Check Status of a Tax Refund in Minutes Using Where’s My Refund?
IRS Tax Tip 2018-35 | March 7, 2018
The Where's My Refund? tool gives taxpayers access to their tax return and refund status anytime. All they need is internet access and three pieces of information:
Taxpayers can start checking on the status of their return within 24 hours after the IRS received their e-filed return, or four weeks after they mail a paper return. Where’s My Refund? includes a tracker that displays progress through three stages: the IRS receives the tax return, then approves the refund, and sends the refund.
- Their Social Security number.
- Their filing status.
- The exact whole dollar amount of their refund.
IRS Reminds Taxpayers More Than 70 Percent Qualify for IRS Free File
FROM THE IRS | IR-2018-38 | March 1, 2018
As the filing deadline approaches next month, the Internal Revenue Service reminds taxpayers that more than 70 percent of them qualify for free tax filing with IRS Free File. The special service is available on IRS.gov and through the IRS2Go mobile app for Android and iOS users.
Almost everyone can use Free File to prepare and e-file their federal taxes either through brand-name software or using online fillable forms. Individuals or families with 2017 adjusted gross incomes of $66,000 or less can use Free File software. There is no income limit to use Free File Fillable Forms, which are electronic versions of IRS paper forms.
IRS Plans to Issue Regulations Clarifying Limitations on Carried Interest
From the IRS | IR-2018-37 | March 1, 2018
The Internal Revenue Service announced that S corporations are subject to the extended three year holding period for applicable partnership interests and that regulations will be issued soon.
Carried interests are ownership interests in a partnership that share in the partnership’s net profits. Carried interests often are issued to investment managers in connection with the investment manager’s services. These interests often result in the holder receiving capital gains which are taxed at a lower rate, rather than ordinary income.
Updated Withholding Calculator, Form W-4 Released; Calculator Helps Taxpayers Review Withholding Following New Tax Law
FROM THE IRS | IR-2018-36 | February 28, 2018
The Internal Revenue Service today released an updated Withholding Calculator on IRS.gov and a new version of Form W-4 to help taxpayers check their 2018 tax withholding following passage of the Tax Cuts and Jobs Act in December.
The IRS urges taxpayers to use these tools to make sure they have the right amount of tax taken out of their paychecks.
IRS Increases Interest Rates for the Second Quarter of 2018
From the IRS | IR-2018-43 | March 7, 2018
The Internal Revenue Service announced that interest rates increased for the calendar quarter beginning April 1, 2018. The rates will be:
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
- five (5) percent for overpayments [four (4) percent in the case of a corporation];
- two and one-half (2.5) percent for the portion of a corporate overpayment exceeding $10,000;
- five (5) percent for underpayments; and
- seven (7) percent for large corporate underpayments.
Three Popular Tax Benefits Retroactively Renewed for 2017; IRS Ready to Accept Returns Claiming These Benefits; e-file for Fastest Refunds
FROM THE IRS | IR-2018-33 | February 22, 2018
The Internal Revenue Service said that it is ready to process tax year 2017 returns claiming three popular tax benefits recently renewed retroactively into law.
The Bipartisan Budget Act, enacted on February 9, renewed for tax year 2017 a wide range of individual and business tax benefits that had expired at the end of 2016. The IRS has now reprogrammed its processing systems to handle the three benefits most likely to be claimed on returns filed early in the tax season.