Finance Tax Time

I am constantly amazed when I speak with people and they tell me they are still waiting for tax refund checks after six or twelve months. If you are in this position, you may be in for a surprise.

Still Waiting For Your Tax Refund?

Preparing and filing taxes is one of those things almost nobody likes to do. Much like spring cleaning, it is something to be done and then forgotten about. If you are due a tax refund, however, this can result in some problems. This is particularly true with the IRS.

Every year, the Internal Revenue Service reports that it cannot get refund checks to a large number of taxpayers. No, it does not try to hide this fact. It actually will publish news releases and contact media outlets to get the world out. This year, the IRS is trying to find almost 100,000 people that it has refund checks for. The total dollar figure for outstanding refunds is over $92 million dollars. That is almost a grand per person the IRS cannot find.

Why can’t the IRS find you? Well, there can be a variety of reasons. The most common is you have moved since filing your tax return, but did not tell the IRS. As a result, the IRS sent the refund check to your old address. Another situation that can arise occurs when a marriage happens and the IRS is not notified of any new address or name change. Contrary to what you may have heard, the IRS does not keep tabs on you every day. If you move, you have to let the agency know.

If you are still waiting for a tax refund check, you should get proactive. You can go to the IRS web site and use the “Where is my Refund?” link on the home page to find out the status of your refund. You can also pick up the phone and call the agency at 800-829-1954.

Listen, we all hate preparing and filing our taxes. If you have suffered through the process and generated a refund, don’t lose it. Take action and contact the IRS to get your money today.

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Newlyweds and the recently divorced should make sure that names on their tax returns match those registered with the Social Security Administration (SSA). A mismatch between a name on the tax return and a Social Security number (SSN) could unexpectedly increase a tax bill or reduce the size of any refund.

For newlyweds, the tax scenario can begin when the bride says “I do” and takes her husband’s surname, but doesn’t tell the SSA about the name change. If the couple files a joint tax return with her new name, the IRS computers will not be able to match the new name with the SSN. This could result in tax assessments or even an audit since the IRS may be under the impression that you are simply evading taxes.

Similarly, after a divorce, a woman who had taken her husband’s name and had made that change known to the SSA should contact the SSA if she reassumes a previous name. Failure to take this action can lead to audits. Can you imagine going through an audit with your former spouse?

It’s easy to inform the SSA of a name change by filing Form SS-5 at a local SSA office. It usually takes two weeks to have the change verified. The form is available on the agency’s Web site, www.ssa.gov, by calling toll free 1-800-772-1213 and at local offices. The SSA Web site provides the addresses of local offices.

Richard A. Chapo is with http://www.businesstaxrecovery.com - recovery of business taxes through tax help and tax relief. Visit http://www.businesstaxrecovery.com/articles to read more business tax articles.

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They say the world works on a concept known as balance. To counterbalance the joys of your honeymoon, you get the misery of filing a joint tax return with your spouse.

If you have recently married, you are hopefully living a blissful life of humor and happiness. The birds are singing, everyday is sunny and so on. Alas, there is one event each year that brings the joy of newlyweds to a screeching halt. That event occurs when you must sit down and file a joint tax return. Somewhere, a divorce attorney is smiling.

Before you and the spouse start shouting at each other, it probably makes sense to figure out how you will file. Essentially, you have two choices. The first is known as married filing jointly and it usually the best way to go. The second is married filing separately and often results in higher taxes being paid. Yes, this all takes into account the “marriage penalty” for taxes. The media has the problems backwards.

There is, however, one instance when going with married filing separately may definitely make sense. The situation occurs where there is a serious imbalance in the earnings of each spouse, to wit, one is making a lot more than the other. Mentioning the issue alone can be a test on a relationship, but taxes are all about saving money. Essentially, the situation boils down to deductions. If you itemize, but lose deductions under the joint filing, it is time to file separately. The only way to tell [groan] is to actually prepare the tax returns for each situation. Hey, nobody said taxes were fun.

If you really want to tackle a tough issue, there is one other time when you should definitely file separately. Since you can’t slap me through the computer, I can tell you it is when your marriage is on the rocks. The reason has to do with joint liability. You and your spouse are jointly liable for all taxes you owe the government. If one of you does not pay, the IRS will look to either of you to get its money. When marriages go bad, the failure to pay taxes is often used by a disgruntled spouse for revenge. While filing separately makes logical sense, marriage problems are not logical. Give a lot of thought to the process before bringing this issue up.

In general, filing jointly is the way to go in most marriages. There are instances that call for filing separately, just be very careful about how you approach them!

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