Did you know you could purchase Savings Bonds with your Tax Refund?
The option to purchase savings bonds via tax refund, for yourself or another person became available in 2010.
This is a great gift to your children, grandchildren, nieces or nephews. The bonds will be mailed to your address with the beneficiary’s name on the bond.
Do I have to use all of my refund to purchase bonds?
- You can use all or part of your tax refund to purchase I bonds.
- Your request for bonds must be in increments of $50.
- Any remaining refund amount not used to purchase bonds will be mailed to you as a paper check or you may elect to have the remaining amount directly deposited into a checking or savings account.
Can I buy savings bonds for a child, grandchild or someone else using this tax refund method?
- Yes. You can use your refund to buy savings bonds and designate ownership or co-ownership for someone else, such as a child, grandchild or anyone, or elect a beneficiary using form 8888.
Benefits of Savings Bond (read in link): https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm
Calculate the Value of Savings Bonds (select link): https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm
If you are a client and interested in purchasing Savings Bonds this upcoming tax season, let us know or contact our office at 508.203.1676.
When selecting a licensed professional to handle your tax filings and issues, make sure their area of focus has or is in taxation.
Larry bird’s business partner, Christopher Cooke, learned this lesson the hard way.
When attempting to take deductions for a property used as a Bed & Breakfast, his response, upon examination, to the Tax Court was that he relied on the advice of his CPA. The Tax Court determined that his deductions would be disallowed and subject to accuracy related penalties.
“[Mr. Cooke] offered no evidence of the CPA’s competence as a tax professional or that he provided the CPA with all the necessary and accurate information required to provide proper advice. Thus, the Tax Court found that he was liable for the penalties.” – Howard, Beth. “Deductions Disallowed for Operator of Larry Bird’s Former House as a B&B.” Tax Matters, Journal of Accountancy, 1 Aug. 2017, www.journalofaccountancy.com/issues/2017/aug/operating-deductions-disallowed-larry-bird-former-house.
When seeking advice, ensure you are dealing with a licensed tax professional.
Can I set up a payment arrangement? How do I pay my entire balance due? What if I do not have the money right now?
There are many options available to settle your balance with the IRS. Ignoring a balance due or letters from the IRS regarding payment will not make them go away. Not making arrangements to satisfy balance due may result in your account going into collections, resulting in levy or liens of your assets, your wages or your bank accounts.
Select here to see various payment options.
If you find you are unable to pay your entire balance in one payment, you may be eligible for a monthly payment arrangement. You must apply and pay a processing fee when requesting an ‘installment agreement’. Fees vary depending on installment options. Select here to apply.
What if I need to revise my previous agreement?
Occasionally, you may find it difficult to maintain your installment agreement and need to seek other payment alternatives. Select here to review options available.
If you are experiencing a financial hardship and unable to pay the IRS, a hold on your account may be an option. Select here, for options of how to place your account in a ‘currently not collectible’ status until your financial circumstances improve.