Tax Consultants of North Georgia LLC

BEWARE..... IRS WARNING Beware of ‘ghost’ preparers who don’t sign tax returns WASHINGTON The Internal Revenue Service reminds taxpayers to avoid ghost tax return preparers whose refusal to sign returns can cause a frightening array of problems. It is important to file a valid, accurate tax return because the taxpayer is ultimately responsible for it.... Ghost preparers get their scary name because they don’t sign tax returns they prepare. Like a ghost, they try to be invisible to the fact they’ve prepared the return and will print the return and get the taxpayer to sign and mail it. For e-filed returns, the ghost preparer will prepare but refuse to digitally sign it as the paid preparer. By law, anyone who is paid to prepare or assists in preparing federal tax returns must have a valid Preparer Tax Identification Number, or PTIN. Paid preparers must sign and include their PTIN on the return. Not signing a return is a red flag that the paid preparer may be looking to make a fast buck by promising a big refund or charging fees based on the size of the refund. Unscrupulous tax return preparers may also: -Require payment in cash only and not provide a receipt. -Invent income to qualify their clients for tax credits. -Claim fake deductions to boost the size of the refund. -Direct refunds into their bank account, not the taxpayer’s account. The IRS urges taxpayers to choose a tax return preparer wisely. The Choosing a Tax Professional page on IRS.gov has information about tax preparer credentials and qualifications. The IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help identify many preparers by type of credential or qualification.

GOOD NEWS FOR EDUCATORS Educators can now deduct out-of-pocket expenses for COVID-19 protective items WASHINGTON Eligible educators can deduct unreimbursed expenses for COVID-19 protective items to stop the spread of COVID-19 in the classroom. COVID-19 protective items include, but are not limited to: ... face masks; disinfectant for use against COVID-19; hand soap; hand sanitizer; disposable gloves; tape, paint or chalk to guide social distancing; physical barriers (for example, clear plexiglass); air purifiers; and other items recommended by the Centers for Disease Control and Prevention (CDC) to be used for the prevention of the spread of COVID-19. Rev. Proc. 2021-15, issued today, provides guidance related to educators and their expenses under the COVID-related Tax Relief Act of 2020, which was enacted as part of the Consolidated Appropriations Act, 2021. The new law clarifies that unreimbursed expenses paid or incurred after March 12, 2020, by eligible educators for protective items to stop the spread of COVID-19 qualify for the educator expense deduction. The educator expense deduction rules permit eligible educators to deduct up to $250 of qualifying expenses per year ($500 if married filing jointly and both spouses are eligible educators, but not more than $250 each). Eligible educators include any individual who is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in a school for at least 900 hours during a school year. This deduction is for expenses paid or incurred during the tax year. Taxpayers claim the deduction on Form 1040, Form 1040-SR or Form 1040-NR (attach Schedule 1 (Form 1040) ).

UPDATE ON GEORGIA RETURNS: Georgia Department of Revenue to Begin Processing 2020 Individual Income Tax Returns on February 12, 2021 The Georgia Department of Revenue (DOR) will begin processing 2020 individual income tax returns on Friday, February 12, 2021, in conjunction with the Internal Revenue Service (IRS).... In 2020, the Department processed over 4.9 million individual income tax returns with an average processing time of just over 5 days for an electronically filed, error-free return. DOR works diligently to be as efficient as possible in processing returns and issuing refunds while maintaining the highest levels of security to protect confidential taxpayer information and state tax dollars. Reminders for Individual Income Tax Filers: Most error-free, electronically filed returns are processed within 5 business days of receiving the return and most refunds are issued within 21 days from the date a taxpayer files their return. All first-time Georgia income tax filers, or taxpayers who have not filed in Georgia for at least five years, will receive their refund in the form of a paper check. The filing deadline to submit 2020 individual income tax returns is Thursday, April 15, 2021.

2021 tax filing season begins Feb. 12, 2021 WASHINGTON The Internal Revenue Service announced that the nation's tax season will start on Friday, Feb. 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns. The Feb. 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the Dec. 27 tax law changes that provided a second round of Economic Impact Payments and other benefits.