Tax Tips

IRS Will Issue Checks Through End of Year

The last of the economic stimulus checks have been issued under the planned payment schedule, which was a timetable for tax returns that were filed and processed before April 15. But the IRS will continue processing tax returns and issuing economic stimulus payments for the rest of the year.

It's not too late to file a return to claim an economic stimulus payment. The IRS urges people to file by Oct. 15 to ensure they receive a payment before the end of the year. It can take up to 8 weeks to process the return and issue the payment.

For people who have no tax liability or no tax filing requirement, there is a minimum payment of $300 ($600 for married couples), plus the $300 for each qualifying child. To be eligible for the minimum payment, individuals must have at least $3,000 in qualifying income.

IRS Cautions Taxpayers About New Scams

Ths IRS is warning taxpayers to be on the lookout for a new wave of scams using the IRS name in phishing that have been circulating recently. In May and June, taxpayers reported almost 700 separate phishing incidents to the IRS.

The IRS reminds you that it never asks for personal information in e-mails and doesn't request security-related personal information, such as PINs. Here are some of the recent scams:

Refund e-mail scam: An e-mail claiming to come from the IRS falsely informs you that you're eligible for a tax refund. It instructs you to click a link to access a refund claim form which requests personal information. The scammers then use what you enter to access the your bank or credit card account.

Economic stimulus payments scam: An email claiming to come from the IRS says you're eligible for an economic stimulus payment. The message recommends direct deposit into your checking or savings account. To receive the payment, you must click on a link to complete and submit an online form by a certain date. The e-mail warns that payment may be delayed if you miss the deadline. The form requests personal and financial data, including checking or savings account numbers that they use to gain access to your accounts.

Substitute Form 1040 fax scam: A cover letter, addressed "Dear Valued Tax Payer," and a form are faxed to you. It appears to be signed by an IRS employee. The letter says that the IRS is updating its files and that if you supply the requested information, you'll receive a nominal tax refund. It also says if you don't immediately return the completed form, you risk additional tax and withholding. The form is labeled a substitute Form 1040. It requests detailed personal information, including mother's maiden name, bank account numbers and estimated assets. It asks you to sign and fax back the completed form, as well as a copy of your driver's license and passport.

Company report scam: An e-mail appears to come from an IRS.gov e-mail address, addresses you by name and references the company you work for. These personalized details may convince you that the e-mail is legitimate. The e-mail says the IRS has a report on the company and asks you to review a copy by clicking on a link to download the report. But when the link is clicked, malware is downloaded to your computer. The malware can hijack your computer's hard drive to give someone remote access to the computer, search for passwords and other information, or cause other types of identity theft or damage.

Tax court scam: An e-mail that looks like it comes from the U.S. Tax Court contains a petition involving a court case between you and the IRS. The document instructs you to download other files. The downloads transfer malware to your computer.

To access the IRS Web site, you should always type www.irs.gov into your Internet browser window rather than clicking on a link in an e-mail or opening an attachment, either of which may download malicious code or send you to a phony Web site.

If you receive a questionable e-mail, forward it to the following address: phishing@irs.gov.

'Where is my economic stimulus payment?'

There are many questions that taxpayers have concerning their economic stimulus payments. The IRS has released frequently asked questions on www.irs.gov that will help answers those questions. Here are some highlights that could answer your question.

1. If you chose to receive your tax refund through a refund anticipation loan (RAL) or any other financial agreements with a tax professional, the IRS can't send your stimulus payments by direct deposit. You'll get a paper check based on the paper check distribution schedule.



2. Additionally, if you requested that your e-file or tax preparation fees be deducted from the amount of your refund, you'll get a paper check based on the paper check distribution schedule, EVEN IF you chose to have your refund directly deposited. Having your fees deducted from your refund enters you into a financial agreement with the tax preparation provider or e-file software company for a refund anticipated check (RAC).
   
   The reason is that both RACs and RALs are bank products. The money that is deposited into your bank account comes from the financial institution associated with your e-filing software provider or tax preparation provider, not directly from the IRS. The rules stated above will be true for everyone, whether or not you used H&R Block products and services to prepare your return.



3. If you chose to have your tax refund deposited onto a "stored value card" or debit card through the professional tax preparer (such as the H&R Block Emerald Prepaid MasterCard), your stimulus payment will be directly deposited onto that same card.
   
   The exception in this case is if you requested a refund anticipation loan (RAL) through your tax professional, or your card account has been closed, in which case you will receive your economic stimulus payment by paper check. Because the IRS must wait until the money is returned, this process may take several weeks.



4. If you didn't provide direct deposit information for your original tax return, you can't request a direct deposit after a return has been filed to get your economic stimulus payment directly deposited.



5. Conversely, if you designated direct deposit on a tax return, the stimulus payment will go to the account number you designated. If the account number is no longer active, the IRS will send you a paper check. Note that if this is the case, this process may take several weeks.

IRS Schedule of Stimulus Payments

The IRS began sending more than 130 million economic stimulus payments May 2, 2008. Payments are scheduled to be sent out in the order of the last 2 digits of the social security number used on the tax return.

Stimulus payments will be made by direct deposit to people who choose to receive their 2007 income tax refunds through direct deposit. All others will receive their economic stimulus payments in the form of a paper check.

Below are the schedules for economic stimulus payments related to tax returns processed by April 15, 2008.

Direct Deposit Payments
If the last 2 digits of your social security number are:	Your economic stimulus payment deposit should be sent to your bank account by:
00–20	April 28
21–75	on or before May 9
76–99	on or before May 16
Paper Check
If the last 2 digits of your social security number are:	Your check should be in the mail by:
00–09	May 9–May 16
10–18	May 23
19–25	May 30
26–38	June 6
39–51	June 13
52–63	June 20
64–75	June 27
76–87	July 4
88–99	July 11