IRS launches new tax refund smartphone app

Listen up smart phone users. The Internal Revenue Service (IRS) unveiled a new iPhone application called IRS2Go that lets anxious consumers check on the status of their tax refund. Also, taxpayers can enter their e-mail address to receive daily advice directly from the IRS.

"This new smart phone app reflects our commitment to modernizing the agency and engaging taxpayers where they want when they want it," says IRS Commissioner Doug Shulman. "As technology evolves and younger taxpayers get their information in new ways, we will keep innovating to make it easy for all taxpayers to access helpful information."

Apple users can download the free IRS2Go application at the Apple App Store; Android users can go to the Android Marketplace.

"This phone app is a first step for us," Shulman adds. "We will look for additional ways to expand and refine our use of smart phones and other new technologies to help meet the needs of taxpayers."

The mobile app, among a handful in the federal government, offers a number of safe and secure ways to help taxpayers. Features include real-time updates on their refund status, which will work within about 72 hours after filing electronically, compared to four weeks using snail mail. Also, the IRS will send out daily tax tips through the app and offer additional news via their Twitter feed at @IRSnews.

Click here for the lowdown.

Treasury offering refunds via prepaid debit cards

Looking for a viable alternative to “refund anticipation loans” from tax preparers like H&R Block and Jackson Hewlitt?

The U.S. Department of the Treasury plans to test a new prepaid debit solution called MyAccountCard for the 2010 tax season. The cards will be available to a select group of about 600,000 taxpayers. And, according to a release, the pilot will be a convenient and low-cost financial account for the electronic delivery of their federal tax refunds.

“This pilot program will provide low- and moderate-income Americans with a low-cost option for faster delivery of their federal tax refund,” says Deputy Secretary of the Treasury Neal Wolin. “This innovative card can be used for everyday financial transactions, such as receiving wages by direct deposit, withdrawing cash, making purchases, paying bills and building savings safely and conveniently, giving users more control over their financial futures.”

The caveat? There will be a monthly fee for having the card, ranging from free to $4.95. As previously reported, the additional costs can nickel and dime consumers with larger-than-usual ATM withdrawal and customer service fees as well as penalties for exceeding the prepaid balance.

Click here for the lowdown.

White House serves up online tax-savings tool

Looking for last-minute advice in the days leading up to April 15? Financial consultants at the White House have unveiled an online tax-savings tool in order to help taxpayers be aware of credits made available by the Recovery Act.

A direct response to the economic crisis, the American Recovery and Reinvestment Act of 2009 has caused the average income tax refund to increase more than $260, according to IRS data. This year, data is showing people taking advantage of the tax savings caused by the Recovery Act. Through March 12, 2010, the average refund is $3,036, up $226 from last year, according to an article on WebCPA.com.

Vice President Joe Biden says, “The big guys know all the credits and deductions to claim during tax season, but we want middle-class families to know just how much is out there for them this year thanks to the Recovery Act and how to take advantage of it,” Biden continues, “From help with college expenses to credits for cost-saving, energy-efficiency home improvements, these Recovery Act tax credits not only provide some needed relief for working Americans, but also help them invest in their families’ futures.”

As of March 22, 2010, data shows that less than half have filed their income taxes. If this is you, there is still time to take advantage of the Recovery Act. President Obama will be hosting a series of events across the nation to inform Americans of the act.

Want to check it out? Simply go to www.WhiteHouse.gov/Recovery, and answer a questionnaire. Questions asked include salary range, filing status, college expenses and recent home purchases.