Category: Tax News

Get up to date on all tax news from the IRS. The IRS is constantly updating us with law changes and new rules. Sometimes, it’s too much to keep up with. We’ll decipher the confusing lingo while you focus on staying current  on what’s really important.

If you have more questions about staying up to date with the IRS, leave a comment. Our tax team is ready to help!

Archive for the ‘Tax News’ Category

NY Middle Class Families to Receive $350 Check | Tax Rebate

Posted by admin on October 2, 2014
Last modified: October 6, 2016

Thousands of NY Middle Class Families will be receiving a $350 Rebate Check from NY State This Month

If sometime over the next month you receive a $350 check from New York State, don’t throw it away.  It’s not a joke. Instead, it’s a Middle Class Family Rebate from the state.

That’s right, instead of you writing a check to the government, they may be writing you one.

Along with the NY state check, there will be a letter stating something along the lines of “Dear Taxpayer: Last year’s State Budget included this Family Tax Relief Credit. This tax relief is part of New York State’s new effort to reduce taxes”.

Who is Eligible to Receive NY Middle Class Family Rebate Check

You can expect to see the Family Relief $350 check if you meet the following qualifications;  

  • you’re a New York State resident
  • you claimed a child under age 17 on your 2012 tax return
  • your family’s 2012 adjusted gross income was between $40,000 and $300,000 (more…)

Federal Tax Debt Relief

Posted by admin on October 22, 2013
Last modified: December 21, 2016

There’s nothing less pleasant than owing the IRS money. Find out how PriorTax can help.

Most people who are late on their taxes find there’s nothing to worry about. In fact many get a refund. But for an unfortunate few, late taxes mean crippling debt that seems impossible to pay off. These problems, however, are not insurmountable.

Scary as it might seem, the IRS is a reasonable organization willing to work out a solution that works for you. In order to get results, however, you have to know how to navigate the tax code and the IRS bureaucracy.

That’s where PriorTax comes in. Our experienced professionals can work with you and negotiate with the IRS to make your tax burden more manageable. Here’s what we can do:

Stop Collections

The first thing we’ll do is stop collection of your tax debt while we negotiate a solution. We can issue a Stay of Collections which will stop IRS tax liens, levies, and seizures. This includes negotiating a full or partial release of IRS wage garnishment so that you can start making money again. (more…)

How Long Does It Take for the New York State E-File to Process?

Posted by admin on March 15, 2013
Last modified: December 22, 2016

New York State says to expect your refund in 14-30 days, but many are experiencing delays

Once you’ve filed your federal and state returns, you begin the dreaded waiting game. The states tend to be a little slower than the IRS. So even after you get your federal refund, you could still be worrying about your money from the state.

New York has a slightly more sophisticated tax system than other states. However, it can still take a long time for your return to be processed and refund issued. Many taxpayers have unrealistic expectations. They expect NY to be as fast as the IRS.

What is the quickest way to get your tax refund?

The fastest way to get your refund is to e-file your return and request your refund via direct deposit. The Department of Taxation and Finance declares that these taxpayers can receive their refund in as little as 14 days. Most, however, will have to wait somewhere between 14 and 30 days. Note also that it is hardly uncommon for refunds to take even longer than that.

Any deviation from the e-file/direct deposit combination means that your refund will take even longer than this 14-30 day window. In addition to direct deposit, New York allows you to get your refund sent to you on a debit card or in the traditional form of a paper check. As both of these options involve sending a physical thing through the mail, they take a little longer, usually about 2-5 business days more. (more…)

Hurricane Sandy Tax Relief

Posted by admin on November 7, 2012
Last modified: December 21, 2016

Dealing with Hurricane Sandy’s destruction is a little easier with these tax breaks from the IRS

No amount of help will make recovering from the damage Hurricane Sandy inflicted on the Northeast easy, but tax breaks could help ease the pain. Thankfully, the IRS has taken many measures to provide tax relief to Hurricane Sandy victims.

Deadlines pushed back

For taxpayers in Connecticut, New Jersey, and New York who were affected by the storm, the IRS has pushed back multiple tax deadlines to February 1, 2013. This new deadline applies to

  • fourth quarter individual estimated tax payments normally due January 15
  • payroll and excise tax returns and their accompanying payments for the third and fourth quarters, normally due October 31 and January 31
  • Form 990 series returns for tax-exempt organizations with original/extended due dates during this period

Not only are deadlines pushed back, but the IRS will also abate all interest, late-payment penalties, and late-filing penalties for taxpayers located in the disaster zone. (more…)

The Back Tax Fallacy

Posted by admin on January 24, 2012
Last modified: October 6, 2016

Filing a Late Tax Return Doesn’t Necessarily Mean You Owe Back Taxes

The tax world is full of technical jargon that might not mean very much to the layman. But one distinction you really should pay attention to is the difference between back taxes and late taxes, especially if you’ve neglected your taxes in years past.

The phrase “back taxes” gets thrown around a lot in reference to all sorts of different tax issues from previous years. It often gets mixed up with the term “late taxes” and, in certain quarters, the two are used interchangeably.

But in reality late taxes do not necessarily result in back taxes – all back taxes are late taxes, but not all late taxes are back taxes.

So what exactly are back taxes and how are they different from late taxes? (more…)

2010 Tax Filing: What’s New This Year?

Posted by admin on January 11, 2011
Last modified: December 20, 2016

Here are some important changes you should keep in mind prior to filing your taxes this year.

First, the due date to file your Form 1040 is April 18 instead of the customary 15th deadline. This is due to the Emancipation Day holiday observed in Washington DC falling on the 15th this year. The April 18th return date is applicable whether you reside in the District of Columbia or not.

For 2010, there are no longer any limits on the number of personal exemptions and itemized deductions that you can claim. In other words, you will not lose part to your deduction, irrespective of the actual amount of your adjusted gross income.

Please note however that all unemployment compensation you may have received in 2010 generally is now fully taxable. The exclusion from income of up to $2400 that applied in 2009 has been rescinded and is no longer available. (more…)

Recession? Time to File Back Taxes Online

Posted by admin on July 3, 2009
Last modified: October 6, 2016

If you owe back tax, use this simple guide to file fast

Is a recession the best time to file back taxes? Many tax experts claim that it is! Right now, people who owe back tax also owe other creditors, and knowing which ones to pay first is hard. The good news? The IRS is one of the more generous lenders out there, if you get in touch with them and make your case.

It’s surprising, but true! Taxpayers who owe the IRS significant amounts can see their tax bill reduced once they start filing back taxes. The secret? The IRS knows that some taxpayers are hard to track down, and that if someone hasn’t paid taxes in a few years, they’re much less likely to do it at all. So the IRS waits for lucky breaks — a new job requiring an extensive credit check, a lucky bit of new information, or even a tip on someone who owes money and could file back taxes but hasn’t. (more…)