Tax Refunds Delays 2016

Ten Forty + Quality Tax Preparation & Financial Services 281-397-7777 Fax 281-397-7443 Tax Tips For each of the past few days, the IRS has released a small daily batch of refunds. Through yesterday, the IRS has released a portion (less than 1%) of returns filed on or prior to Jan 22. Today, the IRS released a portion (less than 1%) of returns filed on Jan 23 and Jan 24. On Monday, the IRS is scheduled to release a portion (less than 1%) of returns filed on Jan 25 and Jan 26. All other filers continue to wait. The IRS does not release information on how long the average taxpayer can expect to wait for their refunds. Instead, each year, the IRS comments on refund speed only by saying that it releases "9 out of 10 refunds in less than 21 days." In past years, however, in actuality the IRS has typically released the vast majority of all refunds within 14 days or less. This year, taxpayers who filed and had their return accepted by the IRS on January 11 (the first day the IRS allowed returns to be filed and returned acknowledgments back), will have waited 21 days as of Monday morning. It is clear that the IRS is not releasing refunds as quickly this year as it did in the past years. Some have speculated that this is due to additional fraud prevention measures which may have triggered delays in refunds in comparison to prior years. Others have speculated that the delay is the result of the blizzard that closed government offices in Washington DC last week. Over the past twenty years, there have been other IRS delays of funding at the beginning of the season. In prior delays, what generally happens is that there is an extra week delay for taxpayers filing at the start of the season, and after that point the IRS will finally begin paying refunds and things then return to their normal pattern. In 2012, for example, new anti-fraud measures implemented at the IRS were widely blamed for delaying refunds by an extra week in 2012. Regardless of the reason this year, the result is the same. The result is that there is currently a nationwide delay in IRS refunds, which impacts all tax preparers, as well as taxpayers all across the nation. We know that this is a difficult time for many of your customers, as they wait for their refund, and as you wait for your fees. As always, we are committed to providing you the most current information, and we stand by ready to help. Please call us if you have any questions. Tax season is here. Go to www.tenfortyplus.com and complete your online organizer (under forms and documents). Make your appointment using our online appointment system. Call 281-397-7777 and get a user id with password set up so you can send us all your information through our online secure portal and do your taxes from the comfort of your home or office or come see us at our office. 1040 + Quality Tax Preparation & Financial Services Joseph C Becker www.tenfortyplus.com 281-397-7777, Fax 281-397-7443 joeb@tenfortyplus.com Contact Us There are many events that occur during the year that can affect your tax situation. Preparation of your tax return involves summarizing transactions and events that occurred during the prior year. In most situations, treatment is firmly established at the time the transaction occurs. However, negative tax effects can be avoided by proper planning. Please contact us in advance if you have questions about the tax effects of a transaction or event, including the following: • Pension or IRA distributions. • Retirement. • Significant change in income or • Notice from IRS or other deductions. Revenue department. • Job change. • Divorce or separation. • Marriage. • Self-employment. • Attainment of age 59½ or 70½. • Charitable contributions • Sale or purchase of a business property in excess of $5,000. • Sale or purchase of a residence or other real estate.