grmy2h Posted January 12, 2015 Report Share Posted January 12, 2015 "It appears #IRS will be holding refunds on returns with American Opportunity Tax Credits until the 201519 cycle (Mid-May) so they can verify receipt of the 1098T from the colleges and universities. Taxpayers should be informed of the reason the refund is being held and that once the 1098-T from the accredited institution is verified, the refund will be released. Otherwise, they will receive a letter (4800C) to inform them if further documentation is required to allow the education credit." Center for Agricultural Law and Taxation at Iowa State University Source: https://www.facebook.com/centeraglawandtax 3 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted January 13, 2015 Report Share Posted January 13, 2015 This was posted on the facebook page of the Center for Agricultural Law and Taxation at Iowa State University, which stated its source was "an IRS contact". My quick search didn't turn up any other source or information about this, but that doesn't mean this might not be true. I wouldn't be surprised if this was true. As always, ask for more information and documentation than simply relying on the amount that is reported on the form 1098T. Why doesn't the IRS require that the 1098T include a box for the amounts paid, instead of only reporting the amount billed? I suppose that would be too logical. 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted January 13, 2015 Report Share Posted January 13, 2015 Too bad the IRS won't slow down the refunds on returns with EIC, at least until W-2 income is verified. 6 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted January 13, 2015 Report Share Posted January 13, 2015 Too bad the IRS won't slow down the refunds on returns with EIC, at least until W-2 income is verified. That would make too much sense. Lets go after people who are trying to better themselves by getting a degree rather than those who are scamming the EITC. So, to show our frustration, we should prepare the original return without the Ed credits, and then mail in a 1040X so those lazy ba$t@rds at the treasury can have plenty of work over the summer going through paper returns. Tom Newark, CA 6 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted January 13, 2015 Report Share Posted January 13, 2015 ^ LIKE. I've reached my quota for the day for clicking the like button Yes, and instead of finding some logical way to identify or deter those fraudulent EIC returns in the first place, they'd rather go after the preparers by imposing higher penalties because that is the easier, more lucrative path. 4 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 13, 2015 Report Share Posted January 13, 2015 (edited) I doubt the authenticity of this. More unfounded rumors. Just what is a 4800C? Edited January 13, 2015 by Jack from Ohio Quote Link to comment Share on other sites More sharing options...
jklcpa Posted January 13, 2015 Report Share Posted January 13, 2015 I doubt the authenticity of this. More unfounded rumors. Just what is a 4800C? Letter 4800C = Questionable Credit 30 Day Contact Letter, found on this page under 3.8.45.28.14 "Special Handling to Hold Payments" http://www.irs.gov/irm/part3/irm_03-008-045r-cont04.html Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 13, 2015 Report Share Posted January 13, 2015 How is this any different than before? Like I said, unfounded, embellished rumors. The article would have you believe that ALL returns with education credits will be delayed. I remember the article stating that all refunds would be held until October. I give them both the same amount of credibility. Quote Link to comment Share on other sites More sharing options...
TaxMan60601 Posted January 13, 2015 Report Share Posted January 13, 2015 I also hope that this won't be so, Jack, but what about this: http://www.irs.gov/Refunds/Nonresident-Aliens-Filing-Form-1040NR-for-Refund-of-U.S.-Source-Income-Withheld "If you are filing a Form 1040-NR, (U.S. Nonresident Alien Income Tax Return) and requesting a refund of tax withheld on a Form 1042-S, (Foreign Person's U.S. Source Income Subject to Withholding), we will need additional time to process your refund. Please allow up to 6 months from the return’s due date, or filing date if later, for your refund to be processed." Same or similar reasonable official explanation again could be "identify and verify data", but I doubt there will be some meaningful consequences in result of this ..... Quote Link to comment Share on other sites More sharing options...
SaraEA Posted January 14, 2015 Report Share Posted January 14, 2015 I checked the IRS website and found nothing about withholding the AOC credit so I did a Google search. Best I could find is that no one could determine that this really came from the IRS. There was a blog that stated the agency was angry with Iowa State for leaking this but it was definitely not first person. None of the professional associations and CPA groups have reported this, so I imagine they can't verify it either. Seems like a rumor to me. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted January 14, 2015 Report Share Posted January 14, 2015 There was an announcement this AM on National TV that ALL refunds will be delayed due to lack of funds; as well as personnel. Of course, we all knew about the cutbacks in employees, but the refunds announcement will cause a furor. Especially when the commercials interspersed with the news are already saying "Spend your Tax Refund Here!" The next three months just keep on looking worse. 1 Quote Link to comment Share on other sites More sharing options...
FreedomTaxed Posted January 14, 2015 Report Share Posted January 14, 2015 There was an announcement this AM on National TV that ALL refunds will be delayed due to lack of funds; as well as personnel. Sorry, I'm not believing that one. The news item I have, notes that people doing a paper filing, and those subject to review, might have 1 week added delay in processing their refund... "or more" according to IRS Director John Koskinen. Not a big deal. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted January 14, 2015 Report Share Posted January 14, 2015 I'm not going to worry about this or whether or not it's true. I may make a general statement such as "your return includes credits that may delay your refund if the IRS decides to scrutinize these credits more closely or requests documentation before finishing the processing of your return." 1 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 14, 2015 Report Share Posted January 14, 2015 I am telling all clients to "Expect your refund to take 6 weeks or more." When they get them sooner, I am a hero. We must stem the tide of "gotta have my refund RIGHT NOW" thinking. I do not allow my clients to beat me up over time for receiving refunds. I have the phone numbers, mailing address and e-mail addresses of our Representatives and Senators to give to people with complaints. I do not make the laws. I do not create false returns to scam the government out of millions. I do not cause the ineptitude in the IRS. 6 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 14, 2015 Report Share Posted January 14, 2015 There was an announcement this AM on National TV that ALL refunds will be delayed due to lack of funds; as well as personnel. Of course, we all knew about the cutbacks in employees, but the refunds announcement will cause a furor. Especially when the commercials interspersed with the news are already saying "Spend your Tax Refund Here!" The next three months just keep on looking worse. Now that part of a newscast is pure comedy!! But then again, most of America will believe it!! (Sad but true) 2 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted January 14, 2015 Report Share Posted January 14, 2015 I'm not saying that it is true. I am saying that if I heard it; so did millions of other taxpayers who will want their taxes done before the IRS runs out of money. It was a clear statement that the IRS was short of funds and that Congress certainly would not allot them more money. Now, you all know how filers are going to take a statement like that and run with it. I looked at my husband and said, "As if things aren't bad enough, they have to go and issue a statement like that!" Some of the things they talked about, we already knew such as the fact that very few people would actually be able to contact a real person to talk to this year. They told us months ago that even we would not be able to get much, if any, telephone assistance this year. Some things are better left untold. I am not going to worry about it either; we can only do as much as we can do. Since my letters went out, my Feb appointments are filling up fast. I can only prepare an accurate tax return if I take time to research and check. Happily, my new assistant is really enthused about getting started. 2 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 14, 2015 Report Share Posted January 14, 2015 I'm not saying that it is true. I am saying that if I heard it; so did millions of other taxpayers who will want their taxes done before the IRS runs out of money. It was a clear statement that the IRS was short of funds and that Congress certainly would not allot them more money. Now, you all know how filers are going to take a statement like that and run with it. I looked at my husband and said, "As if things aren't bad enough, they have to go and issue a statement like that!" Some of the things they talked about, we already knew such as the fact that very few people would actually be able to contact a real person to talk to this year. They told us months ago that even we would not be able to get much, if any, telephone assistance this year. Some things are better left untold. I am not going to worry about it either; we can only do as much as we can do. Since my letters went out, my Feb appointments are filling up fast. I can only prepare an accurate tax return if I take time to research and check. Happily, my new assistant is really enthused about getting started. The problem is that most that hear it will think that their refund comes from IRS money. That is the sad but true part of how "low information" our society has become. 5 Quote Link to comment Share on other sites More sharing options...
RitaB Posted January 14, 2015 Report Share Posted January 14, 2015 (edited) My first thought about the "lack of funds" was, "Since when do we care about lack of funds? We're in debt 18 trillion. Oh, we are not cutting hot checks now?" Edited January 14, 2015 by RitaB 7 Quote Link to comment Share on other sites More sharing options...
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