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Are You Eligible for Advance Payment of Tax Credits?

Wednesday, October 21, 2015
We are the Strategic Tax Lawyers and we are experts in the federal tax code. If you have any legal issues or complications regarding your taxes please contact us for a free consultation. We have assisted thousands of clients settle their tax-related cases successfully.  The IRS is currently mailing out letters to taxpayers if they received advance payments of the premium tax credit last year, even if they did not file their tax return.  However, you will need to file your taxes in order to maintain eligibility for the credit because if you don’t file then you won’t be able to claim the credit on future tax returns. The IRS is sending out Letters 5591, 5591A or 5596 to taxpayers to remind them of their tax return obligation for claiming the premium tax credit. So if you receive one of these official IRS notifications, follow the instructions to file within 30 days of the date on the letter.

If you made a mistake on your tax return, you may need to amend your tax return as soon as you can.  In general, tax professionals say it isn’t worth stressing if you forgot to claim a deduction or accidentally made a minor mistake on your income tax return.  It is a good idea to file an amended return so that you can easily resolve a mistake you make.  Some common mistakes include errors related to total income claimed, filing status, or the number of claimed dependents.  You are able to fix your tax return so that you can claim any deductions or credits that you forgot to take on your original tax return.  Luckily, for minor math errors, you won’t need to amend your tax return. Most likely, the IRS will correct any wrong calculations or send you a tax form or schedule to complete if it is missing.  If you are making any changes to a previously filed tax return, the IRS recommends using Form 1040X which will have to be mailed and cannot be e-filed.

Also, if you need to amend more tax returns, you will need to use separate 1040X Forms for each of the tax years in question. If you need to claim an additional return, you need to wait until you receive the tax refund from the original income tax return.  It could take up to 3 months to process an amended tax return. You can always track your amended return on the IRS website.  That way can be updated about the status of the amended tax return online.

If you need to amend your tax return to pay additional taxes, then you need to file the 1040X as soon as possible and submit a payment to the IRS.  There will most likely be an interest and penalty charge added to the amount you owe.

We are the Strategic Tax Lawyers, Los Angeles Tax Attorneys who specialize in the tax code and we can
Offer you legal advice on your tax-related issues with the IRS.  We are professional business tax lawyers with years of experience in tax-related and IRS issues.  Call the Strategic Tax Lawyers at (800) 669-4775 for a free legal consultation to assist you with your tax-related matters.