Pacific Tax Professionals

03/09/2022

The Internal Revenue Service has been increasing its tax audits of the lowest-income wage earners to keep its overall audit numbers from declining, according to a new report.

01/28/2022

You will need this letter stating how much you got for the 3rd stimulus in order to accurately declare your tax return and avoid delays. If you do not receive this letter, aren't sure if you received the stimulus you can create an account at www.irs.gov and download your letter.
If you did not receive the stimulus you can claim it via the Recovery Rebate Credit. But if the IRS shows they paid you and you didn't get it, it will cause delays because of the conflicting information.

01/26/2022

YOU MUST BRING IN THE LETTER THE IRS IS SENDING YOU STATING EXACTLY HOW MUCH YOU RECEIVED IN ADVANCED CHILD TAX CREDIT. IT'S VERY IMPORTANT IN ORDER TO AVOID DELAYS IN PROCESSING YOUR TAX RETURN AND REFUNDS.

If you received advance payments, when you file your 2021 tax return, you will need to compare the advance Child Tax Credit payments that you received during 2021 with the amount of the Child Tax Credit that you can properly claim on your 2021 tax return. The fastest way for you to get your tax refund that will include your Child Tax Credit is by filing electronically and choosing direct deposit.

If you received less than the amount that you're eligible for, you'll claim a credit for the remaining amount of Child Tax Credit on your 2021 tax return. If you received more than the amount that you're eligible for, you may need to repay some or all of that excess payment when you file.

In January 2022, the IRS will send you Letter 6419 to provide the total amount of advance Child Tax Credit payments that you received in 2021. You need to keep this and any other IRS letters you received about advance CTC payments you received with your tax records and refer to them when you file.

05/03/2021

Did you know that eight out of 10 taxpayers get their refunds by using IRS Direct Deposit? It’s the most direct way to receive a federal tax refund. To learn more, click here: www.irs.gov/directdeposit

04/10/2021

If you’ve already filed your taxes reporting 2020 unemployment benefits, recent legislation will have an impact on your taxes. But there’s no need to take action - the IRS will automatically recalculate the changes and refund your money this spring or summer. Click here to learn more: https://go.usa.gov/xHrgz

04/01/2021

IRS is issuing $1,400 Economic Impact Payments, mostly by direct deposit. But many more will arrive as paper checks or prepaid debit cards. Learn more at https://go.usa.gov/xsM6D

04/01/2021

IRS to recalculate taxes on unemployment benefits

The IRS announced yesterday that they will re-calculate tax and automatically adjust tax returns that were filed reporting unemployment income before changes took affect due to the American Rescue Plan Act. For those taxpayers who have already filed and figured their tax based on the full amount of unemployment compensation, the IRS will determine the correct taxable amount of unemployment compensation and tax. Any resulting overpayment of tax will be either refunded or applied to other outstanding taxes owed. The IRS will recalculate returns in two phases, starting with those taxpayers eligible for the up to $10,200 exclusion. The IRS will then adjust returns for those married filing jointly taxpayers who are eligible for the up to $20,400 exclusion and others with more complex returns.

There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.

03/29/2021

IRS is delivering a 3rd round of Economic Impact Payments. The new payment will be larger for most eligible people.

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03/18/2021

MAY 17, 2021 TAX DEADLINE FOR 2020 TAX RETURNS!

The Internal Revenue Service is delaying the April 15 tax-filing deadline to May 17, giving taxpayers an additional month to file returns and pay any outstanding levies.