IRS Feed

At midnight on Donald J. Trump's 99th day in the Oval Office, the federal government could shut down. That would be a public relations disaster for the 45th president, who's struggling to show that he and his administration can get things done as he promised in his 100-day contract with voters. "Saw this at my school's accounting career fair," wrote LittleNuclearReactor in a Reddit post during the last government shutdown Oct. 1-16, 2013. But it could be a bigger disaster for folks waiting on their federal tax refunds. Millions left waiting for tax cash: The Center for American Progress (CAP)... Read more →


Is that really the Internal Revenue Service knock, knock, knocking on your door? That's a concern shared not just by individuals who find people claiming to be with the federal tax collector's office, but also the IRS itself. "Many taxpayers have encountered individuals impersonating IRS officials – in person, over the telephone and via email," noted the IRS in a statement issued this week. In-person tax scams: While email phishing attempts and the still pervasive fake IRS agent telephone tax scam are still going strong — and could even see a surge as the cons are tweaked to incorporate the... Read more →


You've got until midnight your time to get your 2016 tax return to the Internal Revenue Service, either by hitting "send" on your computer or getting your paper form to a Post Office where it can be postmarked today. Or, if it becomes clear that you're just not going to finish that 1040, and the IRS expect around 13 million of us to arrive at that realization sometime today, it's then time to turn to another IRS form: the 4868. Form 4868, otherwise known as the procrastinating taxpayer's best friend, will get you six more months to complete your tax... Read more →


If you've waited until now to finish your taxes (or are going to delay until the very last minute on April 18), then your best filing, and paying if you owe, bet is to go electronic. As the Internal Revenue Service has been saying for years, filing and paying your taxes is easier and more accurate than going the old fashioned paper route. In case you haven't made your e-filing and, if needed, e-payment choices yet, here are your options. E-filing choices: Tax e-filing actually covers two things, using software to prepare your 1040 and associated schedules and forms and... Read more →


People who live in storm ravaged areas of Georgia, Louisiana and Mississippi have enough to worry about, so the Internal Revenue Service says they don't have to worry about filing their taxes next Tuesday. Neither do U.S. military personnel who are in combat zones. A Federal Emergency Management Agency (FEMA) worker assesses damage in Georgia from late January 2017 storms and tornadoes. (Photo courtesy FEMA Facebook) Major natural disaster victims: Taxpayers in several areas deemed major disasters — the IRS keeps a running list of tax-affected disaster areas —qualify for more time to file their tax returns and pay any... Read more →


No maybe about it. Taxpayers will be calling the Internal Revenue Service this weekend as the April 18 tax return filing deadline looms. Taxpayers will be taking Carly Rae Jepsen's advice and calling the IRS in a filing season last-minute rush to complete their returns. Click image to watch her song's video. Or you can check out IRS videos for tax help. The first two weeks of April usually are the busiest times of the year for IRS employees who staff the agency's toll-free telephone help lines. And since this is an unusually slow filing season — the IRS reports... Read more →


Indian police on Saturday, April 8, arrested the man they believe is the mastermind behind what has been called the most pervasive U.S. tax scam ever. But although he's in custody, his alleged criminal legacy continues. On Monday, April 10, the Internal Revenue Service issued yet another warning about phone scams and email phishing schemes. International arrest: Sagar "Shaggy" Thakkar was arrested at the Mumbai airport as he re-entered India this past weekend, according to various international reports. Indian law enforcement say Thakkar, who allegedly started scam call facilities in Mumbai and Ahmedabad, had fled the country and traveled to... Read more →


Most of us — Internal Revenue Service data shows around 70 percent of taxpayers — don't mess with itemized deductions. Instead this large group of filers claims the standard deduction. It's easy. The amount to claim is based on your filing status and found directly on the 1040 and 1040A forms; it's included with the personal exemption amount(s) on 1040EZ. It's also adjusted annually for inflation, so generally if you make more the next tax year, your standard deduction is larger. But sometimes standard deduction claimants feel a bit left out at tax time, since so much is written (guilty!)... Read more →


You know there's Free File, but you'd really feel more comfortable getting some face-to-face help filling out your taxes. The problem is you don't have a lot of money to pay for accredited tax assistance. Good news. You might qualify for free, in-person tax help. Free tax-preparation and filing help, like that shown here at a Rutherford Country, Tennessee, VITA office, is available at thousands of sites across the country. No-cost tax return preparation and e-filing is available at nearly 12,000 Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites across the United States. These filing-season... Read more →


One of the biggest taxpayer fears is being audited. Realistically, unless you're aggressively pushing the tax envelope, it's not something that should keep you up at night. That's not just my assessment. It's borne out by Internal Revenue Service data, which shows that the individual tax return audit rate in 2016 was just 0.06 percent. That's the fifth straight year audits (or examinations, as the IRS calls them) have dropped and the number of returns examined last year was the fewest since 2004. A key reason that audits have fallen is because the IRS is understaffed in this area. (More... Read more →


It was supposed to be the annual Capitol Hill review of how the current tax filing season is going. It was supposed to be a time for the Internal Revenue Service to shine since, as the IRS commissioner said during a public speech yesterday, it's been the smoothest filing season since he took the top job in December 2013. It wasn't. During a Senate Finance hearing today, IRS Commissioner John Koskinen revealed more details of security breach connected to federal student aid applications that require inclusion of tax data. Student loan tax data security concerns: While 2017 filing season specifics... Read more →


Tax filing must keep evolving. That's the word from Internal Revenue Service Commissioner John Koskinen, who today made his fourth and final appearance as head of the U.S. tax agency before the National Press Club. IRS Commissioner John Koskinen holds a paper Form 1040 during his speech to the National Press Club in Washington, D.C. Each event attendee got a souvenir form, complete with a personal "thanks for filing" note penned by the commish. That means, Koskinen told the assembled group of media in Washington, D.C., more digital solutions to taxes. And if tax reform can help achieve that, then... Read more →


And so it starts. Again. As mandated by Congress, the Internal Revenue Service has turned over some delinquent tax accounts to private debt collectors. These collection agencies will begin calling affected individuals this week. Yes, private debt collectors are again calling about unpaid federal taxes. Worried much? I am. New tax scam potential: I spelled out my primary concern in a post last month about the private collection letter the IRS had finalized. "If you think this opens the door -- and windows and attic vents -- wide for tax scammers, you are probably correct. And you are not alone.... Read more →


Wait. It's April, right? And isn't it March that has the proverbial lion-like entrance? Well, April apparently is trying to steal some monthly arrival literal thunder. Over the first weekend of this new month, violent storms raked much of Texas and are still marching east. Little April showers on spider web GIF by SomethingTraLaLa via Giphy Yes, I know spring heralds thunderstorm season, which is often dangerous and deadly like this weekend. But I also know I speak for a lot of us who were hoping simply for some more soothing April showers. So instead of just worrying about filing... Read more →


Have you made it through April Fools' Day without getting pranked? Good for you. Now be sure you don’t fall for a costly tax scam as the 2017 filing season winds down. Tax criminals are looking to steal identities and then use them to file for fraudulent tax refunds from not just taxpayers, but also the tax preparers who help us file. On Friday, March 31, the Internal Revenue Service, state tax departments and the tax industry — collectively known as the Security Summit, which was formed back in March 2015 to fight growing tax crimes — warned tax professionals... Read more →


The Internal Revenue Service collected more than $3.3 trillion during the 2016 fiscal year. That tax tidbit is part of the agency's 2016 Data Book, which details IRS activities from Oct. 1, 2015 through Sept. 30, 2016. After taking a dive in 2009, IRS collection of taxes has increased each of the last five fiscal years even though it's been forced to so with smaller budgets. Bringing in tax dollars and making sure that you, I and all the other U.S. taxpayers comply with the nation's tax laws are two of the IRS' major jobs. But for the last few... Read more →


Did you hear the Amazon.com tax news? No, I'm not talking about the online retailing giant's decision to collect sales tax in all the U.S. jurisdictions that have the levies. A U.S. Tax Court ruling on Internal Revenue Service attempts to collect more tax from an Amazon U.S.-Luxembourg arrangement went the global internet giant's way, saving it billions in taxes. The Seattle-based company also was a big winner last week when it comes to paying tax. We're talking $1.5 billion big. That's how much a U.S. Tax Court ruling on March 23 apparently has saved Amazon. European location, U.S. taxes:... Read more →


A Pennsylvania man said he didn't file 10 years' worth of federal tax returns because the forms required use of a Social Security number, which he considered analogous to the Biblical "mark of the beast." James Kerr Schlosser's 666 tax protest, however, didn't convince the Internal Revenue Service or the legal system. The 59-year-old Bird-in-Hand, Pennsylvania, resident was convicted on March 7 of failing to report $2.3 million he earned as a medical equipment salesman. Foreign accounts, coins used in scheme: To evade the tax due on the millions, federal court papers show that Schlosser used foreign business trusts and... Read more →


Aquarena Springs in San Marcos, Texas, was famous in its heyday, part of which just happened to coincide with my youth, as a wonderful water park. No visit to relatives in nearby San Antonio was complete until we headed to Aquarena to ride in a glass-bottom boat, marvel at the mermaids and cheer Ralph the swimming pig as he made his famous swine dive. Click fish image for full video view of Aquarena Springs from a glass-bottom boat. The park is gone, replaced by a water research program under the auspices of Texas State University, or Southwest Texas State as... Read more →


Let me make this very clear from the get-go. I never, ever, ever recommend that anyone cheat on his or her taxes. But if you're inclined to be a bit aggressive with your Form 1040 strategies, your odds of catching a tax examiner's eye are decreasing. The Internal Revenue Service's audit rate has been dropping for years and that trend likely will continue, due in part to more agency funding cuts in the latest federal budget proposal. Fewer audits yet again: Recently released IRS data shows that in 2016 the number of individual audits dropped for the fifth straight year.... Read more →