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IRS has refunds totaling $1.3 billion for people who have not filed a 2017 federal income tax return

Unclaimed income tax refunds worth more than $1.3 billion await an estimated 1.3 million taxpayers who did not file a 2017 Form 1040 federal income tax return, according to the Internal Revenue Service. “The IRS wants to help taxpayers who are due refunds but haven’t filed their 2017 tax returns yet,” said IRS Commissioner Chuck […]

IRS to recalculate taxes on unemployment benefits; refunds to start in May

To help taxpayers, the Internal Revenue Service announced today that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan. The legislation, signed on March 11, allows taxpayers who earned less than $150,000 […]

IRS begins delivering third round of Economic Impact Payments to Americans

WASHINGTON – The Internal Revenue Service announced today that the third round of Economic Impact Payments will begin reaching Americans over the next week. Following approval of the American Rescue Plan Act, the first batch of payments will be sent by direct deposit, which some recipients will start receiving as early as this Additional batches […]

Third Stimulus Package

On March 11, 2021, the third COVID stimulus package was signed into law, including direct payments. The IRS emphasizes that there is no action required by eligible individuals to receive this third payment. Payments are automatic. Additional information related to eligibility or timing of these payments has not been made available. Who qualifies for this […]

Pending Legislation

The president is expected to sign a bill this week which will provide relief for the continued impact of COVID-19. The American Rescue Plan Act of 2021 extends unemployment benefits, provides funding for state and local governments, supports vaccine rollouts, expands the child tax credit, makes a portion of unemployment compensation nontaxable for certain filers, […]

Tax Time Guide: Select a tax return preparer with care

The Internal Revenue Service today reminded taxpayers to choose a tax return preparer with care. Even though the vast majority of tax return preparers provide honest, quality service, some cause great harm through fraud, identity theft and other scams every year. It’s very important to select the right tax professional. After all, people trust them […]

People should be on the lookout for identity theft involving unemployment benefits

Taxpayers whose identities may have been used by thieves to steal unemployment benefits to file a tax return claiming only the income they actually received. Some taxpayers applied for and received unemployment compensation from their state. By law, unemployment benefits are taxable. Scammers also took advantage of the pandemic by filing fraudulent claims for unemployment […]

Is the NC Extra Credit Grant payment ($335-) taxable?

Many of us have had some reasons to believe that it is taxable. And perhaps some are also swayed to think that it is taxable since NC DOR has a subtraction for it on D-440 Sch. S line 33. However, please consider the following information. A “qualified disaster relief payment” is defined by section 139(b) […]

Taxpayers should beware of ghost preparers

As people begin to file their 2020 tax returns, taxpayers are reminded to avoid unethical ghost tax return preparers. A ghost preparer is someone who doesn’t sign tax returns they prepare. Unscrupulous ghost preparers often print the return and have the taxpayer to sign and mail it to the IRS. For e-filed returns, the ghost […]

As required by law, all first and second Economic Impact Payments issued; eligible people can claim Recovery Rebate Credit

The IRS announced today that, as required by law, all legally permitted first and second round of Economic Impact Payments have been issued and the IRS now turns its full attention to the 2021 filing season. Most people who are eligible for the Recovery Rebate Credit have already received it, in advance, in these two […]