UPDATE to Dec 21 Post: IRS E-Services Portals Unavailable until Jan 6

As an update to our previous post from December 21, the IRS has announced that the e-Services’ Transcript Delivery System, Disclosure Authorization and Electronic Account Resolution systems will be unavailable for three additional business days - returning to operation on January 6, 2013.

During this time, you will be unable to request transcripts, submit a new Form 2848, Power of Attorney and Declaration of Representative, Form 8821, Tax Information Authorization, or use Electronic Account Resolution. The IRS encourages users to hold their transactions until the system is once again operational.

IRS Centralized Authorization File System Down for Maintenance

The IRS has announced that the Centralized Authorization File system (CAF) will be unavailable due to maintenance starting 6AM EST December 26th and will be back up on January 2nd at 6:30AM EST. This outage will affect the Transcript Delivery Service and Disclosure Authorization systems. Please plan to have any requests submitted no later than midnight, December 25th or hold them until the maintenance is concluded.

IRS Update: What to Expect for Federal Refunds for the 2013 Filing Season

What to Expect for Federal Refunds for the 2013 Filing Season

It is important to set your customers’ expectations for when the IRS will be sending refunds during the upcoming 2013 Filing Season and beyond.

Due to the increase in fraud and identity theft, the IRS is increasing their fraud filters during the processing of all individual returns. This means that a larger number of returns will be reviewed therefore, processing will take longer and the refund will be sent out later for these returns.

The IRS messaging for refunds for the upcoming filing season will be that refunds will be sent to the taxpayer within 21 days from the time the return has been accepted. This message will be the same on the IRS website, “Where’s My Refund?” page, and when a taxpayer calls the IRS help desk.

The refund cycle chart has been eliminated and replaced with an IRS Information Guidelines for the Tax Preparation Community publication. Click here to read more.

You will also notice the following changes to the “Where’s My Refund?” tool for the upcoming filing season:

• The expected date of when the refund will be sent will no longer be given when the return begins to be processed.
• The refund status will be presented by way of a status bar as follows:
• Return Received - Learn more
• Refund Approved - Learn more
• Refund Sent - Learn more
• Click here to read more.

Click here to read the entire CrossLink Tax Update that includes further information on what to expect for Federal refunds for the 2013 Filing Season.

IRS Offers Tax Tips for “The Season of Giving”

December is traditionally a month for giving generously to charities, friends and family. But it’s also a time that can have a major impact on the tax return you’ll file in the New Year. Here are some “Season of Giving” tips from the IRS covering everything from charity donations to refund planning:

• Contribute to Qualified Charities. If you plan to take an itemized charitable deduction on your 2012 tax return, your donation must go to a qualified charity by Dec. 31. Ask the charity about its tax-exempt status. You can also visit IRS.gov and use the Exempt Organizations Select Check tool to check if your favorite charity is a qualified charity. Donations charged to a credit card by Dec. 31 are deductible for 2012, even if you pay the bill in 2013. A gift by check also counts for 2012 as long as you mail it in December. Gifts given to individuals, whether to friends, family or strangers, are not deductible.
• What You Can Deduct. You generally can deduct your cash contributions and the fair market value of most property you donate to a qualified charity. Special rules apply to several types of donated property, including clothing or household items, cars and boats.
• Keep Records of All Donations. You need to keep a record of any donations you deduct, regardless of the amount. You must have a written record of all cash contributions to claim a deduction. This may include a cancelled check, bank or credit card statement or payroll deduction record. You can also ask the charity for a written statement that shows the charity’s name, contribution date and amount.
• Gather Records in a Safe Place. As long as you’re gathering those records for your charitable contributions, it’s a good time to start rounding up documents you will need to file your tax return in 2013. This includes receipts, canceled checks and other documents that support income or deductions you will claim on your tax return. Be sure to store them in a safe place so you can easily access them later when you file your tax return.
• Plan Ahead for Major Purchases. If you are making major purchases during the holiday season, don’t base them solely on the expectation of receiving your tax refund before the bills arrive. Many factors can impact the timing of a tax refund. The IRS issues most refunds in less than 21 days after receiving a tax return. However, if your tax return requires additional review, it may take longer to receive your refund.

For more information about contributions, check out Publication 526, Charitable Contributions. The booklet is available on IRS.gov or order by mail at 800-TAX-FORM (800-829-3676).

(The above content is as it appeared in an official IRS Tax Tips e-mail distributed on December 6th, 2012.)

IRS Update: Reminders for Year End and the Upcoming Filing Season

As we approach the end of 2012 and the start of the 2013 Filing Season, here are some reminders and things to know:

Start of Filing Season

The 2013 Filing Season will open on Tuesday, January 22, 2013. This is the day after Martin Luther King Jr.’s Birthday.

Renewing Your PTIN

If you have not already done so, you must renew your PTIN for 2013 before you begin to prepare 2012 returns. Click here to read more.

Continuing Education for Registered Return Preparers

It is very important to remember that all registered tax return preparers and return preparers with provisional PTINs must complete 15 hours of continuing education by the end of 2012. Click here to read more.

Increased Emphasis on Fraud by IRS

Due to the significant increase in the filing of fraudulent returns and identity theft, the IRS will be increasing their fraud filters for the upcoming filing season. Click here to read more.

Click here to read the entire CrossLink Tax Update that includes further information on reminders for year end and the 2013 Filing Season.

IRS Update: Changes to TY 2012 IRS Forms

As we wait for Congress to decide whether or not they will extend the provisions that expired at the end of 2011, the IRS has made changes to the following forms that are not related to late legislation:

Form 8867 (Paid Preparer’s Earned Income Credit Checklist) – Click here to read more.

Form 8863 (Education Credits) – Click here to read more.

Schedule 8812 (Child Tax Credit) – Click here to read more.

Click here to read the entire CrossLink Tax Update that includes further information on the changes to Tax Year 2012 IRS Forms.