the tax filing due date behind us, those who have not yet
received their refund might want to know when it will be
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 (www.irs.gov)
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
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
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.
"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: www.irs.gov 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:
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
1. Medicare Insurance and Long-Term Care
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.
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
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
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
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
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.
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