Accountingchik's Blog

The latest from the IRS…

accountingchik — Fri, 27 Jan 2012 16:22:22 +0000

IRS Warns of Tax Refund Delays

Washington, D.C. (January 26, 2012)

By Michael Cohn, Accounting Today

The Internal Revenue Service warned Thursday that tax refunds could be delayed a week this tax season because of new anti-fraud safeguards.

The IRS has opened its filing season successfully this month, and refunds have started going out to many taxpayers,” the agency said in an email to tax professionals on Thursday. “As with the start of any tax season, there are system validations that occur requiring some fine-tuning of our systems. As part of this, some taxpayers will receive refunds approximately one week later than initial projections they may have received, but these are still in line with historical refund delivery times.”

The IRS noted that the one-week delay is related to the fine-tuning of IRS systems to adjust for new safeguards that were put in place this tax season to provide for stronger protection against tax refund fraud. The agency has come under heavy criticism for the increasing number of identity theft cases related to tax refunds, and it recently added more stringent measures (see IRS Steps up Efforts to Combat Identity Theft).

The IRS said it is providing additional screening for fraud this year before issuing refunds, but the vast majority of taxpayers can still continue to expect to receive their refunds in a timely fashion.

The IRS also noted that the refund time frames provided by the “Where’s My Refund” tool on its Web site are projected time frames and are subject to revision. “Many different factors can affect the timing of the refund after the IRS receives the return for processing,” said the agency. “The IRS apologizes for any inconvenience caused by the revised refund dates.”

When the IRS announced the opening of the 2012 filing season, it advised taxpayers who electronically file and select direct deposit that they could see their refunds in as few as 10 days and 90 percent of refunds are provided within 21 days, the IRS added. Some taxpayers are getting refunds much faster, according to the agency, but at this time taxpayers should expect refunds to be issued as indicated in the original IRS guidelines.

An unplanned outage of the IRS’s efile system also apparently led to trouble, according to KION TV’s Central Coast News, and visitors to the Where’s My Refund tool saw error messages. Agents with Jackson Hewitt and H&R Block have also seen a statement from the IRS about the problem, according to News Channel 7 in the Carolinas. The statement indicated that problems with the IRS’s fraud screening and detection process could have an impact on 60 to 70 percent of the returns accepted before 11 am on January 18, and as part of testing on January 10, 11 and 12.

2010 Series – Pay Yourself First

accountingchik — Sun, 31 Jan 2010 16:17:58 +0000

It’s easy to think you can’t save money, especially if you’re trying to climb out of debt. But there are ways to cut back on expenses and increase the amount you save. And there are different types of accounts and financial institutions you can choose from, depending on your needs. If you’ve ever had even a minor emergency — like your refrigerator breaking down — then you don’t need anyone to tell you how important it is to have a little cash in reserve. There are lots of reasons why it’s important to save money. Emergencies can be any number of things: a new roof for the house, out-of-pocket medical expenses, or a sudden loss of income. With advances in medicine and health care, people are living longer, which means if you retire, you’re likely to need money to live on for a longer period of time. Social security was designed to supplement, not replace, income during retirement. And the costs for public and private education are rising every year. It’s constantly getting tougher to meet all of life’s demands.

You need to strike a balance between paying down existing debt and building up your emergency savings fund. Cutting expenses is like making money. The money you save is like extra money you have earned. Here are some suggestions for ways to help cut your expenses; Cut down on restaurant meals and take-out meals, as well as prepared foods from the supermarket, Reduce your home utility bills by turning off lights in empty rooms, being conservative with the thermostat, checking weather stripping to eliminate drafts, and air drying dishes and laundry, Seek out garage sales and your newspaper’s classified sections for discount purchases on many new or slightly used items, Use your local public library for free reading materials, or reduced-price videos, audiotapes, CD-ROMs, and children’s games for rent, Comparison shop for clothing and household item, Avoid expensive gift wrap and shop dollar stores for gift bags, Exercise for a healthier body and state of mind. Consistent exercise over time can also reduce health-care expenses; Keep your engine tuned up and your tires properly inflated,

A reasonable savings target is 5 to 10 percent of your income – enough to cover one or two possible “emergency” expenses, or three to six months of normal expenses. Put away a certain amount of money each week, no matter how small the amount. And if you can find extra work to increase your income while also cutting expenses, you can really make your savings accumulate quickly. Try to be creative. There are many ways you can earn extra money.

Yours in Success,

Angie

2010 Series – Creating a Budget

accountingchik — Thu, 31 Dec 2009 14:24:48 +0000

2010 Series – CREATING A BUDGET

Getting what you want doesn’t generally come easily. You usually have to work pretty hard to get what you want. Getting what you want financially requires the same dedication and hard work as achieving any other goal.

In order to get what you want you need to set goals. People who are successful at achieving their goals most likely charted out a long-term plan to get there. That means mapping out timelines, tasks and deadlines along the way to achieving your goals, and sticking firmly to your plan.

Simply stated, a goal is something you want that you are willing to work for. You really can achieve your goals. It takes planning, hard work, and following your plan. In general, it is helpful to classify your goals as short-term, mid-term, or long-term.

Short-term goals take less than a year to achieve. Some common examples of short term goals are taking a vacation, buying a refrigerator, or replacing a TV set.

Mid-term goals can’t be accomplished right away but should not take many years to achieve. Some common examples of mid-term goals might include buying a home, purchasing a car, finishing your education, or paying off a debt.

Long-term goals generally take more than five years to accomplish, and require a longer commitment and more money. Some common long-term goals can include retirement, or paying for your child’s college education.

When setting goals, it is often helpful to put things down on paper. First, write down your goal. Then write down the ways you can reach your goal, your deadline for reaching the goal, and the total cost and monthly savings required.

It’s a good idea to start with a small goal–one you can achieve. Achieving smaller goals can help you plan for and accomplish larger goals. Here you can see a sample short-term goal: buying a new TV. Notice how $240 doesn’t seem like so much money when all you need to do is save $30 a month. That’s more do-able than trying to come up with $240 all at once.

Now it’s your turn to fill out your own goals chart. Use the link below to print out a blank worksheet you can use. Remember to be creative under the “ways to reach” column. You could include getting a part-time job, or finding other resources.

Let’s recap things to remember about financial goals. Goals are not dreams; they’re something you plan and work for to achieve. Goals can be short-term, mid-term, or long-term, depending on the time, effort, and money it takes to achieve them. Setting good financial goals involves identifying what your goals are, developing a plan to reach them, and sticking to your plan to achieve them.

Goal Chart

I wanted to share this especially in the state of our economy because I think it is important to map out your new year and keep lines of communication open. For me, the hardest conversations to have in my marriage is the financial ones. Being on the same page together helps to minimize those tough questions and hiccups in life. I hope this tool, as simple as it is, becomes helpful to you and your loved ones.

HAPPY NEW YEAR!

Yours in Success,

Angie

New Blogger

accountingchik — Wed, 30 Dec 2009 01:13:31 +0000

Well, here I am trying to do something special in the world to share any knowledge I have pertaining to accounting, taxes, current events, and whatever my mind may be pondering. I hope to have many fans in the future as I am excited to share.

I am going to try and commit to adding a new post once a month. If I find that this is way too much fun it will be more often for sure. So cheers to some good blogging!

Yours in Success,

Angie