IRS Feed

Working on your taxes this Presidents Day? You are most definitely not alone. The day following what officially is still just a celebration of Washington's Birthday is typically the busiest day of the year for Internal Revenue Service phone reps. They usually field thousands of calls per hour on the third Tuesday of every February. You can find lots of tax help and filing options on your computer and smartphone. To help ease some of tomorrow's expected call crunch, the IRS phone help line is open today, Monday, Feb. 20, even though it's a federal holiday. IRS representatives will be... Read more →


Today is a big day for you if you're expecting a federal tax refund. Feb. 15 is when the Internal Revenue Service can finally start issuing refunds to folks who claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). Photo by eFile989 via Flickr But don't head to your bank just yet. Cleared, but not completed: The refund hold, mandated by the Protecting Americans from Tax Hikes, or PATH, Act as, in part, a way to help stop tax identity theft and refund fraud, does officially end today. But from the get-go of this filing... Read more →


One thing that's constant every tax filing season is that people who are expecting refunds file their returns early. Until this year. The number of tax returns filed, processed and refunds issued are all down dramatically this filing season. The impact of a required hold on some refunds also is affecting the average check amount, which at this point last year was $3,385 but is just $1,994 so far into 2017. Internal Revenue Service data so far this filing season, which officially started Jan. 23, shows a dramatic decrease in the number of tax returns the agency has received and... Read more →


It's Groundhog Day and for many folks that brings to mind the Bill Murray movie of the same name more than the Pennsylvania rodent who purportedly can forecast weather. Bill Murray as weatherman Phil Connors in the 1993 film "Groundhog Day." (Photo courtesy Columbia Pictures) In case you haven't seen it, in the 1993 Harold Ramis movie Murray is a television weatherman who, after being dispatched to Punxsutawney, Pennsylvania, on Feb. 2 to cover groundhog Punxsutawney Phil's emergence from his burrow, finds himself living the same day over and over and over again. Murray's character Phil (we see what you... Read more →


Hello February. Although you're the year's shortest month, your fewer days can be full of extremes, like snow this week in the Midwest and Northeast and weather warm enough here in Central Texas for us to turn off the furnace and open windows. Image courtesy Tammy King's February Pinterest Board February's changes can be dramatic. But there's no need to over-react to your taxes this month. There are lots of easy moves you can make over the next 28 days. Collect your tax statements: Filing data on a variety of forms is filtering in this month. If you work for... Read more →


The 2017 tax filing season has been officially underway for just more than a week. Lots of folks have already filed their returns. The Ally Bank fortune cookie I got at FinCon16 last September was already planning for this filing season. And yes, after acknowledging the good tax advice, I ate the cookie! And, according to ecstatic posts on social media, some have received their refunds. Other taxpayers, however, are waiting to file. Form-ulaic delay: Why the delay. In a lot of cases, folks haven't yet received their W-2s, 1099s and other documents with the data necessary to fill out... Read more →


Remember that tax scam last spring where crooks posing as company executives sent emails asking for workers' payroll data? It was the one that fooled lots of folks, including a Milwaukee Bucks employee who thought that the message really did come from the NBA franchise's president. That chagrined Bucks' staffer sent the phishing crook 2015 tax year data on the team's employees, including his rank-and-file colleagues and highly-paid professional basketball players. Well, that tax scam is back. Email spoofs company CEO: The Internal Revenue Service says the email scam is now making its way across the nation for a second... Read more →


Every year, the Internal Revenue Service makes a concerted effort to hand out more Earned Income Tax Credit (EITC) money. The reason, says the tax agency, is that around 20 percent of eligible filers consistently fail to file for this refundable tax credit. But what about those who do claim the EITC? The IRS says that nationwide last year, 27 million U.S. workers and their families got $67 billion thanks to this tax credit for lower- and middle-income workers. Where EITC money goes: Not surprisingly, the most populated states account for the most EITC claims and actual dollars returned to... Read more →


The Earned Income Tax Credit, or EITC, is one of the filing claims that is delaying federal (and in some cases, state) tax refunds this year. But even if you have to wait a few extra weeks to get your refund from Uncle Sam (or your state tax office), filing for the EITC is usually worth it. It's worth more than $6,000 for some filers. And all or some of that money could be as a tax refund. Why credits rule: Like all tax credits, the EITC is a dollar-for-dollar offset of any tax you owe. Let's say your tax... Read more →


As the Internal Revenue Service began accepting tax returns this week, the agency's commissioner noted that "the dedicated employees of the IRS look forward to serving taxpayers this filing season." IRS Commissioner John Koskinen's staff, however, apparently is not going to be as large this year as he had planned. Some federal job seekers got an icy reception after President Donald Trump instituted a federal hiring freeze this week. (Icy branch photo by J. Carmichael via Wikimedia Commons) On Jan. 23, the same day that the 2017 tax filing season officially began, President Donald Trump instituted an immediate hiring freeze... Read more →


Do you have to file a return? Don't shoot the messenger, but the answer usually is yes. If you are a U.S. citizen or resident who made money last year, whether you must tell the Internal Revenue Service about it depends on three things: Your gross income, Your filing status, and Your age. The IRS created the table below to give you an idea of whether you should start getting your filing material together. A quick filing note for some older New Year's Day babies. The IRS says that if you were born on Jan. 1, 1952, you are considered... Read more →


Tax filing season 2017 opens today! Yes, that is cheering you're hearing. It's from folks who file their taxes early, usually because they are getting refunds. They also are fortunate that they have all the materials they need to fill out their returns. The key document for most taxpayers is their W-2 form. Employers aren't required to get these out until the end of the month, but some companies are quite efficient. And some taxpayers this year are going to discover something new on their W-2s. Verification code addition: Around 50 million of these officially named Wage and Income Statements... Read more →


Free File 2017 has been open for a week. Have you tried it out yet? The partnership between Uncle Sam and the private tax software industry has been around since 2003. This year, a dozen companies are offering their services to eligible taxpayers. The Internal Revenue Service and the Free File Alliance say these participating software manufactures should meet the filing needs of 70 percent of the around 153,000 million taxpayers expected to send in 2016 returns this year. Does free tax preparation and e-filing appeal to you? Check it out. But first check out these five things you should... Read more →


Rep. Mick Mulvaney is going to have to answer some nanny tax questions if he hopes to become President-elect Donald Trump's budget director. Rep. Mick Mulvaney speaks to some of his South Carolina constituents on last September's Constitution Day. (Photo by Erik B. Corcoran via Twitter) The South Carolina Republican was elected to Congress in 2010 as part of the midterm Tea Party wave. Since then, the man whom some have called a debt warrior has been a major player in the conservative Freedom Caucus and has focused on ways to cut federal spending. He probably should have focused on... Read more →


It's been 10 years since the Internal Revenue Service Whistleblower Office was created to reward those who turn in tax cheats. It's been a pretty good decade. In particular, notable advances were made last year, according to the Whistleblower Office's fiscal year 2016 annual report. More rewards, less money: The Whistleblower Office awarded more than $61 million to 418 whistleblowers in the last fiscal year. That's a 322 percent increase from fiscal 2015, in which only 99 total awards were paid. The number of whistleblower claims filed last fiscal year also was up 6.4 percent from those submitted the prior... Read more →


Millions of taxpayers prepare their own returns using tax software. Even the Internal Revenue Service encourages this do-it-yourself approach with Free File. So it's no surprise that many tax professionals are looking at ways to retain and add to their client base. Unfortunately, crooks know this, too, and are taking advantage with a new phishing scam in which they target accounting and tax preparation firms and pose as potential clients. Instead of looking for help in completing their returns, the cybercrooks are trying to gather sensitive information from tax professionals that the criminals then will use to file fraudulent tax... Read more →


Tax filing season is about to start. Most tax returns -- almost 90 percent, according to the Internal Revenue Service -- are filled out using tax preparation software. A tax preparer helps a client file her taxes. (U.S. Army photo) But most of those electronically prepared 1040s actually were completed by tax professionals. No kidding. Of the almost 132 million e-filed returns last year, around 60 percent were filed by tax professionals. DIY vs. professionally prepared taxes: Yes, the do-it-yourself e-filing segment is growing. IRS statistics from 2016 show that the self-prepared segment of e-filers increased by more than 5... Read more →


Tax season is here. You know what that means. Tax scams are here in full force. Even before the official 2017 filing season started, the Internal Revenue Service warned tax professionals to be on the lookout (sorry, I know that the BOLO phrase is a touchy one when it comes to the IRS) for yet another tax scam. This one, according to the IRS and its Security Summit partners, is a new e-mail phishing scheme aimed at tax pros that has the subject line "Mails on Hold!" It comes just two months after the crooks tried to get tax preparer... Read more →


The first Friday the 13th of 2017 is lucky for some taxpayers. That's the day that Free File once again opens, allowing eligible folks to electronically prepare and file their 2016 tax returns. The Internal Revenue Service hasn't yet issued an official announcement about Free File 2017, but if you peruse the IRS web site (c'mon, I know I'm not the only one doing this!) you'll find the agency has updated its Free File page, a screenshot excerpt of which is shown above. UPDATE: It's official! The IRS says you can now access Free File by going to IRS.gov and... Read more →


There weren't any major tax bills in 2016. That's going to change in some form in 2017 now that the Republicans control Congress and the White House. via GIPHY But there still were plenty of tax-related matters that got attention last year. Below is my list of top 10 tax stories of 2016, starting with the one I saw as most important. And as a bonus, I also pulled out my slightly cracked crystal ball -- really, who saw the presidential election turning out like it did? -- to forecast five tax issues that we're likely to see in 2017.... Read more →