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Expatriate Tax Returns

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Paying Interest to the IRS When They Could be Paying it to you?

$3.3 billion – the amount of refund interest the IRS paid to taxpayers in the fiscal year 2021.

Did you know that, by law, the IRS must pay you interest on your tax refund if it takes them longer than 45 days to process it? As of June 21, 2022, the IRS had more than twice as many returns waiting to be processed as it did the year before.

Even better news? As of July 2022, the guaranteed interest rate on unpaid refunds increased to 5%. Meanwhile, the national average interest rate on a savings account is a measly 1%.

With the average individual refund at $3,263, there could be an extra $163 in your pocket just for filing your 2021 tax return!

So how do you get it? The first step is to move to file your 2021 tax return with Expatriate Tax Returns to the top of your To Do list. Preparing your taxes can be stressful, time-intensive, and overwhelming. In addition to peace of mind, having a tax professional such as Expatriate Tax Returns in your corner can help you avoid making costly mistakes while maximizing tax breaks that you may not even be aware of. We’re here to help! 

Perhaps you decided to prepare your taxes this year and filed an extension, but now you have an aching sense of dread knowing it’s yet to be completed? Our professional tax experts can also help you take it over the finish line. It’s essential to find a tax professional that you trust.

As Benjamin Franklin famously wrote: “remember that time is money.”

The New and Improved Where’s My Refund Tool

Live stress-free with IRS’s new and improved Where’s My Refund tool. The update includes access for taxpayers to view their refunds from previous years. Taxpayers can now view refunds dating back to 2019! The only information needed to access the Where’s My Refund tool is your SSN (or ITIN), anticipated refund amount, and the taxpayer’s filing status.

Taxpayers can determine precisely what the status of their refund is by using this new tool. This is very beneficial for budgeting and planning purposes. The refund status will either be in received, approved or sent mode. This feature essentially gives users a forecast of where their money stands. Once the refund is filed, taxpayers can begin seeing their refund status 24 hours after filing electronically, 3-4 days after filing previous years electronically, and four weeks after mailing. Information about your refund has never been easier to access and is at your fingertips. Visit www.irs.gov for more information.

Generosity Extended: The IRS Mileage Rate

The IRS is looking out for American taxpayers. For the remainder of 2022, the optional standard mileage rate has been increased by the IRS. For the rest of the year, taxpayers can receive reimbursement for using their automobiles for business travel and other similar purposes. Once mileage is calculated, drivers can determine what they’ll receive for their business travel expenses.

Taxpayers driving for business trips have a new reason to be excited! The standard mileage rate, once initiated, will be 62.5 cents per mile. The updated rate for moving (sector for active-duty people in the military) and medical reimbursement is 22 cents per mile. Both rates were increased by 4 cents per mile. These increases will be put in place on July 1, 2022, and will last for the rest of 2022. The only rate that did not receive an increase is the rate for charitable organizations, which remains at 14 cents per mile.

2022 has introduced all kinds of challenges worldwide. One of the main challenges America has been facing this year is inflated gas prices. The American average price for fuel is $4-$5 per gallon. Nationwide, all drivers must deal with the inflated prices to be on the road.

Out of generosity, the IRS adjusted the optional standard mileage rate for taxpayers. According to Chuck Rettig, the IRS Commissioner, the IRS made this increase to shine a light on the challenging circumstance of high gas prices. This change is unique because the IRS consistently updates these rates yearly. Any previous business travel costs should be calculated using the former rates before the increase. This information can be found in Notice 2022-03.

The IRS is not only generous but also flexible. If taxpayers would like an alternative to the business travel reimbursement, they can calculate the vehicle cost instead of the optional standard mileage rates. If you have questions, call us or visit www.irs.gov for more information.

Checking the Status of Your Return

Once you file your taxes, you may be anxious to receive your return. The IRS has a tool that can help track your refund through the process. The “Where’s My Refund” tool is available on IRS.gov to all those who have filed.
There is also an app available for download called IRS2Go app. Users will need their social security number, tax filing status, and refund amount to utilize either tool.

The tool will provide three phases in which to track to refund:

  • Return received
  • Refund approved
  • Refund sent

When the status changes from received to approved, the IRS is ready to send your refund via your chosen method. Keep in mind that the tool is updated once a day, so set a reminder for yourself to check it and stay on top of your refund.

Communication from the IRS

Now that Tax Day has passed, some consumers may open their mailbox to find a letter from the IRS. The IRS will always communicate via mail, so it is essential to read the letter carefully and in its entirety. The IRS may reach out for various reasons, including a change in your refund, a question regarding your tax return, a request for more information, or a balance is due.
If the request is for an audit, give our team a call, we are always available to assist you throughout the entire process.
It is important to respond timely to any request sent via the IRS and act accordingly. If a balance is requested, pay as soon as possible to avoid further issues. Options for payment installments can be found on the IRS website.
The IRS will only reach out via email, phone calls, or emails claiming to be the IRS should be considered fraudulent.

IRS Rolls Out New Digital Security Tools

The IRS is implementing tools to reduce the possibility of identity theft. Over the next year, users will begin using ID.me to access digital tools including any online accounts and the Child Tax Credit Update Portal.

The IRS is focusing on security improvements over the next year to ensure that “taxpayer information is provided only to the person who legally has a right to the data.” (IRS)

According to the release, those who already have IRS accounts can log in as normal until next summer but are encouraged to create an ID.me account as soon as possible.

To set up an account, users will need proof of identity in the form of a driver’s license or passport.

The IRS has created a website to assist with the ID.me sign-in process.

Click the link below to learn more.

Learn More