Stimulus Plan Update

STIMULUS PLAN UPDATE
The IRS issued guidance Friday, February 15, 2008, on how to paper-file returns so recipients of Social Security, certain veterans’ benefits, and low-income workers who normally are not required to file a tax return can receive the rebate check.

DIRECT DEPOSIT FACTS
If you receive your 2007 return via direct deposit then you should receive the rebate check as a direct deposit. If a tax return is filed with a bank product ( Refund Anticipation Loan), the taxpayer will receive the stimulus payment via paper check in the mail.
For those filing balance due returns with the amount due taken from the taxpayers’ bank account, the IRS will not use this direct debit information for the purpose of depositing any rebates due that taxpayer. Instead, the IRS will issue the taxpayer a check.

ELECTRONIC FILING
The IRS is updating its systems to accept these returns electronically.

All returns need to be transmitted before April 15th to qualify for the Stimulus Plan Refund.
If you plan to get an extension for time to file your return you should contact us regarding your options. Getting an extension will not qualify you for the Stimulus Plan Refund Check.
Call our office if you would like more information.

Make sure you file a tax return for 2007

This is the latest news from the IRS on the $600 checks coming this summer.
Even if you do not need to file you will want to file a return for 2007 to get the refund. Also it appears that they will be doing the refunds via direct deposit so make sure you do not change bank accounts until you receive your refund.
Also you will want to file in 2007 and include your dependants so you receive the $300 per child.

ECONOMIC GROWTH ACT OF 2008 - Stimulus Plan Latest news
Starting in May and continuing through late spring and summer, the Department of Treasury will send checks or make direct deposits to more than 130 million taxpayers. Individuals will have to file a Form 1040 or 1040A for 2007 to get a rebate in 2008, even if they are not otherwise required to file a 2007 return because of low income.

We understand that taxpayers who received refunds via a bank product(ie Refund Loans) will not receive their rebates via direct deposit, but will receive paper checks, and that the IRS is looking at ways to accept returns from those individuals who are not required to file.