Tax Season 2017: Part 2

Last week, Michna Law Group took a deeper dive into a few of provisions pertaining to this year's tax season. For more information on topics, such as e-file, Free File, safeguards, and the Affordable Care Act check out last week's article.

As a continuation of our coverage for this year's tax season, we'd like to examine assistance filing, now-expired individual taxpayer identification numbers (ITIN), and additional helpful resources.

Tax Preparers & Filing Assistance

According to the IRS, "More than 90 percent of all tax returns are prepared using tax return preparation software." That said, the IRS does offer advice for those who still opt to go with an expert tax preparer. 

• Ensure that your tax preparer has an IRS Preparer Tax Identification Number (PTIN).
• Look for tax preparers with professional credentials. For example, your preparer could be an enrolled agent, certified public accountant, or attorney. In addition, he/she can belong to a professional organization.
• Confirmed fees.
• The refund should be sent to you (either directly or via direct deposit) as opposed to your tax preparer.
• Ask your preparer to e-file your tax return.
• Provide records and receipts.
• Don't sign a blank return.
• Review your return before it's filed.
• Verify that your preparer signed your return and included their PTIN.
• Reaffirm that your preparer will be available after the April 15th deadline should anything happen.

Expired ITIN

According to the IRS, "the PATH Act provisions related to the Individual Taxpayer Identification Number (ITIN) program require some taxpayers to renew their ITINs beginning in October 2016. ITINs that have not been used on a federal tax return at least once in the last three years will no longer be valid for use on a tax return unless renewed by the taxpayer."

ITIN's are used for those who are faced with tax filing obligations, but aren't eligible for a social security number in the United States. Those still using an expired ITIN may face a delayed tax return. In addition, they could possibly lose out on certain tax benefits until the renewal goes through.

To make matters worse, ITIN renewal applications can take as long as 11 weeks during tax season, which is why it's vital to ensure that yours isn't expired as soon as possible.

Additional Resources

The IRS as a whole is on top of their tax resources. For certain individuals, Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) are available. These services offer free tax filing assistance.

More so, the IRS reminds individuals to hold onto their tax return from last year. As of 2017, those who use a tax filing software for the very first time will need to include their Adjusted Gross Income (AGI) amount from their prior-year tax return as a method of identity verification.

For additional questions, please contact Michna Law Group at 1 (847) 446-4600 or at BJM@MichnaLaw.com.