The IRS announced that the 2016 tax season will begin on January 19th, as scheduled. That’s one of several changes that taxpayers are being advised to keep in mind when making preparations to file their taxes this year. According to the Federal Trade Commission, tax identity thieves obtain your personal information in a number of ways, including: going through your trash or mailbox; through emails asking for information, which appear to come from the IRS; employees at hospitals, nursing homes, banks and other businesses stealing data; and phony or dishonest tax preparers misusing confidential information or passing it along to identity thieves. They say they are working more closely with the tax-software industry to provide stronger protections this year. If there’s a legitimate issue, then they will contact you through snail mail.
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Before attempting to file, Matthews says there’s something else that could hinder some people from filing their taxes if they don’t have it. No further action is required to report coverage. You will need Form 1095-A from the Marketplace to complete Form 8962.
You may have an alternative to paying for tax services. You should be aware that you don’t have to wait for these forms in order to file your tax return and you don’t have to send these forms to the IRS. If you don’t receive your W-2s, and your employer indicates they’ve been mailed, or it looks like it has been previously opened upon delivery, contact the IRS immediately.
Low- and moderate-income taxpayers can get help meeting this health-care requirement and filing their return for free by visiting one of the more than 12,000 community-based tax help sites staffed by more than 90,000 volunteers that participate in the Volunteer Income Tax Assistance and Tax Counseling for the Elderly (VITA/TCE) programs.
“Getting a PIN from the IRS is an easy way to outwit the criminals and save all of us tax dollars”. Find details at irs.gov/getanippin.
For more information about myRA or to sign up for an account, visit www.myRA.gov.
Americans for Tax Reform says the existing “selection flaws mean the IRS is failing to apply tax law in a fair and equitable manner”.
ReKeithen Miller, a certified financial planner and portfolio manager with Scarsdale, N.Y.-based Palisades Hudson Financial Group in its Atlanta office, notes that the first step a taxpayer should take if a return comes up pre-filed is to notify the IRS – if the IRS hasn’t notified you already.
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Your paper return will be subject to additional screenings to validate your identity and will delay any refund you may be receiving.
