Rebella Accountancy | 507 E. First Street, Suite A | Tustin, CA 92780 | Phone: 714-619-0667 | Fax: 714-544-0236




Monica Rebella, CPA/IAR - President

Rebella Accountancy


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Other Articles

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Feature Articles

- Sweeping new IRS 'repair regulations' impact most businesses
- Congress begins work on payroll tax extension as White House unveils new proposals
- IRS launches third version of voluntary offshore disclosure program
- The Saver's Credit: An underused retirement savings benefit
- Using fringe benefits as an income substitute during the economic downturn

How Do I?

- Claim a charitable contribution of property?
- obtain an appraisal for a noncash charitable contribution
- Compute gain in a like-kind exchange when some cash is received
- How do I? Deduct a contribution of clothing or a household item under the new rules?

Frequently Asked Questions

- When do I need to file IRS Form 8938, Statement of Specified Foreign Financial Assets?
- When is the best time of year to contribute to an IRA?
- How does a 60-day loan from an IRA work?
- What if I owe taxes and can't pay the full amount?
- How does the new sales tax deduction for vehicle purchases work?
- How much proof is enough, when contributing used clothing to charity?




Where Is My Refund?

With the tax filing due date behind us, those who have not yet received their refund might want to know when it will be processed.

If this applies to you, there is a way to check on the status of your refund online.

The popular “Where’s My Refund” feature on the IRS web site ( allows taxpayers to see the status of their refund after filing their income tax return.

What You Should Know

IRefunds of e-filed returns usually take 10 to 21 days to process.

Paper returns take longer than e-filed returns.

The IRS states that 90% of refunds are processed within this 21 day time period.

Original refund processing projections can change.

This can be due to processing backlogs, or errors in your tax return.

Sometimes a delay is a good thing.

The IRS has acknowledged there is a huge increase in identity fraud as thieves try to steal tax withholdings. The IRS is using their data match programs to catch as much of this illegal activity as possible.

The IRS has a new e-file processing program that is getting a workout this year. Systems glitches are to be expected as this new process is ironed out by the IRS.

Using "Where's My Refund"

In the meantime, if you wish to check on the status of your refund this is what you should know:

Log on to: and click on "I'm Waiting for my Refund.

When to check:
- 72 hours after an e-filed tax return confirmation (usually within three days of e-filing)
- 4 weeks after a mailed tax return is sent

What you need to provide:
- Social Security number
- Filing Status
- EXACT refund amount

Remember, the information provided to you by the IRS is not a guarantee of payment.

So please fight the urge to spend your refund before you receive it. Unfortunately, no amount of calling or checking will change the speed of returning your money.

With 140 million tax returns processed each year, sometimes all you can do is wait.

( click here to see this article as a web page )



click here to listen to this video update on:

click here to listen to this video update on:


I read an article in SmartMoney magazine recently that I wanted to pass along to you titled: 5 Little-Known Tax Deductions by Bill Bischoff where he talks about it being possible to write off some expenses that were paid for by someone else such as:

  1. Medicare Insurance and Long-Term Care Premiums
  2. Medical Expenses Paid by Someone Else
  3. Real Estate Taxes Paid by Someone Else
  4. Home Mortgage Points Paid by Someone Else
  5. Fees to Charge Taxes to Your Credit Card

      Click here to read the article online.



    Tax Records You Can Throw Away This 


Spring is a lovely time to toss out that growing mountain of financial papers & tax documents that clutters your home & office. Here's what you need to keep & what you can pitch without fearing the fury of the IRS.

Let's begin with your "safe zone," the IRS statute of limitations. This limits the number of years in the work of which the IRS can audit your tax returns. One time that period has expired, the IRS is legally prohibited from asking you questions about those returns.

The idea behind it is that after a period of years, records are lost or misplaced & memory is not as correct as they would hope. There is a necessity for finality. After the statute of limitations has expired, the IRS cannot go after you for additional taxes and you cannot go after the IRS for additional refunds.

The Three-Year Rule

For assessment of additional taxes, the statute of limitation runs usually 3 years from the date you file your return. If you are looking for an additional refund, the limitations period is usually the later of 3 years from the date you filed the original return or 2 years from the date you paid the tax. There's some exceptions:

If you have claimed a loss from a valueless security, the limitation period is extended to seven years.

In case you don't document all of your income & the unreported amount is over 25% of the gross income actually shown on your return, the limitation period is six years.

In case you file a "fraudulent" return, or don't file at all, the limitations period doesn't apply. In fact, the IRS can get you at any time.

If you are deciding what records you need or require to keep, you need to ask what your chances are of an audit. A tax audit is an IRS verification of items of income & deductions on your return. So you ought to keep records to support those items until the statute of limitations runs out.

Assuming that you have got filed on time & paid what you ought to, you only must keep your tax records for years, but some records must be kept longer than that.

Keep in mind, the three-year rule relates to the information on your tax return. But, a number of that information may relate to transactions over years elderly.

Here's a checklist of the documents you ought to hold on to:

Capital gains & losses. Your gain is reduced by your basis - your cost (including all commissions) and, with mutual funds, any reinvested dividends & capital gains. But you may have bought that stock 5 years ago & you have been reinvesting those dividends & capital gains over the last decade. Plus don't forget those stock splits.

You do not ever need to throw these records away until after you sell the securities. Plus then if you are audited, you'll must show those numbers. Therefore, you'll need to keep those records for at least 3years after you file the return reporting their sales.

Expenses on your home. Cost records for your house & any improvements ought to be kept until the home is sold. It is nice practice, although most owners won't face any tax issues. That is because profit of less than $250,000 on your home ($500,000 on a joint return) is not subject to taxes under tax legislation enacted in 1997.

If the profit is over $250,000/$500,000, or in case you don't qualify for the full gain exclusion, then you are going to need those records for another years after that return is filed. Most owners probably won't face that issue thanks to the 1997 tax law, but of coursework, it is better to be safe than sorry.

Business records. Business records can become a nightmare. Non-residential actual estate is now depreciated over 39 years. You could be audited on the depreciation up to 3 years after you file the return for the 39th year. That is a long time to hold on to receipts, but you may need to validate those numbers.

Employment, bank, & brokerage statements. Keep all of your W-2s, 1099s, brokerage, & bank statements to show income until 3 years after you file. Plus don't even think about dumping checks, receipts, mileage logs, tax diaries, & other documentation that substantiate your expenses.

Tax returns. Keep copies of your tax returns also. You cannot depend on the IRS to actually have a replica of your past returns. As a general rule, you ought to keep tax records for 6 years. The bottom line is you have got to keep these records until they can no longer affect your tax return, plus the 3-year statute of limitations.

Social Security records. You will need to keep some records for Social Security purposes, so check with the Social Security Administration each year to confirm that your payments have been appropriately credited. If they are wrong, you'll need your W-2 or copies of your Schedule C (if self-employed) to show the right amount. Do not dispose of those records until after you have validated those contributions.

Contact us by phone or e-mail in case you have any questions about what records you need to keep this spring.

To read this & my other articles online go to and click on the Newsletter section.



As always you can call me at 714-619-0667 if you have any questions about investing, retirement or any other tax & accounting related issues. 


Regards, Monica Rebella, CPA/IAR

President, Rebella Accountancy

Disclaimer:  The opinions contained herein are not intended to be investment advice or a solicitation to buy or sell any securities. With any investment you should carefully consider the investment objectives, potential risks, management fees, and charges and expenses before investing.  Past performance is not a guarantee of future results. The investment return and principle value of any investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

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Monica Rebella, CPA/IAR | President - Rebella Accountancy | Certified Public Accountants
507 E. First Street, Suite A | Tustin, CA 92780 | Phone: 714-619-0667 | Fax: 714-544-0236
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