The Internal Revenue Service (IRS) estimates it is holding about $1.1 billion in unclaimed federal income tax refunds for approximately 1 million taxpayers who did not file a 2014 federal tax return. The deadline to file a 2014 return to collect any refund due is this year's tax deadline, Tuesday, April 17, 2018.
The Internal Revenue Service (IRS) hopes that the estimated 1 million taxpayers due a refund for the 2013 tax year will file their delinquent returns by April 18, 2017 - the deadline for them to claim their share of more than $1 billion in potential refunds. In California alone, an estimated 97,200 taxpayers may be able to claim over $93 million, with a median expected individual refund of $696.
In December a three-judge California appellate panel affirmed a superior court ruling finding that Comcast lacked a unitary relationship with OVC, Inc., and was therefore entitled to a $3 million refund. However, the court also affirmed the trial court's holding that Comcast owed tax on a $1.5 billion termination fee.
The Internal Revenue Service announced plans to change how it processes tax returns in 2017 regarding the Earned Income Tax Credit and the Additional Child Tax Credit. Due to the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) enacted on December 18, 2015, taxpayers who claim the EITC or ACTC on their tax returns must wait until February 15 to receive their credit or refund. The IRS may not release a partial refund. This change, effective January 1, 2017, is meant to combat loss of revenue due to identity theft and refund fraud. For more information, click here.
Filing tax returns can be stressful, which is one reason many taxpayers hire a trusted professional to handle their returns for them. But what happens if your tax preparer turns out to be less trustworthy than you thought?
Did you know the Franchise Tax Board is seeking to refund a total of $28 million dollars to more than 49,000 Californians? Specifically, during 2015, the USPS returned more than 49,000 checks issued by the Franchise Tax Board for personal income tax refunds, because most of the taxpayers did not update their address.
When it comes to audits, the American taxpayer is not the only one that can face challenges. According to recent news reports, the IRS itself has been audited by the Treasury Department and the results indicate problems. The audit conducted was for the 2011 tax year and documented that over $5 billion in tax refunds may have been delivered to identity thieves. California taxpayers beware!
The IRS just announced penalty relief for any farmers who had to file their return after March 1 due to delays associated with the MF Global bankruptcy case. This new release indicates the magnitude and far-reaching implications associated with untangling MF Global's financial records which have delayed the issuance of 1099 forms to many of its customers.
Recently, the California Supreme Court ruled that Apple Inc. would receive a $920,000 state tax refund. However, after the favorable decision, Apple went further by asking the court to overrule an appellate judgment from September. That ruling required the state Franchise Tax Board to return to Apple $231,000 in taxes paid in 1989, plus $689,000 in interest. The San Francisco appeals panel had ruled that the Franchise Tax Board should have let Apple, in 1989, deduct interest on loans the company had received to fund domestic operations.
It's in the mail! According to the IRS, more than $153 Million in refunds due to nearly 100,000 taxpayers were returned due to mail delivery errors. The IRS encourages taxpayers to file returns electronically and receive refunds by direct deposit to help eliminate this problem. For the full story and instructions on how to claim your refund, continue reading below.