Credit and Debt Blog
A Service of Debtors Unite, Inc.
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Jackson Hewitt has already suffered falling stock prices due to proposed restrictions on refund anticipation loans, as has H&R Block. Now there is a new twist.
In 2007, 34 Jackson Hewitt outlets near Raleigh, NC were temporarily closed due to filing fraudulent returns. It turns out that there were 125 total locations across four states that were shuttered for the last 2 weeks of the tax season. There are signs of more problems. (more…)
Taxpayers that are affected by the recently enacted Alternative Minimum Tax (AMT) patch must wait until February 11 in order to file their tax returns. That is the date released by the IRS as a potential starting date for the five AMT-related returns that must be updated due to last minute legislation. (more…)
Congress dragged their feet once again on a proposal to extend the Alternative Minimum Tax patch. The purpose is to prevent middle class taxpayers from having to pay additional taxes originally levied on the wealthy.
Now, it appears that the IRS may need up to 7 weeks to reprogram their systems. This could delay tax refunds by up to a month. (more…)
North Carolina’s State Employees’ Credit Union (SECU) has announced a new initiative to provide free income tax preparation. This will be available at all 217 branch locations statewide. (more…)
Several Raleigh, NC based organizations have formed the Wake EITC Coalition to assist working families with income tax preparation and filing. The Family Resource Center of Raleigh, Fiscal Progress, Passage Home, AARP and the Triangle United Way have formed a partnership with Wake County Human Services and the Internal Revenue Service.
This partnership will help working families by providing free income tax preparation and electronic filing. Rather than paying for a refund anticipation loan, most refunds will be received within 10 days. (more…)
The former IRS Commissioner known for scrutinizing many nonprofit credit counseling agencies has now been asked to resign from his most recent post. Mark Everson left the IRS to become President and CEO of the American Red Cross.
In as little as 6 months, Everson went from top IRS official to embattled nonprofit executive. (more…)
On November 27, the Internal Revenue Service released its official mileage rates for 2008. The standard rate will increase to 50.5 cents per mile for business miles driven.
This is up from 48.5 cents per mile for 2007. Medical or moving purpose mileage actually dropped from 20 cents to 19 cents per mile. Volunteer miles driven in service of charitable organizations remains at 14 cents per mile. (more…)
The IRS views forgiven debt as a form of income. We know that debt settlement can cause your taxes to go up. Did you know that foreclosure works the same way?
That’s right. If your foreclosed property sells for less than the mortgage balance, you have pay taxes on the difference. Some foreclosed properties are selling for tens of thousands of dollars below what is owed, meaning tax bills could reach several thousands of dollars extra. One proposed bill would change that though. (more…)
If you have ever settled a debt, you may have received an unwelcome surprise. Anytime you save $600 or more on a debt balance by negotiating a settlement, the debt collector is required to issue a 1099-C form and report the information to the Internal Revenue Service.
So what exactly is a 1099-C form? In short, it is a declaration that the debt collector provided you with income to pay your debt. And now Uncle Sam and possibly your own state revenue department expect you to pay taxes on that income. (more…)
