IRS Taking New Steps to Improve Questionable Refund Program

The Internal Revenue Service (IRS) announced today that new steps, including the notification of taxpayers when refunds are frozen and the more timely release of frozen refunds not warranting further review, have been undertaken to improve the Questionable Refund Program (QRP) and reduce the number of taxpayers subject to frozen refunds.


Advertisement


Easy & Profitable Client Payroll with PayCycle

Now is a great time to get clients set up for payroll. We’d like to invite you to a FREE 60-minute web seminar sponsored by PayCycle, the leader in on-demand payroll. During this informative session, you’ll discover how to:

  1. Automate payroll tasks from paychecks to W-2’s
  2. Save time with electronic tax payments and filings
  3. Increase year-round firm profitability without adding staff or infrastructure

Come see for yourself how easy and profitable payroll can be - CLICK HERE TO REGISTER Hurry! Spaces are limited and the sessions fill up quickly.

All PayCycle webinar attendees will receive 1 month free on PayCycle’s service. After the free period, PayCycle costs just $14.99 per client per month for the first 5 employees. Each additional employee is just $0.25 per month. This low monthly fee includes everything you need to process payroll, including a firm-branded website for clients, direct deposit, electronic tax payments and filings, seamless integration with QuickBooks, ATX, CCH and other leading accounting software, free customer support with payroll experts, customized marketing resources to solicit your payroll service to clients, and much more.

Learn More Register for a Web Seminar Sign Up Now


“The actions we’re announcing constitute significant improvements to an important program,” IRS Commissioner Mark Everson said in a prepared statement. “Going forward, we’re going to both improve our screening procedures and notify all taxpayers whose refunds are held. As Senate Finance Chairman Grassley stated when asking us to look at reforms for QRP, the IRS needs to respect the ‘necessary balance between taxpayer rights and enforcement of the law.’ We believe this approach strikes the right balance.”

The QRP, which was established to deal with the serious problem of refund fraud and increased significantly in recent years, has come under fire, not only from the Senate, but from the IRS’ own taxpayer advocate, Nina Olson. In fact, it was ranked second on the list of worst taxpayer problems presented last month in Olson’s annual report to Congress. The new procedures have been developed in consultation with the National Taxpayer Advocate.

Among the steps being taken to improve the program are:

  • Taxpayer Notification Beginning this filing season, the IRS will notify taxpayers whose refunds are frozen.
  • Improvements to screening procedures The IRS will improve and refine the accuracy of filters in the program, as soon as possible in coming months, to reduce the initial number of valid refund claims that are frozen.
  • Earlier release of refunds In coming months the IRS will expedite the review of returns, resulting in an earlier release of refunds.

You may like these other stories...

As anyone who's ever been through a divorce can attest, the pain of parting with your spouse isn't just emotional—the fallout from divorce can wreak financial havoc as well long after the dust in the courtroom...
Former DOJ Tax Division head Kathryn Keneally joining DLA Piper in New YorkGlobal law firm DLA Piper announced on Thursday that Kathryn Keneally, the former head of the US Justice Department Tax Division, is joining the firm...
OECD calls for coordinated fight against corporate tax avoidanceDavid Jolly of the New York Times reported that dozens of countries with the most advanced economies have agreed on principles for concrete action to prevent...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.