Volume 4, No. 1
IRS Kicks off Filing Season with Reminders about AMT Patch, Split Refunds, and More
As the 2008 filing season gets underway, the IRS has issued a series of 10 fact sheets to highlight important tax law changes and to encourage taxpayers to e-file and consider splitting their refunds, along with tips about choosing a tax preparer and avoiding tax scams. The IRS expects to begin processing e-filed returns on Jan. 14. However, taxpayers who file any of five forms impacted by the recently enacted AMT patch will have to wait until mid-February to file their returns.
- Take-Away Point. The delayed processing date for taxpayers filing any of the five AMT-patch affected forms does not extend the filing deadline beyond April 15. These individuals, just like everyone else, can request an automatic six-month extension of time to file (but not to pay).
Form 1040 Packages
The IRS is sending 16.5 million 2007 Form 1040 packages to individuals who have filed paper returns in the past. Five tax credit forms are not included in the 2007 Form 1040 packages because they do not reflect the AMT patch. The five forms are:
- Form 8863, Education Credits;
- Form 5965, Residential Energy Credits;
- Form 1040A, Schedule 2, Child and Dependent Care Expenses for Form 1040A Filers;
- Form 8396, Mortgage Interest Credit; and
- Form 8859, District of Columbia First Time Homebuyer Credit.
Updated versions of these forms, which reflect the AMT patch, may be immediately downloaded at www.irs.gov.
Refund Splitting
Despite heavy promotion, refund splitting failed to attract much interest in 2007. The feature allows taxpayers to directly deposit their refunds in more than one account, such as a savings account as well as a checking account. The IRS is hoping for better participation in 2008 and highlights refund splitting options in Fact Sheet 2008-5.
Fact Sheets Legislation and other changes. Fact Sheet 2008-1 highlights tax changes for the 2007 tax year, most notably the AMT patch. The IRS also reminds taxpayers that inflation adjustments have increased the personal and dependency exemptions, the standard deduction and other items.
Tax credits. The IRS reminds taxpayers about some overlooked tax credits in Fact Sheets 2008-2 and 2008-8. These include the saver's, alternative motor vehicle, and Hope and Lifetime Learning education credits.
Signatures. Practitioners no longer must send a paper signature document along with the e-filed return, Fact Sheet 2008-3 reminds preparers.
E-file. In Fact Sheet 2008-4, the IRS predicts a record number of e-filers in 2008, noting that 95 million individuals are eligible this filing season for no-cost Free File.
Electronic payment. Fact Sheet 2008-6 reviews electronic payment options for the 2008 filing season, highlighting the Electronic Federal Tax Payment System (EFTPS).
Taxpayer assistance. Various types of free assistance are available to taxpayers online at www.irs.gov and in print publications, the IRS reminds taxpayers in Fact Sheet 2008-7.
Scams. Bogus emails, purportedly from the IRS, but in reality from con artists, are proliferating on the Internet, the IRS warns taxpayers in Fact Sheet 2008-9.
Preparers. Fact Sheet 2008-10 cautions taxpayers to use the services of a reputable preparer.
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