California Franchise Tax Board Announces System Error: Unverified Wage Withholding

NSTPBreaking News, Tax Refund

California Franchise Tax Board Announces System Error - Unverified Wage Withholding

California FTB Announces System Error: Unverified Wage Withholding – Possible Changes to Tax Returns For those of you in California, or who file California taxes, this news flash was issued April 16 by the State of CA Franchise Tax Board: “During the period from March 8, 2019 to March 11, 2019, a system error caused us to issue refunds to approximately 23,500 taxpayers without first verifying the claimed wage withholding.  This may have led to the taxpayer’s withholding being increased or decreased incorrectly.  Additionally, the taxpayer may have received a Notice of Tax Return Change with an incorrect explanation of the adjustment. “In order to correct this error, in the coming weeks we are going to review each potentially impacted account and ensure that the proper amount of withholding is applied.  This may result in a change to the refund that the taxpayer received.  If they did not receive a refund, either an accurate bill will be mailed to them, or they will receive the refund that they are due. “We will be contacting affected taxpayers directly beginning the week of April 22nd.  At that time, we will request additional information, if needed.  Please accept our apology for any inconvenience … Read More


NSTP8867, Earned Income Tax Credit, Individual Taxpayers, Social Security, Tax Cut & Job Act, Tax Professionals, Tax Refund, TCJA, Uncategorized

Proposed regulations have been issued by the Internal Revenue Service that amend portions of previously proposed regulations to reflect the Tax Cuts and Jobs Act (TCJA) expansion of the scope of the tax return preparer due diligence penalty under Code Sec. 6695(g).


NSTPInternal Revenue Service (IRS), Tax Refund

The Internal Revenue Service has announced that unclaimed federal income tax refunds totaling more than $1 billion may be waiting for an estimated 1 million taxpayers who did not file a 2013 federal income tax return. To collect the money, taxpayers must file a 2013 tax return with the IRS no later than this year’s tax deadline, Tuesday, April 18. “We’re trying to connect a million people with their share of 1 billion dollars in unclaimed refunds for the 2013 tax year,” said IRS Commissioner John Koskinen. “People across the nation haven’t filed tax returns to claim these refunds, and their window of opportunity is closing soon. Students and many others may not realize they’re due a tax refund. Remember, there’s no penalty for filing a late return if you’re due a refund.” In cases where a tax return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If they do not file a return within three years, the money becomes the property of the U.S. Treasury. For 2013 tax returns, the window closes April 18, 2017. The law requires taxpayers to properly address mail and postmark the tax return by … Read More

Tax-Refund Delays Seen Hitting Low-Income Households

NSTPCongress, Earned Income Tax Credit, Fraud, Fraudulent Tax Refunds, Identity Theft, Internal Revenue Service (IRS), Protecting Americans from Tax Hikes Act (PATH Act), Tax Refund

Protecting Americans from Tax Hikes (PATH) Act of 2015 includes a buried provision that will delay refunds for taxpayers filing EITC returns in 2017 with the filing of the 2016 returns.  The legislation updates §6402(m) and provides that effective for credits or refunds made after December 31, 2016 no credit or refund for an over-payment for a tax year will be made to a taxpayer before the 15th day of the second month following the close of the tax year (February 15) if the taxpayer claimed the EITC on the tax return. The following article appeared in today’s Wall Street Journal : Tax-Refund Delays Seen Hitting Low-Income Households The U.S. government’s attempts to prevent tax fraud will force millions of low-income households to wait weeks longer than usual next year to get tax refunds they depend on. A new law requires the Internal Revenue Service to wait until Feb. 15 to send refunds to households receiving the earned-income tax credit and child tax credit. By Feb. 12 this year, the IRS had already sent 29.2 million refunds totaling $94 billion. It isn’t yet clear how many refunds would be delayed. The provision—part of a bipartisan tax-cut deal struck in December … Read More

Taxpayers with Foreign Assets may have U.S. Tax Filing Requirements

NSTPInternal Revenue Service (IRS), Tax Professionals, Tax Refund, Taxpayer

The IRS has reminded U.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2014, that they may have a U.S. tax liability and a filing requirement in 2015. Most People Abroad Need to File A filing requirement generally applies even if a taxpayer qualifies for tax benefits, such as the foreign earned income exclusion or the foreign tax credit , that substantially reduce or eliminate their U.S. tax liability. These tax benefits are not automatic and are only available if an eligible taxpayer files a U.S. income tax return. The filing deadline is Monday, June 15, 2015, for U.S. citizens and resident aliens whose tax home and abode are outside the United States and Puerto Rico, and for those serving in the military outside the U.S. and Puerto Rico, on the regular due date of their tax return. To use this automatic two-month extension, taxpayers must attach a statement to their return explaining which of these two situations applies. See U.S. Citizens and Resident Aliens Abroad for details. Nonresident aliens who received income from U.S. sources in 2014 also must determine whether they have a U.S. tax obligation. … Read More