Richard A. Lindsey, CPA

Lindsey & Waldo, LLC – Certified Public Accountants

  • Jan 25

    Taxpayers enjoy the idea of knowing when they are likely to receive their federal income tax refund. We all know the state is usually a little slower getting their refunds out, but the IRS has recently stated taxpayer’s federal refunds may be delayed this year. In the past, tax preparers have been provided an e-file refund cycle chart issued by the IRS. This chart provided an estimated date of receiving federal refunds based on the e-file date of the return. However, this year, the IRS is not producing an e-file refund cycle chart and the IRS has revised Publication 2043 due to the uncertainty of issuing federal refunds. The IRS has stated that, “most taxpayers will have their refunds within 23 days.” This is a considerable delay from prior years.

    One might ask why there will be such a delay this year. The IRS’s reason behind the refund delay is because they have a new processing method. This new processing method focuses strongly on fraud prevention and identity theft. The IRS will be analyzing the returns by completing multiple fraud checks. These fraud filters consist of looking for “Incoming Transactions.” The IRS is not stating what defines an “incoming transaction,” but this could be anything from a change in dependents to a change in address. These returns will be placed in a different category for refunding purposes which could cause a delay in receiving refunds.

    So, before you make plans on how you might spend your federal refund, you need to consider the fact that you will not be receiving that refund as quickly this year as you have in the past.

  • Jan 11

    Washington managed to drive us off the fiscal cliff like Thelma and Louise, smiling and holding hands, pointing the finger of blame at everyone but themselves, and then threw a rope late on January 1 to pull us back.

    The uncertainty which has impeded long-term tax planning has come to an end. The act permanently extends the Bush-era tax cuts except for the wealthiest Americans. It also permanently resolves the AMT issue by indexing it to inflation. This provision prevents nearly 30 million middle class Americans from being hit with higher tax bills this year.

    Some of the highlights include:

    • All of the individual marginal rates are retained and a new top rate of 39.6% is imposed on taxable income above $400,000 for single filers and $450,000 for married taxpayers filing a joint return.
    • Taxes on capital gains and dividend income have been raised to 20% for single and married households with incomes above the $400,000 and $450,000 thresholds, respectively. The zero rate remains in place for taxpayers in the 10% and 15% brackets.
    • The estate and gift tax exclusion amount remains at $5 million indexed for inflation ($5.12 million in 2012) but the top rate increases from 35% to 40% effective January 1, 2013.
    • The American Opportunity Tax Credit and the enhanced provisions of the child tax credit were both extended through 2018.
  • Jan 2