Lane & Hershman, Inc.

The IRS will NEVER call you when trying to establish a line of communication with a taxpayer. Scammers can also reproduce CP mail notices. This one is a bit more tricky than the phone scam. The notices look real and contain enough personal information to make you wonder about their authenticity.... If you receive a suspicious IRS notice in the mail DO NOT DO NOT call any phone number listed in the letter. If you suspect fraud call the IRS main number 1.800.829.1040 or visit www.identitytheft.gov.

IRS TO DELAY TAX REFUNDS FOR MILLIONS OF LOW-INCOME FAMILIES The IRS is delaying tax refunds for more than 40 million low-income families this year as the agency steps up efforts to fight identity theft and fraud. The delays will affect families claiming the earned income tax credit and the additional child tax credit. The tax filing season starts Jan. 23rd, but a new law requires the IRS to delay tax refunds for people claiming these credits until Feb. 15th. Processing times... will delay most of the refunds until the end of February. The delay is designed to give the agency more time to screen the returns for fraud. The IRS estimates that it issued $3.1 billion in fraudulent tax refunds to identity thieves in 2014. The year before, the agency says, it paid out $5.8 billion in fraudulent refunds. Over those two years, the IRS says it blocked nearly $47 billion in fraudulent refunds. Eager to get refunds, about half of H&R Block's customers who claim the EITC file their returns by early February, said Bill Cobb, president and CEO of the tax giant. See more

Efile may opening on 01/23/17 but filers claiming Earned Income Tax Credit or Additional Child Tax Credit may have to wait until the 3rd week of February to receive a refund. "The IRS also reminded taxpayers that a new law will require the agency to hold back tax refunds claiming the Earned Income Tax Credit and the Additional Child Tax Credit until February 15. The IRS wishes taxpayers to be aware it will take several days for these tax refunds to be released and processed through financial institutions. Factoring in weekends and the President’s Day holiday, the IRS is warning many affected taxpayers may not have actual access to their tax refunds until the week of February 27."

EFILE starts on January 23, 2017!!!!

The Reciprocal Agreement is back ON! http://www.nj.com//christie_keeping_income_tax_agreement_w

The IRS will NEVER call you when trying to establish a line of communication with a taxpayer. Scammers can also reproduce CP mail notices. This one is a bit more tricky than the phone scam. The notices look real and contain enough personal information to make you wonder about their authenticity.... If you receive a suspicious IRS notice in the mail DO NOT DO NOT call any phone number listed in the letter. If you suspect fraud call the IRS main number 1.800.829.1040 or visit www.identitytheft.gov.

Here is a link to ONE of the IRS Phone Scam rings that have been arrested. http://www.tripwire.com//772-detained-following-raids-aga/

Here are some links for the end of the PA/NJ Reciprocal Agreement. http://www.revenue.pa.gov//PIT/PA-NJ_tax_reciprocity_qa.pdf http://www.revenue.pa.gov//PIT/PA-NJ_tax_reciprocity_qa.pdf... Instead of some pension reform, ending the drop program (Phila) or getting the Frackers to pay a more reasonable share of taxes..... Some very interesting stuff! Any Questions? Let me know.

New Federal Tax Law May Affect Some Refunds Filed in Early 2017; IRS to Share Details Widely with Taxpayers Starting This Summer The Internal Revenue Service has announced initial plans for processing tax returns involving the Earned Income Tax Credit and Additional Child Tax Credit during the opening weeks of the 2017 filing season. The IRS is sharing the information now to help the tax community prepare for the 2017 season, and plans are being made for a wider communication... effort this summer and fall to alert taxpayers about the changes that will affect some early filers. This action is driven by the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) that was enacted Dec. 18, 2015, and made several changes to the tax law to benefit taxpayers and their families. Section 201 of this new law mandates that no credit or refund for an overpayment for a taxable year shall be made to a taxpayer before Feb. 15 if the taxpayer claimed the Earned Income Tax Credit or Additional Child Tax Credit on the return. This change begins Jan. 1, 2017, and may affect some returns filed early in 2017. Additional information is listed below. To comply with the law, the IRS will hold the refunds on EITC and ACTC-related returns until Feb. 15. This allows additional time to help prevent revenue lost due to identity theft and refund fraud related to fabricated wages and withholdings. The IRS will hold the entire refund. Under the new law, the IRS cannot release the part of the refund that is not associated with the EITC and ACTC. Taxpayers should file as they normally do, and tax return preparers should also submit returns as they normally do. The IRS will begin accepting and processing tax returns once the filing season begins, as we do every year. That will not change. The IRS still expects to issue most refunds in less than 21 days, though IRS will hold refunds for EITC and ACTC-related tax returns filed early in 2017 until Feb. 15 and then begin issuing them. This is one more step the IRS is taking to ensure taxpayers receive the refund they are owed. The IRS plans to work closely with stakeholders and IRS partners to help the public understand this process before they file their tax returns and ensure a smooth transition for this important law change. More information about this law will be posted to IRS.gov and shared with partners and taxpayers throughout the second half of 2016. See more

https://www.irs.gov//Tax-Season-Refund-Frequently-Asked-Qu