Filing taxes often brings to mind mountains of paperwork and maybe a little stress. But in recent years, paperwork requirements have been reduced as the IRS has continued to broaden its online services.

The electronic process for filing with the IRS — e-file — now allows taxpayers to submit yearly tax forms without ever printing a page. Electronic filing also allows the IRS to receive information more accurately and to match your information with records from your bank, mutual fund companies, mortgage lenders, employers and other entities that send you tax documents.

Because of this matching process, First Command Tax Services has seen a marked increase in the number of IRS Notices sent to clients.
The most common IRS Notice is a CP2000, which is a proposed adjustment to your tax return, usually due to a mismatch between your tax forms and tax information provided by other entities.

If you receive an IRS Notice, don’t panic. These notices are common and usually include a request for missing or additional information. A notice may indicate that you owe more to the IRS, but these notices may be based on inaccurate information. You may owe nothing more, and it is possible you could be owed a refund.

First Command Tax Services recommends contacting your First Command Advisor and requesting that your advisor forward the notice to Tax Services for a free review. This service can help determine what exactly the IRS is requesting and what you need to do to respond.

 

Staying The Course

Incidents of identity theft are growing at an alarming rate. Spamming, phishing, spoofing, wallet theft and dumpster diving are all on the rise. Victims may face financial loss, credit report damage and a rollercoaster of emotions.

First Command Bank is responding to this alarming trend with a new set of tools designed to help customers avoid potential losses in finances, credit worthiness and time. Called ID Protection Service™, the new program proactively monitors credit files, sends e-mail alerts and provides comprehensive credit restoration services and insurance.

“Identity theft is an insidious crime that can happen quickly and subtly,” said David White, president of First Command Bank. “By the time most victims are aware they’ve been targeted, the damage has been done. Our new ID Protection Service™ is designed to help stop thieves early and minimize losses.”

First Command Bank’s ID Protection Service™ features:

• Constant monitoring of credit files as recorded by credit reporting agencies.
• E-mail alerts of changes to credit files.
• Online access to all alerts generated by ID Protection Service™.
• Ability to request copies of credit reports with credit score.
• Identity theft insurance coverage providing up to $25,000 of reimbursement expense with no deductible.
• Comprehensive identity theft resolution services.

Prices start at $4.99 per month and compare favorably to similar services from other providers. Help protect yourself from identity theft. Sign up for ID Protection Service™ today at www.firstcommandbank.com.

If the deadline listed on your notice does not provide enough time to properly respond or get assistance, you or your tax advisor can request an extension. Tax Services usually requests a 60-day extension in these cases, and has rarely been turned down. You can contact Tax Services for a letter template to request an extension. The earlier, the better, as the IRS may reject your request if it is on or near the deadline date.

So, who exactly is receiving these notices? Any taxpayer may receive a notice, but the IRS is taking a closer look at taxpayers who have reported an IRA rollover on their tax returns. This is not a rollover or transfer from one fund company to another, but rather a rollover in which the taxpayer has received a check from a fund company and has 60 days to roll it into a new IRA.

Remember, if you receive an IRS Notice, don’t panic. Contact your First Command Advisor about getting a free review of your notice from First Command Tax Services, and if needed, request an extension so you can properly respond.

For more information, talk to your First Command Financial Advisor or contact First Command Tax Services at (877) 356-0399 option 5 or taxservices@firstcommand.com.

First Command Tax Services is the exclusive tax preparation services of First Command Financial Planning, Inc. (Member SIPC, FINRA). This article is provided for information purposes only and should not be considered tax or legal advice. Should you require tax guidance specific to your situation, please contact a tax or legal professional.