If you’re hoping to take advantage of Refund Anticipation Loans (RALs) and related products during this tax season, you’re going to have to look pretty hard. Many third party preparers will not be offering those products this year, citing financial difficulties with underwriters. Some of the financial difficulties stem from the economy. RALs (and similar…
Each year, the IRS faces a pretty odd challenge: trying to give people their money back. If you move or make an error entering your address on your tax return – and you’re due a refund – the IRS may not be able to find you. This year, the IRS is looking to return $164.6…
The last couple of tax seasons have been tough for many taxpayers trying to utilize popular refund anticipation loans (RALs). With banks increasingly unwilling to provide loans for third-party preparers, the potential pool of money available to folks seeking RALs was pretty limited. This made taxpayers unhappy. It made the IRS fairly happy. They, like…
When I was in law school, we talked a lot about the purpose of jail… There are a bunch of different philosophies about why jailing a person is supposed to be a good idea though admittedly no consensus. Is it punishment for wrongs? A mechanism to isolate “bad” people? A way to get those who…
Taxpayer asks: I’m helping my daughter do her CT taxes. Last year she got a CT refund. If I’m reading the federal form correctly, it looks like she has to declare the state refund as federal income in 2009. Is that correct? Isn’t that double taxing? If that is correct, is there a way around…
I’ve been getting lots and lots of questions about the Making Work Pay Credit. To make it easier for you, here are the basics: The Making Work Pay Credit is only available for taxpayers with earned income during the year. The credit HAS NOT already been calculated as part of your withholding. Your eligibility for…
Shares of Jackson-Hewitt stock continued to plummet in February as word of their problems with their RAL lender continued to make news. The stock opened at $2.16 today, well below the $4.50 mark it had dropped to after its December announcement that it would not be able to cover all of its RALs for the…
This tax season, Penny Lea Jones won’t be preparing tax returns if the feds have their way. U.S. District Judge Edward J. Lodge has issued a preliminary injunction barring Jones from preparing federal income tax returns for taxpayers while a lawsuit against her proceeds. The lawsuit is one of seven such actions filed by the…
Laura Schultz was expecting to hear from the IRS. After all, the Denver-area house cleaner owed the IRS about $80. But when she opened up a letter from the IRS, it wasn’t quite what she was expecting: a refund check for $122,783.51. Schultz felt that it was a mistake – and it was. She called…
Are you looking for a little extra cash this summer! The IRS recently issued a reminder about unclaimed refunds… does one belong to you? Earlier this year, the IRS announced that unclaimed refunds for 2005 (the last year for which you could claim a refund as of tax day, 2009) totaled approximately $1.3 billion –…