2016 Tax Filing Issues, Notices, Bulletins, and Reminders

Get Ready...

  • Filing with IRS begins Monday, Jan 23rd, 2017 (IRS will electronically accept returns starting that day.
  • No advantage to paperfiling your return early, as IRS will not process them until Jan 23rd, 2017.
  • However, good idea to get your return ready to go as of Jan 23rd, 2017.
  • Most tax credits have been renewed and are in place for 2016.
  • Earned Income Tax Credit and Additional Child Tax Credit claimers will have the portion of the refund for those credits held by the IRS until Feb 15th, under a new law.
  • The Report of Foreign Bank and Financial Accounts, now known as the FinCen 114, is NOW due on April 15th of every year. For the calendar (tax) year 2016, it is due April 18th, 2017. There is an AUTOMATIC extension (no extension needed to file) till October 16th, 2017 for the 2016 calendar (tax) year. See this link here from US Dept of Treasury's FinCEN website.
  • Refunds may not be provided at least until Feb 27th, 2017, possibly later.
  • Deadline for filing personal returns (1040, 1040A, 1040EZ, 1040NR, 1040NR-EZ) is April 18th, 2017, technically (midnight, April 19th).
  • Extensions are only for FILING, and gives you till October 16th, 2017. Taxes are STILL due April 18th, 2017 (postmark date).
  • If your income is $64,000 or less, you can qualifiy for IRS Free-File with various different online software vendors and other preparers. See here.
  • Individual Tax Identification Numbers (ITINS) will start expiring. Any ITIN not used on a tax return at least once in the past three years has already expired on Jan 1st, 2017 this year. Any ITIN with middle digits of either 78 or 79 (9NN-78-NNNN or 9NN-79-NNNN) have also expired on Jan 1st, 2017. Thus renewal applications will be needed for those whose ITINS have expired. See renewal instructions here or the IRS dedicated page here.
  • You will need to verify your identity with the IRS prior to filing your 2016 return, by entering your adjusted gross income figure from the 2015 tax tax return, if applicable (its line 37 from the 1040 form). Thus, you will NEED to have a copy of your 2015 tax return. Consider these helpful tips from the IRS for getting 2015's AGI figure, or consider using the IRS's new, a link to the IRS's new secure access to getting that online.
  • The American Opportunity Credit for college expenses NOW requires actual printouts and proof that you spend the required expense for college for your son or daughter. The 1098-T tax document colleges issues is NO Longer sufficient.
  • The Child Care Credit also requires proof of expenses.
  • Consider entering your state-issued driver's license information into the e-filing input screen when filing your 2016 tax returns so that the IRS can validate you and process your refund quicker. Not required, but a good idea, in addition to requesting for an identity theft pin from the IRS and using that.
  • If your refund is OVER $10,000, the IRS will be mailing you your check. So make sure you use your CURRENT address on the 2016 tax return as that is what the IRS will use to mail your check, or use a PO Box.
  • Your proof of health insurance, 1095-B and 1095-C documents will come in a little later this year around the March/April time frame, but the IRS says you must STILL file on time. So if you know for a fact you've been insured for all 12 months, or specific months, go ahead and file with that information. If you are not sure, then call your health insurance company from 2016, and find out which months you did not have minimum essential coverage.
  • As always, try to use our excel based questionnaire, or our basic checklist to help you gather your personal tax docs. If you are self-employed, you should also use our corporate questionnaire to tabulate your corporate expenses.

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2017 Annual Adjustment Amounts: Tax Rates, Deductions, & Exemptions;


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2016 Annual Adjustment Amounts: Tax Rates, Deductions, & Exemptions;

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2015 Annual Adjustment Amounts: Tax Rates, Deductions, & Exemptions;

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2014 Annual Adjustment Amounts: Tax Rates, Deductions, & Exemptions;

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Questions & Answers on NII & Additional Medicare Tax

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Are you living abroad and a dual citizen?? Click here.

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"OVDI" (Offshore Voluntary Disclosure Program) Remains Open For Those With Undisclosed Foreign Income/Assets;

Other Options other than OVDP remain open too, like Streamlined Procedures.

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DNA India, a leading Mumbai daily, quotes Vimlan Tax Services. Click here...

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Mileage Rates for 2016 are here..

  1. 54 cents per mile for business miles driven (down from 57.5 cents in 2015);
  2. 19 cents per mile driven for medical or moving purposes;
  3. 14 cents per mile driven in service of charitable organizations;


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Mileage Rates for 2015 are here..

  1. 57.5 cents per mile for business miles driven (up from 56 cents in 2014);
  2. 23 cents per mile driven for medical or moving purposes;
  3. 14 cents per mile driven in service of charitable organizations;


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International Income Tax Liability...


Worldwide Income Reporting and Foreign Accounts

Most people filing US tax returns know if they are a US Citizen or a Greencard holder, but most do not know if they are a US "tax" resident. You may read the April 2011 E-newsletter we put out which explains the classifications mentioned above or call our office to request an appointment with a qualified tax advisor to discuss your case. Our December 2015 E-newsletter is out as well.