Tax Season is Here: Important Dates and Reminders from the IRS

To help you prepare for the upcoming tax filing season, the IRS has sent out a series of reminders. Below are the highlights from the most recent communique released on December 14th, 2016. It contains important information about workplace retirement plan payments and contributions, expiring ITIN numbers, and what to do in the case of a move or name change.

Workplace Retirement Plans – Payments

In past years, taxpayers over the age of 70 ½ were required to receive payments from their workplace retirement plans and individual retirement accounts by the end of the calendar year. But this year, thanks to a special rule, taxpayers who reach 70 ½ in 2016 may wait until April 1st 2017 to receive them.

Workplace Retirement Plans – Contributions

The majority of workplace retirement account contributions should already be made for 2016, but taxpayers may make 2016 IRA contributions until April 18th, 2017. The 401(k) limit for 2016 is $18,000. The limit for traditional and Roth IRAs is $6,500 if the taxpayer is 50 years old or older. The limit is $15,500 for taxpayers 50 years old or older with a Simple IRA.

Individual Taxpayer Identification Number (ITIN) Renewal

Effective January 1st 2017, ITINs not used at least once for a tax return in the previous three years will no longer be valid for use on future returns. ITIN numbers with middle digits 78 or 79 also expire on the first day of 2017. Taxpayers with expiring ITINs that need to file a return in 2017 must renew their ITIN. To renew, fill out and mail in form W-7, allowing 7 weeks if sent early and up to 11 weeks if sent during peak filing season. Those who fail to renew their ITIN may be ineligible for various tax credits and may face a delayed refund, so get it filled out and mailed in as soon as possible.

Moves, Marriage, Divorce and Name Changes

If you moved during the year, tell the IRS using Form 8822. Also notify your employer and the US Postal Service to ensure that you receive important tax-related forms. Notify the Social Security Administration (SSA) of any name changes for you or a dependent. When names on SSA records and tax returns don’t match, problems processing your return may occur and you may even receive your refund late.

Need help with tax preparations? Cohen & Burnett can help. For 25 years, we have helped individuals throughout the Washington, D.C. area prepare their federal and state tax returns, including:
• 1040 personal income tax
• 1041 estate or trust income tax return
• 1065 partnership income tax return
• 706 estate tax return
• 709 gift tax return

To speak with a Cohen & Burnett representative, contact us today!

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