IRS Feed

Feeling generous? Good. It's Giving Tuesday. This philanthropic effort, usually seen as #GivingTuesday on social media, began in 2012 as a counter to the frantic shopping on Black Friday, Small Business Saturday and Cyber Monday. Giving Tuesday's goal is to fight the commercialization and consumerism of Christmas and other end-of-year holidays. Instead of buying more goods for family, friends or yourself, Giving Tuesday organizers urge gifts to nonprofits. Such donations, the Internal Revenue Service reminds us, could produce a gift for you — a tax deduction — when you file your annual tax return next year. As noted in a... Read more →


Today is Cyber Monday, the first post-Thanksgiving weekday when millions of shoppers go online seeking holiday bargains. It's also the start of National Tax Security Awareness Week. For the next five days, the Internal Revenue Service will focus on ways to protect tax and financial data during this hectic holiday season. Each day this week, the IRS and its Security Summit partners in state tax offices and the tax industry will focus on one issue that poses a threat to individuals and businesses. In addition to highlighting the issues, these groups will offer steps we can take to protect ourselves... Read more →


It's going to be a mixed Thanksgiving in Internal Revenue Service households. The agency definitely won't be thankful for the Senate funding bill released on Nov. 20. That Financial Services & General Government Appropriations measure proposes the IRS get $11.1 billion in fiscal year 2018. That's $149 million less than it received for the 2017 fiscal year. However, the IRS can be grateful that the funding is close to the $11.235 billion that then IRS Commissioner John Koskinen said the agency needs to maintain its current performance levels. And it's $111 million more than what Donald J. Trump's budget recommended... Read more →


John Koskinen's days of giving formal testimony as head of the IRS ended when his commissioner term concluded earlier this month. However, an interview he gave the week after leaving the tax agency post has raised questions about Donald Trump's tax returns and taxpayer privacy. Remember Donald J. Trump's tax returns? Those he said during the campaign that he'd share with America as soon as the IRS completed its audit of them? Well, we still don't know if the IRS has finished examining those prior year filings, but apparently Trump did sometime this year file his 2016 taxes. The Administration... Read more →


IRS Commissioner John Koskinen makes a point during a Congressional hearing. John Koskinen did it! He survived his term as Internal Revenue Service Commissioner. Today is the last day for the tax agency's 48th commissioner. Officially, his term expires on Sunday, Nov. 12. Since Friday, Nov. 10, is the federal Veterans Day holiday, today is the last day Koskinen will come into his office in downtown Washington, D.C. It was not an easy four years. Fighting to keep the job: Koskinen came to the job in December 2013 while it was in the midst of the politically charges and polarizing... Read more →


Nov. 18 is the last day this year that the Internal Revenue Service will accept electronically filed tax returns. Wait, you say. Didn't the final deadline for sending in 2016 returns come and go on Oct. 16? You are correct, tax savvy calendar watchers. But folks who were granted an extension to file until Jan. 31, 2018, might be able to take advantage of the extended e-file option. Disaster-related added time: The Jan. 31 deadline applies to millions of taxpayers who live in what this year was declared a federal disaster area and who got a six-month extension to file... Read more →


The Internal Revenue Service's 2018 filing season calendar isn't quite this messy, but it's not firmed up yet. The House Ways and Means Committee today started marking up, otherwise known as tweaking, the Republican-driven tax reform bill. Early word is that many provisions you may have read about will change. C'est la legislative process. Meanwhile, since most of the new tax laws won't take effect until Jan. 1, we can focus on our 2017 returns that will be filed under the existing tax laws. Most of us are breathing a sigh of relief that the tax moves we've made so... Read more →


After four and a half years, the Internal Revenue Service Tea Party targeting scandal has been resolved. On Thursday, Oct. 26, the Justice Department announced that it has entered into proposed settlements with the two major challenges by conservative groups against the IRS. Substantial payments to plaintiffs: While the Justice Department did not discuss deal specifics, the Wall Street Journal reported that the payouts to plaintiffs in the Linchpins of Liberty and Norcal Tea Party Patriots cases could be between $1 million and $10 million. The conservative groups who joined the lawsuits had alleged in 2013 that their applications for... Read more →


Welcome to Part 7 of the ol' blog's series on 2018 inflation adjustments. Today we look at changes to the Alternative Minimum Tax exemption amounts and next year's Social Security wage base. You can find links to all 2018 inflation posts in the first item: Income Tax Brackets and Rates. Note: The 2018 figures apply to 2018 tax returns that are due in 2019. For comparison purposes, you'll also find 2017 amounts to be used in filing 2017 tax returns due next April. When you're hit by the AMT, or Alternative Minimum Tax, you might be tempted to rearrange the... Read more →


Where the heck has 2017 gone? The countdown clock over in the ol' blog's right column is steadily ticking away the time left until Dec. 31, the deadline for most moves that could affect this year's taxes. The Internal Revenue Service, however, has its eyes on November, which is just little more than a week away. The start of that 11th month effectively is the cutoff date for the federal tax agency to get ready for the next year's filing season. If the IRS can't get some certainty as to how to update forms, instructions and operational processes, the start... Read more →


Welcome to Part 2 of the ol' blog's 2018 series on tax inflation adjustments. We started on Oct. 19 with a look at next year's — if there isn't tax reform or cuts by or before then — income tax brackets and rates. Today we look at standard and itemized deductions, personal exemptions and limitations on these tax situations that apply to some wealthier taxpayers. Note: The 2018 figures apply to 2018 returns that are due in 2019. For comparison purposes, you'll also find 2017 amounts to be used in filing 2017 returns due next April. Standard deduction amounts edge... Read more →


This is the first in a 10-part series on the 2018 tax year inflation adjustments. Links to the other posts are at this end of this article. The White House and Congressional Republicans are still hoping to get some tax changes finalized by the end of the year. The IRS, however, isn't waiting on Capitol Hill. The Internal Revenue Service on Thursday, Oct. 19, released its annual compilation of tax provisions that are affected by inflation. It also issued next year's retirement plan contribution changes. The upshot is that most amounts will increase in 2018. Numbers, we've got lots o'... Read more →


Image by Shawn Campbell via Flickr Creative Commons What's going on with the Affordable Care Act (ACA)? It depends on where you're looking for answers. Federal lawmakers remain in a quandary over how to deal with the ACA, or as it's known (for now) Obamacare. The Internal Revenue Service, however, made it clear this week that it plans to follow the health care law's reporting requirements as long as they are officially on the books. That's a reversal of a prior IRS position. However, given the confusion with the law, both under its namesake president and since Donald J. Trump... Read more →


Aerial view on Oct. 9 of a damaged home in the mountainous area of Barranquitas, Puerto Rico. After Hurricane Maria, many homes, businesses, roads and bridges suffered major damages due to strong winds and heavy rain. (Photo by Andrea Booher, FEMA) To borrow from James Taylor's plaintive classic, the Internal Revenue Service has seen fire and rain and is making tax accommodations for Americans having to deal with those disastrous aftermaths. Hurricane Maria made landfall in Puerto Rico on Sept. 20, pummeling the U.S. territory with category 5 force. Three weeks later, many of the island's 3.4 million residents are... Read more →


If Halloween isn't scary enough for you, this October also has a Friday the 13th, which if you haven't looked at a calendar yet, is today. It's a terrible day if you're superstitious or suffer from paraskevidekatriaphobia. And making things even more frightening, the Internal Revenue Service has some terrifying news about tax scams. This week alone, the IRS has issued two warnings about tax-related identity theft schemes. First was the phishing attempt to hook tax pros by using the agency's e-Services as bait. Now there's a fake insurance tax form scam that's being used to access annuity and life... Read more →


Tax identity thieves apparently are paying close attention to official security moves that the Internal Revenue Service is making and using that information to create new schemes. The latest effort by crooks to steal taxpayer personal data comes in the form of a new phishing scam designed to steal tax professionals' passwords and data. e-Services is hook for latest ID theft effort: In an email alert sent this (Oct. 11) afternoon to tax pros, the IRS warned that this latest scheme tries to trick them into signing a new e-Services user agreement. The phishing email claims to be from "e-Services... Read more →


Based on Internal Revenue Service tax return filing data, it looks like around 7 million Americans have yet to submit their 2016 forms. They need to get busy. (Yes, I get to say they, not we, this year since I filed my 1040 this summer.) The absolute, final due date is less than a week away. The six-month filing extension typically kicks the extended deadline to Oct. 15. But since that's on a Sunday this year, the IRS is giving extreme procrastinators until Monday, Oct. 16. So that you don't waste any of these last few days you have to... Read more →


A proposal to limit certain business estate valuation discounts is outta here under the Treasury's finalized list of eight tax regulations it wants to eliminate or substantially revise. Remember back in July when the U.S. Treasury announced eight tax regulations it said were burdensome and needed to be changed or axed? Treasury Secretary Steven Mnuchin and his staff have now finalized what they want to do with these eight rules. Three would be tossed out, including one that many say hurt family-owned and operated businesses. Two would be partially revoked. The final three would be substantially revised. "This is only... Read more →


UPDATE, Oct. 13, 2017: Public and Congressional pressure, which included Sen. Sherrod Brown's (D-Ohio) letter to the Treasury Department urging it to review and potentially bar Equifax from consideration in any new or renewed government contracts, has paid off for opponents of the credit reporting bureau deal. The IRS announced, per an Oct. 12 report by Politico, that it has temporarily suspended the $7.25 million, no-bid contract it awarded to Equifax to verify the identities of taxpayers when they create accounts on the tax agency's website. Driver's license data was among the personal info that identity thieves obtained in the... Read more →


Former Equifax CEO Richard Smith is grilled Oct. 3 about the credit company's security breach by members of the House Energy and Commerce Committee. (Click image to watch full hearing on YouTube) Human error, specifically one human's error, is why 145 million of us are worrying about what crooks will do with the data that was stolen earlier this year in a data breach of Equifax. Richard Smith, the credit reporting bureau's former CEO, in testimony before House Energy and Commerce Committee today blamed the initial failure to patch a known security risk on a specific individual. He did not... Read more →