IRS and EMAIL

2/1/11

The IRS does not e-mail taxpayers about their tax accounts, tax situations or personal tax issues. If you receive contact by the IRS through email or phone it could be an identity theft scam. These schemes may take place via phone, fax, Internet sites, social networking sites and particularly e-mail. Do not be tricked into giving your financial information over the internet or phone. These scams sometimes contain attachments or links that will download viruses onto your computer or even direct you to a fake IRS site posing to be the real IRS site.

If you do receive suspicious contact from someone claiming to be the IRS, go to the official IRS website and report them. Click on the link below for directions:

http://www.irs.gov/privacy/article/0,,id=179820,00.html

1/25/11

IR-2011-7, Jan. 20, 2011

WASHINGTON — The Internal Revenue Service plans a Feb. 14 start date for processing tax returns delayed by last month’s tax law changes. The IRS reminded taxpayers affected by the delay they can begin preparing their tax returns immediately because many software providers are ready now to accept these returns.

Beginning Feb. 14, the IRS will start processing both paper and e-filed returns claiming itemized deductions on Schedule A, the higher education tuition and fees deduction on Form 8917 and the educator expenses deduction. Based on filings last year, about nine million tax returns claimed any of these deductions on returns received by the IRS before Feb. 14.

People using e-file for these delayed forms can get a head start because many major software providers have announced they will accept these impacted returns immediately. The software providers will hold onto the returns and then electronically submit them after the IRS systems open on Feb. 14 for the delayed forms.

Taxpayers using commercial software can check with their providers for specific instructions. Those who use a paid tax preparer should check with their preparer, who also may be holding returns until the updates are complete.

Most other returns, including those claiming the Earned Income Tax Credit (EITC), education tax credits, child tax credit and other popular tax breaks, can be filed as normal, immediately.

The IRS needed the extra time to update its systems to accommodate the tax law changes without disrupting other operations tied to the filing season. The delay followed the Dec. 17 enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which extended a number of expiring provisions including the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction.

1/05/11

The IRS announced that the upcoming tax season will be delayed for certain taxpayers.

The 2011 filing season will begin January as usual for the majority of taxpayers, but changes due to the 2010 Tax Relief Act means that the IRS must reprogram its processing systems for provisions that were extended by the Act.

The delay affects both paper-filed and e-filed returns that include:

• Form 1040 Schedule A, Itemized Deductions
• Educator expense deductions on form 1040, line 23, or 1040A, line 16
• Form 8917, Tuition and Fees Deduction
• Casualty and thefts claimed on form 4684
• Form 8859, District of Columbia First-Time Homebuyer Credit

A few other taxpayers will also have to wait to file, due to the impact of other recent changes, primarily those included in the Small Business Jobs Act of 2010. Affected will be returns that include:

• Form 3800, General Business Credit
• Form 5405, First-Time Homebuyer Credit and Repayment of the Credit
• Form 6478, Alcohol and Cellulosic Biofuel Fuels Credit
• Form 8834, Qualified Plug-In Electric and Electric Vehicle Credit
• Form 8910, Alternative Motor Vehicle Credit
• Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit

Affected taxpayers must wait until the tax processing systems are ready-which the IRS estimates will be in the mid-to late February-before filing their tax returns.