Magaña & Rathi Income Tax Services

Last round of ITINs will expire in 2020; IRS encourages early renewal to prevent refund delay. More than 1 million Individual Taxpayer Identification Numbers are set to expire at the end of 2020 as the Internal Revenue Service completes the expiration of ITINs assigned prior to 2013. The IRS continues to urge affected taxpayers to submit their renewal applications early to avoid refund delays next year. ...Continue reading

Taxpayers should renew expiring ITINs early to avoid a refund delay next year CALL OUR OFFICE "MAGAÑA & RATHI INCOME TAX" TO SCHEDULE YOUR APPOINTMENT TO RENEW YOUR ITIN NUMBER (209)409-8384... Individual taxpayer identification numbers are used by taxpayers who have tax filing or payment obligations under U.S. law but who are not eligible for a Social Security number. People with expiring individual taxpayer identification numbers should renew their number ASAP. This will help avoid unnecessary delays related to their tax refund next year. Which ITINs will expire this year These ITINs expire on December 31, 2020 Numbers with middle digits 88 Those with middle digits 90, 91, 92, 94, 95, 96, 97, 98 or 99, if assigned before 2013 and if not already renewed. The IRS will begin sending the CP48 Notice, to affected taxpayers in late summer. This notice explains what actions a taxpayer will need to take to renew the ITIN if it will be used on a U.S. tax return filed in 2021. If a taxpayer has an ITIN number that has already expired and expects to have a filing requirement in 2021, they can renew any time. Taxpayers with an expiring ITINs have the option to renew them for their entire family at the same time, if they have received a renewal letter from the IRS. Family members include the tax filer, spouse and any dependents claimed on the tax return.

Federal benefit recipients with children have more time to get the $500 Economic Impact Payment The IRS has reopened the registration period for individuals who receive Social Security, Supplemental Security Income, Railroad Retirement or veteran’s benefits, but didn't receive $500 per child earlier this year when they received their own Economic Impact Payment. Federal benefit recipients can use the Non-Filers: Enter Payment Info Here tool to get a catch-up payment for a qua...lifying child if they have NOT done one of the following: already used the Non-Filers tool to provide information about their qualifying child filed their 2019 or 2018 tax return The Non-Filers tool is available on IRS.gov in both English and Spanish. Eligible individuals can use the tool until Wednesday, September 30 to enter information about their qualifying children to receive a catch-up $500 payment per child. This payment will be issued in October. Those unable to access the Non-Filers tool, may file a simplified paper return following the instructions in this FAQ on IRS.gov. Anyone who misses the September 30 deadline will need to wait until next year and claim the payment as a credit on their 2020 federal income tax return. Those who received their original Economic Impact Payment by direct deposit will also have any catch-up payment direct deposited to the same account. Others will receive a check. Federal benefit recipients who used the Non-Filers tool after May 5, don’t need to take any further action. Social Security, SSI, Department of Veterans Affairs and Railroad Retirement Board beneficiaries who have already used the Non-Filers tool to provide information on children don’t need to take any further action. The IRS will automatically send a payment in October. Get a payment status at IRS.gov Eligible recipients can check the status of their catch-up payment using the Get My Payment tool on IRS.gov. They will also receive another Notice 1444 in the mail stating after the payment is issued that should be kept with their tax records.

I apologize for any inconveniences, on July 13th I was diagnosed with leukemia and on July 15th I was admitted into Kaiser hospital for an aggressive chemo treatments. I will be in the hospital for 30 days. In the meantime the office will remain open Olga will be in the office to assist you Monday - Friday 10 a.m. to 2 p.m. she will also be available after hours for any services. You may reach her at the office number at anytime 209-409-8384

Taxpayers should file on time even if they can’t pay their full tax bill Taxpayers should file their tax return by the deadline even if they cannot pay the full amount due. Otherwise, they may end up owing even more because penalties and interest can cause a taxpayer’s debt to grow. If a taxpayer owes taxes, but can’t pay by the July 15, 2020 deadline, they should:... File their tax return or request an extension of time to file. Taxpayers who can’t file their return on time, should request an extension to file. Without this extension, they may face a failure-to-file penalty. To get an extension to file, taxpayers must do one of the following: - File Form 4868 through their tax professional, tax software or using Free File on IRS.gov. - Submit an electronic payment with Direct Pay, Electronic Federal Tax Payment System or by debit, credit card or digital wallet and select Form 4868 or extension as the payment type. Pay what they can by the deadline. Taxpayers must pay their bill on time. If they don’t, they will could face a failure-to-pay penalty. Taxpayers should remember that an extension of time to file is not an extension of time to pay. An automatic extension of time to file will process when taxpayers pay all or part of their taxes electronically by the Wednesday, July 15 due date. Set up a payment plan. Taxpayers who know they owe taxes but can’t pay by the deadline have options. For example, they can apply for a payment plan on IRS.gov or in writing using Form 9465, Installment Agreement Request.

IRA contributions made by July 15 count as 2019 tax deduction WASHINGTON The Internal Revenue Service today reminded people that contributions to traditional Individual Retirement Arrangements (IRAs) made by the postponed tax return due date of July 15, 2020, are deductible on a 2019 tax return. Taxpayers can file their 2019 tax return now and claim the deduction before the contribution is actually made. But the contribution must then be made by the July 15 due date of the ...Continue reading

IRS payment options Taxpayers have a variety of options to consider when paying federal taxes. This year, in response to the COVID-19 pandemic, the filing deadline and tax payment due date was postponed from April 15 to July 15, 2020. A list of forms due July 15 is on the Coronavirus Tax Relief: Filing and Payment Deadlines page. Electronic payment options are the optimal way to make a tax payment. All payment options are available at IRS.gov/payments....Continue reading

Taxpayers need to resume payments by July 15 WASHINGTON The IRS today reminds taxpayers who took advantage of the People First Initiative tax relief and did not make previously owed tax payments between March 25 to July 15 that they need to restart their payments. As the IRS continues to reopen its operations across the country, taxpayers who were in payment agreements and skipped any payments from March 25 and July 15 should start paying again to avoid penalties and possi...Continue reading

$1.5 mil millones en reembolsos del IRS no reclamados para año tributario 2016; contribuyentes tienen hasta el 15 de julio WASHINGTON Según el Servicio de Impuestos Internos, reembolsos de impuestos no reclamados que ascienden a un total de más de $1.5 mil millones pueden estar a la espera de un estimado de 1.4 millones de contribuyentes que no presentaron una declaración de impuestos de 2016. El IRS quiere ayudar a los contribuyentes a quienes se les deben reembolsos, per...Continue reading

IRS unclaimed refunds of $1.5 billion waiting for tax year 2016; taxpayers face July 15 deadline WASHINGTON Unclaimed income tax refunds worth more than $1.5 billion await an estimated 1.4 million individual taxpayers who did not file a 2016 federal income tax return, according to the Internal Revenue Service.... The IRS wants to help taxpayers who are owed refunds but haven’t filed their 2016 tax returns yet, said IRS Commissioner Chuck Rettig. Time is quickly running out for these taxpayers. There’s only a three-year window to claim these refunds, and the window closes on July 15. To claim the refund, a return for tax year 2016 must be filed by July 15, 2020. In Notice 2020-23, the IRS extended the due date for filing tax year 2016 returns and claiming refunds for that year to July 15, 2020, as a result of the COVID-19 pandemic. As the IRS is issuing Economic Impact Payments to Americans, the agency urges taxpayers who haven’t filed past due tax returns to file now to claim these valuable refunds. To collect refunds for tax year 2016, taxpayers must file their 2016 tax returns with the IRS no later than this year's extended tax due date of July 15, 2020. The IRS estimates the midpoint for the potential refunds for 2016 to be $861 that is, half of the refunds are more than $861 and half are less. In cases where a federal income tax return was not filed, the law provides most taxpayers with a three-year window of opportunity to claim a tax refund. If they do not file a tax return within three years, the money becomes the property of the U.S. Treasury. For 2016 tax returns, the window closes July 15, 2020, for most taxpayers. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by the July 15 date. The IRS reminds taxpayers that there is no penalty for filing late when a refund is involved. Taxpayers seeking a 2016 tax refund should know that their checks may be held if they have not filed tax returns for 2017 and 2018. In addition, the refund will be applied to any amounts owed to the IRS or a state tax agency and may be used to offset unpaid child support or past due federal debts, such as student loans. By failing to file a tax return, people stand to lose more than just their refund of taxes withheld or paid during 2016. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC). For 2016, the credit was worth as much as $6,269. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2016 were: $47,955 ($53,505 if married filing jointly) for those with three or more qualifying children; $44,648 ($50,198 if married filing jointly) for people with two qualifying children; $39,296 ($44,846 if married filing jointly) for those with one qualifying child, and; $14,880 ($20,430 if married filing jointly) for people without qualifying children.

IRS unclaimed refunds of $1.5 billion waiting for tax year 2016; taxpayers face July 15, 2020 deadline