Tax Refunds
No More Paper Checks for Virginia Individual Tax Refunds
Virginia will no longer issue paper checks for individual income tax refunds. If you file a Virginia Individual Income Tax Return (Form 760) and you are due a refund, you have two options for receiving your refund: 1) direct deposit, or 2) a prepaid debit card. Click here to read the full alert.
Historic Boardwalk: 2 Differentiators
In a much anticipated decision, the Court of Appeals for the Third Circuit recently overturned the Tax Court’s decision in the Historic Boardwalk case. This case primarily dealt with the issue of who qualifiesas a “bona fide partner” for tax purposes, thus clarifying the scope of economic substance doctrine. In most recent developments, the Court of Appeals overturned the Tax Court’s decision holding that Pitney Bowes, a corporate investor, was not a bona fide partner in the Historic Boardwalk LLC. This disallowed Pitney Bowes the credit for the renovation of Historic Boardwalk Hall. But what does this mean for you. Read More.
Effective Date of Tangible Property Regs. Delayed
The IRS announced on Tuesday that it is delaying the effective date of the temporary regulations it issued in December 2011 governing whether tangible property expenses could be deducted or had to be capitalized (T.D. 9564), which were to apply to tax years beginning on or after Jan. 1, 2012. In Notice 2012-73, in response to numerous comments from taxpayers, the IRS said that it will amend the temporary regulations to make them apply to tax years beginning on or after Jan. 1, 2014, instead, but that taxpayers will be permitted to apply the temporary regulations for tax years beginning. Read More.
Georgia Tests Debit Card Tax Refund Program
The Georgia Department of Revenue (The Department) recently launched a pilot program that would replace paper tax refunds with preloaded debit cards. The Department expects that this will eventually replace paper refunds as the cards can be used to transfer funds to a bank account, in multiple retail locations and contain a variety of security features. Those taxpayers electing to receive a direct deposit will continue to receive funds electronically.
IRS Issues Guidance on Expanded Adoption Credit
The IRS has issued guidance for the expanded adoption credit included as part of the recent Health Care Reform legislation, which raised the maximum adoption credit to $13,170 per child, up from $12,150 in 2009. The credit is also now refundable, which means that eligible taxpayers can receive the credit even if they have no tax burden for the year. The credit is essentially based on the reasonable and necessary expenses related to a legal adoption, including adoption fees, court costs, attorney’s fees and travel expenses. Income limits and other special rules apply. To receive the credit, eligible taxpayers must. Read More.
Avoid These Common Tax Scams
As tax season enters its final days, taxpayers will be inundated with special offers and money-saving tricks. Every year, the IRS publishes a list of the “ dirty dozen ” tax schemes that can lead to fines and even jail time. If it seems too good to be true, contact a trusted preparer or the IRS. The IRS urges taxpayers to be on the lookout for the following schemes. Preparer Fraud Nefarious return preparers can overcharge for services, and skim refunds from unsuspecting taxpayers. Check for a preparer tax identification number (PTIN) and other accreditations such as continued education, attorney status, or. Read More.