IRS Funding to begin January 29

IRS To Start Releasing Refunds

We have received notification that the IRS will begin releasing refunds on January 29, and will continue issuing refunds each weekday throughout the season.  We will provide additional information as it becomes available.

IRS- penalty relief for balance due returns resulting from advanced payment of PTC reconciliation

IRS Provides Penalty Relief for Balances Resulting from Advance Payment of Premium Tax Credit Reconciliation (Notice 2015-9),(Jan. 27, 2015)

The IRS has provided limited relief for taxpayers who have a balance due on their 2014 income tax return as a result of reconciling advance payments of the premium tax credit against the premium tax credit allowed on the return. If a taxpayer meets certain requirements, the taxpayer is relieved of the penalty under Code Sec. 6651(a)(2) for failure to pay income tax. The relief applies only to the 2014 tax year, and does not apply to any underpayment of the individual shared responsibility payment resulting from application of Code Sec. 5000A.

Beginning in 2014, someone covered under an Affordable Insurance Exchange (Exchange) qualified health plan is allowed a premium tax credit under Code Sec. 36B. The taxpayer must reconcile or compare the amount of premium tax credit allowed on a tax return with advance credit payments. A difference between the advance payments and the credit allowed on the return may result in either a smaller refund or a larger balance due, if the advance payment exceeds the allowed credit, or a larger refund or smaller balance due, if the allowed credit exceeds the advance payment.

The IRS will abate the penalty under Code Sec. 6651(a)(2) for taxpayers who (1) are otherwise current with their filing and payment obligations; (2) have a balance due for 2014 due to excess advance payments of the premium tax credit; and (3) report the amount of excess advance payments on their timely filed 2014 return. The IRS will also abate the penalty for underpayment of estimated income tax under Code Sec. 6654(a) if the taxpayer (1) is otherwise current with filing and payment obligations; and (2) reports the amount of the excess advance credit payment on a timely filed 2014 return.

When responding to a notice demanding payment of a penalty, the taxpayer should submit a letter with the statement, "I am eligible for the relief granted under Notice 2015-9 because I received excess advance payment of the premium tax credit." Taxpayers who file their returns by April 15, 2015, will be entitled to relief even if they have not paid the underlying liability at the time they request relief. Taxpayers who file their returns after April 15, 2015, must fully pay the underlying liability by April 15, 2016, to be eligible for relief.

To request a waiver of the estimated tax underpayment penalty under Code Sec. 6654(a), a taxpayer should check box A in Part II of Form 2210, complete page 1 of the form, and include the form with their return, along with the statement: "Received excess advance payment of the premium tax credit."

Notice 2015-9, 2015FED ¶46,235

Other References:

• Code Sec. 36B

California Individual 2014.2 Now Available

The following updates are currently available:

California Individual 2014.2

Refunds Today recommends you download and install this update as soon as possible.
You may download the update from the Refunds Today secure website at www.refundstoday.com.

• Login with your user name (office number) and password then click on "Downloads"
• For 1040 State Software, in the Left Pane select "1040 State Updates" and then choose the states to download.
• If updating Business States, in the Left Pane select "Business State Updates" and then choose the states to download.

Should you have any questions or need assistance please do not hesitate to contact a Refunds Today Customer Support Representative at 323-261-0240.

Updated Refunds Today Affordable Care Act Resource Page

Refunds Today would like to remind you of our Affordable Care Act (ACA) Information page that can be found on the Refunds Today website.  Here we have gathered a collection of tutorials, worksheets, flowcharts, and important website links that will help you in determining any tax consequence of your customer's ACA scenario.

Also, our final two remaining Affordable Care Act webinars will be held this Thursday, January 15^th and next Wednesday, January 21^st, both at 9:00 AM Pacific Standard Time.

Since each taxpayers ACA situation is unique, Refunds Today representatives and tax analysts cannot make any tax determinations on behalf of your customers.  Please use the provided ACA resources as well as others you may find in making this determination.  Once you have made this determination, we will be happy to assist you in properly entering it into the Refunds Today software.

You can easily access this page in a variety of manners:

• Use the Affordable Care Act Information link found on the Launchpad of the 2014 Refunds Today tax software

• Login to the Refunds Today website and click on the "ACA Info" link in the left pane of the Dashboard

Some of the information you will be able to find is:
Tutorials

• Form 1095-A Health Insurance Marketplace Statement
• Affordable Care Act - Overview
• Affordable Care Act - Guide to Government Resources
• Refunds Today ACA Software Examples

Flowcharts

• Insurance All Year Flowchart
• Insurance Part-Year Flowchart
• No Insurance All Year Flowchart

Website Links

• IRS.gov
• HealthCare.gov
• Covered California
• Journal of Accountancy

Refunds Today will continue to update this page with new and pertinent information as more becomes available.  Be sure to check back.

IRS Announces Start of E-File Controlled Launch (HUB Testing)

The IRS has announced the opening of their Controlled Launch (HUB Testing) which allows returns to be sent to the IRS so all parties can test their submission paths.   Refunds Today will begin participating in this controlled launch of e-file today, Monday, January 12^th with the returns that have already been sent to the Electronic Filing Center (EFC).

Even though you now have the ability to submit tax returns to the IRS and some will be submitted through the Controlled Launch process, we strongly advise holding your completed returns and submitting them closer to the January 20^th start date - as this will give the IRS additional time to take care of any possible processing issues.

Not all e-files that have been received will be sent immediately. We can only send the maximum allowable number per day as set by the IRS during this testing period. We will begin by sending small batches of e-files while our test facilitator watches them process through the MeF system.  The IRS takes this opportunity to watch the batch process through their system.  They will return acknowledgements at some point during this process.

Once acknowledgments are received, they  will be processed and made available. This will allow us to determine the potential reject patterns and identify any global issues, should they exist, with these first submissions.

The IRS has asked that we remind all EROs of the following:

• The IRS will not process tax returns before January 20^th
• This means the time frame for issuing refunds will begin on January 20^th. The IRS issues most refunds in less than 21 days from the day they receive the tax return for processing.
• Even though the IRS issues most refunds in less than 21 days, it is possible a tax return may require additional review and take longer.
• Beginning January 30^th, your customer can use the improved Where's My Refund? tool, which this year will provide personalized information about your customers tax return.

More info: http://www.irs.gov/Refunds        
Refunds Today Support

44 Individual and 44 Business State Modules Now Available

Refunds Today recommends you download and install these updates as soon as possible.

You may download the update from the Refunds Today secure website at www.refundstoday.com.

• Login with your user name (office number) and password then click on “Downloads”
• For 1040 State Software, in the Left Pane select “1040 State Updates” and then choose the states to download.
• If updating Business States, in the Left Pane select “Business State Updates” and then choose the states to download.

Form 1040 Module Update Now Available

Refunds Today recommends you download and install this updates as soon as possible.
You may download the update from the Refunds Today secure website at www.refundstoday.com.

• Login with your user name (office number) and password then click on “Downloads”
• In the Left Pane select “1040 Program and Forms” and then choose "Form 1040 Update" update to begin the download.

Should you have any questions or need assistance please do not hesitate to contact a Refunds Today Customer Support Representative at 323-261-0240.

Please note that you must download and install System Update 2014.29.03 PRIOR TO INSTALLING THIS UPDATE.

1120, 1120S, 1065 Module Updates Now Available!

Refunds Today recommends you download and install these updates as soon as possible.
You may download the update from the Refunds Today secure website at www.refundstoday.com.

• Login with your user name (office number) and password then click on “Downloads”
• In the Left Pane select “Business Module Updates” and then choose the appropriate update to begin the download.

Should you have any questions or need assistance please do not hesitate to contact a Refunds Today Customer Support Representative at 323-261-0240.

Please note that you must download and install System Update 2014.29.03 PRIOR TO INSTALLING THESE UPDATES.

System Update 2014.29.03 has been released.

System Update 2014.29.03 has been released.   

This System Update is a required update.  You should download and install it as soon as possible.  Several other updates will be released this week that require you to install this update first.