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IRS says $129 million in 2007 tax refunds still unclaimed

admin — Fri, 04 Mar 2011 19:13:28 +0000

Refunds totaling more than $129 million may be waiting for nearly 124,000 Californians who did not file a federal income tax return for 2007, the Internal Revenue Service announced Tuesday. However, to collect the money, a return for 2007 must be filed with the IRS no later than Monday, April 18, 2011. The IRS estimates that these potential 2007 refunds are $597 or more.
Nationally, $1.1 billion may be waiting for nearly 1.1 million people who failed to file a 2007 federal income tax return. Some people may not have filed because they had too little income to require filing a tax return, even though they had taxes withheld from their wages or made quarterly estimated payments. In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim a refund within three years, the money becomes property of the US Treasury.
The law requires that the return be properly addressed, mailed and postmarked by April 18, 2011. There is no penalty for filing a late return qualifying for a refund.
Taxpayers seeking a 2007 refund will have their checks held if they have not filed tax returns for 2008 and 2009. In addition, the refund will be applied to any amounts still owed to the IRS and may be used to offset unpaid child support or past-due federal debts such as student loans.
By failing to file a return, people stand to lose more than a refund of taxes withheld or paid during 2007. In addition, many low- and moderate-income workers may not have claimed the Earned Income Tax Credit (EITC). The EITC helps individuals and families whose incomes are below certain thresholds, which in 2007 were $39,783 for those with two or more children, $35,241 for people with one child, and $14,590 for those with no children.
Current and prior year tax forms and instructions are available on the Forms and Publications page of IRS.gov or by calling toll-free 1-800-TAX-FORM (1-800-829-3676). Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for 2007, 2008 or 2009 should request copies from their employer, bank or other payer. If these efforts are unsuccessful, taxpayers can get a free transcript showing information from these year-end documents by calling 1-800-908-9946, or by filing Form 4506-T, Request for Transcript of Tax Return, with the IRS.

VITA program at Cal State Long Beach offering free income-tax return assistance to community

admin — Fri, 25 Feb 2011 18:06:45 +0000

Accounting majors at California State University, Long Beach (CSULB) are assisting students and members of the community with their 2010 tax returns free of charge through the Volunteer Income Tax Assistance (VITA) program, which will run through March 25 at the university.
VITA is a cooperative effort by the Internal Revenue Service (IRS) and many individual states, including California, to provide income tax assistance to low- and moderate-income individuals, the handicapped and the elderly. Volunteers are trained to prepare basic income tax returns at VITA sites, and returns can take up to 30 minutes to prepare.
Every year, Cal State Long Beach’s volunteers prepare hundreds of returns for individuals both on and off campus.
“Cal State Long Beach provides this great program every year, and it’s a win-win for our clients, who receive the service, and for the VITA volunteers, who get valuable hands-on experience,” said Amanda Baldwin, this year’s student VITA coordinator. “We want to make sure that more students and community members are aware that they can have their taxes done at the campus for free. The program is just one of the many examples of how Cal State Long Beach students help serve the Long Beach community.”
Sponsored by the IRS but funded through the campus’s Beta Alpha Psi & Accounting Society, VITA helps students on campus and people from the community who cannot afford to go to paid preparers to get their taxes filed. At the same time, the program gives student volunteers valuable experience that can further help them to attain full-time employment in the accounting field.
This year’s program has about 40 volunteers who have been trained and certified by the IRS to prepare and e-file basic income tax returns and foreign-student tax returns. They are also qualified to answer many tax questions or concerns that those coming in for assistance may have.
There are limitations to those who can use the service, however. VITA program volunteers do not prepare business tax returns. In addition, the CSULB program can only assist those who made less than $50,000 in 2010.
Those interested in having their 2010 tax returns prepared through the CSULB VITA program should bring the following items: proof of identification; Social Security cards, including spouse’s and dependents’ (or a Social Security number verification letter issued by the Social Security Administration); birth dates, including spouse’s and dependents’; current year’s tax package; wage and earnings statements (W-2, W-2G, 1099-R, from all employers); and interest and dividend statements from banks (1099 forms).
Additionally, clients should try to bring: a copy of their federal and state returns from last year, if available; bank routing numbers and account numbers for direct deposit; total paid for day-care provider and the day-care provider’s tax identifying number (the provider’s Social Security number or the provider’s business employer identification number); and, if a client paid rent for at least half of 2010 for property in California, he or she should have the rental dates and landlord’s information (name, address, phone number).
It is also important to note that when filing taxes electronically on a married filing joint tax return, both spouses must be present to sign the required forms.
The CSULB VITA program operates out of Room 237 on the second floor of CSULB’s College of Business Administration (CBA) Building off of Bellflower Boulevard. It is open to assist students and members of the community daily Monday through Friday. Members of the community are advised to use the metered parking in Lot 15, adjacent to the CBA Building. The cost is $2 per hour.
Walk-ins are welcome, but an appointment can be made by contacting Baldwin at (951) 235-1421 or by emailing her at vita.csulb@gmail.com. Those interested can also visit the website at csulb.edu/~bap, then click on “VITA.”

Franchise Tax Board contacting last year’s nonfilers

admin — Fri, 21 Jan 2011 21:09:48 +0000

While most people are working on their 2010 state tax returns, the Franchise Tax Board (FTB) is contacting more than 900,000 people who did not file a 2009 state income tax return, the agency announced Tuesday.
FTB finds nonfilers by using more than 400 million income records it receives each year from third parties such as the IRS, banks, employers, state departments, and other sources. In addition, FTB uses occupational licenses and mortgage interest payment information to detect others who may also have a requirement to file a state tax return. FTB then contacts those who earned California income, but did not file a return for the 2009 filing year.
Last year, FTB collected more than $550 million through these efforts. Since the 1950s, FTB has contacted people who may have a filing requirement but have not filed a tax return. Individuals contacted have 30 days to file their state tax return or show why one is not due. When a required return is not filed, FTB issues a tax assessment using income records to estimate the amount of state tax due. The assessment includes penalties of up to 50 percent.
FTB provides more information for those receiving notices at ftb.ca.gov. From the home page, select the Bills and Notices tab, and then under the Tax Debt Section, select: Respond to request or demand for tax return. Taxpayers may request more time to respond, retrieve information that can assist them in filing a tax return, request tax forms, learn about payment options, sign up to receive an email reminder to file, and access other services. Individuals may also call FTB at 866-204-7902 to get information.

IRS encouraging tax-filers to use electronic filing

admin — Fri, 21 Jan 2011 21:09:03 +0000

The Internal Revenue Service opened its 21st season of electronic filing Monday with a reminder to taxpayers that e-file remains the best way to get fast refunds and ensure accurate tax returns, particularly following several tax law changes in December.
IRS e-file is approaching the milestone of 1 billion returns processed. The electronic transmission system, which has revolutionized the way the IRS processes tax returns and made speedy refunds possible, has safely and securely processed 892 million tax returns since its national debut in 1990. In 2010, nearly 100 million people– 70 percent of the taxpayers– used IRS e-file.
“IRS e-file is the best option for everyone, especially for people impacted by recent tax law changes,” said Doug Shulman, IRS commissioner. “E-file ensures people can file accurately and get refunds quickly. With a new legislative e-file mandate for tax preparers, we anticipate that more tax-return preparers will be using e-file this year, and we urge people who prepare their own taxes to give it a try. IRS e-file is now the norm, not the exception.”
The IRS also announced Monday that it anticipates starting to process tax returns impacted by December’s tax law changes by mid-February. The IRS continues working to reprogram its computers to reflect new tax law changes enacted by Congress and signed by President Obama in December.
Taxpayers can e-file their tax returns one of three ways: through a tax return preparer, through commercial software or through IRS Free File. The IRS does not charge for e-file. Many tax-return preparers and software products also offer free e-filing with their services. Free File offers free tax preparation and free electronic filing.
People must access Free File through the IRS website at IRS.gov by clicking on “Free File” or “Free File Home– Your Link to Free Federal Online Filing.” People may read more about Free File at freefile.irs.gov or IR-2011-5.
Those looking for a tax-return preparer who files electronically and for more information on e-file may visit irs.gov/efile/index.html. Taxpayers also can locate an e-file authorized tax professional nearest them by doing a ZIP code search. When using e-file, one also must use an e-signature. The IRS no longer accepts the paper signature document. Those who prepare their own return using software must use the self-select PIN method. Those who have a third party prepare their returns may use either the self-select PIN method or the practitioner PIN method. (See Fact Sheet 2011-07 for more details.)
A recently passed law requires certain paid tax-return preparers to electronically file federal income tax returns that they prepare and file for individuals, trusts and estates. Those are Forms 1040, 1040A, 1040EZ and 1041.

More Information
irs.gov
1-800-829-1040

Long Beach City Manager wraps up 2010, explains financial challenges for the new year

admin — Fri, 07 Jan 2011 17:54:21 +0000

By CJ Dablo
Staff Writer

Long Beach City Manager Patrick West said on Wednesday that upcoming budget decisions are not going to be easy for City leaders.
“The biggest challenge is going to be for our city council to make these tough, tough, tough ‘Sophie’s Choice’ decisions on our budget,” said West.
One of those tough decisions, according to the city manager, will affect City employee pensions.
West joined Fourth District Councilmember Patrick O’Donnell at his monthly “Chats with Pat” meeting at the Los Altos Library, 5614 N. Britton St. O’Donnell regularly invites constituents and guest speakers to discuss issues that affect their community.
Dozens of audience members listened intently as West enumerated Long Beach’s 2010 accomplishments despite the tough economic times.
West explained the budget outlook, underscoring that the city’s deep financial woes are long-term problems.
Long Beach faced a $38 million deficit in the last year, West said, adding that this year the deficit is estimated to be $18.5 million. The city manager estimated that the city might face $20 million in deficits for fiscal years 2012, 2013 and 2014.
He asked the audience to put themselves in the shoes of the city manager and city council as they try to decide how city services will be affected.
“At what point in time do you cut back your public services or public works department to make sure that you have an adequate supply of officers in your police department?” he asked.
The cost of employee pensions is high. According to the city manager’s projections for the next decade or two, the City’s pension system is under funded by $1.2 billion.
West added that every city in California is trying to resolve the high-cost problems of staffing. Reducing labor costs while providing sufficient city services will be the councilmembers’ chief problem, he said.
West also tempered the bad financial news by acknowledging that the city has made strides to help local businesses grow in the past year. He noted the creation of a “design district” in O’Donnell’s district in which graphic-artist firms renovate older buildings on Anaheim Boulevard. West advocated creating an arena to encourage business like graphic design in the district.
“It’s not just cut, cut, cut but it’s also how do you grow down the road,” O’Donnell added, noting that the city should plan for both the long and short term.
And the City has made other moves to infuse money back into the local economy. West said that the City took advantage of stimulus funds offered by the federal government. Long Beach applied early to use stimulus funds to pay for many of the city improvement projects, like an aggressive street repair system.
The city has repaired about 19.3 miles of street, he said, and 1,500 potholes have been fixed in the last two weeks.
Renovations to the city’s airport parking structure and passenger concourse have also begun. In addition, a leaky roof at the Long Beach Main Library has been repaired, and phase one of a plan to restore the wildlife at Colorado Lagoon has been completed.
“In Long Beach, we all recognize that 2010 was a horrendous year, financially,” West said. But, he added, looking back at some of the things the city has accomplished in 2010, “it has been a fantastic year.”
O’Donnell and West pointed out that the City has also created a $9 million budget stabilization fund, which will improve the city’s bond rating.
Roger Boswell, a 65-year-old local Long Beach resident, said he comes to the meetings often, and he is hoping for an economic upturn and tries to keep informed by attending the monthly “Chats with Pat” meetings. Boswell said that he hasn’t seen many signs of a slowing economy in his immediate neighborhood. He has, however, seen businesses close around the rest of the city. “But it’s starting to turn around,” Boswell said.
The City will soon be negotiating labor agreements involving pension plans with six organizations that represent city employees. West said the labor organizations recognize what’s at stake for the local economy.
“All of our employee groups, everybody gets it, and understands that change is needed,” West said. “But again, it’s a hard process to get where we need to go.”

IRS offering expanded tax benefits for education, changing rules for college savings plans

admin — Fri, 03 Sep 2010 16:40:11 +0000

The Internal Revenue Service is reminding college students and parents about expanded tax benefits for education and rule changes for tax-free college savings plans known as 529 plans.
Two key tax provisions from the Recovery Act of 2009 may help taxpayers reduce their 2010 tax bill. One allows 529 plan users to pay for a student’s computer-related technology needs such as Internet access. The other provision means more taxpayers will be eligible to claim a lucrative education credit to help offset cost of college and maybe even get a bigger refund.
“The tax code is full of deductions and credits in the education arena,” said IRS Spokesman Raphael Tulino. “Taxpayers are encouraged to review their situation and take the tax benefit that offers the most savings.”
Tax-free college savings plans, commonly called 529 plans, allow tax-free distributions as long as the funds are used to pay qualified higher education expenses for a designated beneficiary. Qualified expenses include tuition, required fees, books, supplies, equipment and special-needs services.
For 2010, computer technology and equipment or Internet access and related services to be used by the student while enrolled at an eligible educational institution also qualify. (Software designed for sports, games or hobbies does not qualify, unless it is predominantly educational in nature.)
The American Opportunity Tax Credit (AOTC) modifies the existing Hope credit for tax years 2009 and 2010, making it available to a broader range of taxpayers. Those eligible may qualify for the maximum annual credit of $2,500 per student. AOTC generally offers greater tax savings than existing education tax breaks. Other key features include:

• Available for the first four years of post-secondary education. Expands on two years allowed by the Hope Credit.
• Tuition, related fees, books and other required course materials now generally qualify.
• The credit is equal to 100 percent of the first $2,000 spent and 25 percent of the next $2,000. That means the full $2,500 credit may be available to a taxpayer who pays $4,000 or more in qualified expenses for an eligible student.
• The full credit is available for taxpayers whose modified adjusted gross income is $80,000 or less ($160,000 for joint filers). A smaller credit is available for incomes above those limits, but it eventually phases out. These limits are higher than under the existing Hope and Lifetime Learning Credits.
• Forty percent of the AOTC is refundable, so even those who owe no tax can get up to $1,000 back as a refund for each eligible student. Other existing education-related credits and deductions do not provide a benefit to people who owe no tax.

More Information
irs.gov

Lowenthal event shares tax info with small businesses

admin — Fri, 16 Jul 2010 16:57:57 +0000

The Bonnie Lowenthal-hosted seminar provided information on federal and state incentives, tax credits, and free marketing and technical assistance.

Scores of small-business owners and operators gathered in Long Beach last Friday (July 9) to hear tax tips from Assemblymember Bonnie Lowenthal and Board of Equalization members Michelle Steele and Jerome Horton.
The standing-room-only crowd heard from political leaders, as well as from an array of business-tax experts from the Board of Equalization, Employment Development Department, Franchise Tax Board, Internal Revenue, US Small Business Administration, and Long Beach Small Business Center. All offered information on federal and state incentives, tax credits, and free marketing and technical assistance.
“I was pleased to see so many business owners taking advantage of today’s seminar,” said Lowenthal (D-Long Beach). “They walked away with valuable information on marketing, government-backed loans, and other helpful tools to survive this difficult economic period.”
“My Chamber members were amazed at the amount of helpful information that is available to assist businesses,” said Sandy Cajas, executive director of the Regional Hispanic Chamber of Commerce. “This was one of the best seminars that we have been partners on. Our business owners were able to speak one-on-one with government agencies that were willing to help them with their problems.”

Free workshop to teach ways of finding money for college

admin — Fri, 16 Jul 2010 16:23:09 +0000

College Planning of Greater Long Beach will offer a free workshop on how to acquire thousands of dollars for a college education. Presented by college-planning expert Skip Dawson, the workshop will be conducted at the following locations, dates and times:

El Dorado Library
2900 Studebaker Rd.
Tuesday, July 20
6:15pm to 7:15pm

Ruth Bach Library
4055 Bellflower Blvd.
Tuesday, Aug. 3
6:15pm to 7:15pm

Dawson will be discussing such topics as how to send kids to the school of their dreams without going broke, how to triple eligibility for aid, how to find obscure scholarships and grants.
Admission is free, but seating is limited by the size of the room, so call the recorded message line at (888) 236-0625, 24 hours a day to reserve seats, or reserve online at CollegePlanningofLB.com.

Social Security Administration making retirement planning easier through website

admin — Fri, 08 Jan 2010 17:04:23 +0000

By Essie Landry

Many Americans begin each new year with a list of resolutions and goals. You may want to go on a diet, shed a little weight, do a bit more exercising, or clean out the long-neglected attic. The trouble is these well-intended goals often melt away long before winter’s snow does.
So why not make a resolution that’s easier to keep? If applying for retirement benefits is on your list of things to do this year, resolve to do it online. To get started, visit www.socialsecurity.gov/applyonline.
As we enter 2010, visiting a Social Security office to apply for benefits is no longer necessary. You’ll save time, energy, and resources by filing your application from the comfort and convenience of your home or office computer. In fact, it can take as little as 15 minutes to complete your retirement application. How’s that for an easy resolution to keep?
Of course, not everyone is ready to retire. So here is another resolution that is easy to keep. If you’re only dreaming of retirement now, why not turn those daydreams into concrete plans for your future retirement goals? Just use our online Retirement Estimator. Plug in some basic information and you’ll instantly get a personalized estimate of your future retirement benefits. It’s another easy resolution to keep and will take only a few minutes. Try it out now at www.socialsecurity.gov/estimator.
Whether you’re already getting Social Security retirement benefits or just beginning to work, Social Security offers a number of services and a wealth of information online at www.socialsecurity.gov. For a specific list of online services available, visit www.socialsecurity.gov/onlineservices.
So as we enter the new decade, make a resolution to set goals you can keep.
Now, if only you could get your diet plan or exercise regimen to work in as little as 15 minutes.

Essie Landry is a public affairs specialist with the Social Security Administration.

Commentary: When it comes to finances, remembering the basics is fundamental

admin — Thu, 15 Jan 2009 19:50:46 +0000

By Alan J. Davis
Financial Advisor
Capital Investment Advisers

If 2008 felt like one of the most challenging years that the financial markets have ever had, it’s because it was. The U.S stock market suffered its third worst year in more than a century. Specifically, it was the Dow’s worst year since 1931 the worst year for the Standard & Poor’s 500-stock index since 1937. We saw the failure of banks and financial institutions along with the most costly bailout of a private company in U.S. history. And then, to finally top the year off, we hear of what might be the largest ponzi scheme ever uncovered.
I’m sure most of you have asked yourself, “What caused us to be in this financial mess?” Many in the financial press have stated that new products, such as credit default swaps, collateralized debt obligations and special investment vehicles, were the cause. While they may have been part of the problem, the root cause is on a more basic level. In his year-end letter to shareholders, James Rothenberg, chairman of Capital Research and Management, explains this basic cause as follows:
“I think we got into this mess because the market fundamentally mispriced risk. Too many financial firms and corporations either mismanaged their risks or simply did not understand how much risk they were taking. Too many institutions ended up with too many obligations that they couldn’t meet.”
The reason I share this with you is to remind each of us as individual investors that if we do not adhere to the basics or fundamentals, we too will find ourselves in financial ruins. So going forward, what can each of us do to avoid the financial pitfalls that have trapped so many of us this past year? The answers are simple, it’s the doing that is the hard part. These seven basic tips were given to me years ago from my father:

1. Put savings first

2. Save at least 10% of your income

3. Make it easy to save

4. Make it difficult to withdraw savings

5. Invest your savings wisely

6. Control your spending

7. Control your credit

I do not know where my father got these rules from, nor does he, but when anyone follows these seven simple rules, they can become financially successful. The inverse is also true: anyone who has gotten into financial trouble has failed to follow at least one of these rules. If you are wondering how well we as a country are doing at following these rules, the average personal savings rate in 1984 was over 10%. In 2007 it was only 0.6%. If there is one common message in these seven rules, it is that we need to live within our means. And living within our means requires discipline, which is the hard part.