Check Your Tax Professional's Background with IRS Directory

This tax season, you may ask for help with preparing your return. But not all tax return preparers have the same level of skills, education, and expertise.

Before choosing a tax professional, check their credentials and qualifications.

Volunteer Income Tax Program (VITA)

From HERE:

VITA is a free, IRS-sponsored program to help low and middle-income workers have their federal and State personal income taxes prepared and filed electronically at no cost. VITA also ensures that workers receive all the tax credits to which they are entitled.

Many workers eligible for the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC) don’t feel comfortable filling out tax forms themselves. However, commercial tax preparers charge significant fees to prepare a return and offer services that can otherwise be provided at no cost at a VITA site. People eligible for EITC and CTC have a no-cost option — they can have their returns prepared and filed at a VITA site.

Every county in the New York State, and most counties in the United States, have at least one VITA site. Visit the IRS VITA site locator. Opening and closing dates vary by site as well as hours and days of operation. In addition, many sites do require an appointment.

After April 15, 2015, many of the VITA site locations close and will no longer be listed on the IRS VITA site locator. Please call the sites directly to confirm that they will remain open after April 15th.

Nonprofits: Form 990 Online and e-Postcard filing systems hacked

Here's an e-mail I received today:

The Urban Institute’s National Center for Charitable Statistics (NCCS) recently discovered that an unauthorized party or parties have gained access to the Form 990 Online and e-Postcard filing systems for nonprofit organizations. This unauthorized access affected nonprofits that used IRS Forms 990, 990-EZ, and 990-N (e-Postcard). It also affected users of Form 8868 extensions and filings for charitable organizations in Hawaii, Michigan, and New York.

Free Tax Help at the Library

APL should be your first stop for income tax assistance and resources this tax season.

On select days from Feb. 4 through April 14, the Main Library at 161 Washington Avenue will offer free federal income tax preparation for people with an annual household income limit of $50,000. The income tax preparation services are provided by APL's partners-volunteers from the Internal Revenue Service Volunteer Income Tax Assistance (VITA) program and the AARP Tax-Aide program. For more information about the free tax services available at the Main Library, call the Reference Department at 427-4303.

Last year, APL's tax program filed more than 1,200 returns for local residents resulting in over $1.6 million in federal refunds back to the community.

Here is the schedule of free income tax assistance programs available at the Main Library:


Walk-In Tax Assistance
Saturdays from Feb. 4 through April 14
10 a.m. to 3 p.m.
Assistance is on a walk-in basis only. No appointments or reservations will be taken.


Appointment-Based Tax Assistance
Wednesdays from Feb. 8 through April 11
Assistance is available by appointment only. Call the Reference Desk at 427-4303 to schedule an appointment.

In addition to the tax preparation services available at the Main Library, most Albany Public Library locations stock basic federal and New York State income tax forms for individual tax filers. Librarians are helpful in connecting people to information that will help answer their tax questions. And, the library's website has a special section dedicated to tax information.

Announcement Regarding Hurricane Irene from the state tax department

President Barack H. Obama has declared certain counties in New York State to be disaster areas as a result of Hurricane Irene. As a result of this declaration, Commissioner Thomas H. Mattox has postponed certain tax filing and payment deadlines for taxpayers in these counties who were directly affected by the storm.
The relief provided for in this notice applies to taxpayers directly affected by the storm in the counties of Albany, Clinton, Delaware, Dutchess, Essex, Greene, Montgomery, Nassau, Orange, Otsego, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Sullivan, Suffolk, Ulster, Warren, and Westchester. This includes taxpayers residing in or having their principal place of business in these counties. In addition, the relief will also apply to taxpayers directly affected by the storm located in any additional counties in New York State that are declared disaster areas and eligible for federal tax relief after this notice is issued. The relief will also apply to taxpayers directly affected by the storm in counties in other states that are declared disaster areas and eligible for federal tax relief.

See details HERE [PDF].

Taxpayers Impacted by Recent Tax Breaks Can File Starting in Mid- to Late February

Who Must Wait to File

For most taxpayers, the 2011 tax filing season starts on schedule. However, tax law changes enacted by Congress and signed by President Obama in December mean some people need to wait until mid- to late February to file their tax returns in order to give the IRS time to reprogram its processing systems.

Some taxpayers – including those who itemize deductions on Form 1040 Schedule A – will need to wait to file. This includes taxpayers impacted by any of three tax provisions that expired at the end of 2009 and were renewed by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act Of 2010 enacted Dec. 17

. Those who need to wait to file include:

Taxpayers Claiming Itemized Deductions on Schedule A. Itemized deductions include mortgage interest, charitable deductions, medical and dental expenses as well as state and local taxes. In addition, itemized deductions include the state and local general sales tax deduction that was also extended and which primarily benefits people living in areas without state and local income taxes. Because of late Congressional action to enact tax law changes, anyone who itemizes and files a Schedule A will need to wait to file until mid- to late February.

Taxpayers Claiming the Higher Education Tuition and Fees Deduction. This deduction for parents and students – covering up to $4,000 of tuition and fees paid to a post-secondary institution – is claimed on Form 8917. However, the IRS emphasized that there will be no delays for millions of parents and students who claim other education credits, including the American Opportunity Tax Credit extended last month and the Lifetime Learning Credit.

Taxpayers Claiming the Educator Expense Deduction. This deduction is for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250. The educator expense deduction is claimed on Form 1040, Line 23 and Form 1040A, Line 16.

In addition to extending those tax deductions for 2010, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act also extended those deductions for 2011 and a number of other tax deductions and credits for 2011 and 2012 such as the American Opportunity Tax Credit and the modified Child Tax Credit, which help families pay for college and other child-related expenses. The Act also provides various job creation and investment incentives including 100 percent expensing and a two-percent payroll tax reduction for 2011. Those changes have no effect on the 2011 filing season.

The IRS will announce a specific date in the near future when it can start processing tax returns impacted by the recent tax law changes. In the interim, taxpayers affected by these tax law changes can start working on their tax returns, but they should not submit their returns until IRS systems are ready to process the new tax law changes. Additional information will be available at www.IRS.gov.

For taxpayers who must wait before filing, the delay affects both paper filers and electronic filers. The IRS urges taxpayers to use e-file instead of paper tax forms to minimize confusion over the recent tax law changes and ensure accurate tax returns.

Handbook of New York State and Local Taxes

The Handbook of New York State and Local Taxes provides a general descriptive overview of the taxes which New York State and its local governments impose, and is revised periodically to reflect recently enacted law changes. It does not include non-tax revenue sources such as motor vehicle fees and the Lottery. Instead, it focuses on taxes, especially those administered by the Department of Taxation and Finance.

Small Nonprofits in Danger of Losing Tax-Exempt Status

From Guidestar:

"Time is running out for small nonprofits facing loss of tax-exempt status because they have not filed Form 990-N or Form 990-EZ for three consecutive years. The deadline for the IRS's one-time filing relief program is October 15, 2010. After that, nonprofits that (1) are required to file a 990 and (2) whose filings are at least three years in arrears will automatically lose their exemptions. To regain tax-exempt status, they will have to apply to the IRS all over again, a process that can take several months and requires payment of fees."

I went through the list and found over 200 with ZIP Codes starting with 1220.

Libraries & Friends at Risk of Losing Exempt Status

I mentioned this before, but I saw this on a library listserv:

"I noticed a number of libraries, Friends Group and library bookstores listed on the NY list from the IRS of small organizations at risk of losing their tax exempt status.

"Organizations that fail to file for three consecutive years automatically lose their tax-exempt status. The IRS is providing one-time relief to allow small tax-exempt organizations to come back into compliance by October 15, 2010, and retain their tax-exempt status even though they failed to file for three consecutive years."

Info For Out-Of-State Tax Filers Affected By Spring Storms, Flooding

The New York State Department of Taxation and Finance today announced guidance for taxpayers who are unable to file their personal income tax returns - including partnership and fiduciary returns - by April 15 because of last month's severe storms and flooding in Massachusetts, New Jersey, Rhode Island and West Virginia.

To view the entire document please visit HERE.

Penalty and Interest Discount tax program

As a reminder, the Penalty and Interest Discount (PAID) program gives taxpayers with older unpaid bills the chance to save up to 80% of the penalty and interest they owe.

One can save:
- 80% of accrued penalty and interest on unpaid bills issued on or before December 31, 2003
- 50% of accrued penalty and interest on unpaid bills issued after December 31, 2003 and on or before December 31, 2006.

To take advantage of the program's savings, you must make all payments by March 15, 2010. If you don't pay in full by that date:
- your opportunity for these savings will be lost forever
- any unpaid tax debts will continue to accrue interest at the full statutory rate.

Invitations to taxpayers eligible for PAID were sent in January. Eligible taxpayers who didn't receive a notice because they couldn't be reached through the mail can still participate. See the Web site to learn how to get PAID up.

Let's Turn Our Attention to Main

Purloined, again, from Stephanie Simon

The Main Library is still going strong. Each month, more than 45,000 people pass through its doors. They use our public access computers, which are busy throughout the day. They bring their own laptops and make use of our free Wi-Fi connection. They bring their children to story times. They attend lectures and performances. And, they borrow close to 60,000 items (from the latest hardcover novels to newly released DVDs) from the Main Library.

Starting Saturday, Feb. 6, the Main Library will offer free federal income tax preparation for people with household incomes of less than $49,000 annually. The tax help is provided by our partners -- IRS VITA volunteers and AARP Tax Aide volunteers -- and is available on Wednesdays by appointment and Saturdays on a walk-in basis. The free tax preparation service days run from Feb. 6 through April 14. Last year, APL's tax program filed 1,004 returns for Albany residents resulting in almost $1.3 million in refunds back to the community! For more information about tax help at the Main Library, call the Reference Department at 427-4303.

In other Main Library news, work on the new Local History Room started this week. The demolition and construction work necessary to turn the old Albany Center Gallery space on the second floor into our new Local History Room is expected to take several months to complete. During that time, customers should be prepared for noise coming from the second floor work area. There will also be an impact on the parking lot and garage with work vehicles and dumpsters. Please be patient with this work! At the end of the process, we'll have a wonderful space to house the extraordinary Pruyn Collection of Local History.

New Tax Guide Features Recovery Tax Breaks; Helps People Save on 2009 Taxes

Taxpayers can get the most out of new recovery tax breaks and get a jump on preparing their 2009 federal income tax returns by consulting a newly revised comprehensive tax guide now available on IRS.gov.

State Tax Department Plans Greater Responsiveness

New York State Department of Taxation and Finance Acting Commissioner Jamie Woodward announced this week new initiatives to ensure that the department is accessible and responsive to taxpayers.

To view the entire document please visit here.

New York Issues Guidelines For Victims Of Ponzi-Style Investment Schemes

New York State Department of Taxation and Finance Commissioner Robert L. Megna has announced tax guidelines for people who suffer financial losses through fraudulent investment arrangements commonly known as Ponzi schemes.

To view the entire document please visihere.

Tax Dept Website, Automated Phone Service Helps Taxpayers Track Refund Check Status

New York State Department of Taxation and Finance Commissioner Robert L. Megna reminds taxpayers that they can track the status of their state income tax refund checks on the department’s website or by calling the automated refund status hotline.

Taxpayers who expect state income tax refunds can call the department’s Refund Hotline at 1-800-443-3200 or 518-457-5149, or online at www.nystax.gov. Tax filers will need to know their social security numbers, the amount of the state refund claimed, and which New York tax forms they filed.

More info here.

Important Tax Filing Information

From the state tax department-

Employees of the State of New York:

Report retirement contributions on your State income tax return

If you are an employee of the State of New York and make contributions to a retirement system, you must add these contributions to the amount of the Federal adjusted gross income that you report on your New York State Personal Income Tax return. These contributions are exempt from Federal tax but are not exempt from New York State tax; therefore, the amount must be added to your New York State tax return. (Note: this does not apply to voluntary contributions to a tax deferred annuity.)

You can find the amount of your 2008 retirement contribution (known as “414(h)” contributions) in Box 14 on your W-2 Statement.

Report this amount on the correct line of your income tax return:
Line 13 of Form IT-150 NYS Resident Income Tax Return (short form) or
Line 21 of Form IT-201 NYS Resident Income Tax Return (long form) or
Line 21 of Form IT-203 NYS Nonresident/Part-Year Resident Income Tax Return

Be sure that any tax preparation software you may use performs this calculation.

Failure to add this amount to your Federal adjusted gross income on your New York State Tax return may result in additional tax, interest and penalties.

For more information, contact the New York StateDepartment of Taxation and Finance
at 1-800-225-5829.

Private Delivery Services accepted by the NYS Tax Department

"Generally, tax returns, payments, and other documents sent to the New York State Tax Department are considered to be ontime if they are postmarked by the U.S. Postal Service on or before the due date of the return, payment, or other document. As a result of the 1997 Taxpayer Bill of Rights, taxpayers can also use certain private delivery services, in addition to the U.S. Postal Service, with the assurance that returns, payments, etc., that are mailed on time will be considered to have been filed on time. However, only mail delivered by private delivery services that are designated by the U.S. Secretary of the Treasury or by the New York State Commissioner of Taxation and Finance qualify for the timely postmarked is timely filed/paid rule." To view the entire document, Publication 55 (9/08), click here(PDF).
Note DHL, FedEx and UPS are on the list, but it must be for specific levels of service.