security number.
3. Some struggling families will face delays for their tax refunds
The IRS notes that more than nine out of 10 refunds will be issued in less than 21 days, which happens to be good news.
But tax filers who benefit from the Earned Income Tax Credit and the Additional Child Tax Credit should not expect their refunds until possibly the week of Feb. 27, regardless of whether they file as soon as this week.
The reason? Congress is cracking down on tax-return-related fraud. The Protecting Americans from Tax Hikes Act mandated that the IRS delay issuing tax refunds for returns claiming the EITC or the Additional Child Tax Credit until Feb. 15. The move was made to give the IRS more time to detect fraud and prevent refunds from being issued to ID thieves who file fake tax returns using such credits.
But consumers who rely on the refund cash will face extra delays, given holidays and weekends.
Another thing to note: The IRS online “Where’s My Refund” tool will not show an estimated date for many tax returns involving the special credits until after Feb. 15. “So don’t panic in late January and mid-February if you don’t see a refund date on ‘Where’s My Refund.’ That’s just how the tool will operate due to the special circumstances with the EITC and ACTC refunds,” IRS Commissioner John Koskinen has said.
“Where’s My Refund” at www.irs.gov and the IRS2Go phone app will be updated a few days after Feb. 15 with projected deposit dates for the early filers who receive the earned income credit and additional child credit.
4. Look out for high-cost, quick-cash on tax refund advances
Tax filers could possibly be tempted by refund anticipation loans that proclaim “no fee” will be charged. But Chi Chi Wu, staff attorney for the National Consumer Law Center, warns that in some cases, borrowers could face other higher fees for tax preparation or another product.
Advance loans are increasingly being heavily marketed this current year by some firms, including H&R Block and Jackson Hewitt, considering the new delays ahead for tax refunds for those who file those Earned Income Tax Credit and the Additional Child Tax Credit.
Jackson Hewitt is marketing for its Express Refund Advance, a loan of up to $1,300 that has no fees, a 0 percent annual percentage rate and no credit check. To obtain the loan, you will have to pay to file your taxes with Jackson Hewitt.
H&R Block began offering a tax-related loan for a limited time beginning Jan. 6. The H&R Block Refund Advance offers loans in the amounts of $500, $750, or $1,250 upfront for 0 percent interest.
The loan is loaded onto an H&R Block Emerald Prepaid MasterCard.
The amount of the advance will be deducted from tax refunds and lower the amount that is paid directly to the taxpayer. Both Jackson Hewitt and H&R Block offer only the loans to customers who visit their offices and outlets; it is not available online.
5. Take a close look at that W-2 Form
Some tax filers are likely to discover that they must deal with a “Form W-2 Verification Code.”
About 50 million W-2 forms will include a 16-digit verification code that tax filers or preparers will need to add when prompted by tax software. Around 2 million W-2s had this type of code in the 2016 filing season.
The IRS anticipates that the verification code ultimately is going to be utilized on all W-2 forms in future years. Again, we’re taking a look at another hurdle to attempt to corral the crooks which will help prevent the filing of fake tax returns.
6. Remember, scam artists love tax season
“We continue to ask the public to be vigilant because the scamming doesn’t stop,” said Luis Garcia, IRS spokesperson in Detroit.
The scammers usually pretending to be from the IRS might reach out via your email inbox, your mailbox or even knock on your front door, Garcia said.