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Using the latest technologies, the IRS offers multiple avenues for you to get tax information. If...

  IR-2014-105: Scam Phone Calls Continue; IRS Unveils New Video to Warn Taxpayers.

As incidents of an aggressive telephone scam continue across the country, the Internal Revenue Service unveiled a new YouTube video with a renewed warning to taxpayers not to be fooled by imposters posing as tax agency representatives.

Additional information about tax scams is available on IRS social media sites, including YouTube http://www.youtube.com/user/irsvideos and Tumblr http://internalrevenueservice.tumblr.com, where people can search “scam” to find all the scam-related posts.

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Military Spouses Residency Relief Act: Frequently Asked Questions

If you’re a military spouse, you’re exempt from filing a Virginia income tax return when all four qualifications are met:

The spouse currently resides in a state different than the state of his or her domicile;

The spouse resides in the state solely to live with the service member;

The service member is present in the state in compliance with military orders; and

The spouse and service member are both able to claim the same domicile.

FIND OUT MORE ABOUT  

The Military Spouses Residency Relief Act Today!

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Your Guide to the 2014 Back-to-School Sales Tax Holiday

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Are you ready?

(cue ringing of school bells)

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Ryan, Hanks Film “Ithaca” Coming to Richmond

(Image courtesy of Zimbio.com)

July 7, 2014

Central Virginia is buzzing after the announcement of the new Meg Ryan film “Ithaca” produced by Tom Hanks. Filming is expected to begin in July through August in the Richmond – Petersburg area and will benefit from the Virginia Motion Picture Tax Credit.

Ryan will direct and star in the adaptation of William Saroyan’s novel “the Human Comedy,” a World War II drama set in Ithaca, a small town in San Joaquin Valley, California. The story follows a 14-year-old boy determined to become the region’s fastest telegraph messenger who is caught in the midst of love, tragedy and illusion during his journey. Other talent includes Melanie Griffith, Sam Shepard and Ryan’s son, Jack Quaid.

The Virginia Motion Picture Production Tax Credit was established in 2010 to provide incentives to bring studio productions to the Commonwealth. According to the Virginia Film Office, the $10.8 billion industry continues to be a “growing component of Virginia’s economy,” citing an average 15.7 percent increase in film industry employment following the passing of the legislation.

The tax credit has made Virginia a more desirable location in recent years bringing productions such as AMC’s “TURN” and HBO’s “John Adams” to the Commonwealth generating positive interest and economic impact. In 2012, Steven Spielberg’s film, “Lincoln,” contributed $64.1 million to the Richmond-Petersburg area.

In the Governor’s news release on June 20, Virginia Film Office Director Andy Edmunds noted, “Ithaca supports our mission of bringing jobs to the Commonwealth and expanding our workforce in television and film production.  It will provide exceptional opportunities for our crew and actors, as well as for Virginia businesses that provide goods and services for films.”

Between 2011 and 2013, 11 major film and television productions benefiting from the credit brought $139.1 million to Virginia’s economy generated 1,031 full-time equivalent jobs and $5.2 million in state and local tax revenue. Compared to the $11.8 million in state incentives given to the film industry, every $1 of tax revenue gave $11.80 back to Virginia’s economy. Recent legislation, which went into effect July 1, will increase the cap for tax credits from $5 million per biennium to $6.5 million each fiscal year as an incentive to bring more motion pictures to the Commonwealth and continue growing the economy.

For more information about the Virginia Motion Picture Tax Credit visit the Virginia Department of Taxation and the Virginia Film Office. 

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Tax Law and Other Changes Effective July 1

Here's your handy list of all tax legislation (and more!) that will go into effect July 1. The following bills were passed during the 2014 Virginia General Assembly:

HB 121 requires TAX, upon request by the General Assembly, to disclose the aggregate amount of income tax deductions or credits taken by taxpayers.

HB 99 increases the penalty imposed for the unlawful dissemination or publication of tax information from a Class 2 misdemeanor to a Class 1 misdemeanor.

HB 1085 and SB 288 extend Virginia’s conformity to the federal enhanced Earned Income Tax Credit to taxable years ending before Jan. 1, 2018.  Virginia’s general date of conformity to the Internal Revenue Code was not advanced and remains Jan. 2, 2013.

HB 331 allows an individual to designate a bank account as a tax exempt, first-time home buyer savings account.

HB 480 and SB 515 exempt Interest Charged-Domestic International Sales Corporations from the corporate income tax, the minimum tax on telecommunications companies, and the tax imposed on electric suppliers, pipeline distribution companies, gas utilities, and gas suppliers.

SB 563 increases the annual cap for the Neighborhood Assistance Act Tax Credit to $16 million for FY 2015, and $17 million for FY 2016 and thereafter.

HB 1220 and SB 623 increase the annual cap for the Research and Development Expenses Tax Credit from $5 million to $6 million, and make other changes to that tax credit.

HB 873 reallocates the annual credit cap amounts for the port-related tax credits by increasing the annual cap for the International Trade Facility Tax Credit from $250,000 to $1.25 million, and reducing the annual cap for the Barge and Rail Usage Tax Credit from $1.5 million to $500,000.

HB 460 increases the Motion Picture Production Tax Credit cap from $5 million per biennium to $6.5 million per fiscal year, beginning in FY 2015, and makes other changes to that tax credit.

SB 269 allows taxpayers to claim the Education Improvement Scholarships Tax Credit for the taxable year in which they made monetary or marketable securities donations to qualifying scholarship foundations.

HB 898 and SB 285 provide civil penalties for the possession, transportation, or sale of untaxed tobacco products to intentionally evade the Tobacco Products Tax.

HB 829 and SB 611 prohibit and designate as a Class 1 misdemeanor the use of a device or software to falsify the electronic records of cash registers and other point-of-sale systems, or manipulate transaction records to affect any state or local tax liability.

SB 100 imposes the Retail Sales and Use Tax on separately stated charges for equipment leased or sold by a provider of satellite television programming to a customer. 

Other legislation of interest includes:

HB 810 and SB 65 make shooting a gun recklessly and causing significant, permanent physical impairment to another person a Class 6 felony.

HB 930 reduces the number of standardized tests that students take between kindergarten and eighth grade from 22 to 17.

SB 324 pushes A-F grading for schools back two years.

HB 1211 caps the value of tangible gifts that one entity may give to a state official at $250 per year, requires the disclosure of gifts to immediate family members, requires more frequent disclosures of gifts, and establishes an ethics counsel.  Intangible gifts, such as travel or sports tickets, are not subject to the $250 per year limitation.

SB 260 makes reforms regarding the custody and care of dangerously unstable persons.

HB 975 repeals the $64 hybrid car tax.

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"Where's My Refund?" We've Got You Covered!

Thanks to electronic filing (e-file), taxpayer forms are processed faster and the wait for a refund is shorter. Fact: 99.5 percent of Virginia taxpayers who e-file receive their refund in six days or less. However, the wait can still be a daunting one. You may ask, "Did my returns arrive?" "Are they being processed?" "Have they sent my refund?"

We understand and have a resource to ease those concerns. Virginia is one of 42 states to offer Where's My Refund?, an online solution giving you the inside scoop on your return.

(Yes, we know it's a beautiful thing.)

All you need is: 

Your Social Security Number (SSN)

The tax year of the return you filed

The amount of the refund you are expecting

If you don't have Internet access, we also have an automated phone lookup. Call (804) 367-2486 to check the status of your refund 24 hours a day, 7 days a week.

For more information, view our Where's My Refund FAQs. Lastly, check out this map from Government Technology of states that also offer online refund lookups:

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It's Back!

Virginia's Hurricane Preparedness Sales Tax Holiday is here until Saturday, May 31. Take advantage of savings as you purchase select items to protect you and your family before severe weather knocks on your back door.

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Governor, Cabinet Meet and Greet Staff at Westmoreland Building  Monday, May 19 

Governor Terry McAuliffe and his Cabinet followed a meeting at the Westmoreland building on Monday, May 5, by taking a tour of the facility led by Patti Higgins, the assistant commissioner of tax processing operations.

The members of the new administration shook hands and chatted with several employees as they spent 30 minutes touring 13 areas of the facility, including court debt collections; the mail, print and scan rooms; the warehouse; and data capture.

“He was very impressed with the size and layout of our building and that we had reused most of Capital One’s original furniture,” said Higgins.  “He was very personable and approached several employees and asked what they do at TAX.”

Taxation moved into the building in August 2011. Former tenants include Circuit City and Capital One, which used the building as a call center with 600 employees.

Document Processing Manager Howard Overbey and others also called the Governor very personable.  “He took many opportunities along the way to interact with employees one-on-one,” said Overbey.  “Everyone enjoyed his visit and [they] are still reflecting on his refreshing approach to connecting with people.” 

“The Governor is passionate and spent a good amount of time talking with employees,” said Tax Commissioner Craig Burns.  “He said showed his conviction that he truly cares about state employees.”

The group also stopped by a training class, the returned mail/registration/hotel area, and the Cashiers Office in the front lobby.

During his administration, Governor Bob McDonnell and his Cabinet also visited the Westmoreland building.

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A timely reminder from the Virginia Department of Emergency Management! The Department of Taxation also encourages both shoppers and retailers alike to visit its Sales Tax Holiday Information Center for lists of qualifying items, answers to frequently-asked questions, guidelines, and other information for each sales tax holiday.

Sales Tax Holiday Coming this Month

The Virginia Hurricane Preparedness Sales Tax Holiday is scheduled for May 25-31. The week allows Virginians to purchase certain preparedness supplies such as batteries, radios, bottled water, first aid kits and generators tax free.

To help promote the week, Ready Virginia developed a kit for partners, which includes web banners, fliers, newsletter articles, public service announcements and more.

Learn more at http://www.vaemergency.gov/readyvirginia/stay-informed/hurricanes/sales-tax-holiday